0000950170-25-105191
SEC filingQ2 2025 net revenue grew 22.5% YoY to $320.1M, with gross margin expanding 270 bps to 26.8%, driven by Gaming Components & Systems segment growth.
Net revenue for Q2 2025 increased 22.5% year-over-year to $320.1M, driven by strong demand in both segments. Gross profit rose 36.1% to $85.9M, with gross margin expanding 270 basis points to 26.8%. The improvement was attributed to an improved product mix (130 bps) and lower inventory reserves (130 bps). Operating loss improved from -$24.7M to -$16.9M, due to higher gross profit partially offset by a 21.2% increase in SG&A expenses, which included higher distribution, marketing, and personnel costs. Net loss narrowed to $20.3M from $23.5M.
Gamer and Creator Peripherals segment revenue grew 8.9% to $102.6M, primarily from the Fanatec acquisition. Segment gross margin improved 210 bps to 40.0%, driven by lower inventory reserves and improved product mix, partially offset by higher tariffs and promotional spending. Gaming Components and Systems segment revenue surged 30.2% to $217.5M, fueled by the launch of next-generation GPUs and CPUs. Within the segment, memory products increased 28.4% and other component products rose 31.9%. Segment gross margin expanded 420 bps to 20.6%, benefiting from product mix, lower material costs, and improved factory utilization.
Management highlighted ongoing macroeconomic uncertainties, particularly the volatile tariff environment since February 2025. While the impact of tariffs was not material in the first half of 2025, expectations remain for continued volatility. The company is actively managing supply chain flexibility and manufacturing locations. The Fanatec acquisition is expected to further expand reach in enthusiast gaming markets. No specific quantitative guidance was provided, but the company expressed confidence in its liquidity position, with $107.4M cash and $99.8M available under the revolving credit facility.
As of June 30, 2025, Corsair held $104.6M in cash and $2.8M in restricted cash. Total debt stood at $124.4M, net of discount and issuance costs, comprising a $125.0M term loan under the new Amended and Restated Credit Agreement maturing June 30, 2030. The company had $99.8M of unused capacity on its revolving facility. Shareholders' equity was $603.9M, with an accumulated deficit of $85.8M. Inventory increased to $295.6M from $260.0M at year-end 2024, driven by the Fanatec acquisition and seasonal build.
Total long-term non-cancelable purchase commitments were $2.6M as of June 30, 2025, up from $1.6M at December 31, 2024. These primarily relate to multi-year contractual arrangements for the company's enterprise resource planning system and cloud computing hosting services. Letters of credit outstanding were $0.2M, with no draws during the period. The company also has a warranty obligation of $5.3M, with a provision of $2.0M recorded in the first half of 2025.
Corsair did not repurchase any shares or pay dividends during the period. The company repaid $49.0M of debt in the first half of 2025, primarily on the September 2026 Term Loan, and entered into a new $125.0M term loan facility maturing in 2030. Capital expenditures were $5.8M, or 0.8% of revenue. The company also has $216.7M remaining available for issuance under its shelf registration statement (expired August 1, 2025, with a new filing planned).
Corsair reports two segments: Gamer and Creator Peripherals and Gaming Components and Systems. For the six months ended June 30, 2025, segment gross profit was $87.5M and $100.7M, respectively. Revenue by major product category: Gaming Peripherals $214.6M, Memory products $246.1M, and Other Component products $229.2M. Geographically, the United States contributed $314.3M (45.6%), Europe and Middle East $246.1M (35.7%), Asia Pacific $85.0M (12.3%), and Americas (excluding U.S.) $44.5M (6.5%). Customer A represented 29.2% of total revenue.
The provided document excerpt does not contain the Consolidated Statements of Cash Flows. It includes notes on indemnification, equity incentive plans, stock-based compensation, net loss per share, and income taxes. No cash flow figures are explicitly stated. Therefore, no analysis of operating cash flow trends, capital expenditures, free cash flow, or capital returns can be performed. The filing likely contains the cash flow statement in a different section not included here.