0001193125-26-067833
SEC filingRevenue grew 11.9% to $1.47B with gross margin expansion of 400bps, driven by Gaming Components strength and Fanatec acquisition.
Corsair Gaming, Inc. describes itself as a leading global provider and innovator of high-performance products for gamers and digital creators such as streamers, vloggers, and broadcasters. The company has served the market for three decades and believes many of its products maintain leading market share positions. Its solution is described as the most complete suite of products among major competitors, addressing critical components for both game performance and streaming.
Corsair groups its products into two operating segments. The Gamer and Creator Peripherals segment includes high-performance gaming keyboards, mice, headsets, controllers, and streaming products such as capture cards, Stream Decks, microphones, teleprompters, audio interfaces, Facecam streaming cameras, studio accessories, command center displays, sim racing products, and gaming furniture. The Gaming Components and Systems segment includes high-performance power supply units (PSUs), cooling solutions, computer cases, DRAM modules, high-end prebuilt and custom-built gaming PCs and laptops, and AI workstations. Revenue share by segment was not disclosed in this section.
The company's product offering is enhanced by two proprietary software platforms: iCUE for gamers and the Elgato software suite for content creators, including Stream Deck control software. The Elgato software suite also includes Wave Link audio management, Camera Hub configuration software, and Elgato 4K Capture Utility. The Elgato Marketplace is a digital platform for discovering and purchasing plugins, digital assets, and workflow integrations. Key brands include Corsair, Elgato, Origin, SCUF, Drop, and Fanatec.
Products are sold worldwide through retail channels (directly to retailers such as Amazon and Best Buy or through distributors) and a direct-to-consumer channel. The company opened its first immersive retail experience store in California in 2025. In 2025, sales to the Americas, EMEA, and Asia Pacific represented 49.1%, 38.4%, and 12.5% of net revenue, respectively. Amazon accounted for 27.4% of net revenue in 2025.
The company faces intense competition in markets characterized by rapid technological change, constant price pressure, rapid product obsolescence, evolving industry standards, and new demands for features and performance. Competitors include large, multi-national businesses with substantially greater financial, technical, sales, marketing, personnel, and other resources, as well as low-cost products from Asia-based factories. Principal competitive factors include brand awareness, reputation, breadth and depth of product offering, product performance and quality, design and aesthetics, price, user experience, and online product reviews.
Corsair's growth strategy includes improving the quality of growth through optimizing product mix and innovation, scaling its software-driven ecosystem led by Stream Deck, driving margin expansion through operational discipline, expanding its direct-to-consumer business model, expanding into adjacent and premium categories such as sim racing, strengthening industry partnerships, continuing global expansion, and selectively pursuing complementary acquisitions.
As of December 31, 2025, the company employed 2,355 persons, including contractors working full-time in manufacturing operations and supporting software and IT development. None of the U.S. direct employees are represented by a labor union. International employees in several European countries covered by statutory collective bargaining agreements represent approximately 1.7% of the total employee population.
Corsair Gaming reported net revenue of $1,472.5 million for fiscal year 2025, an increase of 11.9% from $1,316.4 million in 2024. Gross profit rose to $425.9 million, yielding a gross margin of 28.9%, up 400 basis points year-over-year. The margin improvement was primarily driven by price increases (310 bps) and lower inventory reserves and manufacturing optimization (100 bps). Operating income swung to a positive $2.1 million from a loss of $50.0 million in 2024, reflecting improved gross margins and disciplined cost management. Net loss attributable to Corsair Gaming narrowed to $16.2 million from $85.2 million, benefiting from a $3.9 million reduction in interest expense due to debt repayment and lower rates. Other expense increased to $6.5 million from $1.8 million, largely due to a $2.6 million reversal of a previously recognized bargain purchase gain from the Fanatec acquisition. The effective tax rate was -23.2% versus -35.3% in 2024, with the change driven by a valuation allowance recorded in 2024 and shifts in geographic income mix.
Gamer and Creator Peripherals: Revenue increased 4.1% to $492.1 million, primarily from the inclusion of Fanatec post-acquisition revenues and growth in creator products. This was partially offset by lower demand for gaming peripherals and furniture in North America in the latter half of 2025. Segment gross margin improved 80 bps to 39.4%, as price increases and Fanatec contribution (250 bps) were partially offset by higher promotional activity (100 bps) and tariffs (100 bps).
Gaming Components and Systems: Revenue grew 16.2% to $980.3 million, led by strong demand for memory products and components from performance-focused PC builders, along with higher average selling prices for memory. Segment gross margin expanded 640 bps to 23.6%, driven by price increases and favorable product mix (450 bps), reduced promotional requirements (130 bps), and lower inventory reserves (100 bps), partly offset by higher tariff costs (50 bps).
Management did not provide specific numerical guidance for fiscal 2026. The outlook discussion centers on several key factors: continued macroeconomic uncertainty, including U.S. tariff policies that could impact supply chain costs; the normalizing cycle of GPU launches, with demand expected to moderate after the early 2025 launch; and ongoing constraints in semiconductor supply that elevate memory prices. The company highlights its flexible manufacturing base and ability to shift production to mitigate tariff impacts. Seasonality is expected to persist, with typical softness in the first half and stronger demand in the second half. Strategic priorities include expanding the Fanatec sim racing ecosystem, leveraging the growing market for local AI workstations, and continuing to launch innovative products (105 new products in 2025). The company believes its cash, operating cash flows, and $99.8 million in revolving credit facility capacity are sufficient to meet near-term obligations.
As of December 31, 2025, Corsair held $97.2 million in cash and $1.7 million in restricted cash. Total debt (net of discount and issuance costs) was $121.3 million, consisting of a term loan under the Amended and Restated Credit Agreement. The company had $99.5 million of unused capacity on its $100.0 million revolving credit facility. Shareholders' equity stood at $633.6 million, with an accumulated deficit of $71.2 million. Goodwill increased to $357.8 million, primarily due to $2.1 million in measurement period adjustments from the Fanatec acquisition and favorable foreign currency translation.
Long-term non-cancelable purchase commitments totaled $3.9 million as of December 31, 2025, up from $1.6 million in the prior year. These commitments primarily relate to multi-year contractual arrangements for the company's enterprise resource planning system subscriptions, support services, and other cloud computing hosting arrangements. Letters of credit outstanding were $0.5 million, with no amounts drawn. The company also maintains warranty obligations of $8.1 million and operating lease liabilities with a present value of $69.2 million.
Corsair did not repurchase any shares or pay dividends on common stock during the period. The company repaid $52.8 million of debt and debt issuance costs, while borrowing and repaying $45.0 million on its line of credit. Capital expenditures totaled $15.4 million, representing 1.0% of net revenue. The company's shelf registration statement (filed August 2025) allows for up to $300.0 million in securities offerings, with the full amount remaining available as of year-end.
Corsair operates two reportable segments: Gamer and Creator Peripherals ($492.1M revenue, $194.1M gross profit) and Gaming Components and Systems ($980.3M revenue, $231.8M gross profit). The Peripherals segment grew 4.1% YoY, while Components and Systems grew 16.2% YoY. Geographically, the United States contributed 43.0% of revenue ($633.6M), Europe and Middle East 38.4% ($565.8M), Asia Pacific 12.5% ($183.6M), and the Americas (excluding U.S.) 6.1% ($89.6M). Two customers represented 42.0% and 14.4% of accounts receivable, respectively.
Corsair faces significant regulatory and geopolitical risks, primarily from U.S.-China trade tensions and tariffs. The recent Supreme Court ruling invalidated some tariffs but the President imposed a new 10% tariff under the Trade Act of 1974, effective February 24, 2026, for 150 days. This adds cost uncertainty, and retaliatory measures from China could further disrupt supply chains. Additionally, the company's manufacturing concentration in Taiwan, China, and Vietnam exposes it to geopolitical instability, particularly Taiwan-China tensions, and natural disasters. Export controls on semiconductors and potential new national security tariffs on imports add further risk.
Corsair relies on third-party manufacturers, many single-source, for key components. DRAM modules (32.3% of 2025 revenue) depend on ICs from Samsung, Micron, and Hynix with no long-term contracts. Global semiconductor shortages, increased freight costs, and shipping disruptions (e.g., Red Sea) could delay production. The company's limited manufacturing facilities in Taiwan and the U.S. only assemble certain products, making it vulnerable to supplier issues.
Intense competition from established players like Logitech, Razer, and HP's HyperX, as well as emerging specialty brands, creates pricing pressure. Corsair's higher price points require continuous innovation and brand loyalty; failure to differentiate could lead to market share loss. The company also faces competition from cloud gaming and mobile platforms, which may reduce demand for high-performance PCs.
Corsair is a 'controlled company' with EagleTree owning 52.8% of stock, limiting minority shareholder influence. The company has $121.9 million in debt and must comply with financial covenants (e.g., maximum leverage ratio of 3.00x). Seasonality affects cash flow, and fluctuations in DRAM IC prices directly impact gross margins. The company's growth strategy relies on acquisitions, which carry integration and dilution risks.
Corsair depends on third-party GPU/CPU introductions to drive upgrades; if new hardware shifts toward AI data centers rather than gaming, demand could decline. Cybersecurity threats and data privacy regulations (GDPR, CCPA) require ongoing investment. Use of AI in products and operations introduces legal and regulatory uncertainty. The company's iCUE software and Elgato suite are critical; any bugs or failure to innovate could harm user experience.
The provided document excerpt does not include the Consolidated Statements of Cash Flows. The text contains only the index to financial statements (Item 8) and the independent auditor's report. No cash flow data—such as operating cash flow, investing activities, financing activities, capital expenditures, or free cash flow—is disclosed. Therefore, no analysis of cash flow quality, CFO vs. net income, capex intensity, or capital returns can be performed. The filing date is 2026-02-25, but the actual cash flow statement for Corsair Gaming, Inc. (CRSR) is not present in the supplied content.