CRSR · Corsair Gaming, Inc.

Corsair delivered a materially stronger-than-expected first quarter 2026, marked by record profitability and strategic execution across both segments. The 500 basis point gross margin expansion to 32.7% reflects successful product mix optimization—particularly in Gamer and Creator Peripherals—and rigorous cost discipline, even amid tariff-related headwinds. Adjusted EBITDA surged 58% YoY to $35.8 million, surpassing guidance and confirming the sustainability of Corsair’s transformation toward higher-margin, ecosystem-driven businesses. GAAP and non-GAAP EPS both significantly exceeded consensus ($0.11 vs $0.26 prior quarter estimate; $0.27 vs $0.43 prior quarter estimate), underscoring the inflection in earnings quality. Segment dynamics diverged sharply: Gamer and Creator Peripherals grew 10% YoY to $123.3 million, fueled by Wave Next’s hardware-software integration, accelerating Elgato Marketplace adoption via AI-assisted development tools, and Fanatec’s strategic F1® partnership—enhancing authenticity and channel reach. Conversely, Gaming Components and Systems declined 10% YoY to $231.2 million due to persistent semiconductor shortages and elevated pricing, yet achieved a remarkable 670 bps gross margin improvement to 28.4%, demonstrating operational resilience. Management highlighted early traction in AI-focused workstations—a $22 billion global opportunity—as a promising long-term catalyst. Second quarter guidance implies sequential revenue seasonality but robust 70%+ YoY adjusted EBITDA growth, signaling continued margin focus. With net debt near zero and $5 million returned to shareholders under its $50 million buyback program, Corsair is now positioned to deploy increased financial flexibility across innovation, M&A, and capital returns as the year progresses.