Corsair Gaming Inc. (NASDAQ:CRSR) is one of the best tech stocks under $10 to invest in. On September 23, the company announced the release of its FRAME 4500X PC case, a new addition to its premium lineup. To target the high-end PC builders, the case features a panoramic glass design, modular flexibility, and improved airflow. It also supports reverse-connector motherboards from ASUS, Gigabyte, and MSI, further expanding compatibility for custom builds. Corsair (CRSR) Expands Gaming Hardware Portfolio wi ...

Core Viewpoint - Corsair has launched the FRAME 4500X, a new modular PC case designed for high-end builds, featuring a panoramic glass design and enhanced airflow capabilities, reinforcing the company's commitment to innovation in the PC building market [1][2][6]. Product Features - The FRAME 4500X expands on Corsair's earlier FRAME Modular Case System, offering a larger mid-tower solution with advanced airflow and cable management features, and compatibility with the latest motherboards from ASUS, Gigabyte, and MSI [2][3]. - It supports up to 10x 120mm fans or 5x 140mm fans, ensuring effective cooling, and includes a built-in adjustable GPU Anti-sag Stabilization Arm for larger graphics cards [3][4]. - The case features a customizable layout with a removable glass panel, QuikTurn screws for easy installation, and modern front panel I/O connections including USB 3.2 Gen 1 and Gen 2 ports [5][6]. Market Positioning - The launch of the FRAME 4500X highlights Corsair's strategy to deepen its ecosystem and increase attach rates, positioning the company as a leader in the premium PC segment [1][2][6]. - Corsair's products cater to a wide range of users, from casual gamers to professional content creators, enhancing its brand presence in the gaming and streaming markets [7].

Company Overview - Corsair Gaming is one of the largest global providers and innovators of high-performance products for gamers, streamers, content creators, gaming PC builders, and SIM driving enthusiasts [1] - The company has built a full ecosystem of products that work together to enhance performance for both casual gamers and committed professionals [2] Product Portfolio - Corsair's portfolio includes several brands such as Fanatec, Elgato, SCUF, Drop, and ORIGIN [2]

Summary of Corsair Gaming Conference Call Company Overview - **Company**: Corsair Gaming (NasdaqGS:CRSR) - **Industry**: Gaming and Streaming Products - **Key Brands**: Fanatec, Elgato, SCUF Gaming, Drop, ORIGIN PC - **CEO**: Thi La, who has been with the company for 15 years and took over as CEO in July 2025 [2][4] Core Strategic Priorities 1. **Accelerate Product Cadence**: Focus on bringing impactful products to market more quickly [4] 2. **Unlock Margin Opportunities**: Improve operational efficiency, particularly through AI capabilities and M&A synergies [4] 3. **Global Expansion**: Target underserved markets in Asia and Latin America while enhancing direct-to-consumer engagement [4] Market Opportunities - **SIM Racing Market**: Estimated at $1 billion and growing at double digits annually, with Fanatec integrated into Corsair's ecosystem [6][7] - **GPU Launch Impact**: The NVIDIA 5000 series and AMD 9000 series launches contributed to a 30% growth in gaming components and systems in Q2 [8] - **Content Cycle**: Anticipation for major game releases like Grand Theft Auto VI is expected to drive hardware sales, leading to a multi-upgrade cycle for gamers [9][10] Competitive Landscape - **Peripherals Market**: Corsair differentiates itself by integrating productivity solutions (e.g., Elgato Stream Deck) into its gaming products, enhancing overall value [14][15] Go-to-Market Strategy - **Channel Strategy**: Focus on expanding presence in Asia through local influencers and partnerships, leveraging popular games for marketing [16][17] Creator Economy Exposure - **Market Size**: The creator economy is projected to reach 250 million by 2024, with Elgato holding a significant market share [18] - **Product Initiatives**: Development of tools for creators, such as the Elgato marketplace, which offers customizable content and plugins [20] Tariff and Supply Chain Management - **Tariff Impact**: Minimal short-term impact from tariffs, with a strategy to expand the supply chain in East Asia and Mexico to mitigate risks [21] Consumer Demand Trends - **Resilience of Enthusiast Economy**: The gaming market is stable, with a growing number of gamers across generations, although growth rates may slow from double digits to single digits in a softer macroeconomic environment [23][24] AI Integration - **Internal AI Initiatives**: AI is being integrated into various business processes, improving efficiency and customer satisfaction by 10% [39] - **Product Development**: AI is being used to enhance consumer experiences, such as in the ORIGIN PC AI workstation and Elgato smart teleprompter [40][41] Capital Allocation and M&A Strategy - **Growth Focus**: Capital will be primarily allocated to product development and potential M&A opportunities that align with Corsair's strategic goals [44][54] - **Debt Management**: Current debt stands at $125 million, with no immediate pressure to pay down further unless growth opportunities arise [48] Long-term Vision - **Product Ecosystem**: Corsair aims to position itself as a comprehensive platform for gaming and streaming, integrating all necessary components for a seamless user experience [59][61] - **Global Market Expansion**: Plans to increase revenue contributions from Asia and Latin America while maintaining strong positions in North America and Europe [61][62]

Financial Data and Key Metrics Changes - In Q2 2025, the company achieved a 23% year-over-year revenue growth, totaling $320 million, with EBITDA of $8.1 million, surpassing consensus expectations [4][14] - Gross profit increased by 36% year-over-year, reflecting improved margin performance across the portfolio, with gross margin rising to 26.8% from 24.1% in Q2 2024 [4][16] - The net loss attributable to common shareholders was $17 million, or $0.16 per diluted share, compared to a net loss of $29.6 million, or $0.28 per diluted share in Q2 2024 [19] Business Segment Data and Key Metrics Changes - The Gaming Components and Systems segment generated $217.5 million in revenue during Q2 2025, up from $167.1 million in Q2 2024, with memory products contributing $105 million [15] - The Gamer and Creator Peripheral segment revenue increased to $102.6 million in Q2 2025 from $94.2 million in Q2 2024, with gross margin improving to 40% from 37.9% [14][17] Market Data and Key Metrics Changes - The APAC region contributed 13.5% of total revenues in Q2 2025, up from 11.3% in Q1 2025, indicating growth in this market [14] - The company gained market share in both keyboard and headset categories, driven by new product launches and increased demand for system upgrades [5] Company Strategy and Development Direction - The company is focusing on three strategic priorities: accelerating new product innovation, margin expansion, and channel expansion in underserved markets like Asia and Latin America [12] - The integration of Fanatec branded sim racing products is a key initiative, with plans for new product releases in Q4 2025 [27] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in business fundamentals and reaffirmed the full-year 2025 net revenue outlook of $1.4 billion to $1.6 billion [23] - The company is actively managing tariff impacts and expects to mitigate new country-specific tariffs through various strategies [22] Other Important Information - The company ended Q2 with a cash balance of $107.5 million and reduced debt from approximately $550 million to $125 million since the IPO [20][21] - The company is committed to maintaining a healthy balance sheet while navigating new tariffs and expanding its product portfolio [21] Q&A Session Summary Question: What are the next steps for Fanatec to continue momentum? - The company has completed the integration phase and is now focusing on product roadmap expansion and increasing availability, with new products expected in Q4 2025 [27] Question: Does the commentary include the tariffs that went into effect today? - Yes, the commentary includes the new country-specific tariffs that went into effect, while the semiconductor tariff's impact remains uncertain [30][31]

Financial Performance Highlights - Corsair's Q2 2025 revenue increased by 23% year-over-year, reaching $320 million[24] - Gross profit for Q2 2025 increased by 36% year-over-year to $85.9 million[24] - Adjusted EBITDA for Q2 2025 was $8.1 million, a significant increase compared to $(1.2) million in Q2 2024[24] - Adjusted operating income for Q2 2025 was $6.6 million, compared to $(3.8) million in Q2 2024[24] - Adjusted EPS (diluted) for Q2 2025 was $0.01, compared to $(0.07) in Q2 2024[24] Segment Performance - Gaming Components & Systems segment revenue grew by 30% year-over-year in Q2 2025[28], reaching $217.5 million[60] - Gamer & Creator Peripherals segment revenue increased by 9% year-over-year in Q2 2025[32], reaching $102.6 million[60] - Gaming Components and Systems gross profit increased 63.5% year-over-year in Q2 2025, reaching $44.8 million[60] - Gamer and Creator Peripherals gross profit increased 15.1% year-over-year in Q2 2025, reaching $41.1 million[60] Debt Reduction and Financial Guidance - Corsair reduced its term loan by $24 million in Q2 2025, bringing the remaining balance to $125 million[52] - Corsair's 2025 revenue guidance is between $1.4 billion and $1.6 billion[71]

PART I. FINANCIAL INFORMATION [Item 1. Financial Statements (Unaudited)](index=5&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) This section presents the company's unaudited condensed consolidated financial statements for the period ended June 30, 2025 [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) The company reported a 22.5% YoY net revenue increase to $320.1 million and a narrowed net loss for Q2 2025 Consolidated Statements of Operations Highlights (Three Months Ended June 30) | Financial Metric | 2025 (in thousands) | 2024 (in thousands) | YoY Change | |---|---|---|---| | Net revenue | $320,112 | $261,300 | +22.5% | | Gross profit | $85,871 | $63,085 | +36.1% | | Operating loss | $(16,923) | $(24,714) | Improved | | Net loss attributable to Corsair | $(20,862) | $(24,194) | Improved | | Diluted Net loss per share | $(0.16) | $(0.28) | Improved | Consolidated Statements of Operations Highlights (Six Months Ended June 30) | Financial Metric | 2025 (in thousands) | 2024 (in thousands) | YoY Change | |---|---|---|---| | Net revenue | $689,862 | $598,557 | +15.3% | | Gross profit | $188,233 | $149,724 | +25.7% | | Operating loss | $(19,186) | $(34,933) | Improved | | Net loss attributable to Corsair | $(31,321) | $(35,759) | Improved | | Diluted Net loss per share | $(0.26) | $(0.41) | Improved | [Condensed Consolidated Balance Sheets](index=7&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets stood at $1.22 billion as of June 30, 2025, with notable changes in inventories and long-term debt Key Balance Sheet Items (as of June 30, 2025 vs. Dec 31, 2024) | Balance Sheet Item | June 30, 2025 (in thousands) | Dec 31, 2024 (in thousands) | Change | |---|---|---|---| | Cash | $104,625 | $107,011 | -2.2% | | Accounts receivable, net | $179,233 | $218,648 | -18.0% | | Inventories | $295,627 | $259,979 | +13.7% | | Total Assets | $1,221,880 | $1,235,829 | -1.1% | | Accounts payable | $257,663 | $207,215 | +24.3% | | Long-term debt, net | $118,283 | $161,310 | -26.7% | | Total Liabilities | $606,709 | $616,377 | -1.6% | | Total Stockholders' Equity | $603,897 | $604,303 | -0.1% | [Condensed Consolidated Statements of Cash Flows](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) The company generated $48.9 million in operating cash flow for the first six months of 2025, a significant YoY improvement Cash Flow Summary (Six Months Ended June 30) | Cash Flow Activity | 2025 (in thousands) | 2024 (in thousands) | |---|---|---| | Net cash provided by (used in) operating activities | $48,943 | $(44,779) | | Net cash used in investing activities | $(5,785) | $(16,398) | | Net cash used in financing activities | $(47,033) | $(22,142) | | **Net decrease in cash and restricted cash** | **$(2,182)** | **$(83,977)** | [Notes to Condensed Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Details significant accounting policies, the Fanatec acquisition, debt refinancing, and segment reporting - The company is organized into two reportable segments: **Gamer and Creator Peripherals**, and **Gaming Components and Systems**[26](index=26&type=chunk)[32](index=32&type=chunk) - On September 19, 2024, Corsair acquired the Fanatec Business from Endor AG for a cash consideration of approximately **$43.7 million**, net of cash acquired, expanding its offerings in the sim racing market[40](index=40&type=chunk)[41](index=41&type=chunk) - On June 30, 2025, Corsair entered into an Amended and Restated Credit Agreement, refinancing its debt with a new **$125.0 million term loan** and a **$100.0 million revolving credit facility**, both maturing in 2030[58](index=58&type=chunk) Net Revenue by Segment (Six Months Ended June 30) | Segment | 2025 (in thousands) | 2024 (in thousands) | YoY Change | |---|---|---|---| | Gamer and Creator Peripherals | $214,615 | $201,202 | +6.7% | | Gaming Components and Systems | $475,247 | $397,355 | +19.6% | | **Total Net Revenue** | **$689,862** | **$598,557** | **+15.3%** | [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=33&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q2 2025 financial results, highlighting revenue growth, margin improvement, and operational factors [Results of Operations](index=38&type=section&id=Results%20of%20Operations) Q2 2025 net revenue grew 22.5% YoY, driven by strong segment performance and improved gross margins - Net revenue increased by **22.5%** for the three months ended June 30, 2025, driven by a **30.2%** increase in the Gaming Components and Systems segment and an **8.9%** increase in the Gamer and Creator Peripherals segment[122](index=122&type=chunk) - Gross margin for Q2 2025 increased by **270 bps to 26.8%**, primarily due to a 130 bps improvement from product mix and a 130 bps improvement from lower inventory reserves[124](index=124&type=chunk) - SG&A expenses for Q2 2025 increased by **$14.9 million (21.2%) YoY**, mainly due to higher distribution costs, marketing, personnel-related costs, and stock-based compensation[126](index=126&type=chunk) - Interest expense decreased by **27.9% in Q2 2025** compared to Q2 2024, primarily due to a lower principal balance on the term loan and lower interest rates[131](index=131&type=chunk) [Segment Results](index=43&type=section&id=Segment%20Results) Both segments reported revenue growth and improved gross margins in Q2 2025, led by the Gaming Components and Systems segment Segment Net Revenue (Three Months Ended June 30, 2025 vs 2024) | Segment | 2025 (in thousands) | 2024 (in thousands) | YoY Change | |---|---|---|---| | Gamer and Creator Peripherals | $102,642 | $94,229 | +8.9% | | Gaming Components and Systems | $217,470 | $167,071 | +30.2% | | **Total Net Revenue** | **$320,112** | **$261,300** | **+22.5%** | Segment Gross Margin (Three Months Ended June 30, 2025 vs 2024) | Segment | 2025 Gross Margin | 2024 Gross Margin | Change (bps) | |---|---|---|---| | Gamer and Creator Peripherals | 40.0% | 37.9% | +210 bps | | Gaming Components and Systems | 20.6% | 16.4% | +420 bps | | **Total Gross Margin** | **26.8%** | **24.1%** | **+270 bps** | [Liquidity and Capital Resources](index=45&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintained a strong liquidity position, supported by operating cash flow and a recent debt refinancing - Principal sources of liquidity as of June 30, 2025, were **$107.4 million in cash** and restricted cash, and **$99.8 million of borrowing capacity** under the June 2030 Revolving Facility[149](index=149&type=chunk) - Net cash provided by operating activities for the first six months of 2025 was **$48.9 million**, a significant improvement from the $44.8 million used in the same period of 2024[153](index=153&type=chunk) - The company refinanced its credit agreement on June 30, 2025, resulting in a new **$125.0 million term loan** and a **$100.0 million revolving facility**, both maturing in 2030[160](index=160&type=chunk) Summary of Contractual Obligations as of June 30, 2025 | Obligation Type | Total (in thousands) | Less than 1 Year | 1-3 Years | 3-5 Years | More than 5 Years | |---|---|---|---|---|---| | Debt principal and interest | $152,374 | $12,864 | $33,260 | $106,250 | $— | | Inventory-related purchase | $125,860 | $125,860 | $— | $— | $— | | Operating lease | $80,267 | $16,327 | $23,625 | $15,788 | $24,527 | | Other purchase | $12,872 | $11,266 | $1,606 | $— | $— | | **Total** | **$371,373** | **$166,317** | **$58,491** | **$122,038** | **$24,527** | [Quantitative and Qualitative Disclosures About Market Risk](index=50&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risks are related to variable interest rates and foreign currency fluctuations - The company is exposed to interest rate risk on its **$125.0 million variable-rate term loan**, where a hypothetical 100 basis point change would alter annual interest expense by approximately **$1.2 million**[170](index=170&type=chunk) - Foreign currency risk exists as approximately **20.1% of net revenue** for the first six months of 2025 was denominated in foreign currencies, primarily the Euro, which the company hedges with forward contracts[171](index=171&type=chunk)[172](index=172&type=chunk) [Controls and Procedures](index=51&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of the end of the quarter - Management concluded that as of June 30, 2025, the company's disclosure controls and procedures were **effective at a reasonable assurance level**[177](index=177&type=chunk) - **No material changes** were made to the internal control over financial reporting during the quarter ended June 30, 2025[178](index=178&type=chunk) PART II. OTHER INFORMATION [Legal Proceedings](index=52&type=section&id=Item%201.%20Legal%20Proceedings) Current legal proceedings are not expected to have a material adverse effect on the company's financial condition - The company does not expect any current legal proceedings to have a **material adverse effect** on its business, results of operations, or financial condition[181](index=181&type=chunk) [Risk Factors](index=52&type=section&id=Item%201A.%20Risk%20Factors) No material changes to previously disclosed risk factors were reported during the quarter - **No material changes** have occurred in the risk factors affecting the company since the last quarterly report[182](index=182&type=chunk) [Exhibits](index=53&type=section&id=Item%206.%20Exhibits) Lists key exhibits filed with the report, including the amended credit agreement and officer certifications - Key exhibits filed include the **Amended and Restated Credit Agreement** dated June 30, 2025, and certifications by the Principal Executive Officer and Principal Financial Officer[188](index=188&type=chunk)

[Financial Highlights](index=1&type=section&id=Financial%20Highlights) Corsair reported strong Q2 2025 results with double-digit year-over-year growth in revenue and gross profit, exceeding expectations, and significant improvement in profitability with positive Adjusted EBITDA and improved EPS Q2 2025 vs Q2 2024 Financial Highlights | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | **Revenue** | $320 million | $261.3 million | +23% | | **Gross Profit** | $85.9 million | $63.1 million | +36% | | **Adjusted EBITDA** | $8.1 million | $(1.2) million | Improved | | **GAAP Net Loss per Share** | $(0.16) | $(0.28) | Improved | | **Non-GAAP EPS** | $0.01 | $(0.07) | Improved | First Half 2025 vs First Half 2024 Financial Highlights | Metric | H1 2025 | H1 2024 | Change | | :--- | :--- | :--- | :--- | | **Revenue** | $690 million | $598.6 million | +15% | | **Gross Profit** | $188.2 million | $149.7 million | +26% | | **Adjusted EBITDA** | $30.8 million | $16.8 million | +83% | | **GAAP Net Loss per Share** | $(0.26) | $(0.41) | Improved | | **Non-GAAP EPS** | $0.13 | $0.03 | +333% | [Business Segment Performance](index=1&type=section&id=Business%20Segment%20Performance) Both business segments demonstrated strong year-over-year revenue growth, with Gaming Components & Systems growing 30% and Gamer Peripherals and Creator growing 9%, driven by new products and market expansion [Gaming Components & Systems Segment](index=1&type=section&id=Gaming%20Components%20%26%20Systems%20Segment) This segment's revenue grew 30% year-over-year, primarily fueled by strong demand for components compatible with new NVIDIA 5000 series and AMD 9000 series GPUs, alongside robust DDR5 DRAM memory demand - Achieved **30% year-over-year revenue growth**, largely driven by the launch of NVIDIA's 5000 series and AMD's 9000 series next-generation GPUs, which fueled demand for system upgrades and new builds[2](index=2&type=chunk) - The Memory business achieved strong, **double-digit year-over-year revenue growth**, driven by sustained demand for high-performance DDR5 DRAM[4](index=4&type=chunk) Gaming Components and Systems Segment Performance (Q2 2025 vs Q2 2024) | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | **Net Revenue** | $217.5M | $167.1M | +30.2% | | **Gross Profit** | $44.8M | $27.4M | +63.5% | | **Gross Margin** | 20.6% | 16.4% | +420 bps | [Gamer Peripherals and Creator Segment](index=2&type=section&id=Gamer%20Peripherals%20and%20Creator%20Segment) This segment delivered 9% year-over-year revenue growth, gaining market share in keyboards and headsets, with successful global rollout of Fanatec sim racing products and Elgato benefiting from the Nintendo Switch 2 launch - Delivered **9% year-over-year revenue growth**, supported by new product launches and gaining market share in both keyboard and headset categories[5](index=5&type=chunk) - Began the global rollout of Fanatec-branded racing products, with strong initial market adoption signaling a successful entry into the sim racing category[6](index=6&type=chunk) - Elgato brand benefited from the launch of the Nintendo Switch 2, which acted as a strong catalyst for increased gaming-related content creation[7](index=7&type=chunk) Gamer and Creator Peripherals Segment Performance (Q2 2025 vs Q2 2024) | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | **Net Revenue** | $102.6M | $94.2M | +8.9% | | **Gross Profit** | $41.1M | $35.7M | +15.1% | | **Gross Margin** | 40.0% | 37.9% | +210 bps | [Management Commentary and Strategy](index=2&type=section&id=Management%20Commentary%20and%20Strategy) Management emphasized disciplined execution and product innovation as key drivers, focusing on accelerating product delivery, improving operational efficiency from acquisitions, expanding into underserved channels, and proactively managing financial position amidst global tariff policies - CEO Thi La outlined three key strategic growth levers: accelerating innovative product delivery, expanding operational efficiency from acquisitions to drive margin expansion, and scaling presence in underserved channels, noting momentum in Asia[8](index=8&type=chunk) - New product innovations showcased at Computex 2025 include the Virtual Stream Deck technology and the ORIGIN PC AI Workstation 300, which are expected to unlock greater ecosystem synergy[8](index=8&type=chunk)[9](index=9&type=chunk) - CFO Michael G. Potter noted the company managed external headwinds, including a **$1.4 million bad debt expense** and tariffs, while also making a **$24 million term loan repayment** and proactively refinancing its credit facility on favorable terms[9](index=9&type=chunk) [Updated Full-Year 2025 Outlook](index=3&type=section&id=Updated%20Full-Year%202025%20Outlook) Corsair reaffirmed its full-year 2025 net revenue guidance of $1.4 billion to $1.6 billion, with an updated outlook on adjusted operating income and adjusted EBITDA to be provided later, pending clarity on macroeconomic factors - The company reaffirmed its net revenue outlook for the full year 2025 to be in the range of **$1.4 billion to $1.6 billion**[10](index=10&type=chunk) - An updated adjusted operating income and adjusted EBITDA outlook will be provided later in the year, contingent on gaining greater visibility on macro factors, including potential tariffs[11](index=11&type=chunk) [Financial Statements](index=6&type=section&id=Financial%20Statements) The financial statements detail Corsair's performance and financial position, showing a GAAP net loss improvement for Q2 2025, stable total assets of $1.22 billion, and a significant positive shift in operating cash flow for the first half of 2025 [Condensed Consolidated Statements of Operations](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) For Q2 2025, Corsair reported net revenue of $320.1 million and a GAAP net loss of $20.3 million, an improvement from the prior year, with similar improvements seen for the first six months Q2 2025 Income Statement Highlights (in thousands) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | **Net revenue** | $320,112 | $261,300 | | **Gross profit** | $85,871 | $63,085 | | **Operating loss** | $(16,923) | $(24,714) | | **Net loss** | $(20,306) | $(23,507) | | **Net loss per share (Basic)** | $(0.16) | $(0.28) | [Segment Information](index=7&type=section&id=Segment%20Information) For Q2 2025, the Gaming Components and Systems segment contributed $217.5 million in revenue with a 20.6% gross margin, while the Gamer and Creator Peripherals segment generated $102.6 million with a higher 40.0% gross margin, both showing year-over-year growth Q2 2025 Segment Performance (in thousands) | Segment | Net Revenue | Gross Profit | Gross Margin | | :--- | :--- | :--- | :--- | | **Gamer and Creator Peripherals** | $102,642 | $41,089 | 40.0% | | **Gaming Components and Systems** | $217,470 | $44,782 | 20.6% | | **Total** | $320,112 | $85,871 | 26.8% | [Condensed Consolidated Balance Sheets](index=8&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 30, 2025, Corsair maintained total assets of $1.22 billion, with cash and restricted cash at $107.4 million, a reduction in total debt to $124.4 million, and an increase in inventories to $295.6 million Key Balance Sheet Items (in thousands) | Account | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | **Cash and restricted cash** | $107,449 | $109,631 | | **Inventories** | $295,627 | $259,979 | | **Total assets** | $1,221,880 | $1,235,829 | | **Total liabilities** | $606,709 | $616,377 | | **Total stockholders' equity** | $603,897 | $604,303 | [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the first six months of 2025, net cash provided by operating activities was $48.9 million, a significant turnaround from the prior year's cash use, with $47.0 million used in financing activities primarily for debt repayment - Net cash provided by operating activities for the first six months of 2025 was **$48.9 million**, a significant improvement from a net cash use of **$(44.8) million** in the same period of 2024[30](index=30&type=chunk) - The company made debt repayments of **$49.0 million** in the first six months of 2025[30](index=30&type=chunk) [GAAP to Non-GAAP Reconciliations](index=10&type=section&id=GAAP%20to%20Non-GAAP%20Reconciliations) This section provides detailed reconciliations from GAAP to non-GAAP metrics, revealing a positive non-GAAP operating income of $6.6 million, non-GAAP net income of $1.3 million, and adjusted EBITDA of $8.1 million for Q2 2025, demonstrating significant year-over-year improvement [Non-GAAP Operating Income (Loss) Reconciliations](index=10&type=section&id=Non-GAAP%20Operating%20Income%20(Loss)%20Reconciliations) After adjustments, Corsair's non-GAAP operating income for Q2 2025 was $6.6 million, a significant improvement from a loss of $3.8 million in Q2 2024, with adjusted operating income reaching $27.3 million for the first six months GAAP to Non-GAAP Operating Income Reconciliation (in thousands) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | **Operating Loss - GAAP** | $(16,923) | $(24,714) | | **Adjustments** | $23,566 | $20,893 | | **Adjusted Operating Income (Loss) - Non-GAAP** | $6,643 | $(3,821) | [Non-GAAP Net Income (Loss) and Net Income (Loss) Per Share Reconciliations](index=11&type=section&id=Non-GAAP%20Net%20Income%20(Loss)%20and%20Net%20Income%20(Loss)%20Per%20Share%20Reconciliations) Adjusted non-GAAP net income for Q2 2025 was $1.3 million, or $0.01 per diluted share, marking a substantial turnaround from the adjusted net loss of $6.8 million, or $(0.07) per share, in Q2 2024 GAAP to Non-GAAP Net Income & EPS Reconciliation | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | **Net Loss - GAAP (in thousands)** | $(20,306) | $(23,507) | | **Adjusted Net Income (Loss) - Non-GAAP (in thousands)** | $1,294 | $(6,828) | | **Diluted EPS - GAAP** | $(0.16) | $(0.28) | | **Adjusted Diluted EPS - Non-GAAP** | $0.01 | $(0.07) | [Adjusted EBITDA Reconciliations](index=12&type=section&id=Adjusted%20EBITDA%20Reconciliations) Adjusted EBITDA for Q2 2025 was $8.1 million, a substantial improvement from a loss of $1.2 million in Q2 2024, with the first six months of 2025 showing an 83% increase to $30.8 million GAAP Net Loss to Adjusted EBITDA Reconciliation (in thousands) | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | **Net Loss - GAAP** | $(20,306) | $(23,507) | $(30,623) | $(34,536) | | **Adjusted EBITDA - Non-GAAP** | $8,138 | $(1,244) | $30,781 | $16,780 | [Important Information](index=3&type=section&id=Important%20Information) This section provides standard disclosures, including a company overview, forward-looking statement disclaimers, and a detailed explanation of the non-GAAP financial measures used in the report, along with contact information [About Corsair Gaming](index=3&type=section&id=About%20Corsair%20Gaming) Corsair is a global developer and manufacturer of high-performance products for gamers, content creators, and PC enthusiasts, offering a full ecosystem of products under multiple brands - Corsair is a leading global developer of products for gamers, content creators, and PC enthusiasts, delivering a full ecosystem of products[14](index=14&type=chunk) - The company sells products under multiple brands, including Fanatec, Elgato, SCUF Gaming, Drop, and ORIGIN PC[14](index=14&type=chunk)[15](index=15&type=chunk) [Forward-Looking Statements](index=4&type=section&id=Forward-Looking%20Statements) This section cautions investors that statements regarding future performance, such as the 2025 financial outlook, are subject to numerous risks and uncertainties, including macroeconomic conditions, trade regulations, and geopolitical events - The press release contains forward-looking statements regarding the 2025 financial outlook and strategic growth, which are not guarantees of future performance[16](index=16&type=chunk) - Key risks that could cause actual results to differ include macroeconomic conditions, trade regulations and tariffs, ability to market new products, and geopolitical events[16](index=16&type=chunk) [Use and Reconciliation of Non-GAAP Financial Measures](index=4&type=section&id=Use%20and%20Reconciliation%20of%20Non-GAAP%20Financial%20Measures) Corsair explains its use of non-GAAP measures like adjusted operating income, adjusted net income, and adjusted EBITDA to supplement GAAP results, believing these measures help evaluate operating performance and identify underlying business trends by excluding certain expenses - The company uses non-GAAP financial measures to supplement GAAP results, believing they help identify underlying business trends and are useful for investors and analysts[17](index=17&type=chunk)[18](index=18&type=chunk)[19](index=19&type=chunk) - Definitions are provided for calculating adjusted operating income (loss), adjusted net income (loss), adjusted net income (loss) per diluted share, and adjusted EBITDA[22](index=22&type=chunk)

Summary of Coursera Conference Call Company Overview - **Company**: Coursera - **CEO**: Tee La (newly appointed as of July 1) - **CFO**: Michael Potter - **Industry**: Online education and digital learning Key Points and Arguments Company Strategy and Vision - Tee La emphasized the need for a new chapter in the company's growth, focusing on consistent growth and margin discipline [16] - The company aims to expand market share and product innovation, with a focus on direct-to-consumer engagement [17] - There is a strategic emphasis on enhancing the e-commerce platform to adapt to changing consumer behaviors, particularly with the rise of AI-driven shopping [18] Market Dynamics - The gaming market is highlighted as a significant opportunity, with over 3 billion gamers and a growing creator economy of 200 million active streamers [8][9] - The DIY market is stable with a total addressable market (TAM) of $3 billion, while the newly entered Sim Racing category has a TAM of $1 billion with double-digit growth [10] - The company is preparing for a new upgrade cycle in gaming hardware, driven by new GPU releases from NVIDIA and AMD [30][31] Product Innovation and Ecosystem - Coursera has 25-26 product lines, with plans to enhance innovation consistency across all categories [21] - The integration of products within an ecosystem is a priority, aiming to create seamless experiences for consumers [22] - Recent product launches at Computex received positive recognition, indicating strong community engagement and market interest [47] Financial Performance and Margins - The growth in the gamer and creator peripheral segment has positively impacted overall margins, with a focus on higher-margin products [24][27] - Direct-to-consumer sales are expected to further enhance margins by eliminating channel costs [26] - The company is strategically positioned to benefit from lower tariff impacts due to its diversified manufacturing locations [38][41] Challenges and Opportunities - The company acknowledges the cyclical nature of the gaming business and the impact of GPU supply and demand on its performance [29] - There is a focus on global expansion, particularly in the underserved Asian market [13][20] - The integration of AI in internal operations has improved customer satisfaction and operational efficiency, contributing to better margins [52][56] Future Outlook - The company is optimistic about the upcoming gaming titles and the potential for increased consumer engagement and sales [11][31] - There is a commitment to exploring M&A opportunities that align with the company's growth strategy, particularly in the gaming and creative segments [50] Additional Important Content - The transition to AI-driven customer support has led to improved customer satisfaction scores [52] - The company is leveraging AI for product development and marketing, enhancing overall operational efficiency [52][56] - The CEO's background in technology and product development is seen as a key asset for driving future growth [5][16]

Financial Data and Key Metrics Changes - The company reported strong growth in Q1, with significant improvements in gross margins, particularly in the Gaming Components and Systems segment, which reached the highest levels in two years [39][41] - The overall revenue growth is expected to continue, with a focus on maintaining low expenses to achieve higher EBITDA margins [58][62] Business Line Data and Key Metrics Changes - The components business experienced notable year-over-year growth, driven by the GPU launch cycle, while peripherals also saw growth, primarily due to the Fanatec acquisition [6][44] - The peripherals segment showed strong double-digit growth throughout 2024, although growth slowed slightly in Q1 compared to previous quarters [42][44] Market Data and Key Metrics Changes - The gaming market continues to expand, with younger demographics spending more time gaming, which supports the company's growth [10][24] - The acquisition of Fanatec is expected to enhance market share in the racing sim products sector, which has a total addressable market exceeding $1 billion [45][52] Company Strategy and Development Direction - The company is focusing on customization and AI integration in its products, aiming to enhance customer experience and product offerings [27][30] - The leadership transition to Tee La is anticipated to bring a stronger emphasis on customization and AI, leveraging her extensive experience within the company [26][28] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's resilience to macroeconomic volatility, citing the ongoing GPU cycle as a significant tailwind [23][24] - The company is well-positioned to navigate tariff uncertainties, having already moved much of its production outside of China [16][19] Other Important Information - The company has a low net debt position and is focusing on growing revenue without significantly increasing expenses, which is expected to improve margins [62][63] - The integration of Fanatec into the company's systems has been completed, and there are plans to expand its market reach beyond direct-to-consumer sales [52][53] Q&A Session Summary Question: What impact have tariffs had on the business? - The company has minimized direct shipments from China, with only 19% of US products coming from there, and expects this to decrease to mid-single digits by year-end [16][17] Question: How does the company view its competitive position regarding sourcing? - The company believes it is in a better position than competitors due to its proactive measures in moving production out of China [20][21] Question: How resilient is the business to macroeconomic conditions? - Management noted that economic uncertainty often leads consumers to spend more time gaming at home, which can positively impact peripheral sales [24][25] Question: What changes can be expected under the new CEO? - Tee La is expected to emphasize customization and AI integration, building on her long-standing role within the company [26][28] Question: What is the outlook for the GPU cycle? - The GPU cycle is a significant driver for new PC builds, and the current launch is expected to spur additional revenue as demand exceeds supply [31][34] Question: How does the company plan to achieve higher EBITDA margins? - The strategy involves growing revenue while controlling expenses, particularly by focusing on higher-margin peripheral products [58][60]