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]

Financial Data and Key Metrics Changes - The company reported Q1 2025 net revenue of $369.8 million, a 10% increase from $337.3 million in Q1 2024 [6][18] - Gross profit for Q1 2025 was $102.4 million, up from $86.6 million in Q1 2024, with gross margin increasing to 27.7% from 25.7% [20][22] - Adjusted operating income for Q1 2025 was $20.6 million compared to $15.4 million in Q1 2024, while adjusted EBITDA rose to $22.6 million from $18 million [22][23] Business Segment Data and Key Metrics Changes - The Gamer and Creator Peripheral segment generated $112 million in net revenue, up from $107 million in Q1 2024 [19] - The Gaming Components and Systems segment contributed $257.8 million in net revenue, compared to $230.3 million in Q1 2024 [19] - Memory products revenue increased to $141.1 million in Q1 2025 from $124.9 million in Q1 2024 [19] Market Data and Key Metrics Changes - European markets accounted for 37.2% of Q1 2025 revenues, down from 38% in Q4 2024, while the APAC region increased to 11.3% from 9.1% [18] - The company noted strong demand for components and memory products as enthusiasts build new gaming PCs based on new high-performance GPUs [8][10] Company Strategy and Development Direction - The successful integration of Fanatec is expected to enhance product availability and customer experience, driving incremental revenue [6][7] - The company is focused on leveraging artificial intelligence to improve customer service and operational efficiency, viewing it as a significant growth driver [11][12] - The company maintains a flexible manufacturing strategy to adapt to global trade dynamics and mitigate tariff impacts [14][15] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the demand for gaming PCs despite potential economic slowdowns, noting that home entertainment tends to be less affected during recessions [9][33] - The company is cautious about the impact of tariffs on semiconductor products but believes that the current situation may not significantly affect consumer demand [9][10] - The company did not reaffirm full-year 2025 financial guidance due to uncertainties surrounding tariffs but plans to provide updates as visibility improves [24] Other Important Information - The company ended Q1 2025 with a cash balance of $102.5 million and reduced debt to $149 million, down $25 million from the prior quarter [24] - Inventory at the end of Q1 2025 was $276.8 million, reflecting a strategic investment in categories expected to support growth [24] Q&A Session Summary Question: Changes in confidence regarding the hardware refresh cycle around new NVIDIA GPUs - Management indicated that the demand for GPUs and CPUs will significantly influence the decision to build gaming PCs, with tariffs potentially impacting demand [27][28] Question: Drivers of growth in peripherals and components segment - The growth in peripherals was primarily driven by the Fanatec acquisition, while the components segment was limited by the availability of cards rather than tariff-related demand [35][36]

PART I. FINANCIAL INFORMATION [Item 1. Financial Statements (Unaudited)](index=5&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) Corsair's Q1 2025 unaudited financials show net revenue of $369.8 million, a net loss of $10.3 million, and positive operating cash flow of $18.8 million [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Q1 2025 saw net revenue rise 9.6% to $369.8 million, gross profit increase to $102.4 million, and net loss improve to $10.5 million Q1 2025 vs Q1 2024 Statement of Operations Highlights (in thousands, except per share amounts) | Metric | Q1 2025 | Q1 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Net revenue | $369,750 | $337,257 | 9.6% | | Gross profit | $102,362 | $86,639 | 18.2% | | Operating loss | $(2,263) | $(10,219) | 77.9% improvement | | Net loss attributable to Corsair | $(10,459) | $(11,565) | 9.6% improvement | | Diluted EPS | $(0.10) | $(0.12) | 16.7% improvement | [Condensed Consolidated Balance Sheets](index=7&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of March 31, 2025, total assets reached $1.24 billion, with cash at $99.8 million and long-term debt reduced to $136.4 million Balance Sheet Highlights (in thousands) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash | $99,843 | $107,011 | | Accounts receivable, net | $219,216 | $218,648 | | Inventories | $276,837 | $259,979 | | Total current assets | $633,359 | $623,388 | | Total assets | $1,239,457 | $1,235,829 | | Accounts payable | $240,114 | $207,215 | | Long-term debt, net | $136,391 | $161,310 | | Total liabilities | $616,165 | $616,377 | | Total stockholders' equity | $608,757 | $604,303 | [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Q1 2025 operating cash flow turned positive at $18.8 million, with $22.3 million used in financing activities, including debt repayment Cash Flow Summary (in thousands) | Cash Flow Activity | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash from operating activities | $18,750 | $(26,317) | | Net cash used in investing activities | $(3,072) | $(1,479) | | Net cash used in financing activities | $(22,254) | $(19,949) | | Net decrease in cash | $(7,102) | $(48,381) | | Cash at end of period | $102,529 | $130,183 | [Notes to Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Notes detail accounting policies, segment reporting, Fanatec acquisition adjustments, debt structure, and a valuation allowance on U.S. deferred tax assets - The company operates in two reportable segments: Gamer and Creator Peripherals and Gaming Components and Systems[24](index=24&type=chunk)[30](index=30&type=chunk) - The purchase price allocation for the Fanatec acquisition was adjusted in Q1 2025, resulting in the recognition of **$0.3 million in goodwill** and the reversal of a **$2.6 million bargain purchase gain** recognized in 2024[41](index=41&type=chunk)[42](index=42&type=chunk)[44](index=44&type=chunk) - As of March 31, 2025, the company had an outstanding Term Loan with a principal balance of **$149.0 million**, maturing in September 2026[55](index=55&type=chunk) - A full valuation allowance was recorded against U.S. federal and state deferred tax assets in 2024 due to a cumulative loss position, impacting the effective tax rate[79](index=79&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=27&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q1 2025 revenue growth of 9.6%, gross margin improvement, segment performance, and strong liquidity, while addressing macroeconomic challenges [Results of Operations](index=32&type=section&id=Results%20of%20Operations) Q1 2025 net revenue grew 9.6% to $369.8 million, gross margin expanded to 27.7%, and SG&A expenses increased 8.4% - Net revenue increased **9.6% YoY**, driven by an **11.9% increase** in Gaming Components and Systems and a **4.7% increase** in Gamer and Creator Peripherals[118](index=118&type=chunk) - Gross margin improved by **200 bps to 27.7%**, attributed to better product mix, lower product costs, and reduced costs for processing inventory returns[119](index=119&type=chunk) - SG&A expenses increased by **$6.8 million (8.4%)** due to higher distribution, marketing, stock compensation, and bad debt expenses, partially offset by a **$5.2 million decrease** in legal and professional fees[121](index=121&type=chunk) - Other expense included a **$2.6 million reversal** of a bargain purchase gain from the Fanatec Acquisition that was recognized in the prior year[125](index=125&type=chunk) [Segment Results](index=36&type=section&id=Segment%20Results) Gamer and Creator Peripherals revenue grew 4.7% to $112.0 million, while Gaming Components and Systems revenue increased 11.9% to $257.8 million Net Revenue by Segment (in thousands) | Segment | Q1 2025 | Q1 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Gamer and Creator Peripherals | $111,973 | $106,973 | 4.7% | | Gaming Components and Systems | $257,777 | $230,284 | 11.9% | | **Total Net Revenue** | **$369,750** | **$337,257** | **9.6%** | Gross Profit and Margin by Segment | Segment | Q1 2025 Gross Profit | Q1 2025 Gross Margin | Q1 2024 Gross Profit | Q1 2024 Gross Margin | | :--- | :--- | :--- | :--- | :--- | | Gamer and Creator Peripherals | $46,414 | 41.5% | $43,643 | 40.8% | | Gaming Components and Systems | $55,948 | 21.7% | $42,996 | 18.7% | | **Total Gross Profit** | **$102,362** | **27.7%** | **$86,639** | **25.7%** | [Liquidity and Capital Resources](index=38&type=section&id=Liquidity%20and%20Capital%20Resources) Liquidity includes $102.5 million cash and $99.8 million available credit, with $18.8 million generated from operations and reduced Term Loan balance - Principal sources of liquidity as of March 31, 2025, were **$102.5 million** in cash and restricted cash, and **$99.8 million** available under the Revolving Facility[135](index=135&type=chunk) Cash Flow Summary (in thousands) | Activity | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash from Operating activities | $18,750 | $(26,317) | | Net cash used in Investing activities | $(3,072) | $(1,479) | | Net cash used in Financing activities | $(22,254) | $(19,949) | - The company prepaid **$21.9 million** of its Term Loan principal in Q1 2025, reducing the outstanding principal to **$149.0 million**[146](index=146&type=chunk)[147](index=147&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=44&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company faces market risks from interest rate fluctuations on its variable-rate Term Loan and foreign currency exposure on 20.6% of net revenue - The company is exposed to interest rate risk on its **$149.0 million** variable-rate Term Loan; a **100 basis point** change would impact annual interest expense by about **$1.5 million**[162](index=162&type=chunk) - Foreign currency risk exists as **20.6%** of Q1 2025 net revenue was denominated in foreign currencies, mainly the Euro and British Pound[163](index=163&type=chunk) - The company uses foreign currency forward contracts to hedge against currency fluctuations, with an outstanding notional principal of **$33.6 million** as of March 31, 2025[164](index=164&type=chunk) [Item 4. Controls and Procedures](index=45&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of March 31, 2025, with no material changes to internal controls - Management concluded that as of March 31, 2025, the company's disclosure controls and procedures were effective at providing reasonable assurance[169](index=169&type=chunk) - No material changes to the internal control over financial reporting occurred during the quarter ended March 31, 2025[170](index=170&type=chunk) PART II. OTHER INFORMATION [Item 1. Legal Proceedings](index=46&type=section&id=Item%201.%20Legal%20Proceedings) The company does not anticipate any material adverse effects on its financials from current legal proceedings incidental to business - The company does not expect any current legal proceedings to have a material adverse effect on its business, results of operations, or financial condition[173](index=173&type=chunk) [Item 1A. Risk Factors](index=46&type=section&id=Item%201A.%20Risk%20Factors) A new risk factor addresses potential adverse impacts from changes in trade policies and tariffs, which could increase costs and disrupt supply chains - A new risk factor has been added concerning changes in trade policy and the imposition of tariffs by the U.S. and other countries[175](index=175&type=chunk) - Tariffs and retaliatory actions could increase product costs, limit raw material availability, disrupt the supply chain, and adversely affect sales, costs, and gross margins[176](index=176&type=chunk)[177](index=177&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=46&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) There were no unregistered sales of equity securities or use of proceeds to report during the period - There were no unregistered sales of equity securities during the period[178](index=178&type=chunk) [Item 6. Exhibits](index=48&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including CEO/CFO certifications and XBRL data files - The exhibits filed with this report include CEO and CFO certifications (Exhibits 31.1, 31.2, 32.1) and XBRL data files[183](index=183&type=chunk)

Financial Data and Key Metrics Changes - The company reported Q1 2025 net revenue of $369.8 million, a 10% increase from $337.3 million in Q1 2024 [17] - Gross profit for Q1 2025 was $102.4 million, up from $86.6 million in Q1 2024, with gross margin increasing to 27.7% from 25.7% [18][19] - Adjusted operating income for Q1 2025 was $20.6 million compared to $15.4 million in Q1 2024, while adjusted EBITDA rose to $22.6 million from $18 million [21] Business Line Data and Key Metrics Changes - The Gamer and Creator Peripheral segment generated $112 million in net revenue, up from $107 million in Q1 2024 [18] - The Gaming Components and Systems segment contributed $257.8 million in net revenue, compared to $230.3 million in Q1 2024 [18] - Memory products revenue increased to $141.1 million in Q1 2025 from $124.9 million in Q1 2024 [18] Market Data and Key Metrics Changes - European markets accounted for 37.2% of Q1 2025 revenues, down from 38% in Q4 2024, while the APAC region increased to 11.3% from 9.1% [17] - The company noted strong year-over-year growth in the components market, where it maintains a leadership position [15] Company Strategy and Development Direction - The successful integration of Fanatec is expected to enhance product availability and customer experience, driving incremental revenue [5][6] - The company is focused on leveraging artificial intelligence to improve customer service and operational efficiency, viewing it as a significant growth driver [11][12] - Corsair aims to capture market share by adapting quickly to changes in the market and policy environment, particularly regarding tariffs [14][15] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about consumer demand for gaming PCs despite potential tariff impacts, noting that home entertainment tends to be less affected during recessions [9][10] - The company is cautious about the economic environment but believes it is well-positioned to navigate challenges due to its flexible manufacturing strategy [14][15] - There is uncertainty regarding full-year 2025 financial guidance due to potential new tariffs, with plans to provide updates as visibility improves [23] Other Important Information - The company ended Q1 with a cash balance of $102.5 million and reduced debt to $149 million, enhancing financial flexibility [23] - Inventory levels increased to $276.8 million, reflecting strategic investments in key categories [23] Q&A Session Summary Question: Confidence in hardware refresh cycle around new NVIDIA GPUs - Management indicated that demand for gaming PCs is closely tied to GPU and CPU costs, with potential tariffs on semiconductors being a significant factor [28] - Early signs show that consumers are starting to build with new NVIDIA 50 series cards, although availability has been limited [29][31] Question: Growth drivers in peripherals and components segment - The growth in peripherals was primarily driven by the successful integration of Fanatec, while the components segment was limited by card availability rather than tariff concerns [34]

Financial Performance - Corsair's Q1 2025 net revenue reached $369.8 million, a 9.6% increase year-over-year compared to $337.3 million in Q1 2024[40] - The company's gross profit for Q1 2025 was $102.4 million, representing an 18.1% increase from $86.6 million in Q1 2024[40] - Adjusted EBITDA for Q1 2025 was $22.6 million, a 25.6% increase compared to $18.0 million in Q1 2024[40] - Adjusted earnings per share (diluted) increased by 22.2% to $0.11 in Q1 2025, compared to $0.09 in Q1 2024[40] Segment Results - Gaming Components and Systems segment net revenue was $257.8 million in Q1 2025, an 11.9% increase year-over-year from $230.3 million in Q1 2024[41] - Gamer and Creator Peripherals segment net revenue reached $112.0 million in Q1 2025, a 4.7% increase compared to $107.0 million in Q1 2024[41] - Gross profit margin for the Gamer and Creator Peripherals segment was 41.5% in Q1 2025[41] Market Trends and Partnerships - US NPD data indicates a 20% year-over-year growth in the component and memory categories for March 2025[23] - Corsair has established partnerships with Call of Duty: Warzone, Porsche, and Bentley to enhance brand visibility and market reach[17, 18] FANATEC Integration - The Sim Racing category global TAM is estimated at over $1 billion and is expanding at a double-digit annual growth rate[24]

[Financial Performance and Outlook](index=1&type=section&id=Financial%20Performance%20and%20Outlook) This section provides an overview of Corsair's financial results, management's perspective, and recent product developments [First Quarter 2025 Financial Highlights](index=1&type=section&id=First%20Quarter%202025%20Select%20Financial%20Metrics) Corsair reported strong growth in the first quarter of 2025, with net revenue increasing **9.6%** year-over-year to **$369.8 million**, driven by growth in both the Gamer and Creator Peripherals and the Gaming Components and Systems segments. The company's net loss narrowed to **$10.1 million** from **$12.5 million** in the prior-year quarter, while adjusted net income and adjusted EBITDA both saw significant increases, reaching **$12.3 million** and **$22.6 million**, respectively Q1 2025 Key Financial Metrics vs. Q1 2024 | Financial Metric | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | Net Revenue | $369.8M | $337.3M | +9.6% | | Net Loss (attributable to common shareholders) | ($10.1M) | ($12.5M) | Improved | | Diluted Net Loss per Share | ($0.10) | ($0.12) | Improved | | Adjusted Net Income | $12.3M | $9.5M | +29.5% | | Adjusted Diluted Net Income per Share | $0.11 | $0.09 | +22.2% | | Adjusted EBITDA | $22.6M | $18.0M | +25.6% | Q1 2025 Segment Net Revenue vs. Q1 2024 | Segment | Q1 2025 Net Revenue | Q1 2024 Net Revenue | Change | | :--- | :--- | :--- | :--- | | Gamer and Creator Peripherals | $112.0M | $107.0M | +4.7% | | Gaming Components and Systems | $257.8M | $230.3M | +12.0% | [Management Commentary and Business Outlook](index=1&type=section&id=Management%20Commentary%20and%20Business%20Outlook) Management expressed satisfaction with Q1 performance, highlighting the successful initial integration of Fanatec and a rebound in the Gaming Components segment. The company is proactively managing tariff risks by diversifying its supply chain, with only **19%** of U.S. imports sourced from China in Q1. While optimistic about continued momentum in the self-built PC market, Corsair is not reaffirming its full-year 2025 guidance due to tariff uncertainties. The company also noted the growing importance of AI as a growth driver and its efforts to strengthen the balance sheet - The initial integration of Fanatec into Corsair's e-commerce, supply chain, and customer support infrastructure was a key milestone, receiving an enthusiastic consumer response[4](index=4&type=chunk) - Corsair has a highly adaptable supply chain to mitigate tariff impacts. In Q1 2025, only **19%** of U.S. imports were from China, and this is expected to decrease. Manufacturing can be shifted to alternative locations within **two to four quarters** if necessary[7](index=7&type=chunk) - Due to uncertainty from newly announced tariffs, the company is not reaffirming its full-year 2025 guidance at this time but remains on track to achieve it if current conditions hold[7](index=7&type=chunk) - AI is becoming a significant growth driver, with Elgato already shipping AI-enhanced tools and customer support leveraging AI-driven systems[7](index=7&type=chunk) - The company has strengthened its balance sheet by reducing debt and enhancing liquidity, enabling strategic investments in innovation and long-term growth[7](index=7&type=chunk) [Recent Developments](index=2&type=section&id=Recent%20Developments) Corsair has recently launched several new products and expanded partnerships. This includes new HXi Series power supplies designed for the latest high-power GPUs from NVIDIA and AMD. The company also expanded its Custom Labs platform to include collaborations with major gaming franchises like Call of Duty and Starfield. Additionally, the Fanatec brand launched a new premium Porsche-licensed steering wheel - Launched HXi Series platinum power supplies with dual 12V-2x6 cables, designed to power demanding GPUs like the **NVIDIA® RTX 50 series** and **AMD® 9070 series**[9](index=9&type=chunk) - Expanded the Custom Labs platform with new options from the Call of Duty and Starfield franchises across multiple product categories[13](index=13&type=chunk) - The Fanatec brand launched the officially licensed CSL Elite Steering Wheel Porsche Vision GT, featuring a new premium microfiber fabric called Tactaris[13](index=13&type=chunk) [Financial Statements](index=6&type=section&id=Financial%20Statements) This section presents Corsair's consolidated financial statements, including statements of operations, segment information, balance sheets, and cash flows [Condensed Consolidated Statements of Operations](index=6&type=section&id=Corsair%20Gaming%2C%20Inc.%20Condensed%20Consolidated%20Statements%20of%20Operations) For the first quarter of 2025, Corsair's net revenue grew to **$369.8 million** from **$337.3 million** in the prior-year period. Gross profit increased to **$102.4 million**, up from **$86.6 million**. The company significantly reduced its operating loss to **$(2.3) million** compared to **$(10.2) million** in Q1 2024. Consequently, the net loss attributable to common shareholders improved to **$(10.1) million**, or **$(0.10) per share**, from **$(12.5) million**, or **$(0.12) per share**, year-over-year Q1 2025 Statement of Operations Highlights (in thousands) | Line Item | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net revenue | $369,750 | $337,257 | | Gross profit | $102,362 | $86,639 | | Operating loss | $(2,263) | $(10,219) | | Net loss attributable to common stockholders | $(10,067) | $(12,540) | | Net loss per share, diluted | $(0.10) | $(0.12) | [Segment Information](index=7&type=section&id=Corsair%20Gaming%2C%20Inc.%20Segment%20Information) In Q1 2025, both of Corsair's segments showed year-over-year growth. The Gamer and Creator Peripherals segment's net revenue increased to **$112.0 million** with a gross margin of **41.5%**. The larger Gaming Components and Systems segment saw a more substantial revenue increase to **$257.8 million**, with its gross margin expanding significantly to **21.7%** from **18.7%** in the prior year, contributing to an overall company gross margin of **27.7%** Q1 2025 Segment Performance vs. Q1 2024 | Segment & Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | **Gamer and Creator Peripherals** | | | | Net Revenue | $111.97M | $106.97M | | Gross Profit | $46.41M | $43.64M | | Gross Margin | 41.5% | 40.8% | | **Gaming Components and Systems** | | | | Net Revenue | $257.78M | $230.28M | | Gross Profit | $55.95M | $43.00M | | Gross Margin | 21.7% | 18.7% | | **Total Company** | | | | Total Net Revenue | $369.75M | $337.26M | | Total Gross Margin | 27.7% | 25.7% | [Condensed Consolidated Balance Sheets](index=8&type=section&id=Corsair%20Gaming%2C%20Inc.%20Condensed%20Consolidated%20Balance%20Sheets) As of March 31, 2025, Corsair's balance sheet showed total assets of **$1.24 billion**. Cash and restricted cash stood at **$102.5 million**. Inventories increased to **$276.8 million** from **$260.0 million** at the end of 2024. The company continued to de-lever, with long-term debt, net, decreasing to **$136.4 million** from **$161.3 million** over the quarter. Total stockholders' equity remained stable at **$608.8 million** Balance Sheet Highlights (in thousands) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and restricted cash | $102,282 | $109,385 | | Inventories | $276,837 | $259,979 | | Total assets | $1,239,457 | $1,235,829 | | Long-term debt, net | $136,391 | $161,310 | | Total liabilities | $616,165 | $616,377 | | Total stockholders' equity | $608,757 | $604,303 | [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Corsair%20Gaming%2C%20Inc.%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the three months ended March 31, 2025, Corsair generated **$18.8 million** in cash from operating activities, a significant turnaround from the **$26.3 million** used in the same period of 2024. This improvement was driven by better net loss and favorable changes in working capital, particularly accounts payable. The company used **$22.3 million** in financing activities, mainly for a **$25.0 million** debt repayment. Overall, cash and restricted cash decreased by **$7.1 million** during the quarter Q1 2025 Cash Flow Summary (in thousands) | Cash Flow Activity | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash provided by (used in) operating activities | $18,750 | $(26,317) | | Net cash used in investing activities | $(3,072) | $(1,479) | | Net cash used in financing activities | $(22,254) | $(19,949) | | **Net decrease in cash and restricted cash** | **$(7,102)** | **$(48,381)** | [Non-GAAP Financial Measures](index=4&type=section&id=Non-GAAP%20Financial%20Measures) This section explains Corsair's use of non-GAAP financial measures and provides reconciliations to their GAAP equivalents [Use of Non-GAAP Financial Measures](index=4&type=section&id=Use%20and%20Reconciliation%20of%20Non-GAAP%20Financial%20Measures) Corsair utilizes non-GAAP financial measures, including adjusted operating income, adjusted net income, and adjusted EBITDA, to supplement its GAAP-based financial results. The company believes these measures offer investors a clearer understanding of its core operating performance by excluding certain non-cash or non-recurring expenses such as amortization, stock-based compensation, acquisition costs, and restructuring charges. These metrics are used internally by management for performance evaluation and planning - The company presents non-GAAP financial information as it believes these measures help identify underlying business trends that could be masked by excluded expenses[16](index=16&type=chunk) - Key adjustments to derive non-GAAP figures include backing out amortization, stock-based compensation, one-time legal costs, acquisition and integration costs, and restructuring charges[18](index=18&type=chunk)[21](index=21&type=chunk) [GAAP to Non-GAAP Reconciliations](index=10&type=section&id=GAAP%20to%20Non-GAAP%20Reconciliations) In Q1 2025, Corsair's non-GAAP metrics showed significant improvement over their GAAP counterparts and the prior year. The GAAP operating loss of **$(2.3) million** was adjusted to a non-GAAP operating income of **$20.6 million**. The GAAP net loss of **$(10.3) million** reconciled to a non-GAAP adjusted net income of **$12.3 million**. Adjusted EBITDA increased to **$22.6 million** from **$18.0 million** year-over-year, with the adjusted EBITDA margin expanding to **6.1%** from **5.3%** Q1 2025 GAAP to Non-GAAP Reconciliation Highlights (in thousands) | Metric | Q1 2025 GAAP | Q1 2025 Non-GAAP | Q1 2024 Non-GAAP | | :--- | :--- | :--- | :--- | | Operating Income (Loss) | $(2,263) | $20,636 | $15,398 | | Net Income (Loss) | $(10,317) | $12,319 | $9,516 | | Adjusted EBITDA | N/A | $22,643 | $18,024 | Q1 2025 Margin Comparison | Margin | GAAP | Non-GAAP | | :--- | :--- | :--- | | Operating Margin | -0.6% | 5.6% | | Adjusted EBITDA Margin | N/A | 6.1% |