sair Gaming(US:CRSR)2025-11-04 21:08Revenue and Profitability - Revenue increased 14% year-over-year to $345.8 million in Q3 2025, with a 15% increase to $1.0 billion for the first nine months of 2025[4] - Adjusted EBITDA improved 236% to $16.2 million in Q3 2025, and 117% to $47.0 million for the first nine months of 2025[4] - Gross profit rose 34% to $93.1 million in Q3 2025, and 28% to $281.3 million for the first nine months of 2025, driven by improved product mix and operational efficiency[4] - Net revenue for Q3 2025 reached $345.763 million, a 13.7% increase from $304.199 million in Q3 2024[23] - Gross profit for Q3 2025 was $93.096 million, up 33.6% from $69.661 million in Q3 2024, resulting in a total gross margin of 26.9%[25] - The net loss attributable to Corsair Gaming, Inc. for Q3 2025 was $10.629 million, compared to a net loss of $51.708 million in Q3 2024, indicating a significant improvement[23] - The net loss attributable to Corsair Gaming, Inc. for the nine months ended September 30, 2025, was $41,950, a decrease from $87,467 in the same period of 2024[34] - Corsair Gaming's adjusted net income for the nine months ended September 30, 2025, was $20,402, a significant increase from a loss of $(27,564) in the same period of 2024[34] Segment Performance - The Gaming Components and Systems segment grew over 15% year-over-year, driven by demand for memory products and high-performance PC builds[2] - The Gamer and Creator Peripherals segment grew over 10% year-over-year, supported by successful new product launches like the Saber Pro and Vanguard 96[5] - The company reported a gross margin of 39.3% for Gamer and Creator Peripherals and 20.9% for Gaming Components and Systems in Q3 2025[25] Future Outlook - Corsair expects full-year 2025 net revenue to be in the range of $1.425 billion to $1.475 billion, with adjusted EBITDA projected between $85 million and $90 million[15] - The company anticipates continued growth in gaming and creator peripherals, tracking in the high single digits for 2025[11] - Corsair's new product launches, including the Facecam 4K and advanced sim racing products, are expected to drive future growth and market expansion[6][7] - Management highlighted strong community response and early sell-through for recent product releases, indicating robust market demand[8] Financial Position - Cash and restricted cash at the end of Q3 2025 totaled $66.053 million, a decrease from $107.449 million at the beginning of the period[29] - Total current assets decreased to $607.681 million as of September 30, 2025, down from $623.388 million at the end of 2024[27] - Total liabilities decreased to $587.924 million as of September 30, 2025, compared to $616.377 million at the end of 2024[27] Operating Performance - Operating loss for Q3 2025 was $5.627 million, a significant improvement from an operating loss of $20.944 million in Q3 2024[23] - Cash flows from operating activities showed a net cash used of $36.991 million in Q3 2025, compared to a net cash provided of $25.101 million in Q3 2024[29] - For the three months ended September 30, 2025, Corsair Gaming reported an adjusted operating income of $13,537, compared to $2,421 in the same period of 2024, reflecting a significant improvement[31] - Adjusted EBITDA for the three months ended September 30, 2025, was $16,187, representing an adjusted EBITDA margin of 4.7%, up from 1.6% in the same period of 2024[36] Costs and Expenses - Despite $12 million in unforeseen tariff costs since May, Corsair achieved significant margin progress through agile supply chain management[12] - The company incurred one-time costs related to legal and other matters amounting to $2,490 for the three months ended September 30, 2025, compared to $29 in the same period of 2024[34] - Stock-based compensation expenses decreased to $5,187 for the three months ended September 30, 2025, from $7,424 in the same period of 2024[34] - The company recognized amortization expenses of $10,110 for the three months ended September 30, 2025, compared to $9,567 in the same period of 2024[31] - The company incurred interest expense of $2.053 million in Q3 2025, down from $3.011 million in Q3 2024[23] - The company reported acquisition and related integration costs of $528 for the three months ended September 30, 2025, down from $2,281 in the same period of 2024[34]