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]

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]