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 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]