Corsair Gaming (CRSR) Financials

Corsair Gaming’s financial results show a meaningful recovery from the losses reported through much of 2024 and early 2025. In Q2 2026, revenue was $314.3 million, down 11.3% from Q1 2026 but up 24.4% from the restated Q2 2025 level of $252.9 million. Gross profit increased to $104.3 million, producing a 33.2% gross margin versus 26.8% a year earlier. The company also reported $7.6 million of operating income and $8.8 million of net income attributable to common shareholders, compared with operating and net losses in Q2 2025.

Cash generation has improved considerably. Corsair produced $74.8 million of operating cash flow in Q2 2026, up from $29.7 million in Q1 and $30.2 million in Q2 2025. Cash and equivalents increased to $192.2 million from $118.2 million at the end of Q1, while total debt declined modestly to approximately $118.3 million from $119.8 million. The balance sheet remains supported by $646.8 million of current assets against $369.1 million of current liabilities, although inventory remains a substantial component of the asset base.

Investors should view the recovery as encouraging but still incomplete. Quarterly revenue remains below the $436.9 million reported in Q4 2025, operating income is still modest relative to sales, and the company continues to carry negative retained earnings. The latest cash flow also benefited from a $46.5 million favorable change in operating assets and liabilities, so future results will need to demonstrate that cash generation can remain strong without relying heavily on working-capital movements.

• Improved profitability: Q2 2026 operating income reached $7.6 million, reversing the $16.9 million operating loss reported in the restated Q2 2025 period.
• Gross-margin expansion: Gross margin improved to approximately 33.2% in Q2 2026 from 26.8% a year earlier, indicating better product mix, pricing, or cost control.
• Strong operating cash flow: Operating cash flow rose to $74.8 million in Q2 2026, more than double the prior-year period and well above the $29.7 million generated in Q1.
• Higher liquidity: Cash and equivalents increased by $74.1 million sequentially to $192.2 million, strengthening Corsair’s ability to fund operations and manage seasonal demand.
• Lower debt burden: Total short- and long-term debt declined to about $118.3 million from approximately $124.4 million in Q2 2025, while cash increased substantially.
• Inventory reduction: Net inventory fell to $264.5 million from $295.6 million a year earlier, which may reduce the risk of excess stock and inventory-related markdowns.
• Working-capital volatility: The Q2 operating cash-flow increase included a $46.5 million benefit from changes in operating assets and liabilities. Investors should monitor whether this improvement is recurring or timing-related.
• Seasonal revenue pattern: Q2 revenue declined sequentially from $354.5 million in Q1 2026, and it remains well below the $436.9 million reported in Q4 2025. Corsair’s results may continue to fluctuate with the consumer electronics and gaming upgrade cycle.
• Still-thin operating margin: Q2 2026 operating margin was only about 2.4%, down from approximately 3.9% in Q1. A modest decline in sales or gross margin could quickly pressure profitability.
• Share-count and balance-sheet risks: Diluted weighted-average shares rose to 109.2 million in Q2 2026 from 107.8 million in Q1, while retained earnings remained negative at $52.5 million. Goodwill and intangible assets also totaled approximately $463.9 million, creating potential impairment risk if business performance weakens.