Corsair Gaming, Inc. Q2 FY2025 earnings call

• Q2 2025 was strong with 23% y-o-y revenue growth to $320 million and EBITDA of $8.1 million. - Gaming Components and Systems grew 30% y-o-y, Gamer and Creator Peripherals grew 9% y-o-y. - Strength due to new product launches, market share gain in keyboard and headset, momentum from GPU launches and graphically intensive games. - Elgato business leading in creator space, strong demand for Stream Deck and video capture products. - Presence at COMPUTEX 2025 with new tech and awards, Virtual Stream Deck integration and MAKR 75 keyboard launch. - ORIGIN PC AI Workstation 300 launched, AI as long-term catalyst. - Ramping distribution of Fanatec sim racing products, focus on 3 strategic priorities: accelerate new product innovation, margin expansion, channel expansion.

In Q2 2025, Corsair's Gamer and Creator Peripherals segment contributed $102.6 million in net revenue, up from $94.2 million in Q2 2024. The Gaming Components and Systems segment had net revenue of $217.5 million in Q2 2025, compared to $167.1 million in Q2 2024. For the first 6 months of 2025, Gamer and Creator Peripherals segment revenue was $214.6 million vs $201.2 million in the prior year. Gaming Components and Systems segment revenue was $475.2 million vs $397.4 million. Gross profit in the Gamer and Creator Peripherals segment increased to $41.1 million in Q2 2025 from $35.7 million in Q2 2024, with a gross margin of 40% vs 37.9% previously. The Gaming Components and Systems segment gross profit was $44.8 million in Q2 2025 vs $27.4 million in Q2 2024, with a gross margin of 20.6% vs 16.4% previously. Memory products in the Gaming Components and Systems segment had a gross margin of 15.6% in Q2 2025 vs 11.5% in Q2 2024.

• Reaffirms net revenue outlook for 2025 in range of $1.4 billion to $1.6 billion. - Intends to update adjusted operating income and adjusted EBITDA outlook later in 2025 if macro factors like trade policy provide greater visibility. - Mitigating tariff impacts with plans in place, but scope of semiconductor tariffs unknown yet.

• Uncertainty around semiconductor tariffs, with unknown scope and structure, which may require pricing adjustments to protect margins over several quarters.

Q: Talk about next steps for Fanatec momentum.

A: First phase was integrating onto infrastructure, second was extending distribution to limited channel partners, third is stepping up road map and releasing new products towards Q4, building availability and tariff mitigation.

Q: Clarification on tariffs.

A: Commentary includes country-specific tariffs announced recently, One Big Beautiful Bill has small tax benefit, semiconductor tariffs scope unknown