Corsair Gaming's Q1 2025: Navigating Contradictions in GPU Demand, Tariffs, and Growth Strategy

GPU refresh cycle and demand expectations, impact of tariffs on business operations, refresh cycle and consumer demand, impact of tariffs on demand, components segment growth and demand pull forward are the key contradictions discussed in Corsair Gaming's latest 2025Q1 earnings call.



Revenue and Growth:
- Corsair Gaming, Inc. reported revenue of $369.8 million for Q1 2025, representing an approximate 10% growth over Q1 of last year.
- Growth was driven by the successful integration of Fanatec, the rebound in the Gaming Component and Systems segment, and strong demand for new GPU cards from NVIDIA.

Segment Performance:
- The Gamer and Creator Peripheral segment contributed $112 million of net revenue, a 5% increase from Q1 2024.
- Growth in this segment was primarily due to the Fanatec acquisition, which added to the product offerings in the gamer and creator peripheral space.

Components and Systems Segment:
- The Gaming Components and Systems segment contributed $257.8 million of net revenue, a 12% increase from Q1 2024.
- This increase was due to the release of new GPU cards from NVIDIA, which led to increased demand for Corsair's components and memory products.

Margin Improvement:
- Corsair's gross margin increased to 27.7% compared to 25.7% in Q1 2024.
- The improvement was attributed to higher revenue from higher-performance gear and disciplined execution on operational efficiency.

Artificial Intelligence Impact:
- Corsair is integrating AI into its products and services, such as the AI Prompter from Elgato and AI Acoustic in wavelength.
- The use of AI is expected to enhance customer experience, reduce support costs, and drive brand strength, positioning the company for future growth.