Corsair Gaming 2025 Q1 Earnings Solid Revenue Growth as Net Loss Narrows

Generated by AI AgentAinvest Earnings Report Digest
Thursday, May 8, 2025 7:00 am ET2min read
Corsair Gaming (CRSR) reported its fiscal 2025 Q1 earnings on May 07th, 2025. Corsair Gaming's Q1 results surpassed revenue expectations, showcasing a notable 9.6% increase from the previous year. However, earnings per share missed consensus estimates despite narrowing losses by 16.7% from a year ago. The company refrained from adjusting its full-year guidance due to tariff uncertainties but remains confident in achieving its original targets if current conditions persist.

Revenue
Corsair Gaming reported a revenue increase of 9.6%, reaching $369.75 million in Q1 2025 compared to $337.26 million in Q1 2024. The Gamer and Creator Peripherals segment contributed $111.97 million, while the Gaming Components and Systems segment brought in $257.78 million. Memory Products accounted for $141.09 million, and Other Component Products generated $116.69 million, culminating in a total net revenue of $369.75 million.

Earnings/Net Income
Corsair Gaming reduced its net loss to $0.10 per share in Q1 2025, reflecting a 16.7% improvement from a loss of $0.12 per share in Q1 2024. The net loss narrowed to $-10.32 million compared to $-11.03 million in the previous year. Despite narrowing losses, the EPS remains below investor expectations.

Price Action
The stock price of edged down 2.00% during the latest trading day, dropped 3.11% during the most recent full trading week, and edged up 1.40% month-to-date.

Post-Earnings Price Action Review
Over the past five years, Corsair Gaming's strategy of purchasing shares after a quarterly revenue drop and holding them for 30 days has yielded moderate returns. This strategy resulted in a 69.37% return, slightly underperforming the benchmark's 67.66% return but offering an excess return of 1.71%. The strategy boasts a compound annual growth rate (CAGR) of 12.13%, with a maximum drawdown of -16.28%. The Sharpe ratio stands at 0.75, indicating a reasonable risk-adjusted return profile. While the strategy has not dramatically outperformed the benchmark, it has provided consistent returns with an acceptable level of risk.

CEO Commentary
Andy Paul, Chief Executive Officer of Corsair Gaming, emphasized the company's strong execution in Q1, achieving revenue and earnings targets, driven by growth in the Gamer and Creator Peripherals segment and a rebound in the Gaming Components and Systems segment. The successful integration of Fanatec has improved product availability and customer service. Looking forward, he anticipates continued growth in the self-built PC market, contingent on stable tariff conditions and no significant consumer slowdown. Paul expressed confidence in the resilience of enthusiast-level products amid economic fluctuations, noting strong growth in non-China Asia and potential AI-driven advancements in their offerings.

Guidance
Corsair Gaming has chosen not to reaffirm its full-year 2025 guidance due to current uncertainties surrounding newly announced tariffs and potential retaliatory measures. However, the company remains on track to meet the guidance originally issued on February 12, 2025, if prevailing conditions persist. The leadership plans to provide an updated outlook later in the year as visibility improves.

Additional News
Corsair Gaming recently announced a significant leadership transition with Founder and CEO Andy Paul set to retire on July 1, 2025. Thi La, the current President and COO, will assume the role of CEO. Under their joint leadership, Corsair has expanded from DIY components to 30 product lines, including the recent acquisition of Fanatec. Additionally, Corsair’s Elgato brand won the prestigious ISE 2025 Best of Show Award for its Stream Deck Studio, recognized for innovation in live production control. Furthermore, Corsair has been selected by Apple to support gaming on Apple devices, reinforcing its reputation in the gaming peripherals industry.

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