third quarter 2026
Filed Nov 5, 2026Corsair Beats Q3 Guidance as Revenue Grows 6% Year-over-Year Diversified Portfolio Drives Growth; Full-Year Outlook Raised
Third-quarter revenue, adjusted EBITDA and non-GAAP EPS exceeded the high ends of the Company's guidance ranges, with growth led by memory and operating leverage. Full-year revenue, adjusted EBITDA and non-GAAP EPS outlook ranges were raised, although fourth-quarter adjusted EBITDA is expected to be below last year because memory gross margin is returning to a more normal level.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Q3 2026 net revenueGAAP | $367.0M | – | 6% |
| Q3 2026 gross profitGAAP | $97.83M | – | 5% |
| Q3 2026 total gross marginGAAP | 26.7% | – | – |
| Q3 2026 sales, general and administrative expenseGAAP | $84.37M | – | – |
| Q3 2026 product development expenseGAAP | $15.1M | – | – |
| Q3 2026 total operating expensesGAAP | $99.47M | – | – |
| Q3 2026 operating lossGAAP | −$1.64M | – | narrowed by $4.0 million |
| Q3 2026 net lossGAAP | −$2.39M | – | narrowed by $8.0 million |
| Q3 2026 diluted loss per shareGAAP | $(0.02) | – | – |
| Q3 2026 adjusted operating incomenon-GAAP | $17.54M | – | – |
| Q3 2026 adjusted operating income marginnon-GAAP | 4.8% | – | – |
| Q3 2026 adjusted net incomenon-GAAP | $14.81M | – | – |
| Q3 2026 adjusted diluted earnings per sharenon-GAAP | $0.13 | – | – |
| Q3 2026 adjusted EBITDAnon-GAAP | $22.37M | – | 38% |
| Q3 2026 adjusted EBITDA marginnon-GAAP | 6.1% | – | expanded by 140 basis points |
| First nine months of 2026 net revenueGAAP | $1.04B | – | – |
| First nine months of 2026 gross profitGAAP | $318.1M | – | 13% |
| First nine months of 2026 total gross marginGAAP | 30.7% | – | – |
| First nine months of 2026 total operating expensesGAAP | $298.4M | – | – |
| First nine months of 2026 operating income (loss)GAAP | $19.76M | – | – |
| First nine months of 2026 net income (loss)GAAP | $19.82M | – | – |
| First nine months of 2026 diluted earnings (loss) per shareGAAP | $0.15 | – | – |
| First nine months of 2026 adjusted operating incomenon-GAAP | $74.82M | – | – |
| First nine months of 2026 adjusted net incomenon-GAAP | $68.93M | – | – |
| First nine months of 2026 adjusted diluted earnings per sharenon-GAAP | $0.63 | – | – |
| First nine months of 2026 adjusted EBITDAnon-GAAP | $89.01M | – | – |
| First nine months of 2026 adjusted EBITDA marginnon-GAAP | 8.6% | – | – |
| Q3 2026 net cash used in operating activitiesGAAP | −$14.05M | – | – |
| First nine months of 2026 net cash provided by operating activitiesGAAP | $90.51M | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Gaming Components and SystemsMemory revenue grew 43% year-over-year to $167.3 million, supported by excellent supply chain execution, robust demand, market-wide ASP expansion and sequential market share gains. Systems demand was strong, while higher memory pricing weighed on DIY PC builds and standalone components. | $250.5M | – | 7% |
| Gamer and Creator PeripheralsGrowth reflected a shift in timing of certain new product introductions from the third to fourth quarter, logistics delays and a hub transition that increased backlog at quarter end. The hub transition has since been completed. | $116.5M | – | 3% |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
fourth quarter 2026 and full year 2026 outlook
- RevenueFourth quarter 2026: $420 million to $450 million. Full year 2026: $1.456 billion to $1.486 billion, compared to $1.40 billion to $1.47 billion previously.
- NoteFourth quarter 2026 adjusted EBITDA: $38 million to $42 million.
- NoteFourth quarter 2026 non-GAAP EPS: $0.26 to $0.31.
- NoteFull year 2026 adjusted EBITDA: $127 million to $131 million, compared to $121 to $131 million previously.
- NoteFull year 2026 non-GAAP EPS: $0.89 to $0.94, compared to $0.85 to $0.94 previously.
- NoteFourth quarter outlook assumes double-digit year-over-year growth in Gamer and Creator Peripherals.
- NoteMemory gross margin is expected to be approximately 18% to 20% in the fourth quarter, compared with an unusually high memory gross margin of 35% in last year's fourth quarter.
- NoteFourth quarter non-GAAP EPS outlook assumes approximately 112 million fully diluted shares outstanding.
Capital returns
- Repurchases of common stock were $5,011 (in thousands) for the first nine months of 2026.
- Dividend paid to noncontrolling interest was $175 (in thousands) for the first nine months of 2026.
What drove it
- Record third-quarter memory revenue was supported by strong demand, sequential market share gains, market-wide ASP expansion and supply chain execution.
- Corsair increased memory inventory sequentially by $37 million ahead of expected seasonally strong fourth-quarter demand.
- Systems demand was strong, with momentum across all categories driving meaningful year-over-year revenue growth.
- Peripherals entered the fourth quarter with a healthy backlog after the hub transition was completed and delayed product introductions began arriving.
- The fourth-quarter Peripherals outlook is led by Sim Racing, Elgato and SCUF, with higher-margin mix and continued direct-to-consumer progress expected to support consolidated gross margin.
- Trak Racer integration is underway and is expected to begin contributing in the fourth quarter.
Concerns
- Higher memory pricing continued to weigh on DIY PC builds and standalone components, which shrank year-over-year during the quarter.
- Gaming Components and Systems is expected to remain pressured by market-wide softness in DIY PC demand as elevated memory pricing delays system builds across the industry.
- Fourth-quarter adjusted EBITDA is expected to be below last year, mainly because memory gross margin is returning to a more normal level.
- The AI workstation initiative remains at an early stage, with a more meaningful revenue contribution expected in the latter part of 2027 and beyond when semiconductor availability normalizes.
- Third-quarter operating cash flow was negative as inventory increased by $104,601 (in thousands).
What to watch
- Delivery of double-digit year-over-year growth in Gamer and Creator Peripherals in the fourth quarter.
- Memory gross margin of approximately 18% to 20% in the fourth quarter.
- Conversion of the healthy Peripherals backlog following the completed hub transition.
- The initial fourth-quarter contribution from Trak Racer.
- Memory supply adequacy and the effect of elevated memory pricing on DIY PC demand.
- Progress in Corsair Pro AI workstations and the timing of semiconductor availability normalization.
Balance sheet and cash flow
- Cash and restricted cash were $136.2 million at quarter-end, up $70.2 million year-over-year and down $57.6 million quarter-on-quarter.
- Cash and restricted cash at the end of the period were $136,207 (in thousands), compared with $66,053 (in thousands) for the three months ended September 30, 2025.
- Cash and restricted cash current assets were $135,955 (in thousands) at September 30, 2026, compared with $98,583 (in thousands) at December 31, 2025.
- Inventories were $344,638 (in thousands) at September 30, 2026, compared with $303,336 (in thousands) at December 31, 2025.
- Debt maturing within one year, net was $6,125 (in thousands) at September 30, 2026; long-term debt, net was $110,628 (in thousands).
- Net cash used in investing activities was $47,204 (in thousands) in the third quarter, including $37,002 (in thousands) for acquisition of businesses, net of cash acquired.
- Net cash used in investing activities was $53,644 (in thousands) for the first nine months of 2026.
- Net increase in cash and restricted cash was $37,374 (in thousands) for the first nine months of 2026.
Analysis
Corsair reported third-quarter net revenue of $367,025 (in thousands), up 6%, and stated that revenue was $17.0 million above the high end of its $320 million to $350 million guidance range. Gross profit rose 5% to $97,826 (in thousands), while total gross margin was 26.7%, compared with 26.9% in the prior-year quarter. The Company reduced its GAAP operating loss to $(1,641) (in thousands) from $(5,627) (in thousands), and its GAAP net loss to $(2,387) (in thousands) from $(10,392) (in thousands). Adjusted EBITDA rose 38% to $22,373 (in thousands), with margin expanding to 6.1% from 4.7%. Non-GAAP diluted EPS was $0.13, above the $0.09 to $0.12 guidance range.
Gaming Components and Systems was the principal growth contributor, with revenue of $250,544 (in thousands), up 7%. Memory revenue grew 43% year-over-year to $167.3 million, driven by demand, ASP expansion, supply chain execution and sequential market share gains. Systems also grew, but management said elevated memory pricing continued to pressure DIY PC builds and standalone components. Segment gross profit increased to $52,787 (in thousands) from $48,804 (in thousands), and segment gross margin improved to 21.1% from 20.9%.
Gamer and Creator Peripherals revenue was $116,481 (in thousands), up 3%, as some launches moved from the third quarter into the fourth quarter and logistics delays and a hub transition resulted in elevated backlog. Segment gross profit rose to $45,039 (in thousands) from $44,292 (in thousands), while gross margin was 38.7% versus 39.3%. Management said the hub transition is complete and expects double-digit year-over-year segment growth in the fourth quarter, led by Sim Racing, Elgato and SCUF. The expected contribution from Trak Racer begins in the fourth quarter.
Cash and restricted cash were $136.2 million at quarter-end. The Company used cash for M&A and inventory investment, with acquisition of businesses, net of cash acquired, at $37,002 (in thousands) in the third quarter and inventory rising by $104,601 (in thousands) within operating cash flow. This produced net cash used in operating activities of $(14,055) (in thousands) in the quarter, although net cash provided by operating activities for the first nine months was $90,511 (in thousands). Corsair also repurchased $5,011 (in thousands) of common stock during the first nine months.
The full-year outlook was raised to revenue of $1.456 billion to $1.486 billion, adjusted EBITDA of $127 million to $131 million, and non-GAAP EPS of $0.89 to $0.94. Fourth-quarter guidance calls for revenue of $420 million to $450 million, adjusted EBITDA of $38 million to $42 million and non-GAAP EPS of $0.26 to $0.31. The central qualification is that fourth-quarter adjusted EBITDA is expected to be below last year because management expects memory gross margin of approximately 18% to 20%, versus 35% in last year's fourth quarter. Management identified this decline as the primary factor in the year-over-year fourth-quarter adjusted EBITDA change.
Management, verbatim
We delivered revenue of $367.0 million, up 6% year-over-year and $17.0 million above the high end of our guidance.
Thi La, Chief Executive Officer of Corsair
We are raising our full-year outlook. We expect Peripherals to deliver double-digit growth in the fourth quarter, led by Sim Racing and new product introductions.
Thi La, Chief Executive Officer of Corsair
The quarter again demonstrated our operating leverage, as higher revenue and gross profit flowed through to earnings.
Gordon Mattingly, Chief Financial Officer of Corsair
Not in the filing
stated, not guessed- Free cash flow was not reported.
- A common-stock dividend was not reported.
- Fourth-quarter gross-margin, operating-expense and tax-rate guidance were not reported.
- Full-year gross-margin, operating-expense and tax-rate guidance were not reported.
- Prior-quarter values were not reported for most income-statement metrics.
- A separate prior outlook section from the previous earnings release was not provided, so no actual-versus-prior-guidance comparison is included.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.