second quarter 2026
Filed Aug 6, 2026Corsair Reports Strong Second Quarter 2026 Profit Growth and Cash Generation
Record gross margin, a return to GAAP operating income and net income, sharply higher adjusted EBITDA, and strong operating cash flow outweighed a 2% decline in net revenue. Results also included approximately $15.6 million of tariff-refund benefit to GAAP gross profit.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net revenueGAAP | $314.3 million | – | down 2% year-over-year |
| Gross profitGAAP | $104.3 million | – | increased 21% year-over-year |
| Gross marginGAAP | 33.2% | expanded by 45 basis points sequentially | expanded by 635 basis points year-over-year |
| Operating incomeGAAP | $7.6 million | – | improved |
| Net incomeGAAP | $9.1 million | – | improved |
| Diluted earnings per shareGAAP | $0.06 | – | improved |
| Adjusted EBITDAnon-GAAP | $30.8 million | – | increased 279% year-over-year |
| Adjusted EBITDA marginnon-GAAP | 9.8% | – | expanded by 730 basis points |
| Non-GAAP diluted earnings per sharenon-GAAP | $0.23 | – | – |
| Direct-to-consumer businessother | 20% of total net revenue | – | – |
| Net cash provided by operating activitiesGAAP | $74.8 million | – | increased 148% year-over-year |
| Cash and restricted cashGAAP | $193.9 million | increased $74.1 million sequentially | – |
| Tariff-refund benefit to GAAP gross profitGAAP | approximately $15.6 million | – | – |
| Tariff-refund benefit to gross marginGAAP | approximately 500 basis points | – | – |
| Net loss excluding tariff refundGAAP | $5.7 million | – | – |
| GAAP diluted loss per share excluding tariff refundGAAP | $(0.07) | – | – |
| Adjusted EBITDA excluding tariff refundnon-GAAP | $16.6 million | – | – |
| Non-GAAP diluted earnings per share excluding tariff refundnon-GAAP | $0.09 | – | – |
| Operating expenses reductionGAAP | $6.1 million | – | reduced year-over-year |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Gamer and Creator PeripheralsContinued strong demand across gaming peripherals, streaming components, and Sim Racing solutions, supported by market share gains, successful new product introductions, ecosystem expansion, and Fanatec momentum. | $115.9 million | – | grew 13% year over year |
| Gaming Components and SystemsHigher memory pricing weighed on DIY PC builds and standalone components. Memory revenue grew 17% year-over-year, while Systems demand remained strong with continued AI compute momentum. | $198.5 million | – | declined 9% year-over-year |
third quarter of 2026 and full year 2026 outlook
- RevenueThird quarter of 2026: $320 million to $350 million. Full year 2026: $1.40 billion to $1.47 billion.
- NoteThird quarter of 2026 Adjusted EBITDA: $18 million to $21 million.
- NoteThird quarter of 2026 Non-GAAP EPS: $0.09 to $0.12.
- NoteFull year 2026 Adjusted EBITDA: $121 to $131 million.
- NoteFull year 2026 Non-GAAP EPS: $0.85 to $0.94.
- NoteFull year 2026 net revenue represents an increase of approximately $35 million at the assumed midpoint of the updated guidance range, compared to prior guidance.
- NoteThe assumed midpoint of the full year 2026 adjusted EBITDA range is up approximately $19 million compared to the assumed midpoint of the prior guidance range of $100 million to $115 million.
What drove it
- Gross margin reached a company-record 33.2%, supported by improving product mix, disciplined execution, and a continued shift toward higher-margin categories.
- Gamer and Creator Peripherals gross profit increased 27% year-over-year to $52.0 million, and the segment benefited from a favorable shift toward higher-margin categories.
- Gamer and Creator Peripherals gross margin was 44.9%.
- Gaming Components and Systems gross profit increased 17% year-over-year to $52.2 million, while gross margin expanded 570 basis points to 26.3% year-over-year.
- Fanatec carried gross margins above the Gamer and Creator Peripherals segment average and contributed to the segment's double-digit revenue growth.
- The Company recognized a benefit of approximately $15.6 million to GAAP gross profit from refunds of tariffs previously paid under the International Emergency Economic Powers Act.
- Corsair completed the acquisition of Trak Racer on August 3, 2026, extending Fanatec's product range and distribution reach within its Sim Racing platform.
- The Elgato Marketplace delivered strong first half year-over-year growth, with gross revenue and transaction volume each up over 100%, product submissions up more than 300%, and more than 500,000 new accounts added.
Concerns
- Net revenue was down 2% year-over-year.
- Higher memory pricing continued to weigh on the market for DIY PC builds and standalone components, which shrank year-over-year during the quarter.
- Gaming Components and Systems revenue declined 9% year-over-year.
- The tariff-refund process is materially complete, although Corsair may receive immaterial administrative adjustments or interest in future periods.
- The significance of the AI workstation opportunity to operations remains early, with a more impactful contribution expected in the latter part of 2027 and beyond.
What to watch
- Whether Gamer and Creator Peripherals delivers the outlook's continued double-digit growth, led by Fanatec, Elgato and Stream Deck.
- Whether higher-margin mix and continued direct-to-consumer progress support consolidated gross margin.
- The impact of elevated memory pricing on DIY demand and the expected adequacy of memory supply availability.
- Execution and potential synergies from the Trak Racer acquisition across product range and channel reach.
- Expansion of Stream Deck into workflow automation and professional broadcasting, as well as Marketplace development through AI.
Balance sheet and cash flow
- Net cash provided by operating activities increased 148% year-over-year to $74.8 million.
- Cash and restricted cash increased $74.1 million sequentially to $193.9 million at quarter-end.
- Ended the quarter with $193.9 million of cash and restricted cash against approximately $118.7 million of debt.
Analysis
Corsair reported a strong second quarter of 2026 profit and cash-flow improvement despite a 2% year-over-year decline in net revenue to $314.3 million. Gross profit increased 21% year-over-year to $104.3 million and consolidated gross margin reached a company-record 33.2%, up 635 basis points year-over-year and 45 basis points sequentially. GAAP operating income was $7.6 million, compared with an operating loss of $16.9 million a year ago, while net income was $9.1 million, compared with a net loss of $20.3 million.
The reported result included a significant nonrecurring tariff-refund contribution. Refunds of tariffs previously paid under the International Emergency Economic Powers Act added approximately $15.6 million to GAAP gross profit and approximately 500 basis points to gross margin. The refund benefited net income by approximately $14.9 million, adjusted EBITDA by approximately $14.3 million, and non-GAAP diluted EPS by $0.14. Excluding the benefit, Corsair said net loss would have been $5.7 million, adjusted EBITDA would have been $16.6 million, and non-GAAP diluted EPS would have been $0.09. The tariff-refund process is now materially complete.
Gamer and Creator Peripherals was the primary growth engine. Revenue grew 13% year over year to $115.9 million and gross profit increased 27% year-over-year to $52.0 million. The segment benefited from demand for gaming peripherals, streaming components, and Sim Racing products, including Fanatec, and management cited market share gains, product introductions, and ecosystem expansion. Fanatec's direct-to-consumer orientation and above-segment-average gross margins supported the mix. Corsair also completed the Trak Racer acquisition on August 3, 2026 to broaden its Sim Racing range and distribution reach.
Gaming Components and Systems remained challenged at the revenue line, with revenue declining 9% year-over-year to $198.5 million as higher memory pricing delayed DIY PC builds and affected standalone components. Within that segment, memory revenue grew 17% year-over-year, supported by supply-chain management, demand, and sequential market share gains in North America. Systems demand also remained strong on AI compute momentum. Although segment revenue fell, gross profit increased 17% year-over-year to $52.2 million and gross margin expanded 570 basis points to 26.3% year-over-year.
Cash generation was a further strength. Net cash provided by operating activities increased 148% year-over-year to $74.8 million, and cash and restricted cash increased $74.1 million sequentially to $193.9 million. The company also reported approximately $118.7 million of debt and said operating expenses were reduced by $6.1 million year-over-year. For the third quarter of 2026, Corsair expects net revenue of $320 million to $350 million, adjusted EBITDA of $18 million to $21 million, and non-GAAP EPS of $0.09 to $0.12. Full-year guidance calls for net revenue of $1.40 billion to $1.47 billion, adjusted EBITDA of $121 to $131 million, and non-GAAP EPS of $0.85 to $0.94, with the outlook assuming continued double-digit Gamer and Creator Peripherals growth but ongoing pressure on DIY demand from elevated memory pricing.
Management, verbatim
We delivered another quarter of significant profitability improvement, with gross margin reaching a record for the Company at 33.2%, gross profit increasing 21% year-over-year, net loss of $5.7 million excluding the tariff refund and adjusted EBITDA, excluding the tariff refund, of $16.6 million, above the high end of our guidance.
Thi La, Chief Executive Officer of Corsair
While elevated memory pricing continues to delay DIY PC builds, we believe that demand has been deferred, not lost, and that Corsair is well positioned to benefit as market conditions normalize.
Thi La, Chief Executive Officer of Corsair
The quarter showed strong conversion of gross-profit improvement into earnings and cash generation.
Gordon Mattingly, Chief Financial Officer of Corsair
Not in the filing
stated, not guessed- Period-end date
- Prior-year net revenue amount
- Prior-quarter net revenue amount
- Prior-year gross profit amount
- Prior-quarter gross profit amount
- Prior-year and prior-quarter consolidated gross-margin percentages
- Prior-year adjusted EBITDA amount
- Prior-quarter adjusted EBITDA amount
- Prior-year and prior-quarter adjusted EBITDA margin percentages
- Prior-quarter GAAP operating income
- Prior-quarter GAAP net income
- Prior-quarter GAAP diluted earnings per share
- Prior-quarter non-GAAP diluted earnings per share
- Free cash flow
- Capital expenditures
- Share repurchases
- Dividends
- Gross-margin guidance
- Operating-expense guidance
- Tax-rate guidance
- Prior outlook section for formal comparison of actual results against prior guidance
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.