Corsair Gaming (CRSR) AI Stock Analysis

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Corsair Gaming

(NASDAQ:CRSR)

Rating:66Neutral

Price Target:

$9.50

▲(4.28%Upside)

Corsair Gaming's overall stock score reflects significant profitability challenges and a negative P/E ratio, countered by positive cash flow trends and stable financial health. The earnings call and CEO transition highlight potential growth, while technical indicators suggest short-term bullish momentum. However, valuation concerns and tariff uncertainties pose risks.

Positive Factors

Market Performance

Corsair reported Q1 results that beat estimates and consensus on revenue.

Product Demand

The launch of new Nvidia GPUs has sparked demand for components of new high-end systems, driving a shift toward higher-end component offerings.

Product Partnerships

Corsair launched quality partnerships for key peripherals and should benefit from a year of decent game releases.

Negative Factors

Guidance Uncertainty

Management did not reaffirm their original FY25 guidance due to tariff uncertainty.

Tariff Risk

Headline risk from tariffs has recently pressured shares, but Corsair’s exposure remains limited.

Tariff Uncertainty

Corsair withdrew its FY:25 guidance for revenue and Adjusted EBITDA due to significant uncertainty on whether reciprocal tariffs re-emerge on other APAC countries where Corsair has sourcing exposure.

Corsair Gaming (CRSR) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$951.33M

Dividend YieldN/A

Average Volume (3M)887.11K

Price to Earnings (P/E)―

Beta (1Y)1.77

Revenue Growth-6.53%

EPS Growth-1059.95%

CountryUS

Employees2,567

SectorTechnology

Sector Strength84

IndustryComputer Hardware

Share Statistics

EPS (TTM)0.11

Shares Outstanding105,821,144

10 Day Avg. Volume578,931

30 Day Avg. Volume887,107

Financial Highlights & Ratios

PEG Ratio-5.12

Price to Book (P/B)1.52

Price to Sales (P/S)0.00

P/FCF Ratio13.19

Enterprise Value/Market Cap0.89

Enterprise Value/Revenue0.16

Enterprise Value/Gross Profit2.45

Enterprise Value/Ebitda17.64

Forecast

1Y Price Target

$11.00

Price Target Upside20.75% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering4

Corsair Gaming Business Overview & Revenue Model

Company DescriptionCorsair Gaming, Inc. (CRSR) is a prominent American company that specializes in designing and manufacturing high-performance gear and technology for gamers, content creators, and PC enthusiasts. The company's extensive product portfolio includes gaming peripherals such as keyboards, mice, and headsets, as well as PC components like power supplies, cooling solutions, and memory modules. Additionally, Corsair offers streaming equipment and software to enhance the gaming and content creation experience, catering to both casual and professional users.

How the Company Makes MoneyCorsair Gaming generates revenue through the sale of its diverse range of products across several key categories. The primary revenue streams include gaming peripherals, which encompass products like keyboards, mice, and headsets, and PC components, including cases, power supplies, and cooling solutions. Another significant revenue source is the company's memory products, which are essential for high-performance computing and gaming. Corsair also capitalizes on the growing market for streaming and content creation by offering products like capture cards and lighting solutions. The company sells its products through various distribution channels, including direct-to-consumer sales via its website, partnerships with major retailers, and collaborations with e-commerce platforms. Additionally, Corsair benefits from strategic partnerships and sponsorships within the gaming and esports industries, further bolstering its brand visibility and market reach.

Corsair Gaming Key Performance Indicators (KPIs)

Any

Revenue by Geography

Revenue by Geography
Breaks down revenue across different regions, revealing where Corsair Gaming is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.

Chart InsightsCorsair Gaming's revenue in the Americas shows a steady recovery, driven by strong performance in the Gamer and Creator Peripheral segment, bolstered by the successful integration of Fanatec. However, Asia Pacific continues to struggle, reflecting challenges in market penetration and ongoing tariff uncertainties. Europe and the Middle East exhibit volatility, but recent quarters indicate potential stabilization. The company's focus on AI-driven innovations and strategic debt reduction enhances its resilience, but tariff-related uncertainties remain a significant risk to sustained growth.

Data provided by:

Main Street Data

Corsair Gaming Earnings Call Summary

Earnings Call Date:May 06, 2025

(Q1-2025)

% Change Since: 32.41%|

Next Earnings Date:Jul 31, 2025

Earnings Call Sentiment Positive

The earnings call highlighted strong revenue growth, successful integration of Fanatec, and advancements in AI-driven innovations, contributing to an optimistic outlook. However, ongoing net losses and uncertainty due to tariffs present challenges that the company is navigating.

Q1-2025 Updates

Positive Updates

Revenue Growth

Corsair reported $370 million in revenue for Q1 2025, representing approximately 10% growth over Q1 2024.

Successful Integration of Fanatec

Fanatec Sim Racing operation was successfully integrated, aligning across website, e-commerce systems, ERP, supply chain, and customer support infrastructure, contributing to growth in the Gamer and Creator Peripheral segment.

AI-Driven Innovations

Corsair introduced AI-enhanced tools like the AI Prompter and integrated AI into wavelength with AI Acoustic, enhancing customer relationships and reducing support costs.

Improved Financial Metrics

Gross margin improved to 27.7% from 25.7% in Q1 2024. Adjusted EBITDA increased to $22.6 million from $18 million in Q1 2024.

Debt Reduction

Corsair reduced debt to $149 million, down $25 million from the prior quarter, enhancing financial flexibility and resilience.

Negative Updates

Net Loss

First quarter net loss attributable to common shareholders was $10.1 million or $0.10 per diluted share compared to a net loss of $12.5 million or $0.12 per diluted share in Q1 2024.

Uncertainty Due to Tariffs

Corsair did not reaffirm full-year 2025 financial guidance due to uncertainty from new tariffs and potential retaliatory actions.

Operational Challenges

Although integration expenses of Fanatec are mostly behind, some supply chain changes are still being made.

Company Guidance

During Corsair Gaming's First Quarter 2025 earnings call, the company reported $369.8 million in net revenue, reflecting a 10% year-over-year growth from Q1 2024. The Gamer and Creator Peripheral segment generated $112 million, while the Gaming Components and Systems segment brought in $257.8 million. Corsair achieved a gross profit of $102.4 million, with a gross margin of 27.7%, an improvement from 25.7% the previous year. Adjusted EBITDA for the quarter was $22.6 million, up from $18 million in Q1 2024. The company also noted a GAAP operating loss of $2.3 million and an adjusted net income of $12.3 million. They highlighted the successful integration of Fanatec, contributing to growth in the peripherals segment, and discussed strategies to mitigate tariff impacts, with only 19% of U.S. market products sourced from China. Corsair's liquidity remains strong, with a cash balance of $102.5 million and $149 million in debt, down by $25 million from the previous quarter.

Corsair Gaming Financial Statement Overview

Summary

Corsair Gaming faces profitability challenges with declining revenues and negative net income. The balance sheet is stable with low leverage, while cash flow shows positive operational cash generation, indicating potential recovery. The company needs to improve profitability to enhance its financial standing.

Income Statement

Neutral

Corsair Gaming's income statement reveals a challenging environment with declining revenues and negative net income for the TTM period. The gross profit margin stands at 25.45% and the net profit margin is -6.67%, indicating profitability issues. Revenue growth is negative compared to previous years, reflecting a downward trend. The negative EBIT and EBITDA margins further highlight operational inefficiencies.

Balance Sheet

Positive

The balance sheet shows a relatively stable equity position with an equity ratio of 49.11%, suggesting good financial health. The debt-to-equity ratio is low at 0.02, indicating manageable debt levels. However, the return on equity is negative due to consistent net losses, which is a concern for investors seeking profitability.

Cash Flow

Positive

Cash flow analysis shows a positive operating cash flow of $80.94 million in the TTM period, supporting liquidity. Free cash flow has improved significantly, with a growth rate of 171% compared to the previous year, reflecting effective cash management. However, the operating cash flow to net income ratio is high due to negative net income, suggesting reliance on non-operational factors.

TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
1.35B	1.32B	1.46B	1.38B	1.90B	1.70B
	Gross Profit
343.32M	327.60M	360.26M	296.63M	513.85M	465.43M
	EBIT
-42.00M	-49.95M	9.69M	-54.79M	137.89M	158.36M
	EBITDA
7.53M	3.45M	64.64M	-1.06M	182.99M	201.59M
	Net Income Common Stockholders
-84.08M	-85.18M	-2.59M	-53.95M	100.96M	103.22M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
129.94M	107.01M	175.62M	153.83M	65.15M	133.34M
	Total Assets
1.26B	1.24B	1.36B	1.30B	1.34B	1.31B
	Total Debt
230.04M	237.04M	246.50M	295.17M	308.26M	338.96M
	Net Debt
100.10M	130.03M	70.88M	141.35M	243.11M	205.63M
	Total Liabilities
567.94M	616.38M	663.48M	641.81M	769.22M	876.73M
	Stockholders Equity
663.54M	604.30M	667.58M	623.84M	568.18M	437.39M
Cash Flow		Free Cash Flow
70.54M	26.03M	76.39M	40.07M	9.22M	159.96M
	Operating Cash Flow
80.94M	35.88M	89.15M	66.39M	20.19M	168.95M
	Investing Cash Flow
-54.30M	-52.70M	-26.98M	-47.03M	-20.54M	-10.28M
	Financing Cash Flow
-52.98M	-50.68M	-37.39M	72.61M	-65.40M	-79.13M

Corsair Gaming Technical Analysis

Technical Analysis Sentiment

Positive

Last Price9.11

Price Trends

50DMA

7.80

Positive

100DMA

8.95

Positive

200DMA

7.88

Positive

Market Momentum

MACD

0.36

Negative

RSI

63.45

Neutral

STOCH

80.43

Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CRSR, the sentiment is Positive. The current price of 9.11 is above the 20-day moving average (MA) of 8.38, above the 50-day MA of 7.80, and above the 200-day MA of 7.88, indicating a bullish trend. The MACD of 0.36 indicates Negative momentum. The RSI at 63.45 is Neutral, neither overbought nor oversold. The STOCH value of 80.43 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CRSR.

Corsair Gaming Risk Analysis

Corsair Gaming disclosed 62 risk factors in its most recent earnings report. Corsair Gaming reported the most risks in the “Finance & Corporate” category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 1 New Risks

We use AI in our business, and challenges relating to the development and use of AI, including generative AI, could result in competitive harm, reputational harm, and legal liability, and adversely affect our results of operations. Q4, 2024

Corsair Gaming Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SMCI	78 Outperform	$24.59B	23.84	21.03%	―	82.10%	6.35%
DELL	72 Outperform	$73.87B	17.25	-179.12%	1.66%	7.67%	―
WDC	70 Neutral	$18.76B	10.35	28.45%	―	21.22%	―
STX	68 Neutral	$25.29B	17.22	-109.27%	2.30%	36.29%	―
CRSR	66 Neutral	$951.33M	―	-15.20%	―	-6.53%	-1059.95%
HPQ	64 Neutral	$23.40B	9.60	84.33%	4.45%	2.08%	-12.41%
Sector *	61 Neutral	$11.55B	10.41	-6.86%	2.93%	7.50%	-8.30%

* Technology Sector Average

Performance Comparison

CRSR

Corsair Gaming

9.11

-2.62

-22.34%

HPQ

25.18

-9.25

-26.87%

STX

Seagate Tech

127.64

33.79

36.00%

SMCI

Super Micro Computer

44.13

-36.12

-45.01%

WDC

Western Digital

54.43

-3.57

-6.16%

DELL

Dell Technologies

112.70

-22.58

-16.69%

Corsair Gaming Corporate Events

Executive/Board ChangesBusiness Operations and Strategy

Corsair Gaming Announces CEO Transition in 2025

Positive

Feb 14, 2025

On February 12, 2025, Corsair Gaming announced the retirement of its founder and CEO, Andy Paul, effective July 1, 2025, after 31 years with the company. Thi La, currently President and COO, has been appointed as his successor and will take over on the same date. La has been with Corsair since 2010, significantly contributing to its growth from a $300 million company to a diverse entity with 30 product lines. Her appointment is expected to continue the company’s trajectory of innovation and market leadership. Stakeholders can anticipate a seamless transition, as La’s extensive experience and vision align with Corsair’s goals of further growth and product development.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.