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Corsair Gaming (CRSR)
NASDAQ:CRSR
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Corsair Gaming
(NASDAQ:CRSR)
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Rating:53Neutral
Price Target:
$5.50
▼(-4.68% Downside)
Action:ReiteratedDate:02/18/26
The score is held back mainly by inconsistent profitability (net losses and very thin operating margin) and a weak technical backdrop (below key moving averages with negative MACD). These are partially offset by improved balance sheet leverage, consistently positive operating/free cash flow, and an earnings call that highlighted strong FY2025 margin/EBITDA execution plus buybacks, despite conservative 2026 revenue guidance and supply/tariff headwinds.
Positive Factors
Improved leverage and capital structure
Material deleveraging meaningfully strengthens financial flexibility and lowers servicing risk. With a larger equity base versus assets, Corsair can better absorb demand swings, fund buybacks or M&A selectively, and has more room for investment without relying heavily on external debt.
Consistent operating and free cash flow
Reliable cash generation provides a durable cushion versus earnings volatility and funds core needs (inventory, R&D, D2C expansion) internally. Positive FCF supports the $50M buyback, reduces refinancing need, and enhances ability to invest in platform and retail initiatives over time.
Margin and adjusted EBITDA expansion in 2025
Substantial adjusted EBITDA expansion reflects operational execution and better gross margins (2025 gross margin ~29%). If sustained via D2C, product mix, and cost discipline, this provides the structural potential for durable profitability improvement and reinvestment capacity.
Negative Factors
Persistent net losses and weak operating profit
Despite revenue recovery, very thin operating margins and multi-year net losses show weak conversion of sales to shareholder returns. This limits ROE, constrains reinvestment without cutting margins, and makes results sensitive to cost or demand shocks over the medium term.
Semiconductor supply constraints
Ongoing semiconductor tightness limits visibility and capacity for Corsair's components and systems segment, capping revenue upside and raising risk of cycle-driven margin erosion. Supply constraints can force higher procurement cost, slower product launches, and uneven channel fulfillment.
Tariff headwind pressuring margins
A recurring ~$12M tariff drag is a structural cost pressure that reduces gross margin unless offset by pricing, sourcing changes, or mix shifts. Persistent tariff exposure complicates margin planning and could force competitive price increases or margin dilution over multiple quarters.
Corsair Gaming (CRSR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$615.44M
Dividend YieldN/A
Average Volume (3M)3.21M
Price to Earnings (P/E)―
Beta (1Y)2.01
Revenue Growth9.79%
EPS Growth63.17%
CountryUS
Employees2,567
SectorTechnology
Sector Strength88
IndustryComputer Hardware
Share Statistics
EPS (TTM)0.43
Shares Outstanding106,662,340
10 Day Avg. Volume2,367,848
30 Day Avg. Volume3,205,557
Financial Highlights & Ratios
PEG Ratio0.58
Price to Book (P/B)0.99
Price to Sales (P/S)0.43
P/FCF Ratio18.12
Enterprise Value/Market Cap1.07
Enterprise Value/Revenue0.45
Enterprise Value/Gross Profit1.55
Enterprise Value/Ebitda12.86
Forecast
1Y Price Target
$7.83Price Target Upside35.70% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering6
EPS Forecast (FY)0.64
Revenue Forecast (FY)$1.57B
Corsair Gaming Business Overview & Revenue Model
Company DescriptionCorsair Gaming, Inc., together with its subsidiaries, designs, markets, and distributes gaming and streaming peripherals, components and systems in the Americas, Europe, the Middle East, and the Asia Pacific. The company offers gamer and creator peripherals, including gaming keyboards, mice, headsets, and controllers, as well as capture cards, stream decks, USB microphones, studio accessories, and EpocCam software. It also provides gaming components and systems comprising power supply units, cooling solutions, computer cases, and DRAM modules, as well as prebuilt and custom-built gaming PCs, and others; and PC gaming software comprising iCUE for gamers and Elgato's streaming suite for streamers and content creators. In addition, the company offers coaching and training, and other services. It sells its products through a network of distributors and retailers, including online retailers, as well as directly to consumers through its website. The company was incorporated in 1994 and is headquartered in Fremont, California. Corsair Gaming, Inc. is a subsidiary of Corsair Group (Cayman), LP.
How the Company Makes MoneyCorsair generates revenue through multiple streams, primarily from the sale of gaming peripherals and systems. Key revenue streams include direct sales of hardware products such as keyboards, mice, headsets, and other gaming accessories, often through both retail and online channels. Additionally, Corsair earns significant revenue from its software products that enhance gaming performance and user experience. The company also benefits from partnerships and collaborations with other gaming hardware manufacturers, esports organizations, and streaming platforms, allowing for co-marketing opportunities and brand visibility. Corsair's strategic focus on the growing esports and gaming community further drives its earnings, as the demand for high-quality gaming equipment continues to rise.
Corsair Gaming Key Performance Indicators (KPIs)
Any
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.
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.
Data provided by:
The Fly
The FlyCorsair Gaming Earnings Call Summary
Earnings Call Date:Feb 12, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 12, 2026
Earnings Call Sentiment Positive
The call emphasized strong 2025 operational and financial performance — double-digit revenue growth for the year, outsized profit and margin expansion, debt reduction, cash build, product momentum at CES, and growing D2C and marketplace engagement. Management acknowledged near-term headwinds (global semiconductor shortages, tariff impact, and softer North American peripherals demand) and provided conservative 2026 guidance that implies modest revenue contraction at the midpoint but continued profitability focus (stable to slightly higher adjusted EBITDA). On balance, the positives around margin expansion, EBITDA growth, capital returns, product and ecosystem progress, and balance sheet improvement materially outweigh the listed near-term risks.Q4-2025 Updates
Positive Updates
Full Year Revenue Growth
Revenue grew 12% year-over-year to approximately $1,470,000,000 for fiscal 2025.
Strong Profitability and Margin Expansion
Gross profit increased 30% to approximately $426,000,000 and the company delivered its highest full-year gross margin as a public company; adjusted EBITDA grew more than 80% to approximately $101,000,000 and exceeded the high end of guidance.
Fourth Quarter Improvement
Q4 revenue increased 6% year-over-year to approximately $437,000,000; gross profit rose more than 30% YoY and adjusted EBITDA increased more than 60% YoY, reflecting supply chain execution and operating discipline.
Memory and Components Strength
Memory revenue in the quarter grew 24% year-over-year to $156,000,000 with a 35% gross margin; gaming components and systems delivered strong double-digit growth in both Q4 and the full year driven by memory and core components.
Peripherals & Brand Momentum (Fanatec, Elgato, Stream Deck)
Gamer and creator peripherals delivered full-year single-digit growth with notable contributions from Fanatec and Elgato; CES 2026 showcased successful product launches (Stream Deck integrations and the Galleon 100 SD keyboard), and Stream Deck is positioned as a cross-workflow control layer.
Direct-to-Consumer and Retail Progress
Direct-to-consumer (D2C) grew to nearly 20% of revenue with double-digit web traffic growth; opened first experience-driven retail store at Westfield Valley Fair Mall with strong opening day demand and consistent traffic and conversion.
Balance Sheet and Capital Allocation
Q4 cash increased by just under $33,000,000 while investing in inventory; reduced debt by over $50,000,000 in 2025; announced first share repurchase authorization up to $50,000,000 to deploy capital alongside organic and M&A investments.
User Engagement and Marketplace Opportunity
Elgato marketplace has over two million active users posting and downloading content; management is focused on building recurring revenue from the marketplace and platforms (Stream Deck) as a strategic priority.
Negative Updates
Near-Term Revenue Guidance Decline
Full-year 2026 revenue guidance range of $1,330,000,000 to $1,470,000,000 implies about a 5% decrease year-over-year at the midpoint (management cites conservatism and semiconductor constraints).
Cautious Components Outlook Due to Semiconductor Shortage
Management is applying a conservative outlook for the gaming components and systems segment driven by a global semiconductor shortage expected to remain tight for the next couple of years, tempering revenue visibility.
Q4 Peripherals Softness in North America
Gamer and creator peripherals experienced softer holiday demand in North America leading to a low single-digit revenue decline in Q4 despite full-year growth; geographic demand variability presents near-term headwinds.
Tariff Headwind
Management expects a full-year tariff headwind of approximately $12,000,000 year-over-year, which offsets some gross margin gains.
Memory Margin Sustainability Uncertainty
Memory price increases from October to December contributed to favorable inventory margin in the quarter, but management is assuming relatively flat component gross margins for 2026—indicating uncertainty around sustaining the recent margin lift.
Revenue Range and Visibility Risk
Wide revenue guidance range and conservative assumptions (component weakness, semiconductor tightness) reflect limited near-term visibility and potential downside if market conditions deteriorate further.
Company Guidance
Management's guidance for 2026 calls for full‑year net revenue of $1.33B–$1.47B, adjusted EBITDA of $100M–$115M, and non‑GAAP EPS of $0.58–$0.74; first‑quarter 2026 guidance is revenue of $335M–$365M, adjusted EBITDA of $25M–$30M, and non‑GAAP EPS of $0.18–$0.22. At the midpoints this implies roughly a 5% revenue decline versus FY2025 revenue of ~$1.47B while adjusted EBITDA is expected to grow year‑over‑year (FY2025 adjusted EBITDA was ~ $101M). The outlook assumes double‑digit growth in gamer/creator peripherals offset by a cautious components/systems outlook due to semiconductor shortages, with segment gross margins modeled roughly flat, a full‑year tariff headwind of about $12M, and an expected 3–4% reduction in OpEx; management also highlighted cash up ~ $33M in Q4, debt reduction of >$50M in 2025, and a new share repurchase authorization of up to $50M.Corsair Gaming Financial Statement Overview
Summary
Mixed fundamentals: revenue rebounded and gross margin improved in 2025, leverage declined meaningfully, and operating/free cash flow stayed positive. However, profitability remains weak with net losses persisting and extremely thin EBIT margin, and free cash flow stepped down in 2024–2025.Income Statement
Revenue rebounded in 2025 (+160% YoY) after declines in 2022 and 2024, showing demand can recover, but profitability remains inconsistent. Gross margin improved to ~29% in 2025 from ~25% in 2023–2024, yet operating profitability is very thin (EBIT margin ~0.1% in 2025) and net losses persisted in 2022–2025 (2025 net margin about -0.8%). The company was solidly profitable in 2020–2021, but the multi-year swing back to losses and low operating leverage keeps the income statement score below average.44
Neutral
Balance Sheet
Leverage looks manageable and has improved: debt-to-equity declined to ~0.19 in 2025 from ~0.39 in 2024 and ~0.54–0.80 in 2020–2021, which strengthens financial flexibility. Equity remains sizable (~$634M in 2025) versus total assets (~$1.25B). The main weakness is returns: return on equity has been negative in 2022–2025 (2025 about -2%), reflecting the earnings volatility and limiting balance-sheet efficiency despite the healthier capital structure.67
Positive
Cash Flow
Cash generation is a relative bright spot: operating cash flow and free cash flow were positive in each year shown (2025 operating cash flow ~$50M; free cash flow ~$35M). However, free cash flow declined sharply in 2025 (about -38% growth), and cash flow relative to the revenue base is modest (2025 operating cash flow about 11.6% of revenue). Free cash flow has generally held up better than reported earnings during loss years, but the step-down in 2024–2025 reduces the score.61
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.47B | 1.32B | 1.46B | 1.38B | 1.90B |
| Gross Profit | 425.88M | 327.60M | 360.26M | 296.63M | 513.85M |
| EBITDA | 51.39M | 3.45M | 64.64M | -683.00K | 172.42M |
| Net Income | -12.46M | -85.18M | -2.59M | -54.39M | 100.96M |
Balance Sheet | |||||
| Total Assets | 1.25B | 1.24B | 1.36B | 1.30B | 1.34B |
| Cash, Cash Equivalents and Short-Term Investments | 98.58M | 107.01M | 175.62M | 151.18M | 62.41M |
| Total Debt | 121.34M | 237.04M | 246.50M | 295.17M | 308.26M |
| Total Liabilities | 608.03M | 616.38M | 663.48M | 641.81M | 769.22M |
| Stockholders Equity | 633.56M | 604.30M | 667.58M | 623.84M | 568.18M |
Cash Flow | |||||
| Free Cash Flow | 34.75M | 26.03M | 76.39M | 40.07M | 9.22M |
| Operating Cash Flow | 50.12M | 35.88M | 89.15M | 66.39M | 20.19M |
| Investing Cash Flow | -15.37M | -52.70M | -26.98M | -47.03M | -20.54M |
| Financing Cash Flow | -48.87M | -50.68M | -37.39M | 72.61M | -65.40M |
Corsair Gaming Technical Analysis
Positive
5.77
Price Trends
5.59
Positive
6.30
Negative
7.63
Negative
Market Momentum
0.06
Negative
53.79
Neutral
57.91
Neutral
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 5.77 is above the 20-day moving average (MA) of 5.40, above the 50-day MA of 5.59, and below the 200-day MA of 7.63, indicating a neutral trend. The MACD of 0.06 indicates Negative momentum. The RSI at 53.79 is Neutral, neither overbought nor oversold. The STOCH value of 57.91 is Neutral, 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 0 New Risks
Corsair Gaming Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | $914.74M | 11.47 | 19.38% | 10.80% | -2.72% | 32.20% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
58 Neutral | $203.23M | -25.55 | -24.26% | ― | 14.33% | 36.97% | |
53 Neutral | $615.44M | -47.30 | -2.01% | ― | 9.79% | 63.17% | |
51 Neutral | $802.75M | -5.82 | -15.13% | ― | -2.93% | -22.55% | |
48 Neutral | $261.34M | -19.15 | 7.15% | ― | -11.78% | ― |
* Technology Sector Average
CRSR
Corsair Gaming
5.77
-5.69
-49.65%
DDD
3D Systems
2.03
-1.07
-34.52%
SSYS
Stratasys
9.44
-0.91
-8.79%
OSS
One Stop Systems
8.29
5.37
183.90%
CRCT
Cricut Inc
4.32
-0.38
-8.10%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.