Key Points
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Its revenue declined during the quarter, and its fundamentals were bolstered by a tariff refund, but its business was solid nevertheless.
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It also proffered very encouraging bottom-line guidance for the full year.
- 10 stocks we like better than Corsair Gaming ›
Corsair Gaming (NASDAQ: CRSR) won big on the stock exchange Friday, on the back of a solid quarterly earnings release. Investors piled into the company’s stock enthusiastically enough to send it to an over 35% gain that trading session.
Big beats
In the second quarter, the details of which the company published after market close on Thursday, net revenue actually declined. This fell by nearly 2% year over year to $314.3 million.
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That sure wasn’t the case, however, with net income not under generally accepted accounting principles (non-GAAP, or adjusted). That ballooned to almost $25 million, or $0.23 per share, compared with second-quarter 2025’s less than $1.3 million (although it was heavily affected by a $15.6 million tariff refund from the federal government).
And despite the top-line dip, both fundamentals beat the consensus analyst estimates. These anticipated revenue of $310.3 million, and adjusted earnings per share (EPS) of merely $0.09.
It was a tale of two businesses for Corsair’s reporting segments. Revenue grew by 13% (to almost $116 million) for gamer and creator peripherals; the company attributed this to broad and strong demand for numerous products, such as streaming components and gaming peripherals.
Gaming components and systems, however, saw a 9% fall during the quarter. Corsair said that much of this was due to high memory pricing (which drives up the overall costs for builders of custom desktop PCs, a major customer segment for the company).
Nevertheless, Corsair’s vast improvement on the bottom line is due largely to its continued push into higher-margin offerings. During the quarter, its gross margin notched a new company record of over 33%.
Poised to keep winning
Corsair proffered full-year guidance of $1.4 billion to $1.47 billion for net revenue, and $0.85 to $0.94 for adjusted EPS. The 2025 figures were $1.47 billion and $0.62 per share, respectively.
Many managers talk the talk about improving the quality of earnings, but to me, Corsair is clearly and inarguably walking the walk. This, plus that aforementioned rise in gaming generally, should give it plenty of room for even more growth.
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Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
