We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Corsair raised 2026 revenue guidance to $1.456B-$1.486B after Q3 results topped expectations.
Memory gross margin is expected at 18-20% in Q4, down from about 35% a year earlier, weighing on EBITDA.
Corsair's $6M-$7M peripherals backlog and delayed launches support expected double-digit Q4 growth.
Corsair Gaming, Inc. (CRSR - Free Report) raised its 2026 outlook after third-quarter results exceeded management's guidance. Executives tied the stronger forecast to memory execution, delayed peripheral shipments and holiday demand.
The call also underscored a key constraint: memory profitability is returning toward historical levels, tempering fourth-quarter earnings expectations despite anticipated sales growth.
Corsair Raises Its Outlook Ahead of the Holidays
Chief financial officer Gordon Mattingly now expects full-year revenues at $1.456-$1.486 billion, up from $1.40-$1.47 billion. The guidance midpoint increased $36 million.
Full-year adjusted EBITDA guidance rose to $127-$131 million from $121-$131 million. Non-GAAP EPS guidance moved to $0.89-$0.94 from $0.85-$0.94.
For the fourth quarter, management projected revenues of $420-$450 million, adjusted EBITDA of $38-$42 million and non-GAAP EPS of $0.26-$0.31. Mattingly highlighted peripherals launches, backlog and direct-to-consumer progress as supporting factors.
CRSR Faces a Memory Margin Reset
Mattingly expects memory gross margin of 18-20% in the fourth quarter compared with approximately 35% a year earlier, when selling prices rose sharply ahead of inventory costs.
In the Q&A, a B. Riley Securities analyst asked whether the new range could persist. Mattingly noted that memory's longer-term margin average is in the mid-teens, with slower price increases pointing toward more normalized profitability.
Chief executive officer Thi La emphasized that memory supply remains constrained and prices elevated. Higher prices continue to delay DIY PC builds, while the margin normalization is the primary reason management expects fourth-quarter adjusted EBITDA below last year's level.
Corsair Details the Peripherals Revenue Shift
Gamer and Creator Peripherals revenues grew 3% to $116.5 million. La attributed the slower pace to deferred product launches, logistics delays and a distribution hub transition that has since been completed.
Responding to a ROTH Capital Partners analyst, Mattingly quantified $6-$7 million in elevated peripherals backlog and another $1-$2 million in delayed product introductions. The disruptions affected multiple categories.
A Goldman Sachs analyst asked whether underlying demand expectations had changed. Mattingly said that the company already had the orders and had not changed its demand outlook. Management expects double-digit peripherals growth in the fourth quarter.
CRSR Expands Its Gaming and Creator Ecosystem
La said that Trak Racer's integration with Fanatec is progressing, with contributions expected from the fourth quarter. Their combined portfolios cover racing electronics, cockpits, seats and accessories.
New offerings include Fanatec's Podium Pedals Sport, Trak Racer's planned first-quarter 2027 sim motorbike and SCUF's Omega controller. La also pointed to stronger console-related bookings ahead of the GTA 6 release.
Elgato introduced its Wave Go wireless microphone, while its Marketplace added more than 1 million accounts year over year. La highlighted the broader hardware-software ecosystem as a priority for expanding the company's creator business.
Corsair Balances Inventory Investment With Cost Control
Memory revenues grew 43% to $167.3 million on higher pricing, strong demand and sequential share gains. Built systems also grew across categories, offsetting weakness in standalone components.
Mattingly said that inventory increased $80 million sequentially to $344.6 million, including $37 million of additional memory inventory. Asked by a Macquarie analyst about future allocations, La expressed confidence in supply management over the next four to five months.
Operating expenses rose less than $1 million year over year, supporting 38% adjusted EBITDA growth. Revenues of $367 million exceeded the Zacks Consensus Estimate of $339.2 million, while non-GAAP EPS of $0.13 topped the $0.12 estimate.
Corsair Gaming, Inc. Price, Consensus and EPS Surprise
La said that direct-to-consumer sales have increased from roughly 13% to nearly 20% of the business. She also highlighted Corsair Pro AI workstations, while placing more meaningful revenue contributions in late 2027 and beyond amid semiconductor constraints.
Management remains focused on working capital, expense discipline and acquisitions that meet valuation and integration criteria. Executives conveyed confidence in holiday orders while acknowledging persistent DIY weakness and reduced memory margins.
Corsair's Zacks Rank and Style Scores Send Mixed Signals
CRSR carries a Zacks Rank #4 (Sell) at present, indicating an unfavorable earnings-estimate revision trend. It has a Value Score of B, a Growth Score of A, a Momentum Score of A and a combined VGM Score of A.
Those Style Scores reflect favorable characteristics across different investment styles, but Zacks uses them to complement rather than override the Rank. The Zacks Rank may change as earnings estimates are revised following the reported results.
View the Zacks #1 Rank List
Image: Bigstock
CRSR Q3 Earnings Call Highlights Q4 Growth and Memory Margin Reset
Key Takeaways
Corsair Gaming, Inc. (CRSR - Free Report) raised its 2026 outlook after third-quarter results exceeded management's guidance. Executives tied the stronger forecast to memory execution, delayed peripheral shipments and holiday demand.
The call also underscored a key constraint: memory profitability is returning toward historical levels, tempering fourth-quarter earnings expectations despite anticipated sales growth.
Corsair Raises Its Outlook Ahead of the Holidays
Chief financial officer Gordon Mattingly now expects full-year revenues at $1.456-$1.486 billion, up from $1.40-$1.47 billion. The guidance midpoint increased $36 million.
Full-year adjusted EBITDA guidance rose to $127-$131 million from $121-$131 million. Non-GAAP EPS guidance moved to $0.89-$0.94 from $0.85-$0.94.
For the fourth quarter, management projected revenues of $420-$450 million, adjusted EBITDA of $38-$42 million and non-GAAP EPS of $0.26-$0.31. Mattingly highlighted peripherals launches, backlog and direct-to-consumer progress as supporting factors.
CRSR Faces a Memory Margin Reset
Mattingly expects memory gross margin of 18-20% in the fourth quarter compared with approximately 35% a year earlier, when selling prices rose sharply ahead of inventory costs.
In the Q&A, a B. Riley Securities analyst asked whether the new range could persist. Mattingly noted that memory's longer-term margin average is in the mid-teens, with slower price increases pointing toward more normalized profitability.
Chief executive officer Thi La emphasized that memory supply remains constrained and prices elevated. Higher prices continue to delay DIY PC builds, while the margin normalization is the primary reason management expects fourth-quarter adjusted EBITDA below last year's level.
Corsair Details the Peripherals Revenue Shift
Gamer and Creator Peripherals revenues grew 3% to $116.5 million. La attributed the slower pace to deferred product launches, logistics delays and a distribution hub transition that has since been completed.
Responding to a ROTH Capital Partners analyst, Mattingly quantified $6-$7 million in elevated peripherals backlog and another $1-$2 million in delayed product introductions. The disruptions affected multiple categories.
A Goldman Sachs analyst asked whether underlying demand expectations had changed. Mattingly said that the company already had the orders and had not changed its demand outlook. Management expects double-digit peripherals growth in the fourth quarter.
CRSR Expands Its Gaming and Creator Ecosystem
La said that Trak Racer's integration with Fanatec is progressing, with contributions expected from the fourth quarter. Their combined portfolios cover racing electronics, cockpits, seats and accessories.
New offerings include Fanatec's Podium Pedals Sport, Trak Racer's planned first-quarter 2027 sim motorbike and SCUF's Omega controller. La also pointed to stronger console-related bookings ahead of the GTA 6 release.
Elgato introduced its Wave Go wireless microphone, while its Marketplace added more than 1 million accounts year over year. La highlighted the broader hardware-software ecosystem as a priority for expanding the company's creator business.
Corsair Balances Inventory Investment With Cost Control
Memory revenues grew 43% to $167.3 million on higher pricing, strong demand and sequential share gains. Built systems also grew across categories, offsetting weakness in standalone components.
Mattingly said that inventory increased $80 million sequentially to $344.6 million, including $37 million of additional memory inventory. Asked by a Macquarie analyst about future allocations, La expressed confidence in supply management over the next four to five months.
Operating expenses rose less than $1 million year over year, supporting 38% adjusted EBITDA growth. Revenues of $367 million exceeded the Zacks Consensus Estimate of $339.2 million, while non-GAAP EPS of $0.13 topped the $0.12 estimate.
Corsair Gaming, Inc. Price, Consensus and EPS Surprise
Corsair Gaming, Inc. price-consensus-eps-surprise-chart | Corsair Gaming, Inc. Quote
CRSR Maintains a Selective Growth Strategy
La said that direct-to-consumer sales have increased from roughly 13% to nearly 20% of the business. She also highlighted Corsair Pro AI workstations, while placing more meaningful revenue contributions in late 2027 and beyond amid semiconductor constraints.
Management remains focused on working capital, expense discipline and acquisitions that meet valuation and integration criteria. Executives conveyed confidence in holiday orders while acknowledging persistent DIY weakness and reduced memory margins.
Corsair's Zacks Rank and Style Scores Send Mixed Signals
CRSR carries a Zacks Rank #4 (Sell) at present, indicating an unfavorable earnings-estimate revision trend. It has a Value Score of B, a Growth Score of A, a Momentum Score of A and a combined VGM Score of A.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Those Style Scores reflect favorable characteristics across different investment styles, but Zacks uses them to complement rather than override the Rank. The Zacks Rank may change as earnings estimates are revised following the reported results.