The gaming hardware company topped Wall Street estimates on revenue and adjusted EPS, posted record 33.2% gross margin, and raised the low end of its 2026 revenue guidance.
Corsair Gaming shares rose 17.8% in after-hours trading Thursday after the company reported second-quarter results that beat Wall Street expectations and lifted the low end of its full-year revenue outlook. Revenue came in at $314.3 million, down 2% from a year earlier but above the $310.5 million consensus estimate, while adjusted earnings were 23 cents per share versus a Street estimate of seven cents. Adjusted EBITDA climbed 279% year-over-year to $30.8 million. Profitability was helped by a $15.6 million gross-profit benefit tied to refunds of tariffs previously paid under the International Emergency Economic Powers Act, a U.S. law used for trade restrictions and sanctions. Corsair said it would have exceeded profit expectations even without that refund, adding that adjusted EPS would have been an estimated nine cents per share absent the tariff benefit. The company also said it does not expect material tariff refunds going forward. By segment, Gamer and Creator Peripherals revenue increased 13% to $115.9 million, while Gaming Components and Systems revenue fell 9% to $198.5 million. Corsair said higher memory pricing weighed on the market for DIY PC builds. Direct-to-consumer sales accounted for around 20% of total net revenue in the quarter. CEO Thi La said the company delivered significant profitability improvement, with gross margin reaching a company record of 33.2%. Looking ahead, Corsair said it completed its acquisition of Trak Racer, a Sim Racing hardware direct-to-consumer brand, on Aug. 3, 2026, and sees opportunities to expand Stream Deck into workflow automation and professional broadcasting, accelerate Marketplace development through AI, deepen direct-to-consumer relationships, and build on Fanatec’s momentum in Sim Racing. La also said demand in the DIY PC build market is "deferred, not lost." For the third quarter, Corsair forecast revenue of $320 million to $350 million and adjusted EPS of nine cents to 12 cents per share. For the full fiscal year, it projected revenue of $1.40 billion to $1.47 billion, up from prior guidance of $1.33 billion to $1.47 billion, and full-year EPS of 85 cents to 94 cents per share.