Corsair Gaming, Inc. ((CRSR)) has held its Q3 earnings call. Read on for the main highlights of the call.
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Corsair Gaming, Inc. recently held its earnings call, revealing a generally positive sentiment driven by strong revenue growth and improved profitability. The company celebrated successful product launches and operational efficiencies. However, challenges such as a tight memory market, slower growth in North America, and tariff impacts slightly dampened the overall positive performance.
Double-Digit Revenue Growth
Corsair reported a robust 14% increase in net revenue for the third quarter of 2025, reaching $345.8 million compared to $304.2 million in the same period of 2024. For the first nine months of 2025, net revenue saw a 15% increase, totaling $1.04 billion, up from $902.8 million in the previous year.
Strong Growth in Gaming Components and Systems
The Gaming Components and Systems segment experienced a 15% year-over-year revenue growth, fueled by the demand for high-performance PC builds and upgrades, particularly around NVIDIA 5000 series GPUs. This segment contributed $233.1 million in Q3 2025 compared to $202.2 million in Q3 2024.
Improved Gross Profit Margins
Corsair’s gross profit in Q3 2025 increased by 33.6% to $93.1 million, up from $69.7 million in Q3 2024. The gross margin improved significantly by 400 basis points, reaching 26.9% compared to 22.9% in the previous year.
Elgato Brand Success
The Elgato brand continues to thrive within the creator ecosystem, with increasing adoption of the Stream Deck and rising integration with content creation platforms. This success has contributed to meaningful long-term momentum for the brand.
Significant Increase in Adjusted EBITDA
Corsair reported a substantial 236% increase in adjusted EBITDA, reaching $16.2 million in Q3 2025 compared to $4.8 million in Q3 2024. This indicates strong operational leverage and effective cost management.
Tight DDR5 Memory Market
The tightness in the DDR5 memory market is expected to continue into the first half of 2026, affecting Corsair’s ability to meet all demand and prompting a conservative outlook for Q4 2025.
Weaker Growth in North America
In contrast to the double-digit growth seen in European and Asian markets, North America experienced only single-digit growth, reflecting slower consumer spending in the region.
Impact of Tariff Costs
Since May 2025, Corsair has faced $12 million in unforeseen tariff costs. Although most of these costs were mitigated, they still represent a significant headwind for the company.
Forward-Looking Guidance
Looking ahead, Corsair updated its full-year 2025 guidance, expecting net revenue between $1.425 billion and $1.475 billion. The company anticipates adjusted operating income from $76 million to $81 million and adjusted EBITDA between $85 million and $90 million, with a cautious outlook due to the tight DDR5 memory market.
In summary, Corsair Gaming, Inc.’s earnings call highlighted strong revenue growth and improved profitability, driven by successful product launches and operational efficiencies. Despite challenges such as a tight memory market and tariff impacts, the company remains optimistic about its future performance, as reflected in its updated guidance.