PC components and peripherals maker Corsair's adjusted EBITDA more than doubles, gross profit up 34%

Corsair Gaming

04/11/2025 21:12

Overview

Corsair Gaming's Q3 2025 revenue grows 14% yr/yr, but falls short of analysts' expectations

Adjusted EBITDA for Q3 more than doubles

Gross profit rises 34%, reflecting improved product mix and operational efficiency

Co does not anticipate a material net impact from known or announced tariffs through year-end, per CFO Michael G. Potter

Outlook

Corsair expects 2025 net revenue between $1.425 bln and $1.475 bln

Adjusted EBITDA for 2025 projected between $85 mln and $90 mln

Company anticipates improved EBITDA margin exiting 2025

Forecast assumes conservative outlook for Q4 amid tight DDR5 memory market and customer spending patterns

Result Drivers

COMPONENT DEMAND - Increased demand for memory products and system upgrades, driven by NVIDIA 5000 series GPUs, boosted the Gaming Components and Systems segment

NEW PRODUCT LAUNCHES - Successful launches of the Saber Pro mouse and Vanguard 96 keyboard supported growth in the Gamer and Creator Peripherals segment

SIM RACING PRODUCTS - Momentum in Fanatec-branded sim racing products remained strong, aided by operational improvements and expanded distribution

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Miss
$345.76 mln
$354.04 mln (7 Analysts)
Q3 Net Income
-$10.39 mln
Q3 Gross Profit
$93.09 mln
Q3 Operating income
-$5.62 mln
Q3 Pretax Profit
-$8.31 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the computer hardware peer group is "buy"

Wall Street's median 12-month price target for Corsair Gaming Inc is $11.50, about 29.5% above its November 3 closing price of $8.11

The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 14 three months ago

Press Release: ID:nBw10XtwZa

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)