Table of Contents
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
(Mark One)
☒
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 2026
OR
☐
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from _________ to _________
Commission File Number: 001-39533
Corsair Gaming, Inc.
(Exact Name of Registrant as Specified in Its Charter)
Delaware
82-2335306
(State or Other Jurisdiction of
Incorporation or Organization)
(I.R.S. EmployerIdentification No.)
115 N. McCarthy Boulevard
Milpitas, CA 95035
(Address of Principal Executive Offices and zip code)
(510) 657-8747
(Registrant’s Telephone Number, Including Area Code)
Not Applicable
(Former name, former address and former fiscal year,
if changed since last report)
Securities registered pursuant to Section 12(b) of the Act:
Title of each class
Trading Symbol(s)
Name of each exchange on which registered
Common Stock, $0.0001 par value per share
CRSR
The Nasdaq Global Select Market
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer
Accelerated filer
Non-accelerated filer
Smaller reporting company
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒
As of April 24, 2026, the registrant had 106,882,211 shares of common stock, $0.0001 par value per share, outstanding.
25
Page
PART I.
FINANCIAL INFORMATION
2
Item 1.
Financial Statements (Unaudited)
Condensed Consolidated Statements of Operations
Condensed Consolidated Statements of Comprehensive Income (Loss)
3
Condensed Consolidated Balance Sheets
4
Condensed Consolidated Statements of Stockholders' Equity
5
Condensed Consolidated Statements of Cash Flows
6
Notes to Condensed Consolidated Financial Statements
7
Item 2.
Management’s Discussion and Analysis of Financial Condition and Results of Operations
18
Item 3.
Quantitative and Qualitative Disclosures About Market Risk
27
Item 4.
Controls and Procedures
28
PART II.
OTHER INFORMATION
29
Legal Proceedings
Item 1A.
Risk Factors
Unregistered Sales of Equity Securities and Use of Proceeds
Defaults Upon Senior Securities
Mine Safety Disclosures
Item 5.
Other Information
Item 6.
Exhibits
30
Signatures
31
i
NOTE ABOUT FORWARD-LOOKING STATEMENTS
This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934 (the “Exchange Act”) that reflect our current views with respect to, among other things, our operations and financial performance. These forward-looking statements are included throughout this Quarterly Report on Form 10-Q and relate to matters such as our industry, business strategy, business model, optimization of our product mix, growth, user engagement, goals and expectations concerning our market position and market share, inventory management and supply chain flexibility, global expansion, future acquisitions and pursuit of leadership positions in premium categories, our direct to consumer business model, future operations, margins, revenue, profitability, capital expenditures, liquidity and capital resources and other financial and operating information. We have used the words “anticipate,” “assume,” “believe,” “continue,” “could,” “estimate,” “expect,” “foreseeable,” “future,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “seek,” “will” and similar terms and phrases or the negatives of these words to identify the forward-looking statements.
The forward-looking statements contained in this Quarterly Report on Form 10-Q are based on management’s current expectations and are subject to uncertainty and changes in circumstances. There can be no assurance that future developments affecting us will be those that we have anticipated. Actual results may differ materially from these expectations due to changes in global, regional or local economic, business, competitive, market, regulatory and other factors, many of which are beyond our control, including uncertainties in the geopolitical environment, recent changes in trade regulations and tariffs, and developments in international trade relations and agreements. We believe that these factors include but are not limited to those described under Part I, Item 1A “Risk Factors” of our Annual Report on Form 10-K for the year ended December 31, 2025, as well as other documents that may be filed by us from time to time with the Securities and Exchange Commission (the “SEC”). These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this Quarterly Report on Form 10-Q. We undertake no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by any applicable securities laws.
Corsair Gaming, Inc. | Q1 2026 Form 10-Q | 1
PART I—FINANCIAL INFORMATION
Item 1. Financial Statements (Unaudited).
(Unaudited, in thousands, except per share amounts)
Three Months EndedMarch 31,
2026
2025
Net revenue
$
354,512
369,750
Cost of revenue
238,483
267,388
Gross profit
116,029
102,362
Operating expenses:
Sales, general and administrative
84,988
86,992
Product development
17,245
17,633
Total operating expenses
102,233
104,625
Operating income (loss)
13,796
(2,263
)
Other (expense) income:
Interest expense
(1,691
(2,676
Interest income
421
630
Other (expense) income, net
374
(3,947
Total other expense, net
(896
(5,993
Income (loss) before income taxes
12,900
(8,256
Income tax benefit (expense)
157
(2,061
Net income (loss)
13,057
(10,317
Less: Net income attributable to noncontrolling interest
273
142
Net income (loss) attributable to Corsair Gaming, Inc.
12,784
(10,459
Calculation of net income (loss) per share attributable to common stockholders of Corsair Gaming, Inc.:
Change in redemption value of redeemable noncontrolling interest
(920
392
Net income (loss) attributable to common stockholders of Corsair Gaming, Inc.
11,864
(10,067
Net income (loss) per share attributable to common stockholders of Corsair Gaming, Inc.:
Basic
0.11
(0.10
Diluted
Weighted-average common shares outstanding:
106,867
105,240
107,774
The accompanying notes are an integral part of these condensed consolidated financial statements
Corsair Gaming, Inc. | Q1 2026 Form 10-Q | 2
(Unaudited, in thousands)
Other comprehensive gain (loss):
Foreign currency translation adjustments, net of tax benefit of $64 and $27 for the three months ended March 31, 2026 and 2025, respectively.
(1,328
1,666
Unrealized foreign exchange gain from long-term intercompany loan, net of tax expense of nil and nil for the three months ended March 31, 2026 and 2025, respectively.
344
395
Comprehensive income (loss)
12,073
Less: Comprehensive income attributable to noncontrolling interest
225
82
Comprehensive income (loss) attributable to Corsair Gaming, Inc.
11,848
(8,338
Corsair Gaming, Inc. | Q1 2026 Form 10-Q | 3
March 31,2026
December 31,2025
Assets
Current assets:
Cash
118,152
97,183
Restricted cash
1,345
1,400
Accounts receivable, net
178,375
233,900
Inventories
273,466
303,336
Prepaid expenses and other current assets
28,021
29,639
Total current assets
599,359
665,458
Restricted cash, noncurrent
251
250
Property and equipment, net
31,165
31,514
Goodwill
357,399
357,765
Intangible assets, net
115,269
125,210
Other assets
73,897
73,587
Total assets
1,177,340
1,253,784
Liabilities
Current liabilities:
Debt maturing within one year, net
6,121
6,120
Accounts payable
157,628
212,547
Other liabilities and accrued expenses
180,348
212,275
Total current liabilities
344,097
430,942
Long-term debt, net
113,691
115,222
Deferred tax liabilities
4,977
6,071
Other liabilities, noncurrent
53,766
55,795
Total liabilities
516,531
608,030
Commitments and Contingencies (Note 7)
Temporary equity
Redeemable noncontrolling interest
13,167
12,197
Stockholders' equity
Preferred stock, $0.0001 par value: 5,000 shares authorized, nil and nil shares issued and outstanding as of March 31, 2026 and December 31, 2025, respectively
—
Common stock, $0.0001 par value: 300,000 shares authorized, 106,879 and 106,639 shares issued and outstanding as of March 31, 2026 and December 31, 2025, respectively
11
Additional paid-in capital
708,518
705,361
Accumulated deficit
(59,366
(71,230
Accumulated other comprehensive loss
(1,521
(585
Total stockholders’ equity
647,642
633,557
Total liabilities, temporary equity and stockholders' equity
Corsair Gaming, Inc. | Q1 2026 Form 10-Q | 4
Condensed Consolidated Statements of Stockholders’ Equity
Three Months Ended March 31, 2026
Common Stock
AdditionalPaid-in
Accumulated
Accumulated OtherComprehensive
Total Corsair Gaming, Inc.Stockholders’
Shares
Amount
Capital
Deficit
Loss
Equity
Balance as of December 31, 2025
106,639
Net income
Other comprehensive loss
(936
Repurchases of common stock
(880
(5,011
Issuance of common stock in connection with employee equity incentive plans
1,223
2,055
Shares withheld related to net share settlement
(103
(630
Stock-based compensation
6,743
Balance as of March 31, 2026
106,879
Three Months Ended March 31, 2025
Income (Loss)
Balance as of December 31, 2024
104,763
10
667,617
(58,765
(4,559
604,303
Net loss
Other comprehensive income
2,121
1,089
1
3,439
3,440
(36
(390
9,350
Balance as of March 31, 2025
105,816
680,016
(68,832
(2,438
608,757
Corsair Gaming, Inc. | Q1 2026 Form 10-Q | 5
Cash flows from operating activities:
Adjustments to reconcile net loss to net cash provided by operating activities:
6,694
9,322
Depreciation
3,551
3,373
Amortization
9,806
9,782
Reversal of bargain purchase gain on business acquisition
2,581
Deferred income taxes, net of valuation allowance
(2,769
(1,016
Other
737
3,031
Changes in operating assets and liabilities:
Accounts receivable
54,214
201
30,180
(22,237
Prepaid expenses and other assets
1,024
2,247
(54,583
34,253
(32,183
(12,470
Net cash provided by operating activities
29,728
18,750
Cash flows from investing activities:
Purchase of property and equipment
(3,669
(3,072
Net cash used in investing activities
Cash flows from financing activities:
Repayment of debt
(1,563
(25,000
Proceeds from issuance of shares through employee equity incentive plans
Payment of taxes related to net share settlement of equity awards
Dividend paid to noncontrolling interest
(175
(304
Net cash used in financing activities
(5,324
(22,254
Effect of exchange rate changes on cash
180
(526
Net increase (decrease) in cash and restricted cash
20,915
(7,102
Cash and restricted cash at the beginning of the period
98,833
109,631
Cash and restricted cash at the end of the period
119,748
102,529
Supplemental cash flow disclosures:
Cash paid for interest
1,626
2,463
Cash paid for income taxes, net
2,088
1,550
Supplemental schedule of non-cash investing and financing activities:
Equipment purchased and unpaid at period end
2,106
1,427
Right-of-use assets obtained in exchange for operating lease liabilities
2,985
6,510
Corsair Gaming, Inc. | Q1 2026 Form 10-Q | 6
(Unaudited)
1. Description of Business
Corsair Gaming, Inc., a Delaware corporation, together with its subsidiaries (collectively, “Corsair” the “Company”, “we”, “us”, or “our”), is a leading global provider and innovator of high-performance products for gamers, streamers, content creators, gaming PC builders, and sim racing enthusiasts.
Corsair is organized into two reportable segments:
2. Summary of Significant Accounting Policies
Basis of Presentation
The accompanying interim condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) and pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) regarding interim financial reporting. The accounting policies we follow are set forth in Part II, Item 8, Note 2, “Significant Accounting Policies”, of the Notes to the Consolidated Financial Statements included in our Annual Report on Form 10-K for the year ended December 31, 2025 which was filed with the SEC on February 25, 2026.
The condensed consolidated balance sheet as of December 31, 2025, included herein, was derived from the audited consolidated financial statements as of that date. Certain information and note disclosures normally included in the financial statements prepared in accordance with U.S. GAAP have been condensed, combined or omitted pursuant to such rules and regulations. Therefore, these interim condensed consolidated financial statements should be read in conjunction with our consolidated financial statements and notes thereto for the year ended December 31, 2025, included in our Annual Report on Form 10-K.
The interim condensed consolidated financial statements have been prepared on the same basis as the audited consolidated financial statements, and in management’s opinion, include all adjustments, which consist of only normal recurring adjustments necessary for the fair statement of our condensed consolidated balance sheet as of March 31, 2026 and our results of operations for the three months ended March 31, 2026 and 2025. The results for the three months ended March 31, 2026 are not necessarily indicative of the results expected for the current fiscal year or any other future periods.
Principles of Consolidation
The accompanying unaudited condensed consolidated financial statements include the accounts of Corsair and its wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. For consolidated entities where we own less than 100% of the equity, our consolidated net comprehensive income (loss) is reduced by the portion attributable to the noncontrolling interest. The ownership interest of other investors is recorded as noncontrolling interest in the condensed consolidated balance sheets.
In determining whether an entity is considered a controlled entity, we apply the VIE (variable interest entity) and VOE (voting interest entity) models. Entities that do not qualify as a VIE are assessed for consolidation under the VOE model. Under the VOE model, we consolidate the entity if we determine that we have a controlling financial interest in the entity through our ownership of greater than 50% of the outstanding voting shares of the entity and that other equity holders do not have substantive voting, participating or liquidation rights.
Use of Estimates
The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting
Corsair Gaming, Inc. | Q1 2026 Form 10-Q | 7
period. Such estimates include, but are not limited to, the valuation of intangible assets, accounts receivable, sales return reserves, reserves for customer incentives, warranty reserves, inventory, derivative instruments, stock-based compensation, deferred income tax, and uncertain tax positions. These estimates and assumptions are based on management’s best estimates and judgment. Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors, including the potential impacts from the events in the current economic and geopolitical environment. We adjust such estimates and assumptions when facts and circumstances dictate. The extent to which current macroeconomic conditions, including recent changes in trade regulations and tariffs, as well as developments in international trade regulations and agreements and continued geopolitical unrest will impact our business going forward depends on numerous dynamic factors that we cannot reliably predict. Actual results could differ materially from those estimates. Making estimates and judgments about future events is inherently unpredictable and is subject to significant uncertainties, some of which are beyond our control. Should any of these estimates and assumptions change or prove to have been incorrect, it could have a material impact on our results of operations, financial position and cash flows.
Recently Adopted Accounting Pronouncements
In July 2025, the FASB issued ASU No. 2025-05, Financial Instruments - Credit Losses (Topic 326) - Measurement of Credit Losses for Accounts Receivable and Contract Assets. This ASU introduces a practical expedient for the application of the current expected credit loss (“CECL”) model to current accounts receivable and contract assets. We adopted this standard effective January 1, 2026. The adoption of this new standard did not have a material impact on our condensed consolidated financial statements.
Accounting Pronouncements Issued but Not Yet Adopted
In November 2024, the FASB issued ASU No. 2024-03, Income Statement (Topic 220) - Reporting Comprehensive Income - Expense Disaggregation Disclosures: Disaggregation of Income Statement Expenses. This ASU requires additional disclosures about the nature of expenses included in the income statement, such as purchases of inventory, employee compensation and depreciation. This ASU 2024-03 is effective for annual periods beginning after December 15, 2026 and interim reporting periods beginning after December 15, 2027, with early adoption permitted. We are currently evaluating the provisions of this ASU and expect to adopt them for the year ended December 31, 2027.
In September 2025, the FASB issued ASU No. 2025-06, Intangibles, Goodwill and Other Internal-Use Software (Topic 350) - Targeted Improvements to the Accounting for Internal-Use Software. The amendments in this update improve the operability of the guidance by removing all references to software development project stages so that the guidance is neutral to different software development methods. This update is effective for annual periods beginning after December 15, 2027, including interim periods within those fiscal years, though early adoption is permitted. We are currently evaluating the provisions of this ASU and do not expect the adoption to have material effect on our consolidated financial statements. We expect to adopt this ASU for the fiscal year beginning January 1, 2028.
In November 2025, the FASB issued ASU No. 2025-09, Derivatives and Hedging (Topic 815) - Hedge Accounting Improvements. The amendments in this update are intended to more closely align hedge accounting with the economics of an entity's risk management activities. This update is effective for annual periods beginning after December 15, 2026, including interim periods within those fiscal years, though early adoption is permitted. The amendments should be applied prospectively. We are currently evaluating the provisions of this ASU to determine its impact on our consolidated financial statements. We expect to adopt this ASU for the fiscal year beginning January 1, 2027.
In December 2025, the FASB issued ASU No. 2025-11, Interim Reporting (Topic 270): Narrow-Scope Improvements. The amendments provide a comprehensive list of required interim disclosures and introduces a disclosure principle requiring entities to disclose events since the end of the last annual reporting period that have a material impact on the entity. ASU 2025-11 is effective for fiscal years beginning after December 15, 2027, including interim periods within those fiscal years, with early adoption permitted. We are currently evaluating the impact of adopting this ASU on our consolidated financial statements related disclosures.
3. Derivative Financial Instruments
From time to time, we enter into derivative instruments such as foreign currency forward contracts, to minimize the short-term impact of foreign currency exchange rate fluctuations on certain foreign currency denominated assets and liabilities. The derivative instruments are recorded at fair value in prepaid expenses and other current assets or other liabilities and accrued expenses on the condensed consolidated balance sheets. We do not designate such instruments as hedges for accounting purposes; accordingly, changes in the value of these contracts are recognized in each reporting period in other (expense) income, net in the condensed consolidated statements of operations. We do not enter into derivative instruments for trading purposes.
The foreign currency forward contracts generally mature within two to four months. The notional principal amount of outstanding foreign exchange forward contracts was $21.1 million and $28.5 million as of March 31, 2026 and December 31, 2025,
Corsair Gaming, Inc. | Q1 2026 Form 10-Q | 8
respectively. The net fair value gains (losses) recognized in other (expense) income, net in relation to these derivative instruments was $0.2 million and $(1.7) million for the three months ended March 31, 2026 and 2025, respectively.
4. Goodwill and Intangible Assets
The following table summarizes the changes in the carrying amount of goodwill by reportable segment (in thousands):
GamingComponentsandSystems
Gamer andCreatorPeripherals
Total
148,956
208,809
Measurement period adjustments
Effect of foreign currency exchange rates
(12
(354
(366
148,944
208,455
The following table is a summary of intangible assets, net (in thousands):
March 31, 2026
December 31, 2025
GrossCarryingAmount
AccumulatedAmortization
NetCarryingAmount
Developed technology
28,012
18,114
9,898
31,912
19,891
12,021
Trade name
45,961
15,721
30,240
14,935
31,026
Customer relationships
216,869
186,384
30,485
180,962
35,907
Patent portfolio
35,893
28,391
7,502
36,450
27,624
8,826
Supplier relationships
5,876
4,162
1,714
5,997
3,997
2,000
Total finite-life intangibles
332,611
252,772
79,839
337,189
247,409
89,780
Indefinite life trade name
35,430
Total intangible assets
368,041
372,619
In the year when an identified intangible asset becomes fully amortized, the fully amortized balances from the gross asset and accumulated amortization amounts are removed from the table above.
The estimated future amortization expense of intangible assets as of March 31, 2026 is as follows (in thousands):
Amounts
Remainder of 2026
26,318
2027
25,375
2028
5,441
2029
3,764
2030
3,585
Thereafter
15,356
5. Balance Sheet Components
The following tables present the components of certain balance sheet amounts (in thousands):
Restricted cash—short term
Restricted cash—noncurrent
Total cash and restricted cash
Corsair Gaming, Inc. | Q1 2026 Form 10-Q | 9
Accounts receivable (1)
178,701
234,226
Allowance for doubtful accounts
(326
Raw materials
48,647
72,516
Work in progress
11,984
12,875
Finished goods
212,835
217,945
As of March 31, 2026, consigned inventories included within our raw material and work in progress were $1.4 million and $6.8 million, respectively. As of December 31, 2025, consigned inventories included within our raw material and work in progress were $1.2 million and $12.0 million, respectively.
Manufacturing equipment
31,970
30,957
Leasehold improvements
23,368
23,260
Computer equipment, software and office equipment
20,256
19,194
Furniture and fixtures
7,994
7,337
Total property and equipment
83,588
80,748
Less: Accumulated depreciation and amortization
(52,423
(49,234
Right-of-use assets
56,634
57,600
Deferred tax asset
12,927
11,371
4,336
4,616
Accrued reserves for customer incentive programs
55,532
61,173
Accrued reserves for sales returns
34,807
37,760
Accrued payroll and related expenses
16,934
26,830
Operating lease liabilities, current
17,330
16,400
Accrued freight expenses
10,176
16,037
Sales and use tax and value-added tax payable
8,257
11,087
Accrued warranty
7,849
8,065
Contract liabilities
5,195
8,998
24,268
25,925
Operating lease liabilities, noncurrent
50,712
52,785
3,054
3,010
Corsair Gaming, Inc. | Q1 2026 Form 10-Q | 10
6. Debt
On June 30, 2025, we entered into an Amended and Restated Credit Agreement (the “Amended and Restated Credit Agreement”) with Bank of America, N.A. (“BofA”) to refinance our prior first lien credit and guaranty agreement with BofA, entered into on September 3, 2021. The Amended and Restated Credit Agreement provides for total commitments of $225.0 million, consisting of a $100.0 million five-year revolving credit facility maturing on June 30, 2030 (the “June 2030 Revolving Facility”) and a $125.0 million five-year term loan facility maturing on June 30, 2030 (the “June 2030 Term Loan”). The Amended and Restated Credit Agreement also permits, subject to conditions stated therein, additional incremental facilities in a maximum aggregate principal amount not to exceed $125.0 million.
The Amended and Restated Credit Agreement has a variable rate structure. According to the provisions of the Amended and Restated Credit Agreement, the June 2030 Term Loan and June 2030 Revolving Facility each bears interest at our election, at either (a) term Secured Overnight Financing Rate (“SOFR”) plus a percentage spread (ranging from 1.50% to 2.50%) based on our total net leverage ratio or (b) the base rate (as described in the Amended and Restated Credit Agreement as the greatest of (i) Bank of America’s prime rate, (ii) the federal funds rate plus 0.50% and (iii) one-month term SOFR plus 1.0%) plus a percentage spread (ranging from 0.50% to 1.50%) based on the our total net leverage ratio.
The following table presents the carrying value of our term loans (in thousands):
June 2030 Term Loan
120,313
121,875
Debt discount and issuance cost, net of amortization
(501
(533
Total debt
119,812
121,342
Less: debt maturing within one year, net
As of March 31, 2026, the estimated fair value of the June 2030 Term Loan, which we have classified as a Level 2 financial instrument, was approximately $120.8 million.
The unused capacity of the June 2030 Revolving Facility was $99.6 million and $99.5 million as of March 31, 2026 and December 31, 2025, respectively.
The effective interest rate for our term loans, inclusive of the amortization of debt discount and debt issuance costs, was approximately 5.3% and 6.2% for the three months ended March 31, 2026 and 2025, respectively.
The Amended and Restated Credit Agreement contains covenants with which we must comply during the term of the agreement, which we believe are ordinary and standard for agreements of this nature, including the maintenance of a maximum Consolidated Total Net Leverage Ratio (“CTNL Ratio”) and a minimum Consolidated Interest Coverage Ratio (“CIC Ratio”) (as defined in the Amended and Restated Credit Agreement). According to the provisions of the Amended and Restated Credit Agreement, we are required to maintain a maximum CTNL Ratio of 3.00 to 1.00 and a minimum CIC ratio of 3.00 to 1.00, with the provision that the maximum CTNL Ratio can be temporarily increased to 3.50 to 1.00 upon the occurrence of a Qualified Acquisition (as defined in, and subject to the requirements of the Amended and Restated Credit Agreement). As of March 31, 2026, we were fully in compliance under the Amended and Restated Credit Agreement.
Our obligations under the Amended and Restated Credit Agreement are guaranteed by substantially all of our U.S. subsidiaries and secured by a security interest in substantially all assets of the Company and the guarantor subsidiaries, subject to certain exceptions detailed in the Amended and Credit Agreement and related ancillary documentation.
The following table summarizes the interest expense recognized for all periods presented (in thousands):
Contractual interest expense for term loan
1,579
2,457
Amortization of debt discount and issuance cost
58
54
62
Total interest expense
1,691
2,676
Corsair Gaming, Inc. | Q1 2026 Form 10-Q | 11
The future principal payments under our total long-term debt as of March 31, 2026 are as follows (in thousands):
4,688
6,250
96,875
7. Commitments and Contingencies
Product Warranties
Changes in our assurance-type warranty obligations were as follows (in thousands):
Beginning of the period
8,759
Warranty provision related to products shipped
953
1,444
Deductions for warranty claims processed
(1,169
(1,587
End of period
8,616
Unconditional Purchase Obligations
In the normal course of business, we enter into various purchase commitments for goods or services. Our long-term non-cancelable purchase commitments consist primarily of multi-year contractual arrangements relating to subscriptions for our enterprise resource planning system and the related support services, in addition to commitments related to other cloud computing hosting arrangements. Total long-term non-cancelable purchase commitments as of March 31, 2026 and December 31, 2025 were $3.1 million and $3.9 million, respectively.
Letters of Credit
Letters of credit outstanding as of March 31, 2026 and December 31, 2025 were $0.4 million and $0.5 million, respectively. No amounts have been drawn upon the letters of credit for the three months ended March 31, 2026 and for the year ended December 31, 2025, respectively.
We may from time to time be involved in various claims and legal proceedings of a character normally incidental to the ordinary course of business. Litigation can be expensive and disruptive to normal business operations, and the results of complex legal proceedings are difficult to predict, and our view of these matters may change in the future as the litigation and events related thereto unfold. We expense legal fees as incurred and we record a provision for contingent losses when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. Based on currently available information, we believe there are no existing claims or proceedings that are likely to have a material adverse effect on our financial position, or the outcome of these matters is currently not determinable. An unfavorable outcome to any legal matter, if material, could have an adverse effect on our operations or financial position, liquidity, results of operations or cash flows.
Indemnification
In the ordinary course of business, we may provide indemnifications of varying scope and terms with respect to certain transactions. We have entered into indemnification agreements with directors and certain officers and employees that will require Corsair, among other things, to indemnify them against certain liabilities that may arise by reason of their status or service as directors, officers or employees. No demands have been made upon Corsair to provide indemnification under such agreements, and thus, there are no claims that we are aware of that could have a material effect on our condensed consolidated balance sheets, statements of operations, or statements of cash flows. We currently have directors’ and officers’ insurance.
Corsair Gaming, Inc. | Q1 2026 Form 10-Q | 12
8. Stockholders’ Equity
Share Repurchase Program
On January 30, 2026, the Board of Directors authorized us to repurchase up to $50 million of our outstanding shares of common stock. This represents Corsair’s first repurchase authorization. This program has no expiration date and may be suspended or discontinued at any time.
For the three months ended March 31, 2026, we repurchased approximately 0.9 million shares of our common stock for an aggregate cost of $5.0 million. As of March 31, 2026, approximately $45.0 million remained available under this program.
Shelf-Registration Statement
On August 7, 2025, we filed a shelf registration statement on Form S-3 with the SEC, which was declared effective August 15, 2025 (the “2025 Shelf Registration Statement”). The 2025 Shelf Registration Statement registered securities to be offered by us, in an amount up to $300.0 million, including common stock, preferred stock and warrants though through August 15, 2028. As of March 31, 2026, all $300.0 million remained unsold. The shelf also registered 56,300,771 shares held by certain selling securityholders, all of which remained unsold.
9. Equity Incentive Plans and Stock-Based Compensation
As of March 31, 2026, we have two active equity incentive plans: the 2020 Equity Incentive Plan and the Employee Stock Purchase Plan (“ESPP”).
From time to time, we may grant performance stock units (“PSUs”) to certain members of our management team under the 2020 Equity Incentive Plan.
In February 2026, we granted PSUs (the “2026 PSUs”) to certain members of our management team under the 2020 Equity Incentive Plan. Vesting of the 2026 PSUs is conditional upon the achievement of certain financial performance targets tied to the year ending December 31, 2026. The number of units that may be earned range from 0% to 200% of the target shares based on the achievement of the performance conditions, with vesting subject to such performance achievement and continued service. In the event the minimum targets are not achieved, no 2026 PSUs would vest.
In February 2025, we granted PSUs (“2025 PSUs”) to certain members of our management team under the 2020 Equity Incentive Plan. Vesting of the 2025 PSUs is conditional upon the achievement of certain financial performance targets tied to the Company’s 2025 financial performance and the number of 2025 PSUs earned was certified and approved by the Board in February 2026. One-third of the earned 2025 PSUs vested in the first quarter of 2026, with the remaining two-thirds vesting quarterly over the subsequent two years, subject to continued service.
We measure and recognize compensation for all stock-based compensation awards, including stock options, stock purchase rights, restricted stock units (“RSU”) and PSU, based upon the grant-date fair value of those awards. The grant-date fair value of our stock options and stock purchase rights is estimated using a Black-Scholes-Merton option-pricing model. The fair value of our RSUs and PSUs are calculated based on the market value of our stock at the grant date.
The following table summarizes stock-based compensation expense by line item in the condensed consolidated statements of operations (in thousands):
527
498
5,605
8,075
562
749
Stock-based compensation expense, net of amounts capitalized (1)
Excess income tax benefits related to stock-based compensation expense
97
163
Corsair Gaming, Inc. | Q1 2026 Form 10-Q | 13
The following table summarizes by type of grant, the total unrecognized stock-based compensation expense and the remaining period over which such expense is expected to be recognized (in thousands, except number of years):
Unrecognized Expense
Remaining Weighted Average Period (In Years)
Stock options
17,579
3.0
RSUs
28,343
3.2
PSUs
6,160
2.7
ESPP
521
0.4
Total unrecognized stock-based compensation expense
52,603
10. Net Loss Per Share
The following table summarizes the calculation of basic and diluted net loss per share (in thousands, except per share amounts):
Numerator
Denominator
Basic weighted-average shares outstanding
Effect of dilutive securities
907
Total diluted weighted-average shares outstanding
Anti-dilutive potential common shares (1)
13,747
13,819
11. Income Taxes
The following table presents our loss before income taxes, income tax expense and effective income tax rates for all periods presented (in thousands, except percentages):
Effective tax rate
1.2
%
(25.0
)%
We are subject to income taxes in the United States and foreign jurisdictions in which we do business. These foreign jurisdictions have statutory tax rates different from those in the United States. Accordingly, our effective tax rates will vary depending on the relative proportion of foreign to U.S. income, the utilization of net operating loss and tax credit carry forwards, changes in geographic mix of income and expense, changes in management’s assessment of matters such as the ability to realize deferred tax assets, and changes in tax laws.
Our effective tax rates were a tax benefit of 1.2% and a tax expense of (25.0)% for the three months ended March 31, 2026 and
Corsair Gaming, Inc. | Q1 2026 Form 10-Q | 14
2025, respectively. The US tax provision for the quarters ended March 31, 2026 and 2025 was consistently recorded based on actual quarterly tax provision in lieu of annual projected effective tax rate. The change in effective tax rate for the three months ended March 31, 2026 as compared to the three months ended March 31, 2025 was primarily due to a change in the mix of income and losses in the various tax jurisdictions in which we operate, as well as a discrete tax benefit of approximately $1 million recognized in the current year period related to the transfer of intellectual property from the UK to the US as part of a reorganization relating to our controller products.
We assess our deferred tax assets and liabilities to determine if it is more likely than not that they will be realized; if not, a valuation allowance is required to be recorded. Previously, in the third quarter of 2024, we reached a cumulative loss position over the previous three years, and with consideration of other negative evidence, we concluded that it is more likely than not that we will not realize our U.S. federal and state deferred tax assets. As a result of the foregoing, a full valuation allowance was recorded for the quarter ended September 30, 2024. The deferred tax liability related to indefinite-lived assets was excluded from sources of future taxable income, as the timing of its reversal cannot be predicted due to the nature of its indefinite life.
Unrecognized tax benefits were $3.9 million as of March 31, 2026 and $3.8 million as of December 31, 2025, respectively, and if recognized, would favorably affect the effective income tax rate in future periods.
12. Segment and Geographic Information and Major Customers
Operating segments are based on components of a company that engage in business activity that earn revenue and incur expenses and (a) whose operating results are regularly reviewed by its chief operating decision maker (“CODM”) to make decisions about resource allocation and performance and (b) for which discrete financial information is available. By this definition, we have identified our Chief Executive Officer as the CODM. We operate and report in two segments:
We believe that this structure reflects our current operational and financial management, and that it provides the best structure for us to focus on growth opportunities while maintaining financial discipline.
Our CODM reviews net revenue, and gross profit of these segments on a regular basis to evaluate the performance of, and allocates resources to, each of the two segments. The CODM considers budget-to-actual variances on a monthly basis when making decisions about allocating resources to the segments. Our CODM manages assets on a total company basis, not by operating segments; therefore, segmental asset information is not presented.
Segment Profit and Loss
The tables below present the reportable segment profit and loss measure - segment gross profit for each of the periods presented (in thousands):
Three Months EndedMarch 31, 2026
Three Months EndedMarch 31, 2025
Gamer and Creator Peripherals
Gaming Components and Systems
Net revenue(1)
123,310
231,202
111,973
257,777
Less:
Inventory costs (2)
62,454
162,371
224,825
58,774
204,297
263,071
Other segment items (3)
10,566
3,092
13,658
6,785
(2,468
4,317
Total cost of revenue
73,020
165,463
65,559
201,829
50,290
65,739
46,414
55,948
Corsair Gaming, Inc. | Q1 2026 Form 10-Q | 15
Revenue by Major Customer
The following table sets forth the customer that individually comprised 10% or more of our total net revenue for the periods presented:
Customer A
25.0
28.3
No other customer represented 10% or more of our total net revenue in the periods presented.
Revenue by Major Products
The following table sets forth our net revenue by major product category for the periods presented (in thousands):
Gaming Peripherals products
Gaming Components and Systems segment
Memory products
149,561
141,090
Other Component products
81,641
116,687
Total net revenue
Geographic Information
The following table summarizes our net revenue by geographic region based on the location of the customer (in thousands):
United States
145,954
168,397
Americas (excluding United States) (1)
24,593
22,098
Europe and Middle East (1)
132,266
137,596
Asia Pacific (1)
51,699
41,659
13. Redeemable Noncontrolling Interest (“RNCI”)
We hold an 81% controlling interest in iDisplay, with the remaining 19% owned by the iDisplay Seller. The remaining 19% interest is subject to a put option held by the iDisplay Seller within one year after the fifth anniversary of July 1, 2024 and a call option held by Corsair at any time after the second anniversary of July 1, 2024, with exercise prices based on certain prescribed multiples of iDisplay’s historical trailing twelve-month EBITDA, less any debt.
Because the redemption of the noncontrolling interest is not solely within our control, the carrying value of the remaining 19% interest in iDisplay is classified as temporary equity in our consolidated balance sheet.
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The following table presents the changes in RNCI for the periods presented (in thousands):
Balance at beginning of period
15,149
Share of net income
Share of other comprehensive income (loss)
(48
(60
Dividend paid
Change in redemption value
920
(392
Balance at end of period
14,535
Corsair Gaming, Inc. | Q1 2026 Form 10-Q | 17
HItem 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
You should read the following discussion of our financial condition and results of operations in conjunction with the condensed consolidated financial statements and the related notes included elsewhere in this Quarterly Report on Form 10-Q as well as in conjunction with the Risk Factors set forth in Part I, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2025, as filed with the United States Securities and Exchange Commission (“SEC”) on February 25, 2026. The following discussion contains forward-looking statements based upon current expectations that involve risks and uncertainties. Our actual results could differ materially from those anticipated in these forward-looking statements as a result of many factors, including but not limited to those discussed under the heading “Risk Factors” in Part I, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2025, and below in Item 3,“Quantitative and Qualitative Disclosures about Market Risk”.
Overview
We are a leading global provider and innovator of high-performance products for gamers and digital creators, such as streamers, vloggers and broadcasters, many of whom build their own PCs using our components. Our industry-leading gaming products help digital athletes, from casual gamers to committed professionals, perform at their peak across PC or console platforms, and our streaming products enable creators, particularly streamers, to produce studio-quality content to share with friends or to broadcast to millions of fans. Our PC component products offer our customers multiple options to build their customized gaming and workstation desktop PCs. Our solution is the most complete suite of products that address the most critical components for both game performance and streaming. Our product offering is enhanced by our proprietary software platforms: iCUE and the Elgato streaming suite for content creators, including our Stream Deck control software, which provide unified, intuitive performance, aesthetic control and customization across our Corsair hardware ecosystem and Elgato streaming products. We also offer digital services to enhance the customer experience by integrating esports, Elgato's marketplace, customer care and extended warranty into our product offerings.
We group our products into two categories (operating segments):
Summary of Financial Results
Our net revenue was $354.5 million and $369.8 million for the three months ended March 31, 2026 and 2025, respectively. Our gross margin was 32.7% and 27.7% for the three months ended March 31, 2026 and 2025, respectively. We had a net income (loss) of $13.1 million and $(10.3) million for the three months ended March 31, 2026 and 2025, respectively.
As of March 31, 2026, we had cash and restricted cash, in the aggregate of $119.7 million and the principal balance outstanding on our June 2030 Term Loan was $120.3 million. Cash generated from operations was $29.7 million and $18.8 million for the three months ended March 31, 2026 and 2025, respectively.
Key Factors Affecting Our Business
Our results of operations and financial condition are affected by numerous factors, including those discussed under the heading “Risk Factors” in Part I, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2025, as well as those described below.
Impact of Macroeconomic Conditions
Our business and financial performance depend significantly on worldwide economic conditions. We continue to face global macroeconomic challenges including evolving dynamics in the global trade environment and changes in laws or policies governing the terms of foreign trade, in particular increased trade restrictions, tariffs or taxes on imports or exports from or to countries where we manufacture or sell our products, inflationary trends, uncertainty in key financial markets, and volatility in exchange rates.
Recent geopolitical developments in the Middle East, including the conflict involving Iran, have contributed to volatility in global energy prices and transportation costs. These developments may increase our freight, logistics and other input costs and may
Corsair Gaming, Inc. | Q1 2026 Form 10-Q | 18
also affect consumer spending due to broader economic uncertainty. While we continue to monitor the situation and implement mitigation actions, the duration, severity and broader economic consequences remain uncertain. Other geopolitical concerns include the ongoing conflicts in Ukraine and the broader Middle East, tensions in the Red Sea, and potential conflicts between China and Taiwan, and the resulting supply chain constraints.
Since February 2025, the U.S. government has proposed and in certain cases implemented new, substantial tariffs on imports to the United States from various countries, including Taiwan, China and Vietnam, where we manufacture or source our products. In February 2026, the U.S. Supreme Court ruled that certain tariffs previously imposed under the International Emergency Economic Powers Act (IEEPA) were invalid. While this ruling creates the potential for refunds of duties previously paid, the ultimate availability, timing, and amount of recovery remain uncertain and is subject to further legal and administrative developments. In March 2026, the U.S. Court of International Trade (CIT) issued an order directing U.S. Customs and Border Protection (CBP) to establish a process for the submission and review of refund claims related to affected IEEPA tariffs, and in April 2026, we submitted refund claims under that process. The ruling remains subject to a potential government appeal or stay request, with a deadline of June 7, 2026. As the recoverability and timing of any such refund remains uncertain, we have not recognized a receivable and corresponding offset to expense or asset as of March 31, 2026 and will not, until such amounts are realized or realizable. In addition, the U.S. federal government has recently introduced additional trade measures and investigations that may result in new tariffs. While we have taken actions to mitigate supply chain and cost impacts, including shifting production across jurisdictions, we may not fully offset ongoing trade and tariff developments.
We also experience seasonality in the sale of our products, which may be affected by general economic conditions. The extent of the impact of macroeconomic conditions and geopolitical tensions on our business, sales, results of operations, cash flows and financial condition will depend on future developments, which are not within our control and are highly uncertain and cannot be predicted. We will continue to evaluate these risks and uncertainties and further our mitigation plans.
We are exposed to fluctuations in foreign currency exchange rates. As a result of our foreign sales and operations, we have revenue, payroll and other operating expenses denominated in foreign currencies, in particular the Euro, British Pound, Taiwan Dollar, and Chinese Yuan. Unfavorable movement in the exchange rate between the U.S. dollar and the currencies we conduct sales or operate in may negatively impact our financial results.
Impact of Industry Trends
Our results of operations and financial condition are impacted by industry trends in the gaming market, including:
Corsair Gaming, Inc. | Q1 2026 Form 10-Q | 19
Impact of Customer Concentration and Shipping Costs
We operate a global sales network that consists primarily of retailers (including e-retailers), as well as distributors, which we use to access certain retailers. Further, a limited number of retailers and distributors represent a significant portion of our net revenue, with e-retailer Amazon accounting for 25.0% and 28.3% of our net revenue for the three months ended March 31, 2026 and 2025, respectively, and sales to our ten largest customers accounting for approximately 46.8% and 50.4% of our net revenue for the three months ended March 31, 2026 and 2025, respectively. Our customers, including Amazon, typically do not enter into long-term agreements to purchase our products but instead enter into purchase orders with us. As a result of this concentration of revenue and the lack of long-term agreements with our customers, a primary driver of our net revenue and operating performance is maintaining good relationships with these retailers and distributors. To help maintain good relationships, we implement initiatives such as our updated packaging design which helps e-retailers such as Amazon process our packages more efficiently. Further, given our global operations, a significant percentage of our expenses relate to shipping costs. Our ability to effectively optimize these shipping costs, for example utilizing expensive shipping options such as air freight for smaller packages and more urgent deliveries and more cost-efficient options, such as ground or ocean freight, for other shipments, has an impact on our expenses and results of operations.
Impact of New Product Introductions
Gamers demand new technology and product features, and we expect our ability to accurately anticipate and meet these demands will be one of the main drivers for any future sales growth and market share expansion. We believe our net revenue for 2025 and for the three months ended March 31, 2026 was favorably impacted by the release of 105 and 20 new products, respectively. While we intend to continue to develop and release new products, there can be no assurance that our new product introductions will have a favorable impact on our operating results or that customers will choose our new products over those of our competitors.
Impact of Seasonal Sales Trends
We have experienced and expect to continue to experience seasonal fluctuations in sales due to the buying patterns of our customers and spending patterns of gamers. Our net revenue has generally been lower in the first half of the year due to lower consumer demand following the fourth quarter holiday season and because of the decline in sales that typically occurs in anticipation of the introduction of new or enhanced CPUs, GPUs, and other computer hardware products. Further, our net revenue tends to be higher in the second half of the year due to seasonal sales such as “Black Friday” and “Cyber Monday” as well as “Singles Day” in China, as retailers tend to make purchases in advance of these sales. Our sales also tend to be higher in the fourth quarter due to the release of high-profile games, including the annual release of popular gaming franchises in connection with the holiday season. As a consequence of seasonality, our net revenue for the second calendar quarter is generally the lowest of the year. Historical seasonal patterns may not continue in the future and may be further impacted in the future by macroeconomic factors, including trade policy and tariffs, increasing supply constraints, semiconductor shortages, delay in the anticipated launch of new or enhanced GPUs and CPUs, and shifts in customer behavior.
Impact of Product Mix
Our Gamer and Creator Peripherals segment has a higher gross margin than our Gaming Components and Systems segment. As a result, our overall gross margin is affected by changes in product mix. External factors can have an impact on our product mix, such as popular game releases that can increase sales of peripherals and availability of new CPUs and GPUs that can impact component sales. In addition, within our Gamer and Creator Peripherals and Gaming Components and Systems segments, gross margin varies between products, and significant shifts in product mix within either segment may also significantly impact our overall gross margin.
Impact of Fluctuations in Integrated Circuits Pricing
Integrated circuits (“ICs”) account for most of the cost of producing our high-performance memory products. IC prices are subject to pricing fluctuations, which can affect the average sales prices of memory modules, and thus impact our net revenue, and can have an effect on gross margins. The impact on net revenues can be significant as our high-performance memory products, included within our Gaming Components and Systems segment, represent a significant portion of our net revenue.
Corsair Gaming, Inc. | Q1 2026 Form 10-Q | 20
Results of Operations
The following tables set forth the components of our condensed consolidated statements of operations, in dollars (thousands) and as a percentage of total net revenue, for each of the periods presented.
100.0
67.3
72.3
32.7
27.7
24.0
23.5
4.8
28.8
3.9
(0.6
(0.5
(0.7
0.1
0.2
(1.1
(0.3
(1.6
3.6
(2.2
(2.8
Net Revenue
(In thousands)
Corsair Gaming, Inc. | Q1 2026 Form 10-Q | 21
Net revenue decreased by 4.1% for the three months ended March 31, 2026, as compared to the same period last year.
The decrease in net revenue in the three-month period was due to a 10.3% decrease in sales for our Gaming Components and Systems segment, which was partially offset by a 10.1% increase in sales for our Gamer and Creator Peripherals segment.
For further discussions specific to our Gaming Components and Systems and Gamer and Creator Peripherals segments, refer to “Segment Results” section below.
Gross Profit and Gross Margin
(In thousands, except percentages)
Gross margin
Gross margin increased by 500 basis point for the three months ended March 31, 2026, as compared to the same period last year. The increase was primarily attributable to a 580 basis point improvement from favorable product mix and higher pricing, partially offset by a 100 basis point impact from higher tariff costs.
For further discussions specific to our Gaming Components and Systems and Gamer and Creator Peripherals segments, refer to the “Segment Results” section below.
Sales, General and Administrative (SG&A)
SG&A expenses decreased by $2.0 million, or 2.3%, for the three months ended March 31, 2026, as compared to the same period last year primarily due to a $2.9 million decrease in distribution costs due to lower sales volume, a $2.4 million decrease in stock-based compensation expense and a $1.4 million decrease in bad debt expense. These decreases were partially offset by a $3.2 million increase in personnel-related costs, a $0.7 million increase in amortization expense resulting from shortened useful lives of certain intangible assets, and a $0.6 million increase in facilities and maintenance expenses.
Product Development
Product development expenses decreased by $0.4 million, or 2.2%, for the three months ended March 31, 2026, as compared to the same period last year primarily due to a $1.1 million decrease in consulting and contractor costs and a $0.8 million decrease in amortization expense as certain intangible assets became fully amortized. These decreases were partially offset by a $1.6 million increase in personnel-related costs.
Interest Expense, Interest Income and Other (Expense) Income, Net
Interest expense decreased by $1.0 million, or 36.8% for the three months ended March 31, 2026, as compared to the same period last year primarily due to lower principal balance on our term loan combined with lower interest rates.
Corsair Gaming, Inc. | Q1 2026 Form 10-Q | 22
Interest income decreased by $0.2 million, or 33.2% for the three months ended March 31, 2026, as compared to the same period last year primarily due to lower cash balance in our interest-bearing account combined with lower interest rates.
Other (expense) income, net changed by $4.3 million, from a net expense of $3.9 million for the three months ended March 31, 2025 to a net income of $0.4 million for the three months ended March 31, 2026. Other (expense) income, net for the three months ended March 31, 2025 included a $2.6 million reversal of bargain purchase gain from the Fanatec Acquisition that was recognized in year ended December 31, 2024. The remainder of other (expense) income, net for the three months ended March 31, 2026 and 2025 primarily comprised of foreign exchange gains and losses on cash, accounts receivable, and intercompany balances denominated in currencies other than the functional currencies of our subsidiaries. Our foreign currency exposure is primarily driven by fluctuations in exchange rates for the Euro, the British Pound, and the New Taiwan Dollar.
Income Tax Benefit (Expense)
Our effective tax rates were a tax benefit of 1.2% and a tax expense of (25.0)% for the three months ended March 31, 2026 and 2025, respectively. The change in the effective tax rate was primarily driven by a net discrete tax benefit recognized in the first quarter of 2026 related to an internal restructuring and transfer of intellectual property, partially offset by tax expense on taxable income and changes in the mix of income across jurisdictions. We continue to maintain a full valuation allowance against our U.S. deferred tax assets, and as a result, our domestic tax provision is primarily limited to state taxes and discrete adjustments.
Segment Results
Segment Net Revenue
The following table sets forth our net revenue by segment expressed both in dollars (thousands) and as a percentage of net revenue:
Three Months Ended March 31,
Gamer and Creator Peripherals Segment
34.8
30.2
Gaming Components and Systems Segment
Memory Products
42.2
38.2
Other Component Products
23.0
31.6
65.2
69.8
Total Net Revenue
Net revenue of the Gamer and Creator Peripherals segment increased by 10.1% for the three months ended March 31, 2026, as compared to the same period last year. The increase was primarily driven by higher sales within our peripherals, streaming and sim racing categories as a result of new product introductions and market share gains.
Net revenue of the Gaming Components and Systems segment decreased by 10.3% for the three months ended March 31, 2026, as compared to the same period last year. The decrease was primarily driven by softer demand in the self-built PC market, reflecting the lack of a significant GPU-driven upgrade cycle and elevated memory pricing, partially offset by continued strength in memory and systems products.
Corsair Gaming, Inc. | Q1 2026 Form 10-Q | 23
Segment Gross Profit and Gross Margin
The following table sets forth our gross profit expressed in dollars (thousands) and gross margin (which we define as gross profit as a percentage of net revenue) by segment:
40.8
41.5
46,970
31.4
23,843
16.9
18,769
32,105
27.5
28.4
21.7
Total Gross Profit
The gross margin of the Gamer and Creator Peripherals segment decreased by 70 basis point for the three months ended March 31, 2026 as compared to the same period last year. The decrease was primarily driven by a 170 basis point impact from tariffs, a 160 basis point impact from higher promotional costs, and a 70 basis point impact from higher air freight costs. These decreases were partially offset by a 320 basis point improvement from favorable product mix.
The gross margin of the Gaming Components and Systems segment increased by 670 basis point for the three months ended March 31, 2026 as compared to the same period last year. The increase was primarily driven by a 520 basis point improvement from memory price increases and favorable product mix, a 140 basis point benefit from lower promotional activity due to strong demand for memory products, a 90 basis point benefit from lower rework and warranty costs, and a 90 basis point benefit from lower air freight costs due to improved supply availability. These increases were partially offset by an 80 basis point impact from lower factory utilization and a 70 basis point impact from tariffs.
Liquidity and Capital Resources
We have financed our operations and acquisitions through cash from operations, and when necessary, through debt facilities and issuance of equity securities. As of March 31, 2026, our principal sources of liquidity were cash and restricted cash, in aggregate of $119.7 million, and our borrowing capacity under the June 2030 Revolving Facility (as defined under “Capital Resources” below) of $99.6 million.
Our principal uses of cash generally include purchases of inventory, payroll and other operating expenses related to the development and marketing of our products, capital expenditures, repayments of debt and related interest, income tax payments, share repurchases, future investments in business and technology, and selective mergers and acquisitions.
We believe that the anticipated cash flows from operations based on our current business outlook, combined with our current levels of cash balances at March 31, 2026, supplemented with the borrowing capacity under our June 2030 Revolving Facility, if and as needed, will be sufficient to fund our principal uses of cash for at least the next twelve months. In the longer term, liquidity will depend to a great extent on our future revenues and our ability to appropriately manage our costs based on the demand for our products. We may require additional funding and need or choose to raise the required funds through borrowings or public or private sales of debt or equity securities. The sale of additional equity would result in additional dilution to our stockholders. The incurrence of debt financing would result in debt service obligations and the instruments governing such debt could require operating and financial covenants that would restrict our operations. There can be no assurance that any such equity or debt financing will be available on favorable terms, or at all.
Corsair Gaming, Inc. | Q1 2026 Form 10-Q | 24
Cash Flows
The following table summarizes our cash flows for the periods presented (in thousands):
Net cash provided by (used in):
Operating activities
Investing activities
Financing activities
Cash Flows from Operating Activities
Net cash provided by operating activities for the three months ended March 31, 2026 was $29.7 million and consisted of net income of $13.1 million, and non-cash adjustments of $18.0 million, partially offset by a net cash outflow of $1.3 million from changes in net operating assets and liabilities. Non-cash adjustments primarily consisted of amortization of intangibles, depreciation, and stock-based compensation expense. The net cash outflow from changes in operating assets and liabilities was primarily related to a decrease in accounts payable due to lower inventory purchases and vendor mix and a decrease in other liabilities and accrued expenses due to a reduction in the accruals needed for customer incentives programs; a reduction in sales returns reserves in line with lower revenue; as well as the payment of the 2025 employee bonus during the quarter. These outflows were partially offset by a decrease in accounts receivable from lower revenue and favorable customer mix, and a decrease in inventory compared to the prior quarter.
Net cash provided by operating activities for the three months ended March 31, 2025 was $18.8 million and consisted of non-cash adjustments of $27.1 million, a net cash inflow of $2.0 million from changes in our net operating assets and liabilities, partially offset by a net loss of $10.3 million. The non-cash adjustments primarily consisted of amortization of intangibles, depreciation, stock-based compensation expense, and the reversal of the Fanatec Acquisition bargain purchase gain previously recognized in the year ended December 31, 2024. The net cash inflow from changes in our net operating assets and liabilities was primarily related to an increase in accounts payable due to timing of payments and higher inventory purchases, partially offset by cash outflows from an increase in inventories as we stocked up in anticipation of tariffs, as well as a decrease in other liabilities and accrued expenses primarily due to a reduction in the accruals needed for customer incentives programs and sales returns with lower revenues.
Cash Flows from Investing Activities
Cash used in investing activities was $3.7 million for the three months ended March 31, 2026, compared to $3.1 million for the same period in 2025, primarily reflecting capital expenditures.
Cash Flows from Financing Activities
Cash used in financing activities was $5.3 million for the three months ended March 31, 2026 and primarily consisted of $5.0 million repurchases of common stock, $1.6 million repayment of debt, $0.6 million payment of taxes related to net share settlement of equity awards, and $0.2 million payment of dividends to noncontrolling interest, partially offset by $2.1 million proceeds received from the issuance of shares through the employee equity incentive plans.
Cash used in financing activities was $22.3 million for the three months ended March 31, 2025 and consisted of $25.0 million repayment of debt, $0.4 million payment of taxes related to net share settlement of equity awards, and $0.3 million payment of dividends to noncontrolling interest, partially offset by $3.4 million proceeds received from the issuance of shares through the employee equity incentive plans.
Capital Resources
Debt Obligations
On June 30, 2025, we entered into an Amended and Restated Credit Agreement with BofA to refinance our prior first lien credit and guaranty agreement with BofA, entered into on September 3, 2021. The Amended and Restated Credit Agreement provides for total commitments of $225.0 million, consisting of a $100.0 million five-year revolving credit facility maturing on June 30, 2030 (the “June 2030 Revolving Facility”) and a $125.0 million five-year term loan facility maturing on June 30, 2030 (the “June 2030 Term Loan”). The Amended and Restated Credit Agreement also permits, subject to conditions stated therein, additional incremental facilities in a maximum aggregate principal amount not to exceed $125.0 million.
The Amended and Restated Credit Agreement has a variable rate structure. According to the provisions of the Amended and Restated Credit Agreement, the June 2030 Term Loan and June 2030 Revolving Facility each bears interest at our election, at either (a) term Secured Overnight Financing Rate ("SOFR") plus a percentage spread (ranging from 1.50% to 2.50%) based on our total net
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leverage ratio or (b) the base rate (as described in the Restated Credit Agreement as the greatest of (i) Bank of America’s prime rate, (ii) the federal funds rate plus 0.50% and (iii) one-month term SOFR plus 1.0%) plus a percentage spread (ranging from 0.50% to 1.50%) based on the our total net leverage ratio.
On January 30, 2026, the Board of Directors authorized us to repurchase up to $50 million of our outstanding shares of common stock. This represents our first repurchase authorization. The repurchase program was effective immediately, does not have an expiration date and is subject to market conditions, applicable laws and regulatory guidelines. The timing and amount of any repurchases will depend on a variety of factors, and the program may be suspended or discontinued at any time and without prior notice.
Contractual Cash and Other Obligations
The following table summarizes our contractual cash and other obligations as of March 31, 2026 (in thousands):
Payments Due by Period
Less than1 Year
1-3Years
3-5Years
More than5 Years
Debt principal and interest payments (1)
144,000
12,456
23,603
107,941
Inventory-related purchase obligations (2)
80,844
Operating lease obligations (3)
84,283
17,773
21,878
15,212
29,420
Other purchase obligations (4)
11,315
9,265
1,883
167
320,442
120,338
47,364
123,320
As of March 31, 2026, we had $2.7 million in non-current income tax payable, including interest and penalties, related to our income tax liability for uncertain tax positions. At this time, we are unable to make a reasonably reliable estimate of the timing of payments in individual years in connection with these tax liabilities; therefore, such amounts are not included in the contractual cash obligation table above.
Critical Accounting Policies and Estimates
A critical accounting policy is defined as one that has both a material impact on our financial condition and results of operations and requires us to make difficult, complex and/or subjective judgments, often as a result of the need to make estimates about matters that are inherently uncertain. Our condensed consolidated financial statements are prepared in accordance with U.S. generally accepted accounting principles (“GAAP”), which requires us to make estimates, judgments and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent liabilities at the date of the condensed consolidated financial statements, as well as the reported amounts of revenue and expenses during the reporting periods. Our estimates are based on our historical experience and on various other factors that we believe to be applicable and evaluate them on an ongoing basis to ensure they remain reasonable under current conditions. Actual results may differ significantly from those estimates, which could have a material impact on our business, results of operations, and financial condition.
There have been no material changes to our critical accounting policies and estimates during the three months ended March 31, 2026 as compared to the critical accounting policies and estimates described in our Management’s Discussion and Analysis of Financial Condition and Results of Operations included in our Annual Report on Form 10-K for the year ended December 31, 2025 filed with the SEC on February 25, 2026.
Recent Accounting Pronouncements
Refer to Note 2 to the condensed consolidated financial statements included in this Quarterly Report on Form 10-Q for recent accounting pronouncements adopted and to be adopted.
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Item 3. Quantitative and Qualitative Disclosures About Market Risk.
We are exposed to market risks in the ordinary course of our business. Market risk represents the risk of loss that may impact our financial position due to adverse changes in financial market prices and rates. Our market risk exposure is primarily a result of fluctuations in interest rates and foreign currency exchange rates.
Interest Rate Risk
As of March 31, 2026, we had cash and restricted cash of $119.7 million, which consisted primarily of bank deposits. Our cash is held for working capital purposes.
As of March 31, 2026, under the Amended and Restated Credit Agreement, we had $120.3 million (face value) outstanding on the June 2030 Term Loan which bears interest at variable market rates, primarily SOFR. A significant change in these market rates may adversely affect our operating results. As of March 31, 2026, a hypothetical 100 basis point change in interest rates would result in a change to the annual interest expense by approximately $1.2 million.
Foreign Currency Risk
Approximately 21.0% of our net revenue for the three months ended March 31, 2026 was denominated in foreign currencies, primarily Euro, and to a lesser extent, the British Pound. Any unfavorable movement in the exchange rate between U.S. dollars and the currencies in which we conduct sales in foreign countries could have an adverse impact on our net revenue and gross margins as we may have to adjust local currency product pricing due to competitive pressures if there is significant volatility in foreign currency exchange rates. Our operating expenses are denominated in the currencies of the countries in which our operations are located, which are primarily in the United States, Europe, Taiwan, and China. Our operating results and cash flows are, therefore, subject to fluctuations due to changes in foreign currency exchange rates.
We enter into forward currency contracts to reduce the short-term effects of currency fluctuations on Euro and British Pound denominated cash, accounts receivable, and intercompany receivable and payable balances. These forward contracts generally mature within two to four months, and we do not enter into foreign currency forward contracts for trading purposes. The outstanding notional principal amount was $21.1 million and $28.5 million as of March 31, 2026 and December 31, 2025, respectively. The gains or losses on these contracts are recognized in earnings based on the changes in fair value of the foreign currency forward contracts.
The net impact of changes in foreign currency rates, including the net gains or (losses) on the forward currency contracts, recognized in other expense, net was $0.4 million and $(1.5) million for the three months ended March 31, 2026 and 2025, respectively. A hypothetical ten percent change in exchange rates between foreign currencies and the U.S. dollar would increase or decrease our gains or losses on foreign currency exchange of approximately $0.7 million in our condensed consolidated financial statements for the three months ended March 31, 2026.
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Item 4. Controls and Procedures.
Limitations on Effectiveness of Controls and Procedures
The effectiveness of any system of internal control over financial reporting, including ours, is subject to inherent limitations, including the exercise of judgment in designing, implementing, operating, and evaluating the controls and procedures, and the inability to eliminate misconduct completely. Accordingly, any system of internal control over financial reporting, including ours, no matter how well designed and operated, can only provide reasonable, not absolute assurances. In addition, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. We intend to continue to monitor and upgrade our internal controls as necessary or appropriate for our business, but there can be no assurance that such improvements will be sufficient to provide us with effective internal control over financial reporting.
Evaluation of Disclosure Controls and Procedures
Our management, with the participation of our principal executive officer and our principal financial officer, has evaluated the effectiveness of our disclosure controls and procedures as of the end of the period covered by this Quarterly Report on Form 10-Q.
Based on this evaluation, our chief executive officer and chief financial officer concluded that, as of March 31, 2026, our disclosure controls and procedures are designed at a reasonable assurance level and are effective to provide reasonable assurance that information we are required to disclose in reports that we file or submit under the Exchange Act is recorded, processed, summarized, and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to our management, including our chief executive officer and chief financial officer, as appropriate, to allow timely decisions regarding required disclosure.
Changes in Internal Control Over Financial Reporting
There were no changes in our internal control over financial reporting that occurred during the quarter ended March 31, 2026 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
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PART II—OTHER INFORMATION
Item 1. Legal Proceedings.
We may from time to time be involved in various legal proceedings of a character normally incident to the ordinary course of our business. Although the outcome of any pending matters, and the amount, if any, of our ultimate liability and any other forms of remedies with respect to these matters, cannot be determined or predicted with certainty, we do not believe that the ultimate outcome of these matters will have a material adverse effect on our business, results of operations or financial condition.
Item 1A. Risk Factors.
We have disclosed under the heading “Risk Factors” in Part I, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2025 the risk factors that materially affect our business, financial condition or results of operations. There have been no material changes from the risk factors previously disclosed. You should carefully consider the risk factors set forth in our Annual Report on Form 10-K for the year ended December 31, 2025 and the other information set forth elsewhere in this Quarterly Report on Form 10-Q. The risks that we describe in our public filings are not the only risks we may face. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial also may materially adversely effect on our business, financial condition and/or future operating results.
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.
Issuer Purchases of Equity Securities
Share repurchase activity during the three months ended March 31, 2026 was as follows:
Total Number of Shares Purchased
Average Price Paid per Share (2)
Total Number of Shares Purchased as Part of Publicly Announced Programs
Approximate Dollar Value of Shares that May Yet Be Purchased Under the Program (1)
(in thousands)
January 1 - 31, 2026
50,000
February 1 - 28, 2026
March 1 - 31, 2026
880,037
5.69
44,990
Item 3. Defaults Upon Senior Securities.
Not applicable.
Item 4. Mine Safety Disclosures.
Item 5. Other Information.
(a) None.
(b) None.
(c) None of our directors or officers (as defined in Rule 16a-1 under the Exchange Act) adopted, modified or terminated a Rule 10b5-1 trading arrangement or non-Rule 10b5-1 trading arrangement during the three months ended March 31, 2026, as such terms are defined under Item 408(a) of Regulation S-K.
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Item 6. Exhibits.
Incorporated by
Reference
Exhibit
Number
Description
Form
Date Filed
Filed
Herewith
3.1
Second Amended and Restated Certificate of Incorporation.
8‑K
09/25/2020
Amended and Restated Bylaws.
4.1
Form of common stock certificate of Registrant.
S-1/A
4.2
09/18/2020
Investor Rights Agreement, by and between Corsair Gaming, Inc. and Corsair Group (Cayman), LP.
10-Q
11/10/2020
4.3
Description of Corsair’s Securities Registered Pursuant to Section 12 of the Securities Exchange Act of 1934.
10-K
03/11/2021
4.4
Registration Rights Agreement, by and between Corsair Gaming, Inc. and Corsair Group (Cayman), LP.
09/14/2020
10.1
Amended and Restated Credit Agreement, dated as of June 30, 2025, by and among Corsair Gaming, Inc., as the borrower, certain of its subsidiaries as guarantors, and Bank of America N.A., as administrative agent, swingline lender and L/C issuer.
07/02/2025
31.1
Certification of Principal Executive Officer under Securities Exchange Act Rule 13a‑14(a) and 15d‑14(a).
X
31.2
Certification of Principal Financial Officer under Securities Exchange Act Rule 13a‑14(a) and 15d‑14(a).
32.1*
Certifications of Principal Executive Officer and Principal Financial Officer pursuant to 18 U.S.C. 1350 and Securities Exchange Act Rule 13a‑14(b).
101.INS
Inline XBRL Instance Document – the instance document does not appear in the Interactive Data File because XBRL tags are embedded within the Inline XBRL document
101.SCH
Inline XBRL Taxonomy Extension Schema With Embedded Linkbase Documents
104
Cover Page Interactive Data File (embedded within the Inline XBRL document)
*
The certification attached as Exhibit 32.1 that accompanies this Quarterly Report on Form 10-Q is not deemed filed with the SEC and is not to be incorporated by reference into any filing of Corsair Gaming, Inc. under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended, whether made before or after the date of this Quarterly Report on Form 10-Q, irrespective of any general incorporation language contained in such filing.
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
Date: May 7, 2026
By:
/s/ Gordon Mattingly
Gordon Mattingly
Chief Financial Officer
(Principal Financial Officer and Principal Accounting Officer)
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