Corsair Gaming (CRSR) AI Stock Analysis

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Corsair Gaming

(NASDAQ:CRSR)

52Neutral

Corsair Gaming's overall score reflects significant challenges in financial performance, with ongoing net losses and declining revenues impacting profitability. The stock exhibits bearish technical momentum and a poor valuation with a negative P/E ratio. However, positive developments in revenue growth, strategic integration, and leadership transition provide some optimism for future performance.

Positive Factors

Financial Performance

Corsair reported Q1 results that beat estimates and consensus on revenue.

Partnerships and Game Releases

The company launched quality partnerships for key peripherals and should benefit from a year of decent game releases.

Product Demand and Market Position

Corsair should benefit from the latest GPU offering on the components segment, as a slew of high-quality games requiring high-quality system upgrades will entice the DIY game system builders to rehaul their systems.

Negative Factors

Revenue Guidance

Management did not reaffirm their original FY25 guidance due to tariff uncertainty.

Tariff Risks

Headline risk from tariffs has recently pressured shares, but Corsair’s exposure remains limited.

Tariff Uncertainty

Corsair withdrew its FY:25 guidance for revenue of $1.4 – 1.6 billion and Adjusted EBITDA of $80 – 100 million due to significant uncertainty on whether reciprocal tariffs re-emerge on other APAC countries where Corsair has sourcing exposure.

Corsair Gaming (CRSR) vs. S&P 500 (SPY)

Market Cap

$766.13M

Dividend YieldN/A

Average Volume (3M)1.05M

Price to Earnings (P/E)―

Beta (1Y)1.73

Revenue Growth-6.53%

EPS Growth-1059.95%

CountryUS

Employees2,567

SectorTechnology

Sector Strength65

IndustryComputer Hardware

Share Statistics

EPS (TTM)0.11

Shares Outstanding105,819,305

10 Day Avg. Volume990,127

30 Day Avg. Volume1,047,115

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)0.00

Price to Cash Flow (P/CF)0.00

P/FCF Ratio0.00

Enterprise Value/Market Cap1.10

Enterprise Value/RevenueN/A

Enterprise Value/Gross Profit2.57

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$11.00

Price Target Upside60.35% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering5

Corsair Gaming Business Overview & Revenue Model

Company DescriptionCorsair Gaming, Inc., together with its subsidiaries, designs, markets, and distributes gaming and streaming peripherals, components and systems in the Americas, Europe, the Middle East, and the Asia Pacific. The company offers gamer and creator peripherals, including gaming keyboards, mice, headsets, and controllers, as well as capture cards, stream decks, USB microphones, studio accessories, and EpocCam software. It also provides gaming components and systems comprising power supply units, cooling solutions, computer cases, and DRAM modules, as well as prebuilt and custom-built gaming PCs, and others; and PC gaming software comprising iCUE for gamers and Elgato's streaming suite for streamers and content creators. In addition, the company offers coaching and training, and other services. It sells its products through a network of distributors and retailers, including online retailers, as well as directly to consumers through its website. The company was incorporated in 1994 and is headquartered in Fremont, California. Corsair Gaming, Inc. is a subsidiary of Corsair Group (Cayman), LP.

How the Company Makes MoneyCorsair Gaming generates revenue through the sale of its broad range of gaming and computing products. The company's primary revenue streams consist of gaming peripherals, such as keyboards, mice, and headsets, as well as gaming components including memory modules, cooling solutions, and power supplies. Additionally, Corsair's revenue is bolstered by its gaming PC systems and streaming gear offerings. The company benefits from strong brand recognition and a loyal customer base, which is enhanced by strategic partnerships and collaborations with esports teams, streamers, and gaming influencers. These partnerships help increase brand visibility and drive product demand within the gaming community.

Corsair Gaming Key Performance Indicators (KPIs)

Any

Revenue by Geography

Revenue by Geography
Breaks down revenue across different regions, revealing where Corsair Gaming is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.

Chart InsightsCorsair Gaming's revenue from the Americas and Europe, Middle East regions shows a pattern of fluctuation, with a notable dip in 2024. Despite these challenges, the earnings call highlights optimism for 2025, driven by growth in gaming peripherals and strategic acquisitions like Fanatec. The anticipated launch of new NVIDIA GPUs is expected to boost Q2 2025 performance. However, the Asia Pacific region continues to underperform, reflecting broader challenges. Overall, Corsair is focused on innovation and cost reduction to navigate these regional disparities.

Data provided by:

Main Street Data

Corsair Gaming Financial Statement Overview

Summary

Corsair Gaming faces challenges with negative income and declining revenues. Despite a solid equity base and positive free cash flow, high operational costs lead to negative EBIT and EBITDA margins. Cash flow management is a strength, but revenue decline and profitability issues need addressing.

Income Statement

―

The company has faced challenges with negative net income and declining revenue, as seen in the TTM (Trailing-Twelve-Months) data. Gross profit margin is stable, but EBIT and EBITDA margins have turned negative, indicating operational difficulties. There is a negative revenue growth trend from 2023 to 2024, which affects overall profitability.

Balance Sheet

Corsair Gaming maintains a relatively strong equity position with an improving debt-to-equity ratio, suggesting a conservative leverage approach. However, the declining equity ratio indicates potential asset management issues. Return on equity remains negative due to negative net income, impacting overall balance sheet health.

Cash Flow

―

The company demonstrates positive free cash flow despite declining operating cash flow, which is a positive sign of cash management. However, the free cash flow growth rate has declined significantly compared to previous periods. The operating cash flow to net income ratio is strong, showing efficient cash generation relative to net income.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
1.32B	1.46B	1.38B	1.90B	1.70B
	Gross Profit
327.60M	360.26M	296.63M	513.85M	465.43M
	EBIT
-49.95M	9.69M	-54.79M	137.89M	158.36M
	EBITDA
-49.95M	64.64M	-1.06M	182.99M	201.59M
	Net Income Common Stockholders
-85.18M	-2.59M	-53.95M	100.96M	103.22M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
107.01M	175.62M	153.83M	65.15M	133.34M
	Total Assets
1.24B	1.36B	1.30B	1.34B	1.31B
	Total Debt
12.23M	246.50M	295.17M	308.26M	338.96M
	Net Debt
-94.78M	70.88M	141.35M	243.11M	205.63M
	Total Liabilities
616.38M	663.48M	641.81M	769.22M	876.73M
	Stockholders Equity
604.30M	667.58M	623.84M	568.18M	437.39M
Cash Flow		Free Cash Flow
26.03M	76.39M	40.07M	9.22M	159.96M
	Operating Cash Flow
35.88M	89.15M	66.39M	20.19M	168.95M
	Investing Cash Flow
-52.70M	-26.98M	-47.03M	-20.54M	-10.28M
	Financing Cash Flow
-50.68M	-37.39M	72.61M	-65.40M	-79.13M

Corsair Gaming Technical Analysis

Technical Analysis Sentiment

Negative

Last Price6.86

Price Trends

50DMA

8.62

Negative

100DMA

8.66

Negative

200DMA

7.76

Negative

Market Momentum

MACD

-0.34

Negative

RSI

42.48

Neutral

STOCH

41.60

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CRSR, the sentiment is Negative. The current price of 6.86 is above the 20-day moving average (MA) of 6.70, below the 50-day MA of 8.62, and below the 200-day MA of 7.76, indicating a neutral trend. The MACD of -0.34 indicates Negative momentum. The RSI at 42.48 is Neutral, neither overbought nor oversold. The STOCH value of 41.60 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CRSR.

Corsair Gaming Risk Analysis

Corsair Gaming disclosed 62 risk factors in its most recent earnings report. Corsair Gaming reported the most risks in the “Finance & Corporate” category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

Corsair Gaming Peers Comparison

Overall Rating

UnderperformOutperform

Sector (60)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SMCI	71 Outperform	$19.66B	14.37	21.02%	―	82.10%	6.35%
DELL	70 Outperform	$65.56B	14.80	-179.12%	1.98%	7.84%	42.63%
WDC	69 Neutral	$15.54B	8.56	28.45%	―	21.22%	―
STX	66 Neutral	$19.93B	13.52	-109.27%	3.02%	36.29%	―
HPQ	63 Neutral	$24.16B	9.31	84.33%	4.41%	1.03%	-18.56%
Sector *	60 Neutral	$10.77B	10.41	-6.71%	2.99%	7.69%	-13.12%
CRSR	52 Neutral	$766.13M	―	-15.20%	―	-6.53%	-1059.95%

* Technology Sector Average

Performance Comparison

CRSR

Corsair Gaming

6.86

-3.98

-36.72%

HPQ

25.85

-2.80

-9.77%

STX

Seagate Tech

95.45

6.39

7.17%

SMCI

Super Micro Computer

32.48

-47.49

-59.38%

WDC

Western Digital

44.30

-10.17

-18.67%

DELL

Dell Technologies

95.79

-33.62

-25.98%

Corsair Gaming Earnings Call Summary

Earnings Call Date:May 06, 2025

(Q1-2025)

% Change Since: -0.29%|

Next Earnings Date:Jul 31, 2025

Earnings Call Sentiment Positive

The earnings call highlighted strong revenue growth, successful integration of Fanatec, and advancements in AI-driven innovations, contributing to an optimistic outlook. However, ongoing net losses and uncertainty due to tariffs present challenges that the company is navigating.

Q1-2025 Updates

Positive Updates

Revenue Growth

Corsair reported $370 million in revenue for Q1 2025, representing approximately 10% growth over Q1 2024.

Successful Integration of Fanatec

Fanatec Sim Racing operation was successfully integrated, aligning across website, e-commerce systems, ERP, supply chain, and customer support infrastructure, contributing to growth in the Gamer and Creator Peripheral segment.

AI-Driven Innovations

Corsair introduced AI-enhanced tools like the AI Prompter and integrated AI into wavelength with AI Acoustic, enhancing customer relationships and reducing support costs.

Improved Financial Metrics

Gross margin improved to 27.7% from 25.7% in Q1 2024. Adjusted EBITDA increased to $22.6 million from $18 million in Q1 2024.

Debt Reduction

Corsair reduced debt to $149 million, down $25 million from the prior quarter, enhancing financial flexibility and resilience.

Negative Updates

Net Loss

First quarter net loss attributable to common shareholders was $10.1 million or $0.10 per diluted share compared to a net loss of $12.5 million or $0.12 per diluted share in Q1 2024.

Uncertainty Due to Tariffs

Corsair did not reaffirm full-year 2025 financial guidance due to uncertainty from new tariffs and potential retaliatory actions.

Operational Challenges

Although integration expenses of Fanatec are mostly behind, some supply chain changes are still being made.

Company Guidance

During Corsair Gaming's First Quarter 2025 earnings call, the company reported $369.8 million in net revenue, reflecting a 10% year-over-year growth from Q1 2024. The Gamer and Creator Peripheral segment generated $112 million, while the Gaming Components and Systems segment brought in $257.8 million. Corsair achieved a gross profit of $102.4 million, with a gross margin of 27.7%, an improvement from 25.7% the previous year. Adjusted EBITDA for the quarter was $22.6 million, up from $18 million in Q1 2024. The company also noted a GAAP operating loss of $2.3 million and an adjusted net income of $12.3 million. They highlighted the successful integration of Fanatec, contributing to growth in the peripherals segment, and discussed strategies to mitigate tariff impacts, with only 19% of U.S. market products sourced from China. Corsair's liquidity remains strong, with a cash balance of $102.5 million and $149 million in debt, down by $25 million from the previous quarter.

Corsair Gaming Corporate Events

Executive/Board ChangesBusiness Operations and Strategy

Corsair Gaming Announces CEO Transition in 2025

Positive

Feb 14, 2025

On February 12, 2025, Corsair Gaming announced the retirement of its founder and CEO, Andy Paul, effective July 1, 2025, after 31 years with the company. Thi La, currently President and COO, has been appointed as his successor and will take over on the same date. La has been with Corsair since 2010, significantly contributing to its growth from a $300 million company to a diverse entity with 30 product lines. Her appointment is expected to continue the company’s trajectory of innovation and market leadership. Stakeholders can anticipate a seamless transition, as La’s extensive experience and vision align with Corsair’s goals of further growth and product development.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.