管理層發言
Good afternoon, and welcome to Corsair Gaming's second quarter 2026 earnings conference call. I would now like to turn the call over to David Pasquale, Investor Relations. Please go ahead.
Thank you, Operator. Good afternoon, everyone, and thank you for joining us today. With me on the call are Thi La, our Chief Executive Officer, and Gordon Mattingly, our Chief Financial Officer. Before we begin, I'd like to remind you that today's discussion contains forward-looking statements, including but not limited to our guidance for the third quarter and full year 2026, potential future growth in certain product categories, and other statements that are predictive in nature or depend upon or refer to future events or conditions. These forward-looking statements are based on our current assumptions and expectations. Actual results could differ materially. Please refer to the risk factors in our most recent annual report on Form 10-K filed with the SEC, our subsequent SEC filings, and today's earnings press release for full discussion of the factors that could cause our actual results to differ. We undertake no obligation to update these forward-looking statements. Additionally, we will discuss certain non-GAAP financial measures today. Definitions and reconciliations to the most comparable GAAP measures are included in our earnings press release and the investor presentation posted to our investor relations website at ir.corsair.com. With that, I'd like to now turn the call over to Corsair's CEO, Thi La. Thi, please go ahead.
Thank you, David, and good afternoon, everyone. We are pleased to report strong results for Q2. Our core business outperformed expectations, and we are raising our outlook for the rest of the year. Based on our recent performance, Corsair is becoming a more profitable, more cash-generative company. We are improving the quality of our revenue, gaining share in the right categories, and building platforms for growth beyond the traditional PC cycle. I want to share the five numbers that tell the story. Gross profit for the quarter grew 21% year-over-year. Gross margin hit a company record of 33.2%. Gamer and Creator Peripherals revenue for the quarter grew 13% year-over-year. Gross profit in that segment grew 27% year-over-year, and gross margin reached 44.9%. We cut operating expenses for the quarter by $6.1 million year-over-year. So more of our gross profit gains reached the bottom line. Operating cash flow for the quarter grew 148% year-over-year to $74.8 million, and we are raising our full year 2026 outlook, which Gordon will review in a few minutes. Let's talk about the Gamer and Creator Peripherals segment. This segment was again a standout. Revenue grew 13% year-over-year to $115.9 million. Gross profit grew 27% year-over-year to $52 million. Gross margin expanded to 44.9%. This is the mix shift we've been working toward, faster growth in categories that carry stronger margins and deeper customer relationships. Fanatec remained a key driver, supported by new products, wider distribution, and strong direct-to-consumer sales. Fanatec has also carried gross margins above the segment average, so its growth improved both scale and quality. Building on that with the acquisition of Trak Racer, a complementary Sim Racing hardware brand with a strong direct-to-consumer model, it broadens our product range, extends our distribution, and brings experienced leadership into our Sim Solutions group. Our licensing strategy is also growing the Fanatec platform. We recently announced a partnership with Nissan, adding another global automotive brand alongside our existing motorsport relationships. These partnerships reinforce Fanatec as the premium platform for Sim Racing. Elgato, Stream Deck, and Marketplace are evolving from creator tools into a broader workflow platform. In the first half of 2026, Elgato Marketplace revenue and transactions each more than doubled year-over-year. Product submissions grew more than 300%. The marketplace added more than 500,000 new accounts, which is impressive growth on all metrics. The flywheel is working. More users attract more developers, more products increase the value of Stream Deck, and that value drives both hardware demand and recurring revenue. AI-assisted development is making it easier to build new profiles and plug-ins, which we believe should speed this up further. This quarter, we made a minority investment in Bitfocus, a professional show control software company already integrated with Stream Deck. This extends Elgato from the creator desktop into broadcast, live events, and control rooms. These are all higher-value professional environments with a coordinated go-to-market path. As part of the agreement, Corsair and Bitfocus also established a partnership under which Stream Deck Studio and the broader Stream Deck range will serve as preferred and primary control surfaces across Bitfocus customer deployments. We are excited to build on our relationship and expand our growth opportunities. In the Gaming Components and Systems segment, revenue in this segment declined 9% year-over-year to $198.5 million as elevated memory pricing continues to delay DIY PC builds. We believe this demand is deferred, not lost. When builders have historically delayed an upgrade, the need didn't disappear. It built up and it returned as pricing and the product cycle normalized. Even so, segment gross profit grew 17% year-over-year to $52.2 million, and gross margin expanded 570 basis points year-over-year to 26.3%. Memory net revenue grew 17% year-over-year on strong supply chain execution and share gains in North America. Our memory inventory is now properly sized and supply availability remains adequate. Systems was a bright spot too, with solid year-over-year growth in AI workstations. This isn't a pivot. It's a natural extension of capabilities we've built over decades in high-performance system design, customization, overclocked memory, advanced water cooling, and power delivery to support the hottest GPUs. We are targeting the roughly $22 billion desktop AI PC market, focused first on prosumers and small and medium businesses that want local compute, data security, and lower cloud cost. The significance of this opportunity to the company's operation remains early, and GPU allocation is tight. Accordingly, we believe revenue contribution will pick up in the latter part of 2027 and beyond. Looking ahead, our investments remain focused on strategic revenue growth with accretive margin, ecosystem value with recurring revenue, and workstation market opportunity. This is why we chose to direct capital toward M&A and strategic partnerships this quarter, including Trak Racer and Bitfocus, which we believe will extend our platforms and further diversify our business. We will continue to prioritize these opportunities where we see the clearest path to durable, higher margin growth while remaining disciplined on price and integration risk. With GTA 6 expected to launch in Q4 2026, we see a meaningful tailwind for console products and are positioned to capture demand around one of the industry's most anticipated releases. With that, I will turn it over to Gordon to take you through the financials. Gordon?
Thank you, Thi, and good afternoon, everyone. The second quarter showed strong conversion of gross profit improvement into earnings and cash generation. We're excited about our progress and the momentum we are building in our business as we continue to execute and build shareholder value. I'll provide some additional color on the quarter and our outlook before opening the call for any questions. Revenue for the second quarter was $314.3 million, above the assumed midpoint of our guidance range and down 2% year-over-year. Gross profit increased 21% year-over-year to $104.3 million, and gross margin expanded 640 basis points year-over-year and 50 basis points sequentially to a company record of 33.2%. GAAP operating income improved to $7.6 million from an operating loss of $16.9 million a year ago. GAAP net income was $9.1 million, compared with a net loss of $20.3 million in the prior year quarter. GAAP diluted EPS was $0.06 compared with a loss of $0.16 a year ago. Adjusted EBITDA increased to $30.8 million from $8.1 million a year ago, and adjusted EBITDA margin expanded to 9.8% from 2.5%. Non-GAAP diluted EPS increased to $0.23 from $0.01. During the second quarter of 2026, the company recognized the benefit of approximately $15.6 million to GAAP gross profit from refunds of tariffs previously paid under the International Emergency Economic Powers Act. This delivered approximately 500 basis points of benefit to gross margin. Net income benefited by approximately $14.9 million, adjusted EBITDA by approximately $14.3 million, and non-GAAP diluted earnings per share by $0.14. Excluding this benefit, GAAP net loss would have been $5.7 million. And GAAP diluted loss per share would have been $0.07. Adjusted EBITDA would have been $16.6 million, and non-GAAP diluted earnings per share would have been $0.09, both above the high end of the company's guided ranges at $15.5 million and $0.07 respectively. Following receipt of these amounts, the company is materially complete with the tariff refund process, although it may receive immaterial administrative adjustments or interest in future periods. Gamer and Creator Peripherals revenue grew 13% year-over-year to $115.9 million. Segment gross profit increased 27% to $52 million, and gross margin expanded to 44.9% from 40%. The improvement reflects growth in higher margin categories, including Sim Racing, and continued momentum across gaming peripherals and streaming products, as well as the tariff refund. Gaming Components and Systems revenue declined 9% year-over-year to $198.5 million, reflecting the market-wide pressure from elevated memory pricing on DIY builds and standalone components. Despite the lower revenue, we were still able to increase segment gross profit by 17% to $52.2 million, and gross margin expanded to 26.3% from 20.6%. Strong performance in memory, led by strong demand, market share gains, and continued strong supply chain management helped drive this improvement, along with the refund benefits. Systems also showed year-over-year momentum led by AI workstation demand. Direct-to-consumer, or D2C, represented 20% of revenue in the quarter. D2C is a priority for us because it carries better unit economics, gives us richer end-user data, and creates a deeper relationship with our customers while benefiting our cash conversion. Fanatec and Trak Racer also increased our presence in this structurally attractive channel. Operating expenses declined $6.1 million year-over-year to $96.7 million. That discipline allowed more of the gross profit improvement to reach operating income and adjusted EBITDA. Cash provided by operating activities increased 148% year-over-year to $74.8 million, reflecting both strong earnings and disciplined working capital management across inventory, receivables, and vendor terms. Notably, in the first six months of the year alone, we generated more operating cash flow than in all of 2025 and 2024 combined. This is a clear sign of the traction we are gaining in this area and one we plan to build on. Cash and restricted cash increased $74.1 million sequentially to $193.9 million at the end of the second quarter. And with a total debt balance of $118.7 million, we ended the quarter with a net cash position of approximately $75.1 million. Our stronger balance sheet increases our flexibility to invest in organic growth, pursue disciplined strategic acquisition, repurchase shares when attractive, and manage leverage appropriately. We will continue to pursue a combination of those levers as we work to expand growth and profitability and drive shareholder value. I will now turn to the guidance. For the third quarter of 2026, we expect net revenue to be in the range of $320 million to $350 million. Adjusted EBITDA to be in the range of $18 million to $21 million. And non-GAAP diluted EPS to be in the range of $0.09 to $0.12. The outlook assumes continued low double-digit year-over-year growth in Gamer and Creator Peripherals, led by Fanatec, Elgato, and Stream Deck, with a higher margin mix and continued direct-to-consumer progress supporting consolidated gross margin. Gaming Components and Systems are expected to be down low double digits year-over-year and will remain pressured by elevated memory pricing and delayed DIY demand, although supply availability is expected to remain adequate. For the full year 2026, we are raising our outlook. We now expect net revenue to be in the range of $1.4 billion to $1.47 billion. Adjusted EBITDA to be in the range of $121 million to $131 million. And non-GAAP diluted EPS to be in the range of $0.85 to $0.94. Our full year 2026 outlook for net revenue represents an increase of approximately $35 million at the assumed midpoint of our updated guidance range, compared to our prior guidance range of $1.33 billion to $1.47 billion. The assumed midpoint of our adjusted EBITDA range is also up approximately $19 million compared to the assumed midpoint of our prior guidance range of $100 million to $115 million. To close, we are encouraged with our continued business momentum and the progress we are making to increase the quality of Corsair's earnings. Our diversified portfolio of leading brands continues to perform strongly. We are entering the second half with stronger financial capacity, improving mix, and a broader set of growth opportunities. We believe that combination positions us well to compound earnings and cash flow and create long-term shareholder value. Operator, that concludes our formal remarks. You can now open the call up for Q&A.
分析師問答
Our first question is from Aaron Lee of Macquarie. Please go ahead.
I wanted to start with guidance. The midpoint of the 2026 EBITDA guidance range went up by about $19 million, which is more than the $14 million tariff benefit and the Q2 beat versus the midpoint of the guide, which would imply a strengthening of the back half outlook. So can you just talk about what's changed in your expectations for the second half and what the major drivers are?
Yes, sure, Aaron. The increase in the guidance of about $19 million at the midpoint is the combination of a few things. If we look at the midpoints, the Q2 beat was roughly $17 million, of which $14 million was attributable to the tariff, so roughly about $2.5 million from Q2's operations. For the rest of the year, the updated guidance reflects the improved business performance we're seeing organically, a small amount from the Trak Racer acquisition—pretty immaterial there—but primarily the organic improvement, including momentum in Gamer and Creator Peripherals, Elgato Marketplace growth, Fanatec, and memory share gains. Those items collectively contribute to the roughly $19 million increase at the midpoint.
Okay, got you, that's helpful. And then with regard to the Trak Racer acquisition, can you just talk a bit about the growth potential, the integration timeline, and any synergy benefits with Fanatec or the broader organization?
Yes, Aaron, good to hear from you. With regards to the integration phase, it should be a pretty quick one. We think it's going to take about three to six months to integrate our system infrastructure. What's going to be really meaningful is getting the roadmap alignments between the two business units. We folded Sim Racing into one entity. The Trak Racer products will fold underneath the Fanatec brand umbrella. Fanatec is known for electronics—wheels, wheelbases, pedals, anything that requires software—while Trak Racer is focused on mechanicals: cockpits and accessories. It's rare to find two very complementary product lines to combine into a meaningful range. We're looking forward to driving that ecosystem and increasing our presence in the market. The total addressable market continues to grow nicely, and this is a very good acceleration for us.
Okay, awesome. Thank you very much and really nice quarter.
Thank you.
The next question is from Drew Crum of B. Riley Securities. Please go ahead.
I want to ask another question on the guidance, but specific to revenue. I'm just going off the midpoint of the ranges. It looks like you beat the first half by $11 million and raised by $35 million. So curious as to what the source of the $24 million raise for Q3 and Q4 is—what's driving the more optimistic view on the second half?
Drew, you're right with the analysis and it really is a combination of a few things. Mostly the increase in the guide for the second half is from the organic business. Looking ahead, we have GTA 6 launching in Q4, which is a tailwind for our console and peripherals business for the holiday season; Fanatec has new products and wider distribution and the Nissan partnership; Elgato Marketplace has more than doubled in the first half; and memory continues to gain share in North America. Those are the catalysts on the organic side. Then there's a relatively small amount from the Trak Racer acquisition. For Q3, revenue will be primarily organic, given integration timing; modest contribution in Q4; and we expect greater contribution from Trak Racer in 2027. That's really where the increase is coming from for the second half.
Okay, that's helpful. And then if I heard correctly, you're expecting Gaming Components and Systems to be down low double digits for the balance of the year. Can you parse performance in memory and what your expectations are for gross margin for that business? Thanks.
I won't break memory out specifically, but you're correct that we expect low double-digit declines for the Components and Systems segment for the balance of the year. Memory gross margin was 23.4% in Q2. I would guide Q3 to be roughly similar, with some moderation in Q4. I would expect high teens for memory gross margin in Q4 as some abatement occurs in the margin profile. For the overall Components segment, roughly low-20% gross margin is reasonable for the rest of the year.
Yes, Drew, I'd add that we view the Gaming Components and Systems segment as diversified. While the DIY portion of that segment is seeing pressure due to elevated DRAM pricing, we have growth in memory and systems that help offset DIY weakness. Those categories are experiencing good growth, which has minimized the impact relative to the broader market.
Got it. Okay. Thanks so much.
Thanks, Drew.
The next question is from Colin Sebastian of Baird. Please go ahead.
This is Colin Loyet on for Colin Sebastian. You talked about the DIY demand being deferred rather than lost as elevated memory pricing delays builds. What are you seeing in terms of sell-through or channel inventory that supports deferral rather than permanent substitution or loss? And what will need to happen with pricing for that demand to return to growth?
With regards to the DIY segment, let's talk about channel inventory first. We came into the year with a bit of elevated inventory in Q1, and that essentially normalized through Q2 sales as we calibrated the run rate with what's available in the channel. We do see some promotional activity given the higher price point, but we also see customers calibrating and waiting to see whether pricing will change. Memory pricing has moved up and down historically, and toward the end of Q2 we saw the market settle into an acceptance that prices were not going to fall in the near term and may move up again based on forecasts. We see steady run rates beginning to pick up and demand for AI computing starting to come in. People are using larger language models and more AI capabilities, which is a tailwind. We're looking into 2027 as demand picks up. Regarding ASP, it has risen significantly and may continue to rise toward the end of the year. The longer a customer waits to build a machine, the more expensive it may become, which should drive some to act rather than defer indefinitely.
Thank you very much and great work.
Thank you.
It seems we have no further questions. With that, we have reached the end of the question-and-answer session. I will now hand back to Corsair CEO, Thi La, for closing remarks.
Thank you all for joining us today. We are pleased with the progress we delivered in the first half of 2026 and remain focused on carrying that momentum through the balance of the year. We look forward to updating you again when we report our third quarter results. Have a good evening.
Thank you. This concludes today's conference call. You may now disconnect.