Corsair Gaming 10-Q: Q3 FY2025

Corsair Gaming reported Q3 FY2025 net revenue of $345.8 million, a 13.7% year-over-year increase driven by growth in both Gaming Components & Systems (15.3%) and Gamer & Creator Peripherals (10.5%).

Operating loss narrowed significantly to $10.4 million from $51.6 million in the same period last year, supported by an improved gross margin of 26.9%.

The company acquired Fanatec’s premium sim-racing business for $43.7 million, contributing to revenue growth and resulting in a $2.6 million bargain purchase gain.

Despite positive cash flow from operations of $12 million, the company ended the quarter with a net loss of $10.6 million and negative equity of $95.4 million.

Total debt reached $123.4 million, though liquidity is supported by $66.1 million in cash and a $99.8 million borrowing capacity under a revolving facility maturing in June 2030.

Operating expenses increased by 10.7% to $98.7 million, driven by higher SG&A costs and valuation allowances on deferred tax assets.

Key business risks include macroeconomic volatility, potential tariff impacts, and high customer concentration, specifically regarding revenue generated through Amazon.