Breaking Down Corsair Gaming, Inc. (CRSR) Financial Health: Key Insights for Investors

Are you an investor keeping a close watch on the gaming and streaming gear market? Have you considered how shifts in revenue streams and strategic acquisitions might impact a company's financial stability? Let's delve into Corsair Gaming, Inc.'s recent financial performance, where the full year 2024 shows a net revenue of $1,316.4 million, compared to $1,459.9 million in 2023. While the Gamer and Creator Peripherals segment saw an increase to $472.7 million from $394.9 million, the Gaming Components and Systems segment experienced a drop to $843.7 million from $1,065.0 million. With a net loss attributable to common shareholders of $99.2 million, how will Corsair's strategic focus on growth areas and projected revenue between $1.4 billion and $1.6 billion for 2025 influence its financial trajectory?

Corsair Gaming, Inc. (CRSR) Revenue Analysis

Understanding where Corsair Gaming, Inc. (CRSR) generates its revenue and how those streams are evolving is crucial for investors. A detailed look into their financial performance provides valuable insights.

Here’s a breakdown of Corsair Gaming, Inc.'s (CRSR) primary revenue sources:

• Products: Corsair primarily generates revenue from selling various gaming and streaming products. These include high-performance PC components, peripherals, and streaming equipment.
• Services: While product sales are the main driver, Corsair also derives some revenue from related services and software.
• Regions: Corsair's revenue is diversified geographically, with sales spanning across North America, Europe, and Asia-Pacific regions.

Analyzing Corsair Gaming, Inc.'s (CRSR) year-over-year revenue growth rate reveals important trends. Based on the latest financial data, here's what we can observe:

• Historical Trends: Examining past annual reports and quarterly earnings helps identify whether revenue growth is accelerating, decelerating, or remaining stable.
• Percentage Increase/Decrease: The percentage change in revenue from one year to the next indicates the company's growth trajectory. Significant increases may point to successful product launches or market expansions, while decreases could signal increased competition or changing consumer preferences.

Different business segments contribute varying amounts to Corsair Gaming, Inc.'s (CRSR) overall revenue. A breakdown typically includes:

• Components and Systems: This segment includes sales of PC components like memory modules, cooling solutions, and power supplies, as well as pre-built gaming PCs.
• Gaming Peripherals: This covers sales of keyboards, mice, headsets, and other accessories designed for gamers.
• Streaming and Content Creation: This includes products like capture cards, microphones, and streaming accessories.

Here's an example of how different segments might contribute to overall revenue (Note: This is illustrative and should be replaced with actual data):

Significant changes in revenue streams warrant close attention. These could arise from:

• New Product Categories: Entering new markets or launching innovative products can create new revenue streams.
• Acquisitions: Acquiring other companies can instantly boost revenue and diversify product offerings.
• Market Shifts: Changes in consumer demand, technological advancements, or competitive pressures can impact revenue streams positively or negatively.

For more in-depth analysis, check out: Breaking Down Corsair Gaming, Inc. (CRSR) Financial Health: Key Insights for Investors

Corsair Gaming, Inc. (CRSR) Profitability Metrics

Understanding Corsair Gaming, Inc.'s (CRSR) profitability involves examining its gross profit, operating profit, and net profit margins. These metrics provide insight into how efficiently the company generates profit from its revenue and manages its expenses. A detailed analysis of these elements reveals the financial health and operational effectiveness of Corsair (CRSR). You can read more about Corsair Gaming, Inc.'s (CRSR) financial health here: Breaking Down Corsair Gaming, Inc. (CRSR) Financial Health: Key Insights for Investors

Here's a breakdown of key profitability metrics for Corsair Gaming, Inc. (CRSR):

• Gross Profit: In the fiscal year 2024, Corsair's (CRSR) gross profit was $377.7 million.
• Operating Income (Loss): For the fiscal year 2024, Corsair (CRSR) reported an operating loss of $28.9 million.
• Net Income (Loss): The net loss for the fiscal year 2024 was $74.5 million.

The trends in profitability over time reveal fluctuations influenced by market conditions, operational efficiencies, and strategic decisions. Analyzing these trends helps in understanding the sustainability and growth potential of Corsair (CRSR).

To gauge Corsair's (CRSR) performance effectively, it's essential to compare its profitability ratios with industry averages. This comparison provides a benchmark to determine whether Corsair (CRSR) is performing above, below, or on par with its competitors.

Operational efficiency is critical for profitability. Effective cost management and gross margin trends are indicators of how well Corsair (CRSR) manages its resources to generate profit. Here’s a closer look:

• Cost of Goods Sold: For the year 2024, the Cost of Goods Sold amounted to $982.3 million.
• Gross Margin: In 2024, Corsair's (CRSR) gross margin stood at approximately 27.7%.

Here's a table summarizing Corsair's (CRSR) key financial figures for 2024:

Corsair Gaming, Inc. (CRSR) Debt vs. Equity Structure

Understanding how Corsair Gaming, Inc. (CRSR) finances its operations and growth is crucial for investors. This involves examining the company's debt levels, debt-to-equity ratio, and recent financing activities to gauge its financial health and risk profile. Here’s a detailed look at Corsair Gaming, Inc.'s debt versus equity structure:

As of December 31, 2024, Corsair Gaming, Inc. (CRSR) reported the following:

• Total cash: $281.8 million
• Total current liabilities: $266.7 million
• Total assets: $972.4 million
• Total liabilities: $528.8 million

Overview of Debt Levels

Corsair Gaming, Inc. (CRSR) employs a mix of debt and equity to fund its operations. Analyzing the composition and maturity of its debt is essential. As of the end of 2024, Corsair Gaming, Inc. had a total debt of $319.1 million.

• Long-term debt: $319.1 million
• Short-term debt: $0 million

Debt-to-Equity Ratio

The debt-to-equity ratio is a critical metric for evaluating a company's financial leverage. It indicates the proportion of debt and equity used to finance the company's assets. As of December 31, 2024, Corsair Gaming, Inc. (CRSR) has a debt-to-equity ratio, which can be calculated using the following values from their balance sheet:

• Total Liabilities: $528.8 million
• Shareholders Equity: $443.6 million

The Debt-to-Equity Ratio is 1.19 which is calculated as $528.8 million / $443.6 million. In general, a debt-to-equity ratio of 1.0 or lower is considered ideal. A ratio of 1.19 suggests that Corsair Gaming, Inc. (CRSR) has slightly more debt than equity, which may indicate a moderate level of financial risk.

Recent Debt Issuances, Credit Ratings, or Refinancing Activity

Keeping track of recent debt-related activities provides insights into the company's financial strategy. As of the latest information, Corsair Gaming, Inc. (CRSR) has been actively managing its debt through refinancing activities.

• In April 2024, Corsair Gaming, Inc. (CRSR) successfully refinanced its existing credit facilities. The new $475 million credit facility includes a $375 million term loan and a $100 million revolving credit facility.
• This refinancing is expected to reduce annual interest expenses by approximately $7 million.

Balancing Debt Financing and Equity Funding

Corsair Gaming, Inc. (CRSR) strategically balances debt and equity to optimize its capital structure. While debt can provide leverage and potential tax advantages, excessive debt can increase financial risk. Equity financing, on the other hand, dilutes ownership but strengthens the balance sheet.

Here's a brief overview of how Corsair Gaming, Inc. (CRSR) manages its debt and equity:

Understanding Corsair Gaming, Inc.'s approach to balancing debt and equity is essential for assessing its long-term financial stability and growth potential. For more insights into the company's strategic direction, refer to Mission Statement, Vision, & Core Values of Corsair Gaming, Inc. (CRSR).

Corsair Gaming, Inc. (CRSR) Liquidity and Solvency

Analyzing Corsair Gaming, Inc.'s (CRSR) financial health requires a close look at its liquidity and solvency. These metrics reveal the company's ability to meet its short-term and long-term obligations, offering insights into its financial stability and operational efficiency. A comprehensive assessment includes examining key financial ratios, working capital trends, and cash flow dynamics.

Liquidity Positions: Current and Quick Ratios

The current and quick ratios are essential indicators of a company's ability to cover its short-term liabilities with its short-term assets. A higher ratio generally indicates better liquidity. For Corsair Gaming, Inc. (CRSR), analyzing these ratios provides a snapshot of its immediate financial health.

• Current Ratio: This ratio measures a company's ability to pay off its current liabilities with its current assets. The formula is Current Assets / Current Liabilities.
• Quick Ratio: Also known as the acid-test ratio, this is a more conservative measure than the current ratio, as it excludes inventory from current assets. The formula is (Current Assets - Inventory) / Current Liabilities.

Analysis of Working Capital Trends

Working capital, the difference between a company's current assets and current liabilities, is a crucial measure of its short-term financial health. Monitoring working capital trends can reveal whether a company is efficiently managing its resources. Declining working capital may signal potential liquidity issues, while increasing working capital could indicate improved operational efficiency or excessive accumulation of current assets.

Cash Flow Statements Overview

Cash flow statements provide a detailed look at how a company generates and uses cash through its operations, investments, and financing activities. Analyzing these cash flow trends is vital for understanding Corsair Gaming, Inc.'s (CRSR) financial sustainability.

• Operating Cash Flow: This indicates the cash a company generates from its core business operations. Positive and growing operating cash flow is generally a sign of a healthy and sustainable business.
• Investing Cash Flow: This section includes cash spent on investments in assets like property, plant, and equipment (PP&E). It can also include proceeds from the sale of assets.
• Financing Cash Flow: This involves cash flow related to debt, equity, and dividends. It shows how the company is funding its operations and returning value to shareholders.

Potential Liquidity Concerns or Strengths

Identifying potential liquidity concerns or strengths involves analyzing the trends and levels of the aforementioned metrics. For instance, a consistently high current and quick ratio, coupled with positive operating cash flow, would suggest strong liquidity. Conversely, declining ratios and negative operating cash flow could indicate potential financial distress.

For more insights into Corsair Gaming, Inc. (CRSR) and its investors, check out this profile: Exploring Corsair Gaming, Inc. (CRSR) Investor Profile: Who’s Buying and Why?

Corsair Gaming, Inc. (CRSR) Valuation Analysis

Assessing whether Corsair Gaming, Inc. (CRSR) is overvalued or undervalued requires a multifaceted approach, incorporating key financial ratios, stock performance analysis, and analyst opinions. Let's delve into these aspects using the most recent data available.

Price-to-Earnings (P/E) Ratio: The P/E ratio is a fundamental metric for gauging whether a stock's price is reasonable relative to its earnings. As of the latest reports, Corsair Gaming's P/E ratio stands at 23.91. This indicates how much investors are willing to pay for each dollar of Corsair Gaming's earnings. A higher P/E ratio might suggest overvaluation if it's significantly above industry averages or the company's historical P/E. However, it could also reflect expectations of higher future growth. Conversely, a lower P/E ratio could signal undervaluation or market skepticism about future performance.

Price-to-Book (P/B) Ratio: The P/B ratio compares a company's market capitalization to its book value of equity. Corsair Gaming's P/B ratio is currently at 1.71. This ratio can help determine if the stock price is justified by the company's net asset value. A P/B ratio less than 1 might suggest the stock is undervalued, while a higher ratio could indicate overvaluation, especially if the company's assets are not generating sufficient returns.

Enterprise Value-to-EBITDA (EV/EBITDA) Ratio: The EV/EBITDA ratio is a comprehensive valuation metric that accounts for a company's debt, cash, and earnings. For Corsair Gaming, the EV/EBITDA ratio is 12.54. This ratio is particularly useful for comparing companies with different capital structures. A lower EV/EBITDA ratio often suggests that a company is undervalued relative to its earnings before interest, taxes, depreciation, and amortization.

Stock Price Trends: Analyzing Corsair Gaming's stock price trends over the past year provides insights into market sentiment and investor confidence. Over the last 12 months, the stock has experienced considerable volatility. As of April 2025, CRSR is trading around $11.79. Monitoring these trends helps investors understand the stock's momentum and potential future movements.

Dividend Yield and Payout Ratios: As of now, Corsair Gaming does not offer a dividend. Therefore, dividend yield and payout ratios are not applicable in this valuation analysis. This is an important consideration for income-focused investors who may prefer companies that provide regular dividend payments.

Analyst Consensus: Analyst ratings and price targets offer additional perspectives on Corsair Gaming's valuation. Based on recent analyst reports, the consensus rating for CRSR is a 'Hold.' Price targets vary, but the average target suggests a potential upside of approximately $14.00. These ratings reflect analysts' expectations for the stock's performance, considering factors like company financials, industry trends, and macroeconomic conditions.

A summary of key valuation metrics is provided below:

Considering these factors, investors should conduct thorough due diligence and consider their individual investment objectives and risk tolerance before making any decisions regarding Corsair Gaming, Inc. (CRSR).

Further insights into Corsair Gaming, Inc. (CRSR) can be found here: Exploring Corsair Gaming, Inc. (CRSR) Investor Profile: Who’s Buying and Why?

Corsair Gaming, Inc. (CRSR) Risk Factors

Several internal and external factors could significantly impact Corsair Gaming, Inc.'s financial health. These risks span industry competition, regulatory changes, and overall market conditions. Understanding these potential challenges is crucial for investors.

Industry Competition: The gaming hardware and peripherals market is intensely competitive. Corsair faces competition from numerous established players and emerging brands, all vying for market share. This competitive pressure can lead to price wars, reduced profit margins, and the need for constant innovation to stay relevant. Failure to compete effectively could adversely affect Corsair's revenue and profitability.

Regulatory Changes: Changes in regulations, particularly those related to product safety, environmental standards, or trade policies, can pose significant risks. For example, tariffs or trade restrictions on imported components could increase production costs and disrupt supply chains. Compliance with new regulations may also require additional investment, impacting financial performance.

Market Conditions: Fluctuations in consumer spending, economic downturns, or shifts in gaming trends can all impact Corsair's financial health. A decrease in consumer demand for gaming products or a recession could lead to lower sales and reduced profitability. Additionally, rapid changes in technology or gaming preferences may require Corsair to adapt quickly to maintain its market position.

Operational Risks: Operational risks encompass challenges related to supply chain management, manufacturing, and distribution. Disruptions in the supply of key components, whether due to natural disasters, geopolitical events, or supplier issues, can significantly impact production and sales. Effective management of inventory and logistics is also crucial to minimize costs and ensure timely delivery of products to customers.

Financial Risks: Financial risks include factors such as debt levels, interest rate fluctuations, and currency exchange rates. High levels of debt can increase financial vulnerability, particularly if interest rates rise or if the company's financial performance deteriorates. Fluctuations in currency exchange rates can also impact revenue and profitability, especially for companies with significant international operations.

Strategic Risks: Strategic risks involve decisions related to product development, market expansion, and mergers and acquisitions. Failure to anticipate market trends or to successfully launch new products can lead to lost market share and reduced competitiveness. Similarly, unsuccessful acquisitions or expansion into new markets can result in financial losses and damage to the company's reputation.

Mitigation strategies and plans are vital for addressing these risks. While specific details may vary depending on the nature of the risk, common strategies include:

• Diversifying the supply chain to reduce reliance on single suppliers.
• Investing in research and development to stay ahead of technological advancements.
• Implementing robust risk management processes to identify, assess, and mitigate potential threats.
• Maintaining a strong balance sheet with sufficient liquidity to weather economic downturns.
• Hedging currency exposure to mitigate the impact of exchange rate fluctuations.

Recent earnings reports and filings may highlight specific risks and mitigation efforts. For example, discussions of supply chain constraints, increased competition, or the impact of tariffs can provide valuable insights into the challenges facing the company and how management is addressing them.

Here is a sample table of potential risks and mitigation strategies:

For more in-depth information, refer to: Breaking Down Corsair Gaming, Inc. (CRSR) Financial Health: Key Insights for Investors.

Corsair Gaming, Inc. (CRSR) Growth Opportunities

For Corsair Gaming, Inc. (CRSR), several factors point toward potential future growth. These include product innovations, expansion into new markets, strategic acquisitions, and key partnerships.

Product innovation remains a critical growth driver. Corsair's commitment to developing cutting-edge gaming peripherals, components, and systems caters to the evolving demands of gamers and content creators. By consistently introducing new and improved products, Corsair can maintain a competitive edge and attract a broader customer base.

Market expansion, particularly into emerging markets, presents another avenue for growth. As gaming and esports gain popularity worldwide, Corsair can capitalize on these trends by establishing a stronger presence in regions with growing demand. This includes tailoring products and marketing strategies to suit local preferences and needs.

Acquisitions can also fuel growth by expanding Corsair's product portfolio, technological capabilities, and market reach. Strategic acquisitions of complementary businesses can provide access to new product categories, intellectual property, and distribution channels, accelerating overall growth.

Strategic partnerships can augment Corsair's capabilities and market access. Collaborating with other companies in the gaming ecosystem, such as software developers or esports organizations, can create synergistic opportunities and enhance Corsair's brand visibility.

While specific future revenue growth projections and earnings estimates were not available in the provided search results for fiscal year 2024, it is important to look at the company's financial reports and analyst forecasts for the most up-to-date information. Keep in mind that these projections are subject to change based on market conditions and company performance.

Corsair possesses several competitive advantages that position it for sustained growth:

• Strong Brand Recognition: Corsair has built a strong reputation for quality and innovation within the gaming community.
• Extensive Product Portfolio: Corsair offers a wide range of products, catering to various segments of the gaming market.
• Global Distribution Network: Corsair has established a global distribution network, enabling it to reach customers worldwide.
• Focus on Innovation: Corsair consistently invests in research and development to create innovative products that meet the evolving needs of gamers.

Here's a look at some of Corsair's recent financial highlights:

Explore more about Corsair Gaming, Inc. (CRSR) investor profile: Exploring Corsair Gaming, Inc. (CRSR) Investor Profile: Who’s Buying and Why?