Corsair Gaming (CRSR) Q2 2024 earnings summary

Executive summary

• Q2 2024 net revenue declined 19.7% year-over-year to $261.3 million, with a net loss of $29.6 million versus net income of $1.1 million in Q2 2023, mainly due to a weaker self-built PC market and channel inventory reduction, partially offset by strong growth in Gamer and Creator Peripherals.

• Adjusted EBITDA was a loss of $1.2 million, down from $17.8 million in Q2 2023.

• Management cited macroeconomic headwinds, delayed refresh cycles, and a healthy installed base, with gaming hours rising and new AI-driven hardware expected in 2025.

• Cash and restricted cash totaled $94.6 million as of June 30, 2024; principal balance on Term Loan was $180.9 million.

Financial highlights

• Q2 2024 net revenue was $261.3 million, down from $325.4 million in Q2 2023.

• Gross profit for Q2 was $63.1 million, with gross margin at 24.1%, down from 25.5% in Q2 2023.

• Q2 GAAP operating loss was $24.7 million versus a $2.7 million loss in Q2 2023; adjusted operating loss was $3.8 million versus $15.9 million income.

• Q2 net loss attributable to shareholders was $29.6 million ($0.28 per share) compared to net income of $1.1 million ($0.01 per share) in Q2 2023.

• Q2 adjusted net loss was $6.8 million, or $0.07 per diluted share, compared to adjusted net income of $9.8 million, or $0.09 per share, a year ago.

Outlook and guidance

• Full-year 2024 net revenue expected between $1.25 billion and $1.35 billion.

• Adjusted operating income forecasted at $48–$63 million; adjusted EBITDA at $60–$75 million.

• Management expects revenue and margin improvement in the second half, driven by new product launches and cost controls, with Q3 and Q4 expected to outperform Q2.