Corsair Q2 gross margin hits 33.2% on tariff refunds; cash nearly doubles to $194M
CRSR has more than doubled off its 52-week low of $4.48.
Summary
Corsair delivered a strong Q2, with gross margins reaching 33.2% and net income of $9.1M, boosted by a $15.6M tariff refund. Cash nearly doubled to $194M, funding the $40M Trak Racer acquisition and other strategic investments.
Key Events · Earnings and Guidance · CRSR
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Gross Margin Surges to 33.2%
Gross margin expanded 640 basis points year-over-year to 33.2%, driven by a $15.6M IEEPA tariff refund, lower freight costs, and favorable product mix. Even excluding the refund, the underlying margin improvement was still significant.
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Net Income Swings to $9.1M Profit
Net income attributable to Corsair was $8.8M, or $0.06 per diluted share, compared to a $20.9M loss a year ago. Revenue dipped 1.8% to $314.3M, but cost controls and tariff refunds drove the bottom-line swing.
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Operating Cash Flow Doubles Cash to $194M
Cash from operations reached $104.6M for the first half of 2026, nearly doubling the cash balance to $193.9M. Working capital improvements, including a $73.1M reduction in receivables, fueled the cash generation.
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Trak Racer Acquisition for $40M
After the quarter, Corsair acquired sim racing cockpit maker Trak Racer for $40M cash plus up to $10M in earn-outs, expanding its Fanatec ecosystem. The deal was funded entirely with cash on hand.
Analysis · CRSR · Technology
A swing to a $9.1M profit from a $20.3M loss a year ago was powered by a 640-basis-point jump in gross margin to 33.2%. While a one-time $15.6M refund of IEEPA tariffs provided a significant lift, underlying improvements in freight costs and product mix also played a role. Operating cash flow of $104.6M nearly doubled the cash balance to $193.9M, giving the company ample liquidity to fund the $40M Trak Racer acquisition and other strategic moves announced after the quarter. The results point to stabilizing profitability and aggressive capital deployment into sim racing and software, though the sustainability of margins without tariff refunds remains a key question.
At the time of this filing, CRSR was trading at $12.77 on NASDAQ in the Technology sector, with a market capitalization of approximately $1.1B. The 52-week trading range was $4.48 to $13.10. This filing was assessed with positive market sentiment and an importance score of 8 out of 10.