Stock Track | Corsair Gaming Stock Plunges 5.2% Pre-market on Disappointing Q4 2024 Results and Outlook

Stock Track
13 Feb

Corsair Gaming, Inc. (CRSR) stock plunged 5.2% in pre-market trading on Thursday, following the release of the company's fourth-quarter 2024 earnings results and outlook for 2025. Despite reporting solid Q4 revenue of $413.6 million and adjusted EBITDA of $33.1 million, the company's financial performance fell short of expectations.

The key points that contributed to the pre-market sell-off are:

  • Full-year 2024 net revenue declined to $1.32 billion from $1.46 billion in 2023, indicating a decrease in overall sales.
  • Net income attributable to common shareholders was only $1.3 million in Q4 2024, a significant drop from $6.2 million in Q4 2023.
  • The gaming components and systems segment, which includes memory products, saw a decrease in revenue, contributing $244.1 million in Q4 2024 compared to $280.5 million in Q4 2023.
  • While the company provided revenue guidance of $1.4 billion to $1.6 billion for 2025, the adjusted operating income and EBITDA guidance fell short of expectations, indicating potential margin pressure.

Despite the disappointing results, Corsair Gaming remains optimistic about its growth prospects, driven by the acquisition of Fanatec sim racing company, the launch of NVIDIA's new GPU series, and the anticipated release of GTA 6. However, investors seem concerned about the company's ability to maintain profitability and growth momentum, leading to the pre-market sell-off.

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