Stock Track | Corsair Gaming Plunges 12.50% Pre-market Following Q3 Earnings Miss, Lowered Guidance, and Analyst Downgrade

Stock Track11-05

Shares of Corsair Gaming, Inc. (CRSR) are set to open sharply lower, plummeting 12.50% in pre-market trading on Wednesday. The significant drop comes in the wake of the company's disappointing third-quarter 2025 financial results, reduced full-year guidance, and a subsequent analyst downgrade.

Corsair Gaming reported Q3 revenue of $345.763 million, falling short of the analyst consensus estimate of $354 million, despite a 14% year-over-year increase. The company posted a net loss of $10.392 million for the quarter, with adjusted earnings per share of $0.06, significantly below the analyst expectations of $0.09. This 29.41% earnings miss has raised concerns among investors about the company's near-term prospects.

Adding to the negative sentiment, Corsair Gaming narrowed its full-year 2025 revenue guidance to $1.425 billion - $1.475 billion, down from the previous forecast of $1.4 billion - $1.6 billion. The company cited a conservative outlook for Q4, primarily due to a tight DDR5 memory market. In response to these developments, Wedbush has cut its target price for Corsair Gaming to $9 from $13, further pressuring the stock. The market's reaction suggests that investors are concerned about Corsair's ability to meet its financial targets and return to profitability in the near term, despite the company's reported improved margins and increased inventory to support anticipated Q4 holiday demand.

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