0001564590-20-052867 | 10-Q | XBRL Viewer

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Document and Entity Information - shares	9 Months Ended
Document and Entity Information - shares	Sep. 30, 2020	Nov. 03, 2020
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2020
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q3
Entity Registrant Name	Corsair Gaming, Inc.
Entity Central Index Key	0001743759
Current Fiscal Year End Date	--12-31
Entity Emerging Growth Company	false
Entity File Number	001-39533
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	82-2335306
Entity Address, Address Line One	47100 Bayside Pkwy
Entity Address, City or Town	Fremont
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	94538
City Area Code	510
Local Phone Number	657-8747
Entity Interactive Data Current	Yes
Entity Current Reporting Status	No
Document Quarterly Report	true
Document Transition Report	false
Entity Common Stock, Shares Outstanding		91,924,189
Entity Shell Company	false
Entity Filer Category	Non-accelerated Filer
Entity Small Business	false
Title of 12(b) Security	Common Stock, $0.0001 par value per share
Trading Symbol	CRSR
Security Exchange Name	NASDAQ

Condensed Combined Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Income Statement [Abstract]
Net revenue	$ 457,103	$ 284,372	$ 1,146,028	$ 770,619
Cost of revenue	329,159	224,145	834,398	616,785
Gross profit	127,944	60,227	311,630	153,834
Operating expenses:
Sales, general and administrative	65,321	39,811	175,877	115,992
Product development	12,902	9,454	36,285	28,353
Total operating expenses	78,223	49,265	212,162	144,345
Operating income	49,721	10,962	99,468	9,489
Other (expense) income:
Interest expense	(10,170)	(9,119)	(29,116)	(27,063)
Other (expense) income, net	23	(399)	(29)	(1,477)
Total other expense, net	(10,147)	(9,518)	(29,145)	(28,540)
Income (loss) before income taxes	39,574	1,444	70,323	(19,051)
Income tax (expense) benefit	(3,217)	75	(10,149)	4,645
Net income (loss)	$ 36,357	$ 1,519	$ 60,174	$ (14,406)
Net income (loss) per share
Basic	$ 0.43	$ 0.02	$ 0.71	$ (0.19)
Diluted	$ 0.40	$ 0.02	$ 0.69	$ (0.19)
Weighted-average shares used to compute net income (loss) per share
Basic	84,870,837	75,939,443	84,352,415	75,928,057
Diluted	90,083,949	77,883,754	87,498,519	75,928,057

Condensed Combined Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Statement Of Income And Comprehensive Income [Abstract]
Net income (loss)	$ 36,357	$ 1,519	$ 60,174	$ (14,406)
Other comprehensive gain (loss):
Foreign currency translation adjustments, net of zero tax	2,378	(54)	(1,217)	(52)
Unrealized foreign exchange gain (loss) from long-term intercompany loans, net of tax benefit (expense) of $(128) and $134 for the three months ended September 30, 2020 and 2019, respectively and $(24) and $139 for the nine months ended September 30, 2020 and 2019, respectively	691	(682)	580	(704)
Comprehensive income (loss)	$ 39,426	$ 783	$ 59,537	$ (15,162)

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

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+ Details

Condensed Combined Consolidated Statements of Comprehensive Income (Loss) (Unaudited) (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Statement Of Income And Comprehensive Income [Abstract]
Foreign currency translation adjustments, net of tax	$ 0	$ 0	$ 0	$ 0
Unrealized foreign exchange gain (loss) from long-term intercompany loans, net of tax benefit (expense)	$ (128)	$ 134	$ (24)	$ 139

Condensed Combined Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Current assets:
Cash	$ 116,185	$ 48,165
Restricted cash	3,726	3,552
Accounts receivable, net	259,542	202,334
Inventories	210,151	151,063
Prepaid expenses and other current assets	38,014	24,696
Total current assets	627,618	429,810
Property and equipment, net	15,404	15,365
Goodwill	311,573	312,750
Intangible assets, net	265,446	291,027
Restricted cash, noncurrent	230	230
Other assets	35,449	10,536
TOTAL ASSETS	1,255,720	1,059,718
Current liabilities:
Accounts payable	274,771	182,025
Current portion of debt, net		2,364
Other liabilities and accrued expenses	169,586	115,541
Total current liabilities	444,357	299,930
Debt, net including related party balance of nil and $5,779 as of September 30, 2020 and December 31, 2019, respectively	370,090	503,448
Deferred tax liabilities	30,655	33,820
Other liabilities, noncurrent	22,066	5,745
TOTAL LIABILITIES	867,168	842,943
Commitments and Contingencies (Note 9)
Stockholders’ Equity:
Preferred stock, $0.0001 par value: 5,000 shares authorized, nil and nil shares issued and outstanding as of September 30, 2020 and December 31, 2019, respectively
Common stock, $0.0001 par value: 300,000 shares authorized, 91,914 and 84,079 shares issued and outstanding as of September 30, 2020 and December 31, 2019, respectively	9	8
Additional paid-in capital	437,207	324,968
Accumulated deficit	(45,856)	(106,030)
Accumulated other comprehensive loss	(2,808)	(2,171)
Total Stockholders’ Equity	388,552	216,775
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$ 1,255,720	$ 1,059,718

Condensed Combined Consolidated Balance Sheets (Parenthetical) (Unaudited) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Statement Of Financial Position [Abstract]
Debt, net, related party balance		$ 5,779
Preferred stock, par value	$ 0.0001	$ 0.0001
Preferred stock, shares authorized	5,000,000	5,000,000
Preferred stock, shares issued
Preferred stock, shares outstanding
Common stock, par value	$ 0.0001	$ 0.0001
Common stock, shares authorized	300,000,000	300,000,000
Common stock, shares issued	91,914,000	84,079,000
Common stock, shares outstanding	91,914,000	84,079,000

Condensed Combined Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands	Total	Cumulative Effect of Adoption of New Accounting	Common Stock	Additional Paid-in Capital	Retained Earnings (Accumulated Deficit)	Retained Earnings (Accumulated Deficit) Cumulative Effect of Adoption of New Accounting	Accumulated Other Comprehensive Loss
Balance at Dec. 31, 2018	$ 162,702		$ 8	$ 258,238	$ (93,161)		$ (2,383)
Balance at Dec. 31, 2018			75,896,000
Issuance of common stock in relation to acquisitions	2,000			2,000
Issuance of common stock in relation to acquisitions, shares			267,000
Issuance of common stock for stock option exercises	80			80
Issuance of common stock for stock option exercises			14,000
Repurchase of common stock (Note 11)	(1,531)			(1,257)	(274)
Repurchase of common stock (Note 11), shares			(88,000)
Stock-based compensation	2,813			2,813
Other comprehensive income	(756)						(756)
Net income (loss)	(14,406)				(14,406)
Balance at Sep. 30, 2019	147,216	$ (3,686)	$ 8	261,874	(111,527)	$ (3,686)	(3,139)
Balance, shares at Sep. 30, 2019			76,089,000
Balance at Jun. 30, 2019	143,513		$ 8	258,954	(113,046)		(2,403)
Balance at Jun. 30, 2019			75,815,000
Issuance of common stock in relation to acquisitions	2,000			2,000
Issuance of common stock in relation to acquisitions, shares			267,000
Issuance of common stock for stock option exercises	53			53
Issuance of common stock for stock option exercises			7,000
Stock-based compensation	867			867
Other comprehensive income	(736)						(736)
Net income (loss)	1,519				1,519
Balance at Sep. 30, 2019	147,216	$ (3,686)	$ 8	261,874	(111,527)	$ (3,686)	(3,139)
Balance, shares at Sep. 30, 2019			76,089,000
Balance at Dec. 31, 2019	216,775		$ 8	324,968	(106,030)		(2,171)
Balance at Dec. 31, 2019			84,079,000
Issuance of common stock to directors, shares			20,000
Issuance of common stock for stock option exercises	$ 1,224			1,224
Issuance of common stock for stock option exercises	306,000		306,000
Issuance of common stock upon vesting of restricted stock units, shares			9,000
Issuance of common stock upon initial public offering, net of underwriting discounts and commissions and other offering costs	$ 106,730		$ 1	106,729
Issuance of common stock upon initial public offering, net of underwriting discounts and commissions and other offering costs, shares			7,500,000
Stock-based compensation	4,286			4,286
Other comprehensive income	(637)						(637)
Net income (loss)	60,174				60,174
Balance at Sep. 30, 2020	388,552		$ 9	437,207	(45,856)		(2,808)
Balance, shares at Sep. 30, 2020			91,914,000
Balance at Jun. 30, 2020	240,506		$ 8	328,588	(82,213)		(5,877)
Balance at Jun. 30, 2020			84,349,000
Issuance of common stock for stock option exercises	259			259
Issuance of common stock for stock option exercises			56,000
Issuance of common stock upon vesting of restricted stock units, shares			9,000
Issuance of common stock upon initial public offering, net of underwriting discounts and commissions and other offering costs	106,730		$ 1	106,729
Issuance of common stock upon initial public offering, net of underwriting discounts and commissions and other offering costs, shares			7,500,000
Stock-based compensation	1,631			1,631
Other comprehensive income	3,069						3,069
Net income (loss)	36,357				36,357
Balance at Sep. 30, 2020	$ 388,552		$ 9	$ 437,207	$ (45,856)		$ (2,808)
Balance, shares at Sep. 30, 2020			91,914,000

Condensed Combined Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Cash flows from operating activities:
Net income (loss)	$ 60,174	$ (14,406)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Stock-based compensation	4,286	2,813
Depreciation	6,706	5,448
Amortization of intangible assets	25,344	23,551
Debt issuance costs amortization	1,990	2,281
Loss on debt extinguishment	3,256
Deferred income taxes	(6,892)	(7,257)
Other	1,070	598
Changes in operating assets and liabilities:
Accounts receivable	(58,067)	(10,573)
Inventories	(60,886)	(13,021)
Prepaid expenses and other assets	(20,431)	(3,312)
Accounts payable	92,772	2,065
Other liabilities and accrued expenses	51,002	12,947
Net cash provided by operating activities	100,324	1,134
Cash flows from investing activities:
Acquisition of business, net of cash acquired	(836)	(4,846)
Payment of deferred consideration		(10,300)
Purchase of property and equipment	(5,072)	(7,003)
Net cash used in investing activities	(5,908)	(22,149)
Cash flows from financing activities:
Repayment of debt	(140,394)	(2,775)
Payment of debt issuance costs	(194)	(150)
Repayment of line of credit, net		8,700
Proceeds from initial public offering and private placement, net of underwriting discounts and commissions	118,575
Payment of other offering costs	(5,582)	(108)
Repurchase of common stock		(569)
Proceeds from exercise of stock options	1,224	80
Net cash provided by (used in) financing activities	(26,371)	5,178
Effect of exchange rate changes on cash	149	46
Net increase (decrease) in cash and restricted cash	68,194	(15,791)
Cash and restricted cash at the beginning of the period	51,947	27,920
Cash and restricted cash at the end of the period	120,141	12,129
Supplemental cash flow disclosures:
Cash paid for interest	23,397	24,799
Cash paid for income taxes	7,276	372
Supplemental schedule of non-cash investing and financing activities:
Equipment purchased and unpaid at period end	2,331	1,353
Issuance of common stock relating to business acquisitions		2,000
Deferred purchase consideration (Note 5)	145	6,003
Measurement period adjustment relating to business acquisitions	1,834
Forward contract on common stock repurchase		962
Deferred offering costs included in accounts payable and accrued expenses	$ 2,710	$ 2,346

Description of Business and Basis of Presentation

9 Months Ended

Sep. 30, 2020

Organization Consolidation And Presentation Of Financial Statements [Abstract]

Description of Business and Basis of Presentation

1. Description of Business and Basis of Presentation

Description of Business

Corsair Gaming, Inc., a Delaware corporation, together with its subsidiaries (collectively, “Corsair” the “Company”, “we”, “us”, or “our”), is a global provider and innovator of high-performance gear for gamers, streamers and content creators.

Corsair is organized into two reportable segments:

•

Gamer and creator peripherals. Includes our high-performance gaming keyboards, mice, headsets and controllers, as well as our streaming gear including capture cards, studio accessories, and microphones, among others.

•

Gaming components and systems. Includes our high-performance power supply units, or PSUs, cooling solutions, computer cases, and DRAM modules, as well as high-end prebuilt and custom-built gaming PCs, among others.

Reorganization

On September 15, 2020, a corporate reorganization (the “Reorganization”) was consummated whereby we now own directly and indirectly all of the operating subsidiaries and assets that were formerly owned by Corsair Group (Cayman), LP (the “Parent”) and Corsair Group (US), LLC, a minority interest holder. The Parent is a limited partnership domiciled in the Cayman Islands. The Parent and Corsair Group (US), LLC are under common control of the affiliates of EagleTree Capital, LP, a private equity investment firm. Prior to the Reorganization, the North American and international operations of Corsair were conducted by certain operating subsidiaries held by separate entities, Corsair Gaming, Inc. and Corsair Holdings (Lux) S.à r.l. (or “Corsair Luxco”), respectively, each of which was substantially owned by and under common control of the Parent.

The Reorganization was comprised of a series of steps as set forth below:

•

The Parent acquired the minority interest held by Corsair Group (US), LLC in exchange for its own units.

•

Corsair Gaming, Inc. acquired all of the outstanding capital stock of Corsair Luxco from the Parent in exchange for its own stock.

•

In order for management and certain other partnership unit holders of the Parent to hold Corsair’s common stock directly, we entered into exchange agreements with such holders to exchange the Parent’s units for shares of Corsair’s common stock on a pro rata basis relative to their holdings in the Parent prior to the Reorganization.

•

The Parent’s 2017 Equity Incentive Program was assumed by Corsair and all of the outstanding options to acquire units under the Parent’s 2017 Equity Incentive Program were converted into options to purchase Corsair’s common stock on a pro rata basis with an adjusted exercise price to reflect the assumption.

•

We implemented a 1-for-28,693.596843964 stock split resulting in there being 84,405,366 shares of Corsair’s common stock outstanding and 10,029,388 options outstanding to purchase Corsair’s common stock as of the date of the Reorganization.

As all legal entities included in the Reorganization are under common control of the Parent, all steps of the Reorganization were accounted for as a combination of entities under common control.

Unless otherwise indicated, the accompanying condensed combined consolidated financial statements and related notes that reference Corsair’s capitalization, including other matters relating to equity, share, and per share information, have been retroactively revised to reflect the Reorganization for all periods presented. Accordingly, references in the footnotes related to transactions entered into by the Parent involving the Parent’s units or options to purchase the Parent’s units have been revised as common share equivalents of Corsair and options to purchase shares of Corsair’s common stock using the ratio of Corsair’s issued and outstanding shares immediately post-Reorganization to the Parent’s issued and outstanding units immediately post-Reorganization but prior to the unit exchanges described above.

Initial Public Offering

On September 25, 2020, we completed our initial public offering (IPO). In connection with the IPO, we sold 7,500,000 shares of common stock at $17.00 per share, resulting in proceeds of $118.6 million, net of the underwriting discounts and commissions and before offering costs. In connection with the IPO, certain stockholders sold 6,500,000 shares of common stock at $17.00 per share. Subsequent to the IPO, certain stockholders further sold 1,135,375 shares pursuant to the underwriters’ exercise of their option to purchase additional shares. We did not receive any of the proceeds from the sale of shares by the selling stockholders.

Deferred offering costs consist primarily of accounting, legal, and other fees related to the IPO. Prior to the IPO, all deferred offering costs were capitalized in other assets in the condensed combined consolidated balance sheets. After the IPO, $11.8 million of deferred offering costs were reclassified into stockholders’ equity as a reduction of the IPO proceeds in the condensed combined consolidated balance sheets. The amount of deferred offering costs capitalized as of December 31, 2019 was $5.8 million.

Basis of Presentation

Our interim condensed combined consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) and applicable rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) regarding interim financial reporting. The condensed combined consolidated balance sheet as of December 31, 2019, included herein, was derived from the audited consolidated financial statements as of that date. Certain information and note disclosures normally included in the financial statements prepared in accordance with U.S. GAAP have been condensed combined or omitted pursuant to such rules and regulations. Therefore, these interim condensed combined consolidated financial statements should be read in conjunction with the consolidated financial statements and notes included in the final prospectus dated and filed on September 24, 2020 (the “Prospectus”) with the SEC pursuant to Rule 424(b)(4) under the Securities Act of 1933, as amended, (the “Securities Act”).

The interim condensed combined consolidated financial statements have been prepared on the same basis as the audited consolidated financial statements, and in management’s opinion, include all adjustments, which consist of only normal recurring adjustments necessary for the fair statement of our condensed combined consolidated balance sheet as of September 30, 2020 and our results of operations for the three and nine months ended September 30, 2020 and 2019. The results for the three and nine months ended September 30, 2020 are not necessarily indicative of the results expected for the current fiscal year or any other future periods.

Except as described elsewhere to the condensed combined consolidated financial statements, there have been no material changes to our significant accounting policies as described in Note 2 “Summary of Significant Accounting Policies” in the Notes to the consolidated financial statements in our Prospectus.

Principles of Consolidation

The accompanying condensed combined consolidated financial statements include the accounts of Corsair and its wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation.

Summary of Significant Accounting Policies

9 Months Ended

Sep. 30, 2020

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

2. Summary of Significant Accounting Policies

Use of Estimates

The preparation of condensed combined consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the condensed combined consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Such estimates include, but are not limited to, the valuation of intangible assets, accounts receivable, sales return reserves, reserves for customer incentives, warranty reserves, inventory, derivative instruments, stock-based compensation, deferred income tax, and common stock (prior to the IPO completed in September 2020). These estimates and assumptions are based on management’s best estimates and judgment. Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors, including the current economic environment. We adjust such estimates and assumptions when facts and circumstances dictate. As future events and their effects cannot be determined with precision, actual results could differ significantly from these estimates.

Risks and Uncertainties related to the COVID-19 Pandemic

Due to the COVID-19 pandemic, there has been and will continue to be uncertainty and disruption in the global economy and financial markets. Since early 2020, we have experienced some business disruptions due to COVID-19 including the stoppage in our factories in early 2020, disruption in our supply chain and increased distribution costs, which led to increase in operating costs. This negative financial impact has been offset by strong revenue growth year-over-year partly due to an increase in demand for our gear as more people in more countries are under shelter-in-place restrictions. The increase in demand has continued into the third quarter of 2020 and we expect it to continue through the remainder of the year as the COVID-19 pandemic continues. However, as the global economic activity slows down, the demand for our gear could decline despite these trends. The extent to which the COVID-19 outbreak ultimately impacts our business, sales, results of operations and financial condition will depend on future developments, which are highly uncertain and cannot be predicted, including, but not limited to, the duration and spread of the outbreak, its severity, the actions to contain the virus or treat its impact, and how quickly and to what extent normal economic and operating conditions can resume. Even after the COVID-19 outbreak has subsided, we may continue to experience significant impacts to our business as a result of its global economic impact, including any economic downturn or recession that has occurred or may occur in the future.

As of the date of issuance of these condensed combined consolidated financial statements, we are not aware of any specific event or circumstance that would require updates to our estimates and judgments or revisions due to COVID-19 to the carrying value of our assets or liabilities. These estimates may change, as new events occur and additional information is obtained, and are recognized in the condensed combined consolidated financial statements as soon as they become known. Actual results could differ from those estimates and any such differences may be material to the condensed combined consolidated financial statements.

Advertising Costs

Advertising costs are expensed as incurred and are included as a component of sales, general and administrative expense in the condensed combined consolidated statements of operations. Advertising and promotion expenses were $4.1 million and $2.6 million for the three months ended September 30, 2020 and 2019, respectively, and $12.3 million and $7.4 million for nine months ended September 30, 2020 and 2019, respectively.

Nonmonetary Transactions

We have sales and repurchases of inventory with our manufacturers, which are accounted for as nonmonetary transactions. Upon sale of raw materials to the manufacturer, for the inventories on-hand with the manufacturer where there is an anticipated reciprocal purchase by Corsair, we will record prepaid inventories and accrued liabilities as a nonmonetary transaction. When the reciprocal purchase of inventory from the manufacturer is transacted, a payable to the manufacturer at the repurchase price will be recorded, which replaces the initial nonmonetary transaction and inventory will be reflected at carrying value, which includes the costs for the raw materials and the incremental costs charged by the manufacturer for additional work performed on the inventory. As of September 30, 2020, we recognized $2.1 million prepaid inventory and $2.4 million accrued liabilities in the condensed combined consolidated balance sheet for such nonmonetary transactions with our manufacturers.

Because the transactions are nonmonetary, they have not been included in the condensed combined consolidated statements of cash flows pursuant to ASC 230, Statement of Cash Flows.

Recently Adopted Accounting Pronouncements

In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which was further updated and clarified by the FASB through issuance of additional related ASUs. ASU 2016-13 replaces the incurred-loss impairment methodology and requires immediate recognition of estimated credit losses expected to occur for most financial assets, including trade receivables. We adopted this standard effective January 1, 2020 using a modified retrospective approach. The adoption of this new standard did not have a material impact on our condensed combined consolidated financial statements.

In January 2017, the FASB issued ASU No. 2017-04, Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. The ASU simplifies the subsequent measurement of goodwill by eliminating the second step of the goodwill impairment test. The second step measures goodwill impairment loss by comparing the implied fair value of a reporting unit’s goodwill with the carrying amount of that goodwill. Under the new guidance, a company will record an impairment charge based on the excess of a reporting unit’s carrying amount over its fair value. We adopted this standard effective January 1, 2020. The adoption of this new standard did not have a material impact on our condensed combined consolidated financial statements.

In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820), to modify certain disclosure requirements on fair value measurements in Topic 820. We adopted this standard effective January 1, 2020. The adoption of this new standard did not have a material impact on our condensed combined consolidated financial statements.

In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), and subsequent updates (collectively, referred to as Accounting Standard Codification 842 or Topic 842). Topic 842 requires a lessee to recognize right of use (“ROU”) assets and lease liabilities for a lease with terms longer than 12 months on the consolidated balance sheets and to disclose key information related to the leasing arrangements.

On January 1, 2020, we adopted Topic 842 using the modified retrospective method, applying Topic 842 to all leases existing at the date of initial application. We elected to use the effective date as the date of initial application. Consequently, prior period balances and disclosures have not been restated. We elected the package of transitional practical expedients, which among other provisions, allows us to carry forward prior conclusions about lease identification and classification. In addition, for operating leases, we elected to account for lease and non-lease components as a single lease component. We also made an accounting policy election not to apply the recognition guidance of Topic 842 to record all leases that, at the lease commencement date, have a lease term of 12 months or less on the consolidated balance sheet.

The adoption of Topic 842 had a material impact to our condensed combined consolidated balance sheet but did not have an impact on our condensed combined consolidated statement of operations or cash flows. As a result of adopting Topic 842 as of January 1, 2020, we recognized lease liabilities of $17.9 million and corresponding ROU assets of $17.7 million. See Note 16, Leases, for additional information.

Accounting Pronouncements Issued but Not Yet Adopted

In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740), to simplify various aspects related to the accounting for income taxes. The new guidance is effective for us beginning in year 2021. We are in the process of evaluating the effects of this new guidance on our condensed combined consolidated financial statements.

In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848), to provide optional expedients and exceptions for applying generally accepted accounting principles to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The new guidance is effective, at our election, beginning March 12, 2020 through December 31, 2022. Our term loan and revolving line of credit have interest payments that are correlated to a reference rate, and we are currently evaluating the impact of adopting this guidance and the potential effects it could have on our condensed combined consolidated financial statements.

Fair Value Measurement

9 Months Ended

Sep. 30, 2020

Fair Value Disclosures [Abstract]

Fair Value Measurement

3. Fair Value Measurement

U.S. GAAP establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The hierarchy is broken down into the following three levels of inputs that may be used to measure fair value:

Level 1—Quoted prices are available in active markets for identical assets or liabilities as of the measurement date.

Level 2—Pricing inputs are other than quoted prices in active market, which are either directly or indirectly observable as of the report date. The nature of these securities includes investments for which quoted prices are available but traded less frequently and investments that are fair valued using other securities, the parameters of which can be directly observed.

Level 3—Securities that have little to no pricing observability as of the report date. These securities are measured using management’s best estimate of fair value, where the inputs into the determination of fair value are not observable and require significant management judgment or estimation.

The following tables summarize our financial assets and liabilities that were measured at fair value on a recurring basis, and indicate the fair value hierarchy of the valuation inputs utilized to determine such fair value:

	September 30, 2020
	(Level 1)		(Level 2)		(Level 3)		Total
	(in thousands)
Assets:
Interest rate cap contract⁽⁴⁾	$	—	$	45	$	—	$	45
Foreign currency forward contracts⁽⁴⁾		—		88		—		88
Total assets	$	—	$	133	$	—	$	133
Liabilities:
Contingent consideration in connection with a business acquisition—Origin⁽¹⁾	$	—	$	—	$	2,078	$	2,078
Contingent consideration in connection with an immaterial business acquisition		—		—		9	$	9
Deferred cash consideration in connection with a business acquisition—SCUF⁽²⁾		—		—		1,638		1,638
Deferred cash consideration in connection with a business acquisition—Origin⁽³⁾		—		—		1,481		1,481
Foreign currency forward contracts⁽⁴⁾		—		378		—		378
Total liabilities	$	—	$	378	$	5,206	$	5,584

	December 31, 2019
	(Level 1)		(Level 2)		(Level 3)		Total
	(In thousands)
Liabilities:
Contingent consideration in connection with a business acquisition—Origin⁽¹⁾	$	—	$	—	$	3,964	$	3,964
Deferred cash consideration in connection with a business acquisition—SCUF⁽²⁾		—		—		1,638		1,638
Deferred cash consideration in connection with a business acquisition—Origin⁽³⁾		—		—		1,411		1,411
Foreign currency forward contracts⁽⁴⁾		—		335		—		335
Total liabilities	$	—	$	335	$	7,013	$	7,348

(1)

The fair value of the Origin earn-out liability (Refer to Note 5 for further details on this acquisition) is estimated using a Monte Carlo Simulation, a simulation-based measurement technique with significant inputs that are not observable in the market and thus represents a level 3 fair value measurement. The significant inputs in the fair value measurement not supported by market activity included the expected future standalone EBITDA growth of Origin during the earn-out period, appropriately discounted by a risk adjustment factor, considering the uncertainties associated with the obligation, its associated volatility, and calculated in accordance with the terms of the Unit Purchase Agreement for this acquisition. Significant changes of these significant inputs, in isolation or in combination, would result in a material change in fair value estimates. The interrelationship between these inputs is not considered significant. The fair value of the Origin earn-out liability is remeasured at every reporting period and the change in fair value is recorded to sales, general and administrative expenses. During the year ended December 31, 2019, a $0.6 million credit to sales, general and administrative expenses was recorded resulting from a reduction in the fair value remeasurement. The earn-out liability of $2.4 million contingent upon Origin’s 2019 standalone EBITDA was fully paid in April 2020. During the nine months ended September 30, 2020, there was no material change in the fair value of the remaining earn-out liability that is contingent upon Origin’s 2020 standalone EBITDA results. The Origin contingent consideration balance as of September 30, 2020 also included $0.3 million related to the finalization of pre-acquisition sales tax liabilities owed to Origin’s sellers according to the terms of the Origin Unit Purchase Agreement and this balance will be settled together with the Origin 2020 earn-out liability in 2021.

(2)

The fair value of the SCUF contingent consideration was determined based on the estimates of acquired tax benefits owed to SCUF’s sellers according to the merger agreement. These estimates involved inputs unobservable in the markets and thus represent a level 3 fair value measurement. The measurement of this liability was provisional at the SCUF Acquisition Date (as defined in Note 5) and as of September 30, 2020 and will be finalized in the fourth quarter of 2020. The amount is subject to update upon filing the tax returns for 2019 through 2021. Refer to Note 5 for further details on this acquisition.

(3)	The fair value of Origin’s deferred cash consideration is determined at the Origin acquisition date by using a discount rate of 6.5%. This discount rate approximated our borrowing rate under the revolving line of credit and represented a Level 3 input under the fair value hierarchy.

(4)	The fair values of the forward contracts and interest rate cap contract are based on similar exchange traded derivatives and the related asset or liability is, therefore, included within Level 2 of the fair value hierarchy.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Derivative Financial Instruments

9 Months Ended

Sep. 30, 2020

Derivative Instruments And Hedging Activities Disclosure [Abstract]

Derivative Financial Instruments

4. Derivative Financial Instruments

We are exposed to foreign currency risk relating to our ongoing business operations and use derivative financial instruments, principally foreign currency forward contracts, to reduce the risk. The notional principal amount of outstanding foreign exchange forward contracts was $21.5 million and $18.3 million as of September 30, 2020 and December 31, 2019, respectively, none of which have been designated as hedging instruments during the periods presented. The fair value gain (loss) recognized in other (expense) income, net in relation to these derivative instruments was $(1.1) million and $0.9 million for the three months ended September 30, 2020 and 2019, respectively, and $(1.2) million and $0.5 million for the nine months ended September 30, 2020 and 2019, respectively.

In April 2020, we purchased interest rate cap contracts for $0.5 million with a notional amount of $465 million to manage our exposure to interest rate movements on our variable rate debt when 3-month LIBOR exceeds 1.0%. Refer to Note 8 for further information relating to the interest rates on our debts. The interest rate cap contracts mature on June 30, 2022 and none of which have been designated as hedging instruments. Accordingly, we recognized $55 thousand and $0.5 million net loss for the change in fair value of the interest rate contracts in interest expense for the three and nine months ended September 30, 2020, respectively.

Business Combinations

9 Months Ended

Sep. 30, 2020

Business Combinations [Abstract]

Business Combinations

5. Business Combinations

2020 Immaterial Acquisition

On August 31, 2020, we completed an acquisition that is not material to our consolidated financial position, results of operations or cash flows. We believe that the acquisition will enhance the product offering in our gamer and creator peripherals segment. The purchase consideration was $1.0 million and consisted of $0.8 million of cash and $0.2 million of additional cash earn-out based on the achievement of certain net revenue targets of the acquiree from the acquisition date through December 31, 2021. We acquired intangibles of $0.7 million, goodwill of $0.2 million and accounts receivable of $0.1 million. These intangibles will be amortized over a weighted-average estimated useful life of 3.1 years.

SCUF Acquisition

On December 19, 2019 (the “SCUF Acquisition Closing Date”), one of our subsidiaries entered into an Agreement and Plan of Merger with Scuf Holdings, Inc. and subsidiaries (collectively “SCUF”) and acquired 100% of their equity interests (the “SCUF Acquisition”). SCUF, headquartered in Georgia, U.S., specializes in delivering high-performance accessories and customized gaming controllers for consoles and PCs used by top professionals as well as casual gamers. We believe that the SCUF Acquisition will enhance our product and service offerings to both console and PC gamers.

Because the acquired companies met the definition of a business, the SCUF Acquisition has been accounted for as a business combination using the acquisition method of accounting.

Subsequent to the SCUF Acquisition Closing Date, we recorded measurement period adjustments which reduced purchase price, inventories and goodwill by $1.5 million, $0.5 million and $1.0 million, respectively, and accordingly, the SCUF Acquisition total adjusted purchase consideration was $136.3 million. The SCUF Acquisition purchase consideration consisted of (i) $128.2 million cash consideration (including the payment of SCUF’s transaction costs and debt on behalf of SCUF), (ii) $8.0 million equity consideration (an issuance of approximately 2.1 million units of the Parent which was equivalent to approximately 1.1 million shares of Corsair common stock immediately post-Reorganization and prior to the exchange agreements described in Note 1), (iii) $1.6 million estimated contingent cash consideration relating to the our expected utilization of the acquired SCUF tax liabilities or tax benefits relating to pre-acquisition SCUF results over the next 4 years of tax filings, (iv) additional cash earn-out based on the achievement of certain SCUF standalone EBITDA targets for 2019 and the ability of SCUF to renew a licensing agreement with a certain vendor, and these contingent cash earn-outs were determined to have zero value based on the assessment of the outcome of these contingent events on the SCUF Acquisition Closing Date, and (v) net of $1.5 million contingent cash consideration paid on the SCUF Acquisition Closing Date that is expected to be returned by the sellers to us to fund an incentive payment to certain ex-SCUF employees who joined Corsair and are required to remain employed through a contractual service period. The purchase price is subject to further adjustments of certain net working capital items within 12 months of the SCUF Acquisition Closing Date.

Preliminary purchase price allocation

The following table summarizes the preliminary allocation of the purchase consideration to the estimated fair value of the assets acquired and liabilities assumed at the SCUF Acquisition Closing Date. The allocation of the purchase price was based upon a preliminary valuation, and the estimates and assumptions are subject to change within the measurement period. The primary areas of the purchase price allocation that are not yet finalized consist of federal and state income tax and other tax considerations and the valuation of identifiable intangible assets acquired. We will continue to reflect measurement period adjustments to purchase price allocation, if any, in the period in which the adjustments are recognized. Final determination of the fair values may result in adjustments to the values presented in the following table:

	(In thousands)
Assets acquired:
Cash	$	6,947
Accounts receivable		4,587
Inventories		12,800
Prepaid and other assets		1,377
Identifiable intangible assets		71,890
Property and equipment		2,927
Other assets		40
Liabilities assumed:
Accounts payable		(9,182	)
Sales tax payable		(5,533	)
Deferred revenue		(3,752	)
Other liabilities and accrued expenses		(8,416	)
Deferred tax liabilities		(10,015	)
Net identifiable net assets acquired	$	63,670
Goodwill		72,642
Net assets acquired	$	136,312

The excess of the purchase price over the preliminary net tangible assets and preliminary intangible assets was recorded as goodwill. Goodwill of $72.6 million, derived from the SCUF Acquisition, is primarily related to the value of the acquired workforce and the ability to design and generate revenue from future technology and customers. The goodwill and identifiable intangible assets are not deductible for tax purposes.

The fair value of the inventory acquired was estimated using the expected selling price of the inventory, then deducting direct selling expenses and a reasonable allocation of profit to a likely buyer. The difference between the fair value of the inventories and the amount recorded by SCUF immediately before the acquisition date is $1.5 million, which is recognized in cost of revenue in the condensed combined consolidated statements of operations upon the sale of the acquired inventory.

The following table summarizes the components of identifiable intangible assets acquired and their estimated useful lives as of the SCUF Acquisition Closing Date:

	Fair Value		Weighted Average Useful Life
	(In thousands)		(In years)
Patents	$	30,500		8
Developed technology		18,600		6
Customer Relationships		590		5
Trade name		22,200		15
Total identifiable intangible assets	$	71,890

Intangible assets acquired as a result of the SCUF Acquisition are being amortized over their estimated useful lives using the straight-line method of amortization, which reflect the pattern in which the economic benefits of the intangible asset are consumed or otherwise used up. Amortization of patent and developed technology are included in cost of revenue and product development expense, respectively. Amortization of customer relationships and trade names are included in sales, general and administrative expense in the condensed combined consolidated statements of operations.

Origin Acquisition

On July 22, 2019 (the “Origin Closing Date”), one of our subsidiaries acquired all the equity interests in Origin PC Corporation (“Origin” and such acquisition, the “Origin Acquisition”). Origin, based in Florida, U.S., specializes in delivering hand-built, personalized PCs. We believe the integration of Origin’s expertise in personalized custom gaming systems and Corsair’s strength in performance PC hardware and the iCUE software ecosystems enhances and expands our product and service offerings to PC gamers.

Origin met the definition of a business, and therefore this acquisition is accounted for as a business combination.

Subsequent to the Origin Closing Date, we recorded measurement period adjustments which increased the purchase price by $0.2 million and reduced other liabilities and accrued expenses by $0.3 million and goodwill by $0.1 million, and accordingly, the Origin Acquisition total adjusted purchase consideration was $13.8 million. The Origin Acquisition purchase consideration consisted of (i) $5.5 million cash consideration (including the payment of Origin’s transaction costs and debt on behalf of Origin), (ii) $2.0 million equity consideration provided by Corsair, which was immediately exchanged for approximately 0.5 million units of the Parent, which was equivalent to approximately 0.2 million shares of Corsair common stock immediately post-Reorganization and prior to the exchange agreements described in Note 1), (iii) $1.4 million deferred cash consideration payable 18 months after closing, not contingent on any future conditions, (iv) $4.6 million of additional cash earn-out based on the achievement of certain Origin standalone EBITDA targets for 2019 and 2020, and (v) $0.3 million estimated contingent cash consideration relating to the finalization of pre-acquisition sales tax liabilities owed to Origin’s sellers according to the terms of the Origin Unit Purchase Agreement.

The final allocation of the Origin Acquisition purchase consideration to the estimated fair value of the assets acquired and liabilities assumed at the acquisition date is as follows:

	(In thousands)
Assets acquired:
Cash, net of cash acquired	$	376
Accounts receivable		1,379
Inventories		4,445
Prepaid and other assets		309
Identifiable intangible assets (customer relationship with estimated 6 years of useful life)		1,000
Property and equipment		140
Liabilities assumed:
Accounts payable		(2,670	)
Other liabilities and accrued expenses		(3,033	)
Other liabilities, noncurrent		(447	)
Net identifiable assets acquired		1,499
Goodwill		12,270
Net assets acquired	$	13,769

The goodwill and identifiable intangible assets are deductible for tax purposes.

The estimated fair value of Origin’s contingent earn-out decreased from $4.6 million at the Origin Closing Date to $4.0 million at December 31, 2019, primarily resulting from Origin’s lower-than-expected EBITDA for the projected 2020 earn-out period. The reduction in fair value of $0.6 million was recorded as a reduction to sales and general administrative expenses in the condensed combined consolidated statement of operations in the fourth quarter of 2019. The earn-out liability of $2.4 million contingent upon Origin’s 2019 standalone EBITDA was fully paid in April 2020. During the nine months ended September 30, 2020, there was no material change in the fair value of the remaining earn-out liability that is contingent upon Origin’s 2020 standalone EBITDA results.

Acquisition-related costs

We incurred acquisition-related costs of approximately $0.3 million and $1.1 million for the three months ended September 30, 2020 and 2019, respectively, and $0.8 million and $1.4 million for the nine months ended September 30, 2020 and 2019, respectively, and these costs are recorded in sales, general and administrative expenses in the condensed combined consolidated statement of operations.

Unaudited Pro Forma Financial Information

The following unaudited pro forma financial information combines the unaudited condensed combined consolidated results of operations as if the SCUF Acquisition had occurred as of January 1, 2019:

	Three months Ended September 30, 2019			Nine months Ended September 30, 2019
	(in thousands)
Net revenue	$	299,130		$	815,432
Net loss		(3,101	)		(25,040	)

The unaudited pro forma adjustments primarily include amortization for intangible assets acquired, the purchase accounting effect on contract liabilities assumed and inventory acquired, acquisition-related costs and interest expense related to financing arrangements. The unaudited pro forma condensed combined consolidated information is provided for informational purposes only and is not indicative of the results of operations that would have been achieved if the SCUF Acquisition and any borrowings undertaken to finance the SCUF Acquisition had taken place at the beginning of the periods presented.

Pro forma financial information for the Origin Acquisition and the 2020 immaterial acquisition have not been prepared because the effects of these acquisitions were not material to our condensed combined consolidated statements of operations individually or in aggregate for all periods presented.

Goodwill and Intangible Assets

9 Months Ended

Sep. 30, 2020

Goodwill And Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets

6. Goodwill and Intangible Assets

Goodwill

The following table summarizes the changes in the carrying amount of goodwill by reportable segment:

	Gaming Components and Systems			Gamer and Creator Peripherals			Total
	(In thousands)
Balance as of December 31, 2019	$	145,375		$	167,375		$	312,750
Addition from business acquisition		-			185			185
Measurement period adjustments		(47	)		(1,023	)		(1,070	)
Effect of foreign currency exchange rates		284			(576	)		(292	)
Balance as of September 30, 2020	$	145,612		$	165,961		$	311,573

Intangible assets, net

The following table is a summary of intangible assets, net:

	September 30, 2020						December 31, 2019
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
	(In thousands)
Developed technology	$	44,883	$	21,606	$	23,277	$	44,243	$	17,536	$	26,707
Trade name		30,128		2,388		27,740		30,253		833		29,420
Customer relationships		218,456		67,397		151,059		218,459		50,916		167,543
Patent		29,989		3,007		26,982		30,721		130		30,591
Non-competition agreements		3,110		2,152		958		3,110		1,774		1,336
Total finite-life intangibles		326,566		96,550		230,016		326,786		71,189		255,597
Indefinite life trade name		35,430		—		35,430		35,430		—		35,430
Total intangible assets	$	361,996	$	96,550	$	265,446	$	362,216	$	71,189	$	291,027

For the three months and nine months ended September 30, 2020, the gross amount for intangible assets increased $0.7 million as a result of an immaterial acquisition. Refer to Note 5 for additional information on our business acquisitions.

The gross carrying amounts of intangible assets are removed when fully amortized.

The estimated future amortization expense of intangible assets as of September 30, 2020 is as follows:

	Amounts
	(in thousands)
2020 (remaining three months)	$	8,484
2021		33,938
2022		33,761
2023		32,359
2024		30,913
Thereafter		90,561
Total	$	230,016

Balance Sheet Components

9 Months Ended

Sep. 30, 2020

Balance Sheet Related Disclosures [Abstract]

Balance Sheet Components

7. Balance Sheet Components

Cash and Restricted Cash

	September 30, 2020		December 31, 2019
	(In thousands)
Cash	$	116,185	$	48,165
Restricted cash—short term		3,726		3,552
Restricted cash—noncurrent		230		230
Total cash and restricted cash	$	120,141	$	51,947

Accounts Receivable, net:

	September 30, 2020			December 31, 2019
	(In thousands)
Accounts receivable	$	260,476		$	202,546
Allowance for doubtful accounts		(934	)		(212	)
Accounts receivable, net	$	259,542		$	202,334

As of September 30, 2020, and December 31, 2019, two customers each represented 10% or more of our consolidated accounts receivable, net.

Inventories

	September 30, 2020		December 31, 2019
	(In thousands)
Raw materials	$	29,937	$	25,547
Work in progress		17,842		2,690
Finished goods		162,372		122,826
Inventories	$	210,151	$	151,063

Property and Equipment, Net

	September 30, 2020			December 31, 2019
	(In thousands)
Manufacturing equipment	$	18,939		$	15,291
Computer equipment, software and office equipment		9,489			6,958
Furniture and fixtures		3,342			2,602
Leasehold improvements		3,951			3,544
Total property and equipment	$	35,721		$	28,395
Less: Accumulated depreciation and amortization		(20,317	)		(13,030	)
Property and equipment, net	$	15,404		$	15,365

Other Liabilities and Accrued Expenses

	September 30, 2020		December 31, 2019
	(In thousands)
Accrued reserves for customer incentive programs	$	40,318	$	36,582
Accrued reserves for sales return		29,805		24,610
Accrued payroll and related expense		22,474		10,638
Income tax payable		20,929		8,524
Operating lease liabilities, current		8,883		—
Other		47,177		35,187
Other liabilities and accrued expenses	$	169,586	$	115,541

Contract Balances

Contract assets represent amounts that have been recognized as revenue but for which we did not have the unconditional right to invoice the customer yet. There were no unbilled accounts receivable recorded within our accounts receivable, net on the condensed combined consolidated balance sheets as of September 30, 2020 and December 31, 2019.

Contract liabilities consist of deferred revenue and unearned revenue.

Deferred revenue consists primarily of amounts that have been shipped and invoiced, but the control of the inventory has not been passed to the customer yet. The current portion of deferred revenue balances are recognized over the next 12 months. As of September 30, 2020, the current and long-term portion of our deferred revenue was $1.1 million and $0.4 million, respectively. As of December 31, 2019, the current and long-term portion of our deferred revenue was $3.3 million and $0.4 million, respectively.

Unearned revenue consists of payments received from customers in advance of product shipment for our webstore orders. These orders are generally shipped within two weeks from order date. The unearned revenue balance as of September 30, 2020 and December 31, 2019 was $4.1 million and $1.3 million, respectively.

Unearned revenue and the current portion of deferred revenue are included in other liabilities and accrued expenses, and the long-term portion of deferred revenue is included in other liabilities on the condensed combined consolidated balance sheets.

Debt

9 Months Ended

Sep. 30, 2020

Debt Disclosure [Abstract]

Debt

8. Debt

First Lien Credit and Guaranty Agreement

On August 28, 2017, we entered into a syndicated First Lien Credit and Guaranty Agreement (“First Lien”) with various financial institutions. The First Lien originally provided a $235 million term loan (“First Lien Term Loan”) for a business acquisition and to repay existing indebtedness of the acquired company and a $50 million revolving line-of-credit (“Revolver”). The First Lien and the Revolver matures on August 28, 2024 and August 28, 2022, respectively. Subsequently, we entered into several amendments to the First Lien and the principal amount of the First Lien Term Loan was increased by $10 million in 2017 and increased by $115 million in each of 2018 and 2019, primarily to fund various business acquisitions and operation needs.

The First Lien Term Loan initially carried interest at a rate equal to, at our election, either the (a) greatest of (i) the prime rate, (ii) sum of the Federal Funds Effective Rate plus 0.5%, (iii) one month LIBOR plus 1.0% and (iv) 2%, plus a margin of 3.5%, or (b) the greater of (i) LIBOR and (ii) 1.0%, plus a margin of 4.5%. The Revolver initially bore interest at a rate equal to, at our election, either the (a) greatest of (i) the prime rate, (ii) sum of the Federal Funds Effective Rate plus 0.5%, (iii) one month LIBOR plus 1.0% and (iv) 2%, plus 3.5%, or (b) the greater of (i) LIBOR and (ii) 1.0%, plus a margin of 4.5%. As a result of the First Lien amendment in October 2018, the First Lien term loan and Revolver margin were both changed to range from 2.75% to 3.25% for base rate loans and to range from 3.75% to 4.25% for Eurodollar loans, based on our net leverage ratio.

Additionally, new contingent repayment provisions were added in the First Lien amendment in October 2018. Five business days after the initial public offering (“IPO”) of our stock, we were required to prepay all amounts (principal and interest) outstanding under the Second Lien term loan. Concurrently, we also were required to prepay the First Lien Term Loan in an amount equal to the IPO proceeds, less the amount used to repay the Second Lien Term Loan, multiplied by 50%. Accordingly, in September 2020, with the IPO proceeds, we repaid the mandatory minimum amount of $55.8 million and made an additional $30.8 million voluntary repayment.

We may prepay the First Lien Term Loan and the Revolver at any time without premium or penalty other than customary LIBOR breakage. According to the Consolidated Excess Cash Flow clause as defined in the First Lien, in April 2020, we prepaid $2.6 million of the First Lien Term Loan.

The amendments to the First Lien were accounted for as loan modifications.

The following table summarizes the carrying value of the First Lien Term Loan:

	September 30, 2020			December 31, 2019
	(In thousands)
Principal amount outstanding	$	376,938		$	467,332
Less: Debt discount, net of amortization		(2,623	)		(3,850	)
Less: Debt issuance costs, net of amortization		(4,225	)		(5,825	)
Carrying amount	$	370,090		$	457,657

Our obligation under the First Lien is secured by substantially all of our personal property assets and those of our United States-organized subsidiaries, including intellectual property. The First Lien Term Loan includes customary restrictive covenants that impose operating and financial restrictions on Corsair, including restrictions on our ability to take actions that could be in our best interests. These restrictive covenants include operating covenants restricting, among other things, our ability to incur additional indebtedness, effect certain acquisitions or make other fundamental changes. As of September 30, 2020, we were in compliance with all covenants.

In addition, the First Lien contains events of default that include, among others, non-payment of principal, interest or fees, breach of covenants, inaccuracy of representations and warranties, cross defaults to certain other indebtedness, bankruptcy and insolvency events, material judgments and events constituting a change of control. Upon the occurrence and during the continuance of an event of default, interest on the obligations may accrue at an increased rate in the case of a non-payment or bankruptcy and insolvency and the lenders may accelerate our obligations under the First Lien Term Loan, except that acceleration will be automatic in the case of bankruptcy and insolvency events of default.

Second Lien Credit and Guaranty Agreement

On August 28, 2017, we also entered into a syndicated Second Lien Credit and Guaranty Agreement (“Second Lien”) with various financial institutions. The Second Lien initially provided a $65 million term loan (“Second Lien Term Loan”), with a maturity date of August 28, 2025, for a business acquisition and for general corporate operations purposes. The Second Lien Term Loan initially carried interest at a base rate equal to that of the First Lien loan, plus a margin of 7.25% for base rate loans and 8.25% for Eurodollar loans. In October 2017, we entered into an amendment to the Second Lien and the principal amount of the Second Lien Term Loan was reduced to $50 million and the applicable interest rate margins for both the base rate loans and Eurodollar loans were increased by 0.25%. The amendment to the Second Lien was accounted for as a loan modification.

We had the ability to prepay the Second Lien Term Loan any time after the first and second anniversary without premium or penalty. In the second and third quarter of 2020, with excess cash on hand, we repaid an aggregate of $50 million of the outstanding principal balance of the Second Lien Term Loan and following these repayments, the Second Lien Term Loan was fully repaid and all obligations and covenants thereunder were terminated.

The following table summarizes the carrying value of the Second Lien Term Loan:

	September 30, 2020		December 31, 2019
	(In thousands)
Principal amount outstanding	$	—	$	50,000
Less: Debt discount, net of amortization		—		(471	)
Less: Debt issuance costs, net of amortization		—		(1,374	)
Carrying amount	$	—	$	48,155

The following table summarizes the interest expense recognized for the First Lien and Second Lien:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
	(In thousands)
Contractual interest expense for First Lien and Second Lien Term Loan	$	6,408	$	7,582	$	22,914	$	22,662
Contractual interest expense for Revolver		—		789		16		2,099
Amortization of debt discount		219		216		672		700
Amortization of debt issuance costs		489		514		1,401		1,583
Loss on debt extinguishment		2,864		—		3,256		—
Total interest expense recognized	$	9,980	$	9,101	$	28,259	$	27,044

The estimated future principal payments under our total long-term debt as of September 30, 2020 are as follows:

	Amounts
	(In thousands)
2020 (remaining three months)	$	—
2021		—
2022		—
2023		—
2024		376,938
Thereafter		—
Total debt	$	376,938
Less: Discount and debt issuance costs		(6,848	)
Total Debt, net of discount and debt issuance costs	$	370,090
Presented on the condensed combined consolidated balance sheet under:
Current portion of debt, net	$	—
Debt, net	$	370,090

Commitments and Contingencies

9 Months Ended

Sep. 30, 2020

Commitments And Contingencies Disclosure [Abstract]

Commitments and Contingencies

9. Commitments and Contingencies

Product Warranties

Changes in our warranty obligations were as follows:

	Three Months Ended September 30,						Nine Months Ended September 30,
	2020			2019			2020			2019
	(in thousands)
Beginning of the period	$	5,005		$	2,776		$	3,991		$	2,581
Balance assumed from business combinations		—			223			—			223
Warranty provision related to products shipped		1,518			1,395			4,928			4,231
Deductions for warranty claims processed		(1,400	)		(1,338	)		(3,796	)		(3,979	)
End of period	$	5,123		$	3,056		$	5,123		$	3,056

Unconditional Purchase Obligations

Our total non-cancelable purchase commitments outstanding was $103.1 million and $44.1 million as of September 30, 2020 and December 31, 2019, respectively.

Letters of Credit

The letters of credit outstanding, in aggregate, was $2.0 million and $1.5 million as of September 30, 2020 and December 31, 2019, respectively. No amounts have been drawn upon the letters of credit for all periods presented.

Indemnification

In the ordinary course of business, we may provide indemnifications of varying scope and terms with respect to certain transactions. We have entered into indemnification agreements with directors and certain officers and employees that will require Corsair, among other things, to indemnify them against certain liabilities that may arise by reason of their status or service as directors, officers or employees. No demands have been made upon Corsair to provide indemnification under such agreements, and thus, there are no claims that we are aware of that could have a material effect on our condensed combined consolidated balance sheets, statements of operations, or statements of cash flows. We currently have directors’ and officers’ insurance.

Stockholders’ Equity

9 Months Ended

Sep. 30, 2020

Equity [Abstract]

Stockholders’ Equity

10. Stockholders’ Equity

On December 19, 2019, the Parent issued 14,092,098 units, which following the Reorganization and prior to the exchange agreements described in Note 1, represents 7,046,049 equivalent shares of our common stock, as a result of a capital call, for a total capital contribution of $53.5 million to fund the SCUF Acquisition.

For the year ended 2019, the Parent issued an aggregate of 2,644,151 units, which following the Reorganization and prior to the exchange agreements described in Note 1, represents 1,322,075 equivalent shares of our common stock, as part of the consideration for acquisitions. The units had an estimated fair value of $10.0 million, in aggregate, at the time of issuance. Refer to Note 5 for additional information regarding our acquisitions.

On September 15, 2020, we completed a Reorganization through a series of steps as discussed in Note 1. In connection with the Reorganization, we filed a certificate of amendment to our Amended and Restated Certificate of Incorporation which authorized 100,000,000 shares of our common stock for issuance, with a par value of $0.0001 per share and effected a 1-for-28,693.596843964 stock split resulting in there being 84,405,366 shares of Corsair’s common stock outstanding as of September 15, 2020.

On September 25, 2020, in connection with the closing of the IPO, we filed an Amended and Restated Certificate of Incorporation which increased the authorized shares of common stock for issuance to 300,000,000 and authorized 5,000,000 shares of preferred stock, with a par value of $0.0001 per share, for issuance. There were no shares of preferred stock outstanding as of September 30, 2020.

Equity Incentive Plans and Stock-Based Compensation

9 Months Ended

Sep. 30, 2020

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Equity Incentive Plans and Stock-Based Compensation

11. Equity Incentive Plans and Stock-Based Compensation

Equity Incentive Plans

In 2017, the Parent adopted the 2017 Equity Incentive Program (the “2017 Plan”). The 2017 Plan was administered by the General Partner, EagleTree-Carbide (GP), LLC, who determines the types of awards to be granted, the number of units subject to the awards, the exercise price and the vesting requirements. Only our employees and directors participated in this program. In connection with the Reorganization discussed in Note 1, we assumed the 2017 Plan and all the outstanding options to acquire units of the Parent under the 2017 Plan were converted into options to purchase our common stock on a pro rata basis with an adjusted exercise price to reflect the assumption. No other modifications were made to the options and no further options will be granted under the 2017 Plan following the Reorganization.

In September 2020, we adopted the 2020 Incentive Award Plan (the “2020 Plan”), which became effective on September 22, 2020, the day prior to the first public trading date of our common stock. The 2020 Plan is the successor and continuation to the 2017 Plan. The 2020 Plan provides for the grant of stock options, stock appreciation rights, restricted stock awards, restricted stock unit (“RSU”) awards, performance awards and other forms of awards. Incentive stock options may be granted only to employees. All other awards may be granted to eligible employees, non-employee directors and consultants, at the discretion of our board of directors (the “Board”). Under the 2020 Plan, 5,125,000 shares of our common stock are initially reserved for issuance. The 2020 Plan reserve also includes any shares under the 2017 Plan and the 2020 Plan that may become available for issuance if the award terminates without the delivery of shares or if shares are tendered to satisfy the exercise price or tax withholding obligation with respect of the award. The 2020 Plan reserve increases annually on January 1 of each calendar year, starting on January 1, 2021 through January 1, 2030, by an amount equal to the lesser of (a) 4% of the shares outstanding on the last day of the immediately preceding fiscal year or (b) a smaller number of shares as determined by the Board; provided, however, no more than 75,000,000 shares of our common stock may be issued upon the exercise of incentive stock options.

All stock options under the 2017 Plan and the 2020 Plan are issued at exercise prices not less than the fair market value on the date of grant. RSUs have no exercise price. Both stock options and RSUs vest over a period of time as determined by the Board, generally four to five years, and expire ten years from date of grant. As of September 30, 2020, 4,941,580 shares were available for grant under the 2020 Plan.

Employee Stock Purchase Plan

In September 2020, we adopted the 2020 Employee Stock Purchase Plan (the “ESPP”), which became effective September 22, 2020, the day prior to the first public trading date of our common stock. The ESPP is intended to qualify under Section 423 of the U.S. Internal Revenue Service Code. The ESPP initially reserved 1,025,000 shares of our common stock for issuance. The ESPP reserve increases annually on January 1 of each calendar year, starting on January 1, 2021 through January 1, 2030, by an amount equal to the lesser of (a) 1% of the shares outstanding on the last day of the immediately preceding fiscal year or (b) a smaller number of shares as determined by the Board; provided, however, no more than 20,000,000 shares of our common stock may be issued under the ESPP.

The ESPP is designed to allow eligible employees to purchase shares of our common stock, at semi-annual intervals, with their accumulated payroll deductions. Under the ESPP, participants are offered the option to purchase shares of our common stock at a discount during a series of successive offering periods, the duration and timing of which will be determined by the ESPP administrator. The offering period may not be longer than 27 months in length. The option purchase price will be the lower of 85% of the closing trading price per share of our common stock on the first trading date of an offering period in which a participant is enrolled or 85% of the closing trading price per share on the purchase date, which will occur on the last trading day of each offering period. Employees may participate through payroll deductions of 1% to 15% of their earnings. No participant may purchase more than 30,000 shares in each offering period and may not subscribe for more than $25,000 in fair market value of shares of our common stock (determined at the time the option is granted) during any calendar year. The first offering period will begin on January 1, 2021.

Stock Options Activities

The following table summarizes the stock option activities and related information for the nine months ended September 30, 2020:

	Outstanding Stock Options			Weighted- Average Exercise Price Per Share		Weighted- Average Remaining Contractual Term		Aggregate Intrinsic Value
						(In years)		(In thousands)
Balance as of December 31, 2019		8,790,000		$	4.86		8.1	$	24,949
Granted		1,875,161			8.59
Exercised		(306,000	)		4.05
Forfeited/cancelled		(164,000	)		6.30
Balance as of September 30, 2020		10,195,161		$	5.55		7.9	$	67,698
Vested and exercisable as of September 30, 2020		4,045,117		$	4.31		7.2	$	31,534

The weighted average grant-date fair value of the stock options granted for the nine months ended September 30, 2020 was $8.59 per share. As of September 30, 2020, the unrecognized stock-based compensation costs related to outstanding unvested stock options was $15.4 million, which is expected to be recognized over a weighted average period of 3.3 years.

RSUs Activities

The following table summarizes the RSUs activities and related information for the nine months ended September 30, 2020:

	Unvested RSUs				Weighted- Average Grant Date Fair Value Per Share
Balance as of December 31, 2019		—				—
Granted			17,647		$		17.00
Vested			(8,823	)			17.00
Balance as of September 30, 2020			8,824		$		17.00

As of September 30, 2020, the unrecognized stock-based compensation costs related to outstanding unvested RSUs was $0.1 million, which is expected to be recognized over a weighted average period of 1.0 year.

Stock-based Compensation

The following table summarizes stock-based compensation expense by line item in the accompanying condensed combined consolidated statements of operations:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
	(In thousands)
Cost of revenue	$	60	$	52	$	192	$	145
Sales, general and administrative		1,414		672		3,634		2,251
Product development		157		143		460		417
Total stock-based compensation expense	$	1,631	$	867	$	4,286	$	2,813

Valuation Assumptions

We estimate the fair value of the stock options on the date of grant using the Black-Scholes-Merton pricing model, with the following valuation assumptions:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
Weighted average grant date fair value of common stock (per share)	$	16.38	$	7.55	$	8.60	$	7.46
Expected term (years)		6.09		6.50		6.37		6.48
Expected volatility	41.7%-44.0%		34.5%-34.9%		35.8%-44.0%		34.3%-34.9%
Dividend yield		—		—		—		—
Range of risk-free interest rate	0.3%-0.4%		1.4-1.9%		0.3%-1.8%		1.4%-2.6%

Net Income (Loss) Per Share

9 Months Ended

Sep. 30, 2020

Earnings Per Share [Abstract]

Net Income (Loss) Per Share

12. Net Income (Loss) Per Share

Following the Reorganization, all share and per share information in this section has been revised as Corsair common share equivalents. The following table summarizes the calculation of basic and diluted net income (loss) per share:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
	(in thousands, except share and per share amounts)
Numerator
Net income (loss), basic and diluted	$	36,357	$	1,519	$	60,174	$	(14,406	)
Denominator
Weighted-average shares used to compute net income (loss) per share, basic		84,870,837		75,939,443		84,352,415		75,928,057
Effect of dilutive securities ⁽¹⁾		5,213,112		1,944,311		3,146,104		—
Weighted-average shares used to compute net income (loss) per share, diluted		90,083,949		77,883,754		87,498,519		75,928,057
Net income (loss) per share:
Basic	$	0.43	$	0.02	$	0.71	$	(0.19	)
Diluted	$	0.40	$	0.02	$	0.69	$	(0.19	)

(1)	As a result of our net loss, potentially dilutive ordinary share equivalents of approximately 1.8 million options were excluded from the calculation of diluted net loss per share for the nine months ended September 30, 2019.

Share equivalents attributable to outstanding stock options and RSUs totaling approximately 22 thousand and 1.2 million for the three months ended September 30, 2020 and 2019, respectively, and 2.1 million and 1.7 million for the nine months ended September 30, 2020 and 2019, respectively, were excluded from the calculation of diluted net income per share because the combined exercise price and average unamortized grant date fair value upon exercise of the stock options or vesting of RSUs were greater than the average market price of our shares during the periods presented herein, and therefore their inclusion would have been anti-dilutive.

Income Taxes

9 Months Ended

Sep. 30, 2020

Income Tax Disclosure [Abstract]

Income Taxes

13. Income Taxes

The table below presents our income (loss) before income taxes, income tax (expense) benefit and effective income tax rates for all periods presented:

	Three Months Ended September 30,						Nine Months Ended September 30,
	2020			2019			2020			2019
	(In thousands)
Income (loss) before income taxes	$	39,574		$	1,444		$	70,323		$	(19,051	)
Income tax (expense) benefit		(3,217	)		75			(10,149	)		4,645
Effective income tax rate		8.1	%		5.2	%		14.4	%		24.4	%

We are subject to income taxes in the United States and foreign jurisdictions in which we do business. These foreign jurisdictions have statutory tax rates different from those in the United States. Accordingly, our effective tax rates will vary depending on the relative proportion of foreign to United States income, the utilization of net operating loss and tax credit carry forwards, changes in geographic mix of income and expense, and changes in management’s assessment of matters such as the ability to realize deferred tax assets, and changes in tax laws.

The Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”), enacted on March 27, 2020, provides tax relief to individuals and businesses in light of the impacts of COVID-19. Changes in tax laws or rates are accounted for in the period of enactment and as a result, additional income tax benefits of $0.6 million were recorded during the nine months ended September 30, 2020 resulting from the enactment of the CARES Act.

Our effective tax rates were tax expense of 8.1% and tax benefit of 5.2% for the three months ended September 30, 2020 and 2019, respectively, and tax expense of 14.4% and tax benefit of 24.4% for the nine months ended September 30, 2020 and 2019, respectively. The change in the effective income tax rate for the three months ended September 30, 2020, compared to the same period last year was primarily due to the mix of income and losses in the various tax jurisdictions in which we operate, as well as the recognition of a $1.5 million tax benefit in the three months ended September 30, 2019 versus a $4.3 million tax benefit recognized in the three months September 30, 2020, resulting from the change in management’s assessment of the realizability of certain deferred tax assets as a result of the Reorganization. The change in the effective tax rate for the nine months ended September 30, 2020, compared to the same period last year was primarily due to the recognition of a $4.3 million tax benefit in the nine months ended September 30, 2020 resulting from the change in management’s assessment of the realizability of certain deferred tax assets as a result of the Reorganization, and a $0.6 million one-time benefit from the change in tax law resulting from the enactment of the CARES Act in the first quarter 2020.

Unrecognized tax benefits were $0.6 million and $0.7 million as of September 30, 2020 and December 31, 2019, respectively, and if recognized, would favorably affect the effective income tax rate in future periods.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References + Details

Related Party Transactions

9 Months Ended

Sep. 30, 2020

Related-Party Transactions

14. Related-Party Transactions

A company affiliated with a major shareholder, EagleTree-Carbide (GP), LLC, provided management and consulting services to us. We incurred $21 thousand and $33 thousand for the three months ended September 30, 2020 and 2019, respectively, and $0.1 million for each of the nine months ended September 30, 2020 and 2019, which primarily covered travel and out-of-pocket expenses related to such services. The unpaid services were $21 thousand and $0.1 million as of September 30, 2020 and December 31, 2019, respectively. This management and consulting service agreement was terminated in September 2020.

One of our directors, through one of his companies, entered into a service agreement to serve as our business management consultant. We incurred $30 thousand and $8 thousand of consulting fees under the service agreement for the three months ended September 30, 2020 and 2019, respectively, and $92 thousand and $55 thousand for the nine months ended September 30, 2020 and 2019, respectively. The unpaid services were $44 thousand and $30 thousand as of September 30, 2020 and December 31, 2019, respectively. This service agreement was terminated in September 2020.

As discussed in Note 8, we had a Second Lien Term Loan outstanding as of December 31, 2019. The total net carrying value of the Second Lien Term Loan balance held by all related parties, an affiliate of the Parent and one of our directors, was $5.8 million as of December 31, 2019. As of September 30, 2020, the outstanding balance of the Second Lien Term Loan was fully repaid and as a result, there was no debt held by related parties as of September 30, 2020.

Segment and Geographic Information

9 Months Ended

Sep. 30, 2020

Segment Reporting [Abstract]

Segment and Geographic Information

15. Segment and Geographic Information

We have two reportable segments:

•

Gamer and Creator Peripherals, which includes high-performance gaming keyboards, mice, headsets and controllers, as well as our gaming gear including capture cards, studio accessories, among others.

•

Gaming Components and Systems, which includes high performance power supply units, or PSUs, cooling solutions, computer cases, and DRAM modules, as well as high-end prebuilt and custom-built gaming PCs, among others.

The segments are defined as those operations our chief operating decision maker (“CODM”) regularly reviews to analyze performance and allocate resources. Our CODM is determined to be Corsair’s Chief Executive Officer. The results of the reportable segments are derived directly from our reporting system and are based on the methods of internal reporting which are not necessarily in conformity with GAAP. Management measures net revenue and gross profit to evaluate the performance of, and allocate resources to, each of the segments.

The table below summarizes the financial information for each reportable segment:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
	(In thousands)
Net revenue
Gaming and Creator Peripherals	$	161,555	$	70,606	$	347,531	$	200,084
Gaming Components and Systems		295,548		213,766		798,497		570,535
Total net revenue	$	457,103	$	284,372	$	1,146,028	$	770,619
Gross Profit
Gaming and Creator Peripherals	$	60,010	$	19,948	$	120,886	$	58,234
Gaming Components and Systems		67,934		40,279		190,744		95,600
Total gross profit	$	127,944	$	60,227	$	311,630	$	153,834

The CODM manages assets on a total company basis, not by operating segments; therefore, asset information and capital expenditures by operating segments are not presented.

Geographic Information

The following table summarizes our net revenue by geographic region based on the location of the customer:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
	(In thousands)
Net revenue
Americas	$	216,982	$	108,318	$	517,165	$	315,200
Europe and Middle East		162,615		114,118		412,349		287,502
Asia Pacific		77,506		61,936		216,514		167,917
Total net revenue	$	457,103	$	284,372	$	1,146,028	$	770,619

No other countries besides United States represented 10% or more of total net revenue for each of the periods presented.

One customer represented at least 10% of total net revenue for each of the periods presented.

Long-lived assets are comprised primarily of property and equipment, net. The following table summarizes property and equipment, net by country:

	September 30, 2020		December 31, 2019
	(In thousands)
United States	$	6,532	$	6,400
China		5,039		4,998
Taiwan		2,668		2,270
Other countries		1,165		1,697
Total property and equipment, net	$	15,404	$	15,365

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 31
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8924-108599

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 34
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8981-108599

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
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+ Details

Leases

9 Months Ended

Sep. 30, 2020

Leases [Abstract]

Leases

16. Leases

Our lease portfolio consists primarily of real estate facilities under operating leases and we determine if an arrangement is or contains a lease at inception. ROU assets and lease liabilities are recognized at commencement based on the present value of the lease consideration in the contracts over the lease term. We apply the incremental borrowing rate in determining the present value of the lease consideration in the contracts, as most of our leases do not provide an implicit rate. Our incremental borrowing rate is the rate of interest we would have to pay on a collateralized basis to borrow an amount equal to the lease payments under similar terms. Because we generally do not borrow on a collateralized basis, we apply an estimate of what the collateralized credit rating would be as an input to deriving an appropriate incremental borrowing rate. Certain of our lease agreements include options to extend or renew the lease terms. Such options are excluded from the ROU assets and lease liabilities, unless they are reasonably certain to be exercised. Operating lease expense is recognized on a straight-line basis over the lease term.

Certain lease agreements contain variable lease payments, which primarily include variable costs for warehousing and distribution services related to our outsourced distribution hubs, and to a lesser extent, variable costs related to office common area maintenance charges.

The table below summarizes the components of lease expenses:

	Three Months Ended September 30,		Nine months ended September 30,
	2020		2020
	(In thousands)
Operating lease expense	$	2,739	$	6,932
Variable lease expense		2,226		4,657
Total lease expense	$	4,965	$	11,589

During the three and nine months ended September 30, 2020, we made $2.6 million and $6.7 million, respectively, in payments for operating leases included within cash provided by operating activities in our condensed combined consolidated statement of cash flows.

As of September 30, 2020, the weighted-average remaining lease term was 3.6 years and the weighed-average discount rate was 4.0%.

Amounts of future undiscounted cash flows related to operating lease payments over the lease term included in the measurement of lease liabilities as of September 30, 2020 are as follows:

	Amounts
	(In thousands)
2020 (remaining three months)	$	2,310
2021		9,072
2022		6,372
2023		5,172
2024		3,999
Thereafter		1,987
Total future lease payments	$	28,912
Less: Imputed interest		(2,133	)
Present value of operating lease liabilities	$	26,779
Current portion of operating lease liabilities ⁽¹⁾	$	8,883
Long-term operating lease liabilities ⁽¹⁾	$	17,896

(1)	The current portion and long-term portion of operating lease liabilities are included in “other liabilities and accrued expenses” and “other liabilities, noncurrent”, respectively, on our condensed combined consolidated balance sheets.

Future minimum lease payments under non-cancelable operating leases as of December 31, 2019, as defined under the previous lease accounting guidance of ASC Topic 840, were as follows:

	Amounts
	(In thousands)
2020	$	7,525
2021		5,786
2022		2,701
2023		1,584
2024		1,025
Thereafter		—
Total	$	18,621

Summary of Significant Accounting Policies (Policies)

9 Months Ended

Sep. 30, 2020

Accounting Policies [Abstract]

Reorganization

The Reorganization was comprised of a series of steps as set forth below:

•

The Parent acquired the minority interest held by Corsair Group (US), LLC in exchange for its own units.

•

Corsair Gaming, Inc. acquired all of the outstanding capital stock of Corsair Luxco from the Parent in exchange for its own stock.

•

As all legal entities included in the Reorganization are under common control of the Parent, all steps of the Reorganization were accounted for as a combination of entities under common control.

Initial Public Offering

Basis of Presentation

Principles of Consolidation

Use of Estimates

Risks and Uncertainties related to COVID-19 Pandemic

Risks and Uncertainties related to the COVID-19 Pandemic

Advertising Costs

Nonmonetary Transactions

Because the transactions are nonmonetary, they have not been included in the condensed combined consolidated statements of cash flows pursuant to ASC 230, Statement of Cash Flows.

Recently Adopted Accounting Pronouncements

Accounting Pronouncements Issued but Not Yet Adopted

Fair Value Measurement (Tables)

9 Months Ended

Sep. 30, 2020

Fair Value Disclosures [Abstract]

Summary of Financial Assets and Liabilities that Measured at Fair Value

	September 30, 2020
	(Level 1)		(Level 2)		(Level 3)		Total
	(in thousands)
Assets:
Interest rate cap contract⁽⁴⁾	$	—	$	45	$	—	$	45
Foreign currency forward contracts⁽⁴⁾		—		88		—		88
Total assets	$	—	$	133	$	—	$	133
Liabilities:
Contingent consideration in connection with a business acquisition—Origin⁽¹⁾	$	—	$	—	$	2,078	$	2,078
Contingent consideration in connection with an immaterial business acquisition		—		—		9	$	9
Deferred cash consideration in connection with a business acquisition—SCUF⁽²⁾		—		—		1,638		1,638
Deferred cash consideration in connection with a business acquisition—Origin⁽³⁾		—		—		1,481		1,481
Foreign currency forward contracts⁽⁴⁾		—		378		—		378
Total liabilities	$	—	$	378	$	5,206	$	5,584

	December 31, 2019
	(Level 1)		(Level 2)		(Level 3)		Total
	(In thousands)
Liabilities:
Contingent consideration in connection with a business acquisition—Origin⁽¹⁾	$	—	$	—	$	3,964	$	3,964
Deferred cash consideration in connection with a business acquisition—SCUF⁽²⁾		—		—		1,638		1,638
Deferred cash consideration in connection with a business acquisition—Origin⁽³⁾		—		—		1,411		1,411
Foreign currency forward contracts⁽⁴⁾		—		335		—		335
Total liabilities	$	—	$	335	$	7,013	$	7,348

(1)

(2)

(3)	The fair value of Origin’s deferred cash consideration is determined at the Origin acquisition date by using a discount rate of 6.5%. This discount rate approximated our borrowing rate under the revolving line of credit and represented a Level 3 input under the fair value hierarchy.

(4)	The fair values of the forward contracts and interest rate cap contract are based on similar exchange traded derivatives and the related asset or liability is, therefore, included within Level 2 of the fair value hierarchy.

Business Combinations (Tables)

9 Months Ended

Sep. 30, 2020

SCUF Acquisition

Summary of Estimated Fair Value of Assets Acquired and Liabilities Assumed

	(In thousands)
Assets acquired:
Cash	$	6,947
Accounts receivable		4,587
Inventories		12,800
Prepaid and other assets		1,377
Identifiable intangible assets		71,890
Property and equipment		2,927
Other assets		40
Liabilities assumed:
Accounts payable		(9,182	)
Sales tax payable		(5,533	)
Deferred revenue		(3,752	)
Other liabilities and accrued expenses		(8,416	)
Deferred tax liabilities		(10,015	)
Net identifiable net assets acquired	$	63,670
Goodwill		72,642
Net assets acquired	$	136,312

Summary of Components of Identifiable Assets Acquired and Estimated Useful Lives

The following table summarizes the components of identifiable intangible assets acquired and their estimated useful lives as of the SCUF Acquisition Closing Date:

	Fair Value		Weighted Average Useful Life
	(In thousands)		(In years)
Patents	$	30,500		8
Developed technology		18,600		6
Customer Relationships		590		5
Trade name		22,200		15
Total identifiable intangible assets	$	71,890

Business Acquisition, Pro Forma Financial Information

The following unaudited pro forma financial information combines the unaudited condensed combined consolidated results of operations as if the SCUF Acquisition had occurred as of January 1, 2019:

	Three months Ended September 30, 2019			Nine months Ended September 30, 2019
	(in thousands)
Net revenue	$	299,130		$	815,432
Net loss		(3,101	)		(25,040	)

Origin Acquisition

Summary of Estimated Fair Value of Assets Acquired and Liabilities Assumed

The final allocation of the Origin Acquisition purchase consideration to the estimated fair value of the assets acquired and liabilities assumed at the acquisition date is as follows:

	(In thousands)
Assets acquired:
Cash, net of cash acquired	$	376
Accounts receivable		1,379
Inventories		4,445
Prepaid and other assets		309
Identifiable intangible assets (customer relationship with estimated 6 years of useful life)		1,000
Property and equipment		140
Liabilities assumed:
Accounts payable		(2,670	)
Other liabilities and accrued expenses		(3,033	)
Other liabilities, noncurrent		(447	)
Net identifiable assets acquired		1,499
Goodwill		12,270
Net assets acquired	$	13,769

Goodwill and Intangible Assets (Tables)

9 Months Ended

Sep. 30, 2020

Goodwill And Intangible Assets Disclosure [Abstract]

Summary of Changes in Carrying Amount of Goodwill by Reportable Segment

The following table summarizes the changes in the carrying amount of goodwill by reportable segment:

	Gaming Components and Systems			Gamer and Creator Peripherals			Total
	(In thousands)
Balance as of December 31, 2019	$	145,375		$	167,375		$	312,750
Addition from business acquisition		-			185			185
Measurement period adjustments		(47	)		(1,023	)		(1,070	)
Effect of foreign currency exchange rates		284			(576	)		(292	)
Balance as of September 30, 2020	$	145,612		$	165,961		$	311,573

Summary of Intangible Assets, Net

The following table is a summary of intangible assets, net:

	September 30, 2020						December 31, 2019
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
	(In thousands)
Developed technology	$	44,883	$	21,606	$	23,277	$	44,243	$	17,536	$	26,707
Trade name		30,128		2,388		27,740		30,253		833		29,420
Customer relationships		218,456		67,397		151,059		218,459		50,916		167,543
Patent		29,989		3,007		26,982		30,721		130		30,591
Non-competition agreements		3,110		2,152		958		3,110		1,774		1,336
Total finite-life intangibles		326,566		96,550		230,016		326,786		71,189		255,597
Indefinite life trade name		35,430		—		35,430		35,430		—		35,430
Total intangible assets	$	361,996	$	96,550	$	265,446	$	362,216	$	71,189	$	291,027

Schedule of Estimated Future Amortization Expense of Intangible Assets

The estimated future amortization expense of intangible assets as of September 30, 2020 is as follows:

	Amounts
	(in thousands)
2020 (remaining three months)	$	8,484
2021		33,938
2022		33,761
2023		32,359
2024		30,913
Thereafter		90,561
Total	$	230,016

Balance Sheet Components (Tables)

9 Months Ended

Sep. 30, 2020

Balance Sheet Related Disclosures [Abstract]

Summary of Cash and Restricted Cash

Cash and Restricted Cash

	September 30, 2020		December 31, 2019
	(In thousands)
Cash	$	116,185	$	48,165
Restricted cash—short term		3,726		3,552
Restricted cash—noncurrent		230		230
Total cash and restricted cash	$	120,141	$	51,947

Summary of Accounts Receivable, Net

Accounts Receivable, net:

	September 30, 2020			December 31, 2019
	(In thousands)
Accounts receivable	$	260,476		$	202,546
Allowance for doubtful accounts		(934	)		(212	)
Accounts receivable, net	$	259,542		$	202,334

Summary of Inventories

Inventories

	September 30, 2020		December 31, 2019
	(In thousands)
Raw materials	$	29,937	$	25,547
Work in progress		17,842		2,690
Finished goods		162,372		122,826
Inventories	$	210,151	$	151,063

Summary of Property and Equipment, Net

Property and Equipment, Net

	September 30, 2020			December 31, 2019
	(In thousands)
Manufacturing equipment	$	18,939		$	15,291
Computer equipment, software and office equipment		9,489			6,958
Furniture and fixtures		3,342			2,602
Leasehold improvements		3,951			3,544
Total property and equipment	$	35,721		$	28,395
Less: Accumulated depreciation and amortization		(20,317	)		(13,030	)
Property and equipment, net	$	15,404		$	15,365

Summary of Other Liabilities and Accrued Expenses

Other Liabilities and Accrued Expenses

	September 30, 2020		December 31, 2019
	(In thousands)
Accrued reserves for customer incentive programs	$	40,318	$	36,582
Accrued reserves for sales return		29,805		24,610
Accrued payroll and related expense		22,474		10,638
Income tax payable		20,929		8,524
Operating lease liabilities, current		8,883		—
Other		47,177		35,187
Other liabilities and accrued expenses	$	169,586	$	115,541

Debt (Tables)

9 Months Ended

Sep. 30, 2020

Debt Disclosure [Abstract]

Summary of Carrying Value of First Lien and Second Lien Term Loan

The following table summarizes the carrying value of the First Lien Term Loan:

	September 30, 2020			December 31, 2019
	(In thousands)
Principal amount outstanding	$	376,938		$	467,332
Less: Debt discount, net of amortization		(2,623	)		(3,850	)
Less: Debt issuance costs, net of amortization		(4,225	)		(5,825	)
Carrying amount	$	370,090		$	457,657

The following table summarizes the carrying value of the Second Lien Term Loan:

	September 30, 2020		December 31, 2019
	(In thousands)
Principal amount outstanding	$	—	$	50,000
Less: Debt discount, net of amortization		—		(471	)
Less: Debt issuance costs, net of amortization		—		(1,374	)
Carrying amount	$	—	$	48,155

Summary of Interest Expense Recognized for First Lien and Second Lien

The following table summarizes the interest expense recognized for the First Lien and Second Lien:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
	(In thousands)
Contractual interest expense for First Lien and Second Lien Term Loan	$	6,408	$	7,582	$	22,914	$	22,662
Contractual interest expense for Revolver		—		789		16		2,099
Amortization of debt discount		219		216		672		700
Amortization of debt issuance costs		489		514		1,401		1,583
Loss on debt extinguishment		2,864		—		3,256		—
Total interest expense recognized	$	9,980	$	9,101	$	28,259	$	27,044

Summary of Estimated Future Principal Payments under Total Long-term Debt

The estimated future principal payments under our total long-term debt as of September 30, 2020 are as follows:

	Amounts
	(In thousands)
2020 (remaining three months)	$	—
2021		—
2022		—
2023		—
2024		376,938
Thereafter		—
Total debt	$	376,938
Less: Discount and debt issuance costs		(6,848	)
Total Debt, net of discount and debt issuance costs	$	370,090
Presented on the condensed combined consolidated balance sheet under:
Current portion of debt, net	$	—
Debt, net	$	370,090

Commitments and Contingencies (Tables)

9 Months Ended

Sep. 30, 2020

Commitments And Contingencies Disclosure [Abstract]

Schedule of Changes in Warranty

Changes in our warranty obligations were as follows:

	Three Months Ended September 30,						Nine Months Ended September 30,
	2020			2019			2020			2019
	(in thousands)
Beginning of the period	$	5,005		$	2,776		$	3,991		$	2,581
Balance assumed from business combinations		—			223			—			223
Warranty provision related to products shipped		1,518			1,395			4,928			4,231
Deductions for warranty claims processed		(1,400	)		(1,338	)		(3,796	)		(3,979	)
End of period	$	5,123		$	3,056		$	5,123		$	3,056

Equity Incentive Plans and Stock-Based Compensation (Tables)

9 Months Ended

Sep. 30, 2020

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Summary of Stock Option Activities and Related Information

The following table summarizes the stock option activities and related information for the nine months ended September 30, 2020:

	Outstanding Stock Options			Weighted- Average Exercise Price Per Share		Weighted- Average Remaining Contractual Term		Aggregate Intrinsic Value
						(In years)		(In thousands)
Balance as of December 31, 2019		8,790,000		$	4.86		8.1	$	24,949
Granted		1,875,161			8.59
Exercised		(306,000	)		4.05
Forfeited/cancelled		(164,000	)		6.30
Balance as of September 30, 2020		10,195,161		$	5.55		7.9	$	67,698
Vested and exercisable as of September 30, 2020		4,045,117		$	4.31		7.2	$	31,534

Summary of RSUs Activities and Related Information

The following table summarizes the RSUs activities and related information for the nine months ended September 30, 2020:

	Unvested RSUs				Weighted- Average Grant Date Fair Value Per Share
Balance as of December 31, 2019		—				—
Granted			17,647		$		17.00
Vested			(8,823	)			17.00
Balance as of September 30, 2020			8,824		$		17.00

Summary of Stock-based Compensation Expense

The following table summarizes stock-based compensation expense by line item in the accompanying condensed combined consolidated statements of operations:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
	(In thousands)
Cost of revenue	$	60	$	52	$	192	$	145
Sales, general and administrative		1,414		672		3,634		2,251
Product development		157		143		460		417
Total stock-based compensation expense	$	1,631	$	867	$	4,286	$	2,813

Summary of Valuation Assumptions of Fair Value of Stock Options on Date of Grant

We estimate the fair value of the stock options on the date of grant using the Black-Scholes-Merton pricing model, with the following valuation assumptions:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
Weighted average grant date fair value of common stock (per share)	$	16.38	$	7.55	$	8.60	$	7.46
Expected term (years)		6.09		6.50		6.37		6.48
Expected volatility	41.7%-44.0%		34.5%-34.9%		35.8%-44.0%		34.3%-34.9%
Dividend yield		—		—		—		—
Range of risk-free interest rate	0.3%-0.4%		1.4-1.9%		0.3%-1.8%		1.4%-2.6%

Net Income (Loss) Per Share (Tables)

9 Months Ended

Sep. 30, 2020

Earnings Per Share [Abstract]

Computation of Basic and Diluted Net Income (Loss) Per Share

	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
	(in thousands, except share and per share amounts)
Numerator
Net income (loss), basic and diluted	$	36,357	$	1,519	$	60,174	$	(14,406	)
Denominator
Weighted-average shares used to compute net income (loss) per share, basic		84,870,837		75,939,443		84,352,415		75,928,057
Effect of dilutive securities ⁽¹⁾		5,213,112		1,944,311		3,146,104		—
Weighted-average shares used to compute net income (loss) per share, diluted		90,083,949		77,883,754		87,498,519		75,928,057
Net income (loss) per share:
Basic	$	0.43	$	0.02	$	0.71	$	(0.19	)
Diluted	$	0.40	$	0.02	$	0.69	$	(0.19	)

(1)	As a result of our net loss, potentially dilutive ordinary share equivalents of approximately 1.8 million options were excluded from the calculation of diluted net loss per share for the nine months ended September 30, 2019.

Income Taxes (Tables)

9 Months Ended

Sep. 30, 2020

Income Tax Disclosure [Abstract]

Schedule of Income (Loss) Before Income Taxes, Income Tax (Expense) Benefit and Effective Income Tax Rates

The table below presents our income (loss) before income taxes, income tax (expense) benefit and effective income tax rates for all periods presented:

	Three Months Ended September 30,						Nine Months Ended September 30,
	2020			2019			2020			2019
	(In thousands)
Income (loss) before income taxes	$	39,574		$	1,444		$	70,323		$	(19,051	)
Income tax (expense) benefit		(3,217	)		75			(10,149	)		4,645
Effective income tax rate		8.1	%		5.2	%		14.4	%		24.4	%

Segment and Geographic Information (Tables)

9 Months Ended

Sep. 30, 2020

Segment Reporting [Abstract]

Summary of Financial Information for Each Reportable Segment

The table below summarizes the financial information for each reportable segment:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
	(In thousands)
Net revenue
Gaming and Creator Peripherals	$	161,555	$	70,606	$	347,531	$	200,084
Gaming Components and Systems		295,548		213,766		798,497		570,535
Total net revenue	$	457,103	$	284,372	$	1,146,028	$	770,619
Gross Profit
Gaming and Creator Peripherals	$	60,010	$	19,948	$	120,886	$	58,234
Gaming Components and Systems		67,934		40,279		190,744		95,600
Total gross profit	$	127,944	$	60,227	$	311,630	$	153,834

Summary of Net Revenue By Geographic Region

The following table summarizes our net revenue by geographic region based on the location of the customer:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
	(In thousands)
Net revenue
Americas	$	216,982	$	108,318	$	517,165	$	315,200
Europe and Middle East		162,615		114,118		412,349		287,502
Asia Pacific		77,506		61,936		216,514		167,917
Total net revenue	$	457,103	$	284,372	$	1,146,028	$	770,619

Summary of Property And Equipment, Net by Country

The following table summarizes property and equipment, net by country:

	September 30, 2020		December 31, 2019
	(In thousands)
United States	$	6,532	$	6,400
China		5,039		4,998
Taiwan		2,668		2,270
Other countries		1,165		1,697
Total property and equipment, net	$	15,404	$	15,365

Leases (Tables)

9 Months Ended

Sep. 30, 2020

Leases [Abstract]

Summary of Components of Lease Expenses

The table below summarizes the components of lease expenses:

	Three Months Ended September 30,		Nine months ended September 30,
	2020		2020
	(In thousands)
Operating lease expense	$	2,739	$	6,932
Variable lease expense		2,226		4,657
Total lease expense	$	4,965	$	11,589

Schedule of Future Undiscounted Cash Flows Related To Operating Lease Payments

Amounts of future undiscounted cash flows related to operating lease payments over the lease term included in the measurement of lease liabilities as of September 30, 2020 are as follows:

	Amounts
	(In thousands)
2020 (remaining three months)	$	2,310
2021		9,072
2022		6,372
2023		5,172
2024		3,999
Thereafter		1,987
Total future lease payments	$	28,912
Less: Imputed interest		(2,133	)
Present value of operating lease liabilities	$	26,779
Current portion of operating lease liabilities ⁽¹⁾	$	8,883
Long-term operating lease liabilities ⁽¹⁾	$	17,896

(1)	The current portion and long-term portion of operating lease liabilities are included in “other liabilities and accrued expenses” and “other liabilities, noncurrent”, respectively, on our condensed combined consolidated balance sheets.

Future Minimum Lease Payments Under Non-cancelable Operating Leases

Future minimum lease payments under non-cancelable operating leases as of December 31, 2019, as defined under the previous lease accounting guidance of ASC Topic 840, were as follows:

	Amounts
	(In thousands)
2020	$	7,525
2021		5,786
2022		2,701
2023		1,584
2024		1,025
Thereafter		—
Total	$	18,621

Description of Business and Basis of Presentation - Additional Information (Details) $ / shares in Units, $ in Millions				9 Months Ended
	Sep. 26, 2020 USD ($) shares	Sep. 25, 2020 USD ($) $ / shares shares	Sep. 15, 2020 shares	Sep. 30, 2020 Segment shares	Dec. 31, 2019 USD ($) shares
Description Of Business And Basis Of Presentation [Line Items]
Number of reportable segments \| Segment				2
Stock split ratio			3.485
Common stock, shares outstanding			84,405,366	91,914,000	84,079,000
Options outstanding to purchase common stock			10,029,388
Deferred offering costs \| $	$ 11.8				$ 5.8
Initial Public Offering
Description Of Business And Basis Of Presentation [Line Items]
Number of shares sold		7,500,000
Sale of stock, price per share \| $ / shares		$ 17.00
Proceeds from issuance of initial public offering, net \| $		$ 118.6
Stockholders sale of common stock shares		6,500,000
Stockholders sale of common stock shares price per share \| $ / shares		$ 17.00
Underwriters' Option
Description Of Business And Basis Of Presentation [Line Items]
Stockholders sale of common stock shares	1,135,375

Summary of Significant Accounting Policies - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Jan. 01, 2020
New Accounting Pronouncements Or Change In Accounting Principle [Line Items]
Advertising and promotion expenses	$ 4,100	$ 2,600	$ 12,300	$ 7,400
Prepaid inventory	2,100		2,100
Accrued liabilities	2,400		2,400
Lease liabilities	$ 26,779		$ 26,779		$ 17,900
ROU assets					$ 17,700
ASU 2016-13
New Accounting Pronouncements Or Change In Accounting Principle [Line Items]
Change in accounting principle, accounting standards update, adopted	true		true
Change in accounting principle, accounting standards update, adoption date	Jan. 01, 2020		Jan. 01, 2020
Change in accounting principle, accounting standards update, immaterial effect	true		true
ASU 2017-04
New Accounting Pronouncements Or Change In Accounting Principle [Line Items]
Change in accounting principle, accounting standards update, adopted	true		true
Change in accounting principle, accounting standards update, adoption date	Jan. 01, 2020		Jan. 01, 2020
Change in accounting principle, accounting standards update, immaterial effect	true		true
ASU 2018-13
New Accounting Pronouncements Or Change In Accounting Principle [Line Items]
Change in accounting principle, accounting standards update, adopted	true		true
Change in accounting principle, accounting standards update, adoption date	Jan. 01, 2020		Jan. 01, 2020
Change in accounting principle, accounting standards update, immaterial effect	true		true
ASU 2016-02
New Accounting Pronouncements Or Change In Accounting Principle [Line Items]
Change in accounting principle, accounting standards update, adopted	true		true
Change in accounting principle, accounting standards update, adoption date	Jan. 01, 2020		Jan. 01, 2020
Change in accounting principle, accounting standards update, transition option elected			crsr:AccountingStandardsUpdate201602ModifiedRetrospectiveMember
Change in accounting principle, accounting standards update, immaterial effect	false		false

Fair Value Measurement - Summary of Financial Assets and Liabilities that Measured at Fair Value (Details) - Fair Value Recurring Basis - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Assets:
Assets	$ 133
Liabilities:
Liabilities	5,584	$ 7,348
Interest Rate Cap Contract
Assets:
Assets	45
Foreign Currency Forward Contracts
Assets:
Assets	88
Liabilities:
Liabilities	378	335
Contingent Consideration Business Acquisition Origin
Liabilities:
Liabilities	2,078	3,964
Contingent Consideration Business Acquisition Immaterial
Liabilities:
Liabilities	9
Deferred Cash Consideration Business Acquisition SCUF
Liabilities:
Liabilities	1,638	1,638
Deferred Cash Consideration Business Acquisition Origin
Liabilities:
Liabilities	1,481	1,411
(Level 2)
Assets:
Assets	133
Liabilities:
Liabilities	378	335
(Level 2) \| Interest Rate Cap Contract
Assets:
Assets	45
(Level 2) \| Foreign Currency Forward Contracts
Assets:
Assets	88
Liabilities:
Liabilities	378	335
(Level 3)
Liabilities:
Liabilities	5,206	7,013
(Level 3) \| Contingent Consideration Business Acquisition Origin
Liabilities:
Liabilities	2,078	3,964
(Level 3) \| Contingent Consideration Business Acquisition Immaterial
Liabilities:
Liabilities	9
(Level 3) \| Deferred Cash Consideration Business Acquisition SCUF
Liabilities:
Liabilities	1,638	1,638
(Level 3) \| Deferred Cash Consideration Business Acquisition Origin
Liabilities:
Liabilities	$ 1,481	$ 1,411

Fair Value Measurement - Summary of Financial Assets and Liabilities that Measured at Fair Value (Parenthetical) (Details) - USD ($) $ in Millions	9 Months Ended	12 Months Ended
	Sep. 30, 2020	Dec. 31, 2019	Apr. 30, 2020
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Earn out liability			$ 2.4
Pre-acquisition sales tax liabilities	$ 0.3
Measure of Change in Fair Value \| Sales, General and Administrative Expenses
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Reduction in fair value re measurement		$ 0.6
Discount Rate \| Level 3 \| Revolving Line of Credit
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Fair value discount rate	6.50%

Derivative Financial Instruments - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019
Derivative Instruments Gain Loss [Line Items]
Notional principal amount	$ 465,000		$ 465,000
Derivative, maturity date			Jun. 30, 2022
Net loss for change in fair value of interest rate contracts		$ (55)		$ (500)
Designated as Hedging Instruments
Derivative Instruments Gain Loss [Line Items]
Derivative, amount of hedged item	0		$ 0
Other (Expense) Income
Derivative Instruments Gain Loss [Line Items]
Fair value gain (loss) recognized	(1,100)	$ 900	(1,200)	$ 500
Foreign Exchange Forward Contract
Derivative Instruments Gain Loss [Line Items]
Notional principal amount	21,500		21,500		$ 18,300
Interest Rate Cap
Derivative Instruments Gain Loss [Line Items]
Notional principal amount	$ 500		$ 500

Business Combinations - Additional Information (Details) - USD ($) $ in Thousands, shares in Millions						1 Months Ended	3 Months Ended			9 Months Ended
	Aug. 31, 2020	Dec. 20, 2019	Dec. 19, 2019	Jul. 23, 2019	Jul. 22, 2019	Apr. 30, 2019	Sep. 30, 2020	Dec. 31, 2019	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Business Acquisition [Line Items]
Date of acquisition	Aug. 31, 2020
Purchase consideration	$ 1,000
Purchase consideration paid in cash	800
Purchase consideration, additional cash earn-out on achievement of net revenue targets	200
Acquisition of intangible assets	700
Goodwill	200						$ 311,573	$ 312,750		$ 311,573
Acquisition of accounts receivable	$ 100
Weighted-average estimated useful life of acquired intangibles	3 years 1 month 6 days
Sales, general and administrative							65,321		$ 39,811	175,877	$ 115,992
Acquisition related costs							$ 300		$ 1,100	$ 800	$ 1,400
SCUF Acquisition
Business Acquisition [Line Items]
Date of acquisition			Dec. 19, 2019
Purchase consideration		$ 136,300
Purchase consideration paid in cash		128,200
Acquisition of intangible assets			$ 71,890
Goodwill			72,642
Acquisition of accounts receivable			$ 4,587
Percentage of equity interest acquired			100.00%
Measurement period adjustment, reduction in purchase price		1,500
Measurement period adjustment, reduction in inventory		500
Measurement period adjustment, reduction in goodwill		1,000
Purchase consideration paid in equity		$ 8,000
Purchase consideration paid in equity units		2.1
Purchase consideration paid in equity shares		1.1
Contingent cash consideration relating to finalization of pre-acquisition of tax liabilities		$ 1,600
Contingent cash consideration			$ 1,500
Inventory adjustment recognized in cost of revenue			$ 1,500
Origin Acquisition
Business Acquisition [Line Items]
Date of acquisition					Jul. 22, 2019
Purchase consideration				$ 13,800
Purchase consideration paid in cash				5,500
Acquisition of intangible assets					$ 1,000
Goodwill					12,270
Acquisition of accounts receivable					$ 1,379
Measurement period adjustment, reduction in purchase price				200
Measurement period adjustment, reduction in goodwill				100
Purchase consideration paid in equity				$ 2,000
Purchase consideration paid in equity units				0.5
Purchase consideration paid in equity shares				0.2
Contingent cash consideration relating to finalization of pre-acquisition of tax liabilities				$ 300
Measurement period adjustment, reduction in other liabilities and accrued expenses				300
Deferred cash consideration payable				1,400
Additional cash earn-out on achievement of targets				$ 4,600				4,000
Sales, general and administrative								$ 600
Contingent earn-out liability paid						$ 2,400

Business Combinations - Summary of Estimated Fair Value of Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Aug. 31, 2020	Dec. 31, 2019	Dec. 19, 2019	Jul. 22, 2019
Assets acquired:
Acquisition of accounts receivable		$ 100
Acquisition of intangible assets		700
Liabilities assumed:
Goodwill	$ 311,573	$ 200	$ 312,750
SCUF Acquisition
Assets acquired:
Cash				$ 6,947
Acquisition of accounts receivable				4,587
Inventories				12,800
Prepaid and other assets				1,377
Acquisition of intangible assets				71,890
Property and equipment				2,927
Other assets				40
Liabilities assumed:
Accounts payable				(9,182)
Sales tax payable				(5,533)
Deferred revenue				(3,752)
Other liabilities and accrued expenses				(8,416)
Deferred tax liabilities				(10,015)
Net identifiable net assets acquired				63,670
Goodwill				72,642
Net assets acquired				$ 136,312
Origin Acquisition
Assets acquired:
Cash					$ 376
Acquisition of accounts receivable					1,379
Inventories					4,445
Prepaid and other assets					309
Acquisition of intangible assets					1,000
Property and equipment					140
Liabilities assumed:
Accounts payable					(2,670)
Other liabilities and accrued expenses					(3,033)
Other liabilities, noncurrent					(447)
Net identifiable net assets acquired					1,499
Goodwill					12,270
Net assets acquired					$ 13,769

Business Combinations - Summary of Components of Identifiable Assets Acquired and Estimated Useful Lives (Details) - USD ($) $ in Thousands	Aug. 31, 2020	Dec. 19, 2019
Business Acquisition [Line Items]
Acquisition of intangible assets	$ 700
Weighted-average estimated useful life of acquired intangibles	3 years 1 month 6 days
SCUF Acquisition
Business Acquisition [Line Items]
Acquisition of intangible assets		$ 71,890
Patents \| SCUF Acquisition
Business Acquisition [Line Items]
Acquisition of intangible assets		$ 30,500
Weighted-average estimated useful life of acquired intangibles		8 years
Developed Technology \| SCUF Acquisition
Business Acquisition [Line Items]
Acquisition of intangible assets		$ 18,600
Weighted-average estimated useful life of acquired intangibles		6 years
Customer Relationships \| SCUF Acquisition
Business Acquisition [Line Items]
Acquisition of intangible assets		$ 590
Weighted-average estimated useful life of acquired intangibles		5 years
Trade Name \| SCUF Acquisition
Business Acquisition [Line Items]
Acquisition of intangible assets		$ 22,200
Weighted-average estimated useful life of acquired intangibles		15 years

Business Combinations - Business Acquisition, Pro Forma Financial Information (Details) - SCUF Acquisition - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2019
Business Acquisition [Line Items]
Net revenue	$ 299,130	$ 815,432
Net loss	$ (3,101)	$ (25,040)

Goodwill and Intangible Assets - Summary of Changes in Carrying Amount of Goodwill by Reportable Segment (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2020 USD ($)
Goodwill [Line Items]
Balance	$ 312,750
Addition from business acquisition	185
Measurement period adjustments	(1,070)
Effect of foreign currency exchange rates	(292)
Balance	311,573
Gaming Components and Systems
Goodwill [Line Items]
Balance	145,375
Measurement period adjustments	(47)
Effect of foreign currency exchange rates	284
Balance	145,612
Gamer and Creator Peripherals
Goodwill [Line Items]
Balance	167,375
Addition from business acquisition	185
Measurement period adjustments	(1,023)
Effect of foreign currency exchange rates	(576)
Balance	$ 165,961

Goodwill and Intangible Assets - Summary of Intangible Assets, Net (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Schedule Of Intangible Assets Net [Line Items]
Total finite-life intangibles, Gross Carrying Amount	$ 326,566	$ 326,786
Total finite-life intangibles, Accumulated Amortization	96,550	71,189
Total finite-life intangibles, Net Carrying Amount	230,016	255,597
Total intangible assets, Gross Carrying Amount	361,996	362,216
Total intangible assets, Net Carrying Amount	265,446	291,027
Trade Name
Schedule Of Intangible Assets Net [Line Items]
Indefinite-life intangibles, Gross and Net Carrying Amount	35,430	35,430
Developed Technology
Schedule Of Intangible Assets Net [Line Items]
Total finite-life intangibles, Gross Carrying Amount	44,883	44,243
Total finite-life intangibles, Accumulated Amortization	21,606	17,536
Total finite-life intangibles, Net Carrying Amount	23,277	26,707
Trade Name
Schedule Of Intangible Assets Net [Line Items]
Total finite-life intangibles, Gross Carrying Amount	30,128	30,253
Total finite-life intangibles, Accumulated Amortization	2,388	833
Total finite-life intangibles, Net Carrying Amount	27,740	29,420
Customer Relationships
Schedule Of Intangible Assets Net [Line Items]
Total finite-life intangibles, Gross Carrying Amount	218,456	218,459
Total finite-life intangibles, Accumulated Amortization	67,397	50,916
Total finite-life intangibles, Net Carrying Amount	151,059	167,543
Patents
Schedule Of Intangible Assets Net [Line Items]
Total finite-life intangibles, Gross Carrying Amount	29,989	30,721
Total finite-life intangibles, Accumulated Amortization	3,007	130
Total finite-life intangibles, Net Carrying Amount	26,982	30,591
Non-competition Agreements
Schedule Of Intangible Assets Net [Line Items]
Total finite-life intangibles, Gross Carrying Amount	3,110	3,110
Total finite-life intangibles, Accumulated Amortization	2,152	1,774
Total finite-life intangibles, Net Carrying Amount	$ 958	$ 1,336

Goodwill and Intangible Assets - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2020
Goodwill And Intangible Assets Disclosure [Abstract]
Increase in gross amount of intangible assets as result of immaterial acquisition	$ 0.7	$ 0.7

Goodwill and Intangible Assets - Schedule of Estimated Future Amortization Expense of Intangible Assets (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Goodwill And Intangible Assets Disclosure [Abstract]
2020 (remaining three months)	$ 8,484
2021	33,938
2022	33,761
2023	32,359
2024	30,913
Thereafter	90,561
Total finite-life intangibles, Net Carrying Amount	$ 230,016	$ 255,597

Balance Sheet Components - Summary of Cash and Restricted Cash (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019	Sep. 30, 2019	Dec. 31, 2018
Balance Sheet Related Disclosures [Abstract]
Cash	$ 116,185	$ 48,165
Restricted cash	3,726	3,552
Restricted cash, noncurrent	230	230
Total cash and restricted cash	$ 120,141	$ 51,947	$ 12,129	$ 27,920

Balance Sheet Components - Summary of Accounts Receivable, Net (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Balance Sheet Related Disclosures [Abstract]
Accounts receivable	$ 260,476	$ 202,546
Allowance for doubtful accounts	(934)	(212)
Accounts receivable, net	$ 259,542	$ 202,334

Balance Sheet Components - Additional Information (Details) $ in Millions	Sep. 30, 2020 USD ($) Customer	Dec. 31, 2019 USD ($) Customer
Concentration Risk [Line Items]
Deferred revenue, current	$ 1.1	$ 3.3
Deferred revenue, long-term portion	0.4	0.4
Unearned revenue consists of payments received from customer	$ 4.1	$ 1.3
Accounts Receivable \| Credit Concentration Risk
Concentration Risk [Line Items]
Number of customers \| Customer	2	2

Balance Sheet Components - Summary of Inventories (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Balance Sheet Related Disclosures [Abstract]
Raw materials	$ 29,937	$ 25,547
Work in progress	17,842	2,690
Finished goods	162,372	122,826
Inventories	$ 210,151	$ 151,063

Balance Sheet Components - Summary of Property and Equipment, Net (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Property Plant And Equipment [Line Items]
Total property and equipment	$ 35,721	$ 28,395
Less: Accumulated depreciation and amortization	(20,317)	(13,030)
Property and equipment, net	15,404	15,365
Manufacturing Equipment
Property Plant And Equipment [Line Items]
Total property and equipment	18,939	15,291
Computer Equipment, Software and Office Equipment
Property Plant And Equipment [Line Items]
Total property and equipment	9,489	6,958
Furniture and Fixtures
Property Plant And Equipment [Line Items]
Total property and equipment	3,342	2,602
Leasehold Improvements
Property Plant And Equipment [Line Items]
Total property and equipment	$ 3,951	$ 3,544

Balance Sheet Components - Summary of Other Liabilities and Accrued Expenses (Details) - USD ($)
$ in Thousands

Sep. 30, 2020

Dec. 31, 2019

Balance Sheet Related Disclosures [Abstract]

Accrued reserves for customer incentive programs

$ 40,318

$ 36,582

Accrued reserves for sales return

29,805

24,610

Accrued payroll and related expense

22,474

10,638

Income tax payable

20,929

8,524

Operating lease liabilities, current

^[1]

8,883

Other

47,177

35,187

Other liabilities and accrued expenses

$ 169,586

$ 115,541

[1]	The current portion and long-term portion of operating lease liabilities are included in “other liabilities and accrued expenses” and “other liabilities, noncurrent”, respectively, on our condensed combined consolidated balance sheets.

Debt - Additional Information (Details) - USD ($)		1 Months Ended				3 Months Ended	9 Months Ended
Debt - Additional Information (Details) - USD ($)	Aug. 28, 2017	Sep. 30, 2020	Apr. 30, 2019	Oct. 31, 2018	Oct. 31, 2017	Sep. 30, 2020	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2017
First Lien Term Loan
Debt Instrument [Line Items]
Principal amount	$ 235,000,000							$ 115,000,000	$ 115,000,000	$ 10,000,000
Debt instrument, maturity date	Aug. 28, 2024
Federal funds effective rate	0.50%
Debt instrument, description of variable rate basis							one month LIBOR plus
Multiplied percentage on loan repayment				50.00%
Minimum mandatory repayments of term loans		$ 55,800,000
Voluntary repayments of term loans		$ 30,800,000
Repayments of term loans			$ 2,600,000
First Lien Term Loan \| LIBOR
Debt Instrument [Line Items]
Debt instrument, variable rate	1.00%
First Lien Term Loan \| 2%, Plus Margin Rate
Debt Instrument [Line Items]
Debt instrument, variable rate	3.50%
First Lien Term Loan \| 1%, Plus Margin Rate
Debt Instrument [Line Items]
Debt instrument, variable rate	4.50%
First Lien Term Loan \| Base Rate \| Minimum
Debt Instrument [Line Items]
Debt instrument, variable rate				2.75%
First Lien Term Loan \| Base Rate \| Maximum
Debt Instrument [Line Items]
Debt instrument, variable rate				3.25%
First Lien Term Loan \| Eurodollar \| Minimum
Debt Instrument [Line Items]
Debt instrument, variable rate				3.75%
First Lien Term Loan \| Eurodollar \| Maximum
Debt Instrument [Line Items]
Debt instrument, variable rate				4.25%
Revolver
Debt Instrument [Line Items]
Principal amount	$ 50,000,000
Debt instrument, maturity date	Aug. 28, 2022
Federal funds effective rate	0.50%
Debt instrument, description of variable rate basis							one month LIBOR plus
Revolver \| LIBOR
Debt Instrument [Line Items]
Debt instrument, variable rate	1.00%
Revolver \| 2%, Plus Margin Rate
Debt Instrument [Line Items]
Debt instrument, variable rate	3.50%
Revolver \| 1%, Plus Margin Rate
Debt Instrument [Line Items]
Debt instrument, variable rate	4.50%
Revolver \| Base Rate \| Minimum
Debt Instrument [Line Items]
Debt instrument, variable rate				2.75%
Revolver \| Base Rate \| Maximum
Debt Instrument [Line Items]
Debt instrument, variable rate				3.25%
Revolver \| Eurodollar \| Minimum
Debt Instrument [Line Items]
Debt instrument, variable rate				3.75%
Revolver \| Eurodollar \| Maximum
Debt Instrument [Line Items]
Debt instrument, variable rate				4.25%
Second Lien Term Loan
Debt Instrument [Line Items]
Principal amount	$ 65,000,000				$ 50,000,000
Debt instrument, maturity date	Aug. 28, 2025
Repayments of term loans						$ 50,000,000
Second Lien Term Loan \| Base Rate
Debt Instrument [Line Items]
Debt instrument, variable rate	7.25%
Debt instrument, variable rate increase					0.25%
Second Lien Term Loan \| Eurodollar
Debt Instrument [Line Items]
Debt instrument, variable rate	8.25%
Debt instrument, variable rate increase					0.25%

Debt - Summary of Carrying Value of First Lien and Second Lien Term Loan (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Debt Instrument [Line Items]
Principal amount outstanding	$ 376,938
Total Debt, net of discount and debt issuance costs	370,090
First Lien Term Loan
Debt Instrument [Line Items]
Principal amount outstanding	376,938	$ 467,332
Less: Debt discount, net of amortization	(2,623)	(3,850)
Less: Debt issuance costs, net of amortization	(4,225)	(5,825)
Total Debt, net of discount and debt issuance costs	$ 370,090	457,657
Second Lien Term Loan
Debt Instrument [Line Items]
Principal amount outstanding		50,000
Less: Debt discount, net of amortization		(471)
Less: Debt issuance costs, net of amortization		(1,374)
Total Debt, net of discount and debt issuance costs		$ 48,155

Debt - Summary of Interest Expense Recognized for First Lien and Second Lien (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Debt Instrument [Line Items]
Amortization of debt discount	$ 219	$ 216	$ 672	$ 700
Amortization of debt issuance costs	489	514	1,401	1,583
Loss on debt extinguishment	2,864		3,256
Total interest expense recognized	9,980	9,101	28,259	27,044
First Lien and Second Lien Term Loan
Debt Instrument [Line Items]
Contractual interest expense	$ 6,408	7,582	22,914	22,662
Revolver
Debt Instrument [Line Items]
Contractual interest expense		$ 789	$ 16	$ 2,099

Debt - Summary of Estimated Future Principal Payments under Total Long-term Debt (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Debt Disclosure [Abstract]
2024	$ 376,938
Total debt	376,938
Less: Discount and debt issuance costs	(6,848)
Total Debt, net of discount and debt issuance costs	370,090
Presented on the condensed combined consolidated balance sheet under:
Debt, net	$ 370,090	$ 503,448

Commitments and Contingencies - Schedule of Changes in Warranty Obligations (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Commitments And Contingencies Disclosure [Abstract]
Beginning of the period	$ 5,005	$ 2,776	$ 3,991	$ 2,581
Balance assumed from business combinations		223		223
Warranty provision related to products shipped	1,518	1,395	4,928	4,231
Deductions for warranty claims processed	(1,400)	(1,338)	(3,796)	(3,979)
End of period	$ 5,123	$ 3,056	$ 5,123	$ 3,056

Commitments and Contingencies - Additional Information (Details)	9 Months Ended	12 Months Ended
	Sep. 30, 2020 USD ($) Claim	Dec. 31, 2019 USD ($)
Commitments And Contingencies Disclosure [Abstract]
Non-cancelable purchase commitments	$ 103,100,000	$ 44,100,000
Letters of credit outstanding, amount	2,000,000	$ 1,500,000
Line of credit facility, current borrowing capacity	$ 0
Loss contingency, claims settled, number \| Claim	0

Stockholders' Equity - Additional Information (Details) $ / shares in Units, $ in Thousands			3 Months Ended	9 Months Ended	12 Months Ended
	Sep. 15, 2020 $ / shares shares	Dec. 19, 2019 USD ($) shares	Sep. 30, 2020 USD ($) $ / shares shares	Sep. 30, 2020 USD ($) $ / shares shares	Dec. 31, 2019 USD ($) $ / shares shares	Sep. 25, 2020 $ / shares shares
Capital Unit [Line Items]
Stock issued, value \| $		$ 53,500	$ 106,730	$ 106,730
Authorized shares of common stock for issuance	100,000,000		300,000,000	300,000,000	300,000,000	300,000,000
Authorized shares of common stock for issuance, par value \| $ / shares	$ 0.0001		$ 0.0001	$ 0.0001	$ 0.0001	$ 0.0001
Stock split ratio	3.485
Common stock shares outstanding	84,405,366		91,914,000	91,914,000	84,079,000
Authorized shares of preferred stock for issuance			5,000,000	5,000,000	5,000,000	5,000,000
Authorized shares of preferred stock for issuance, par value \| $ / shares			$ 0.0001	$ 0.0001	$ 0.0001	$ 0.0001
Preferred stock shares outstanding						0
SCUF Acquisition
Capital Unit [Line Items]
Stock issued, value \| $					$ 10,000
Parent
Capital Unit [Line Items]
Stock issued		14,092,098
Parent \| SCUF Acquisition
Capital Unit [Line Items]
Stock issued					2,644,151
Common Stock
Capital Unit [Line Items]
Stock issued			7,500,000	7,500,000
Stock issued, value \| $			$ 1	$ 1
Common Stock \| Shares Equivalent After Conversion
Capital Unit [Line Items]
Stock issued		7,046,049
Common Stock \| Shares Equivalent After Conversion \| SCUF Acquisition
Capital Unit [Line Items]
Stock issued					1,322,075

Equity Incentive Plans and Stock-Based Compensation - Additional Information (Details)	9 Months Ended
	Sep. 30, 2020 USD ($) $ / shares shares
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of options granted	1,875,161
Issuance of common stock for stock option exercises	306,000
Common stock percentage	85.00%
Weighted average grant-date fair value stock options granted \| $ / shares	$ 8.59
Unrecognized stock-based compensation costs related to unvested stock \| $	$ 15,400,000
Stock Options
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Expected to be recognized weighted average period	3 years 3 months 18 days
Restricted Stock Units (RSUs)
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Share-based compensation, exercise price \| $ / shares	$ 17.00
Unrecognized stock-based compensation costs related to unvested stock \| $	$ 100,000
Expected to be recognized weighted average period	1 year
2017 Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of options granted	0
2020 Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Share-based compensation, effective date	Sep. 22, 2020
Common stock reserved for issuance	5,125,000
Share-based compensation, description	Plan reserve increases annually on January 1 of each calendar year, starting on January 1, 2021 through January 1, 2030, by an amount equal to the lesser of (a) 4% of the shares outstanding on the last day of the immediately preceding fiscal year
Common stock shares reserved outstanding percentage	4.00%
Number of shares available for grant	4,941,580
2020 Plan \| Maximum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Issuance of common stock for stock option exercises	75,000,000
2017 Plan and the 2020 Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Share-based compensation, expiration period	10 years
2017 Plan and the 2020 Plan \| Maximum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Share-based compensation, vesting period	5 years
2017 Plan and the 2020 Plan \| Minimum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Share-based compensation, vesting period	4 years
2020 Employee Stock Purchase Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Share-based compensation, effective date	Sep. 22, 2020
Common stock reserved for issuance	1,025,000
Share-based compensation, description	The ESPP reserve increases annually on January 1 of each calendar year, starting on January 1, 2021 through January 1, 2030, by an amount equal to the lesser of (a) 1% of the shares outstanding on the last day of the immediately preceding fiscal year
Common stock shares reserved outstanding percentage	1.00%
Employee stock purchase plan description	The option purchase price will be the lower of 85% of the closing trading price per share of our common stock on the first trading date of an offering period in which a participant is enrolled or 85% of the closing trading price per share on the purchase date, which will occur on the last trading day of each offering period.
Maximum number of shares participant expected to purchase	30,000
Minimum fair market value of shares of common stock \| $	$ 25,000
2020 Employee Stock Purchase Plan \| Maximum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Issuance of common stock for stock option exercises	20,000,000
Employee stock purchase plan offering period	27 months
Employees participate through payroll deductions percentage	15.00%
2020 Employee Stock Purchase Plan \| Minimum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Employees participate through payroll deductions percentage	1.00%

Equity Incentive Plans and Stock-Based Compensation - Summary of Stock Option Activities and Related Information (Details) $ / shares in Units, $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2020 USD ($) $ / shares shares	Dec. 31, 2019 USD ($) $ / shares shares
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Outstanding Stock Options, Beginning balance \| shares	8,790,000
Stock Options, Granted \| shares	1,875,161
Stock Options, Exercised \| shares	(306,000)
Stock Options, Forfeited/cancelled \| shares	(164,000)
Outstanding Stock Options, Ending balance \| shares	10,195,161	8,790,000
Stock Options, Vested and exercisable as of September 30, 2020 \| shares	4,045,117
Weighted-Average Exercise Price Per Share, Beginning balance \| $ / shares	$ 4.86
Weighted-Average Exercise Price Per Share, Granted \| $ / shares	8.59
Weighted-Average Exercise Price Per Share, Exercised \| $ / shares	4.05
Weighted-Average Exercise Price Per Share, Forfeited/cancelled \| $ / shares	6.30
Weighted-Average Exercise Price Per Share, Ending balance \| $ / shares	5.55	$ 4.86
Weighted-Average Exercise Price Per Share, Vested and exercisable as of September 30, 2020 \| $ / shares	$ 4.31
Weighted-Average Remaining Contractual Term	7 years 10 months 24 days	8 years 1 month 6 days
Weighted -Average Remaining Contractual Term Vested and exercisable	7 years 2 months 12 days
Aggregate Intrinsic Value, Balance \| $	$ 67,698	$ 24,949
Aggregate Intrinsic Value, Vested and exercisable \| $	$ 31,534

Equity Incentive Plans and Stock-Based Compensation - Summary of RSUs Activities and Related Information (Details) - Restricted Stock Units (RSUs)	9 Months Ended
	Sep. 30, 2020 $ / shares shares
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Unvested RSUs, Granted \| shares	17,647
Unvested RSUs, Vested \| shares	(8,823)
Unvested RSUs, Ending balance \| shares	8,824
Weighted-Average Grant Date Fair Value Per Share, Granted \| $ / shares	$ 17.00
Weighted-Average Grant Date Fair Value Per Share, Vested \| $ / shares	17.00
Weighted-Average Grant Date Fair Value Per Share, Ending balance \| $ / shares	$ 17.00

Equity Incentive Plans and Stock-Based Compensation - Summary of Stock-based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock-based compensation expense	$ 1,631	$ 867	$ 4,286	$ 2,813
Cost of Revenue
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock-based compensation expense	60	52	192	145
Sales, General and Administrative
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock-based compensation expense	1,414	672	3,634	2,251
Product Development
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock-based compensation expense	$ 157	$ 143	$ 460	$ 417

Equity Incentive Plans and Stock-Based Compensation - Summary of Valuation Assumptions of Fair Value of Stock Options on Date of Grant (Details) - $ / shares	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Weighted average grant date fair value of common stock (per share)	$ 16.38	$ 7.55	$ 8.60	$ 7.46
Expected term (years)	6 years 1 month 2 days	6 years 6 months	6 years 4 months 13 days	6 years 5 months 23 days
Expected volatility, minimum	41.70%	34.50%	35.80%	34.30%
Expected volatility, maximum	44.00%	34.90%	44.00%	34.90%
Range of risk-free interest rate, minimum	0.30%	1.40%	0.30%	1.40%
Range of risk-free interest rate, maximum	0.40%	1.90%	1.80%	2.60%

Net Loss (Loss) Per Share - Computation of Basic and Diluted Net Income (Loss) Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Numerator
Net income (loss)	$ 36,357	$ 1,519	$ 60,174	$ (14,406)
Weighted-average shares used to compute net income (loss) per share
Basic	84,870,837	75,939,443	84,352,415	75,928,057
Effect of dilutive securities	5,213,112	1,944,311	3,146,104
Weighted-average shares used to compute net income (loss) per share, diluted	90,083,949	77,883,754	87,498,519	75,928,057
Net income (loss) per share:
Basic	$ 0.43	$ 0.02	$ 0.71	$ (0.19)
Diluted	$ 0.40	$ 0.02	$ 0.69	$ (0.19)

- Definition

The amount of net income (loss) for the period per each share of common stock or unit outstanding during the reporting period.

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The amount of net income (loss) for the period available to each share of common stock or common unit outstanding during the reporting period and to each share or unit that would have been outstanding assuming the issuance of common shares or units for all dilutive potential common shares or units outstanding during the reporting period.

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- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References

+ Details

Net Loss (Loss) Per Share - Computation of Basic and Diluted Net Income (Loss) Per Share (Parenthetical) (Details) shares in Millions	9 Months Ended
	Sep. 30, 2019 shares
Stock Options
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of loss per share amount	1.8

Net Loss (Loss) Per Share - Additional Information (Details) - shares shares in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Stock Options and RSUs
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of loss per share amount	22	1,200	2,100	1,700

Income Taxes - Schedule of Income (Loss) Before Income Taxes, Income Tax (Expense) Benefit and Effective Income Tax Rates (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Income Tax Disclosure [Abstract]
Income (loss) before income taxes	$ 39,574	$ 1,444	$ 70,323	$ (19,051)
Income tax (expense) benefit	$ (3,217)	$ 75	$ (10,149)	$ 4,645
Effective income tax rate	8.10%	5.20%	14.40%	24.40%

- Definition

Amount of income (loss) from continuing operations, including income (loss) from equity method investments, before deduction of income tax expense (benefit), and income (loss) attributable to noncontrolling interest.

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- Definition

Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.

+ References + Details

Income Taxes - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended			9 Months Ended
	Sep. 30, 2020	Mar. 31, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019
Income Tax Disclosure [Abstract]
Additional income tax benefits resulting from enactment of CARES act				$ 0.6
Effective income tax rate	8.10%		5.20%	14.40%	24.40%
Tax benefit	$ 4.3		$ 1.5	$ 4.3
One-time benefit from change in tax law resulting from enactment of CARES act		$ 0.6
Unrealized tax benefits	$ 0.6			$ 0.6		$ 0.7

Related-Party Transactions - Additional Information (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019
EagleTree-Carbide (GP), LLC
Related Party Transaction [Line Items]
Related party transaction, expenses incurred for services	$ 21,000	$ 33,000	$ 100,000	$ 100,000
Related party transaction, unpaid amount for services	21,000		21,000		$ 100,000
Director
Related Party Transaction [Line Items]
Related party transaction, expenses incurred for services	30,000	$ 8,000	92,000	$ 55,000
Related party transaction, unpaid amount for services	44,000		44,000		30,000
Affiliated Entity and Director
Related Party Transaction [Line Items]
Second lien term loan balance held by all related parties	$ 0		$ 0		$ 5,800,000

Segment and Geographic Information - Additional Information (Details)	9 Months Ended
	Sep. 30, 2020 Segment Customer
Segment Reporting [Abstract]
Number of reportable segments \| Segment	2
Number of customer for more than minimum threshold percentage of revenue \| Customer	1

Segment and Geographic Information - Summary of Financial Information for Each Reportable Segment (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Segment Reporting Information [Line Items]
Net revenue	$ 457,103	$ 284,372	$ 1,146,028	$ 770,619
Total gross profit	127,944	60,227	311,630	153,834
Gamer and Creator Peripherals
Segment Reporting Information [Line Items]
Net revenue	161,555	70,606	347,531	200,084
Total gross profit	60,010	19,948	120,886	58,234
Gaming Components and Systems
Segment Reporting Information [Line Items]
Net revenue	295,548	213,766	798,497	570,535
Total gross profit	$ 67,934	$ 40,279	$ 190,744	$ 95,600

- Definition

Aggregate revenue less cost of goods and services sold or operating expenses directly attributable to the revenue generation activity.

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+ Details

- Definition

Amount, excluding tax collected from customer, of revenue from satisfaction of performance obligation by transferring promised good or service to customer. Tax collected from customer is tax assessed by governmental authority that is both imposed on and concurrent with specific revenue-producing transaction, including, but not limited to, sales, use, value added and excise.

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+ Details

Segment and Geographic Information - Summary of Net Revenue By Geographic Region (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Segment Reporting Information [Line Items]
Net revenue	$ 457,103	$ 284,372	$ 1,146,028	$ 770,619
Americas
Segment Reporting Information [Line Items]
Net revenue	216,982	108,318	517,165	315,200
Europe and Middle East
Segment Reporting Information [Line Items]
Net revenue	162,615	114,118	412,349	287,502
Asia Pacific
Segment Reporting Information [Line Items]
Net revenue	$ 77,506	$ 61,936	$ 216,514	$ 167,917

- Definition

+ References

+ Details

Segment and Geographic Information - Summary of Property And Equipment, Net by Country (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Segment Reporting Information [Line Items]
Property and equipment, net	$ 15,404	$ 15,365
United States
Segment Reporting Information [Line Items]
Property and equipment, net	6,532	6,400
China
Segment Reporting Information [Line Items]
Property and equipment, net	5,039	4,998
Taiwan
Segment Reporting Information [Line Items]
Property and equipment, net	2,668	2,270
Other Countries
Segment Reporting Information [Line Items]
Property and equipment, net	$ 1,165	$ 1,697

Leases -Summary of Components of Lease Expenses (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2020
Leases [Abstract]
Operating lease expense	$ 2,739	$ 6,932
Variable lease expense	2,226	4,657
Total lease expense	$ 4,965	$ 11,589

Leases- Additional Information (Details) $ in Millions	3 Months Ended	9 Months Ended
Leases- Additional Information (Details) $ in Millions	Sep. 30, 2020 USD ($)	Sep. 30, 2020 USD ($)
Leases [Abstract]
Payments for operating leases	$ 2.6	$ 6.7
Weighted average remaining lease term	3 years 7 months 6 days	3 years 7 months 6 days
Weighted average discount rate, percent	4.00%	4.00%

Leases - Schedule of Future Undiscounted Cash Flows Related To Operating Lease Payments (Details) - USD ($)
$ in Thousands

Sep. 30, 2020

Jan. 01, 2020

Leases [Abstract]

2020 (remaining three months)

$ 2,310

9,072

6,372

5,172

3,999

1,987

Total future lease payments

28,912

Less: Imputed interest

(2,133)

Present value of operating lease liabilities

26,779

$ 17,900

Operating lease liabilities, current

^[1]

8,883

Long-term operating lease liabilities

^[1]

$ 17,896

[1]	The current portion and long-term portion of operating lease liabilities are included in “other liabilities and accrued expenses” and “other liabilities, noncurrent”, respectively, on our condensed combined consolidated balance sheets.

Leases - Future Minimum Lease Payments Under Non-cancelable Operating Leases (Details) $ in Thousands	Dec. 31, 2019 USD ($)
Leases [Abstract]
2020	$ 7,525
2021	5,786
2022	2,701
2023	1,584
2024	1,025
Total	$ 18,621