Image source: The Motley Fool. Date May 7, 2026, 5 p.m. ET Call participants - Chief Executive Officer — Thi La - Chief Financial Officer — Gordon Mattingly Need a quote from a Motley Fool analyst? Email [email protected] Takeaways - Revenue -- $354.5 million, topping the midpoint of company guidance. - Gross profit -- $116 million, reflecting a 13% increase year over year, supported by both main segments. - Gross margin -- Reached a first-quarter high of 32.7%. - Gamer and Creator Peripherals segment revenue -- Increased 10% year over year despite tariff headwinds. - Gamer and Creator Peripherals segment gross profit -- Rose 8% to $50.3 million; segment gross margin was 40.8%. - Gaming Components and Systems segment revenue -- Declined 10% year over year, attributed to a "non-GPU upgrade cycle" and "challenging memory pricing dynamics." - Gaming Components and Systems segment gross profit -- Increased 18% to $65.7 million, with segment gross margin expanding from 21.7% to 28.4% (a rise of 670 basis points). - Direct-to-consumer channel -- Comprised 20% of revenue, up from 17% a year ago; carries structurally higher margins. - Segment mix shift -- Higher-margin Gamer and Creator Peripherals accounted for 35% of revenue, up from 30% a year prior. - Adjusted EBITDA -- $35.8 million, a 58% year-over-year increase, representing 10.1% of revenue and exceeding the high end of guidance. - GAAP EPS -- $0.11 compared to a loss in the prior-year period. - Non-GAAP EPS -- $0.27, a significant improvement from the prior-year period. - Cash from operations -- $29.7 million generated during the quarter; cash and restricted cash rose by $20.9 million sequentially to $119.7 million. - Net debt -- Ended the quarter with a near zero position, enhancing flexibility for capital allocation. - Share repurchases -- Approximately $5 million in