Aug 6, 2026, 4:15 PM ETTechnology

Turtle Beach Corporation — Second Quarter 2026 Earnings Summary

TBCHTURTLE BEACH CORP

Financial Performance

Net revenue for the quarter ended June 30, 2026, was $56.4 million, a decrease from $56.8 million in the prior year period.
Gross margin improved to 38.8%, representing a 660 basis point year-over-year increase driven by tariff refunds received in the second quarter.
Reported a net loss of $7.3 million, compared to a net loss of $2.9 million in the prior year.
Adjusted EBITDA was $1.3 million, a turnaround from a loss of $3.0 million in the prior year.
Generated cash flow from operations of $6.5 million, compared to a cash outflow of $3.1 million in the prior year.
Net debt stood at $64.4 million as of June 30, 2026, comprised of $83.9 million in borrowings less $19.6 million in cash.
Total assets were $215.2 million as of June 30, 2026, down from $269.1 million as of December 31, 2025.
Stockholders' equity was $80.7 million as of June 30, 2026, down from $128.5 million as of December 31, 2025.

Reaffirmed full year 2026 net revenue guidance of $335 million to $355 million, representing 5% to 11% year-over-year growth.
Reaffirmed full year 2026 Adjusted EBITDA guidance of $44 million to $48 million, representing 10% to 20% year-over-year growth.
Expects a meaningful rebound in business as retailers rebuild inventory levels in anticipation of stronger consumer demand in the second half of the year.
Anticipates the November 2026 launch of Grand Theft Auto VI to be a significant industry event driving increased gaming engagement and accessory demand.
No specific guidance is provided beyond 2026, though the company believes product innovation and favorable industry dynamics position it for future growth.

Executed on a new product roadmap, including the launch of the flagship Stealth Pro II headset.
Channel inventories contracted through the first half of the quarter before stabilizing later in the period.
The company maintains a broad range of products including gaming headsets, game controllers, PC gaming peripherals, and simulation accessories under the Turtle Beach and Victrix brands.

The company views the industry backdrop for the second half of 2026 as favorable, supported by a strong lineup of highly anticipated game titles.
Historically, major game releases of the scale of Grand Theft Auto VI drive increased demand for gaming accessories.

Risks include trade policies, tariffs, and other trade restrictions.
Dependence on the success and availability of third-party manufacturers and logistics providers.
Macroeconomic conditions affecting product demand.
Supply chain challenges and costs.
Uncertainties regarding the acceptance of existing and future products.
Risks related to indebtedness, liquidity, and the integration of acquired businesses.

CEO Cris Keirn stated the company continued to execute on its product roadmap, noting the Stealth Pro II launch as a key milestone in brand transformation.
Management expressed confidence in the full-year outlook, citing execution and favorable industry dynamics.
Management emphasized that creating long-term shareholder value remains a core priority, balancing strategic investment with capital return.

Repurchased $25.0 million of common stock during the quarter (2.0 million shares at an average price of $12.53 per share).
The current share repurchase program, authorized in May 2025, has approximately $31.0 million of remaining capacity; total buybacks since 2024 amount to approximately $74 million.
Refinanced existing debt facilities to enhance financial flexibility, replacing the prior $150 million credit agreement with a new structure consisting of an $80 million revolving asset-based lending facility and an $85 million term loan facility.
The new credit structure includes a revolving facility provided by Bank of America, N.A., and a term loan provided by Blue Torch Capital LP.
A conference call and webcast were held on August 6, 2026, at 4:30 p.m. Eastern Time.