Turtle Beach Corporation Announces First Quarter 2026 Results
Rhea-AI Summary
Turtle Beach (Nasdaq: TBCH) reported Q1 2026 results and reaffirmed full‑year guidance. Key metrics: Net revenue $42.2M, gross margin 26.8%, net loss ($15.2M), adjusted EBITDA ($6.5M), and $29.4M cash flow from operations. The company completed a debt refinancing (ABL $80M; term loan $85M), reported net debt $41.3M, and has ~$56M remaining under a $75M share repurchase authorization.
AI-generated analysis. Not financial advice.
Positive
- Generated $29.4M cash flow from operations in Q1
- Reaffirmed full‑year 2026 net revenue guidance of $335M–$355M
- Reaffirmed 2026 adjusted EBITDA guidance of $44M–$48M
- Completed credit refinancing: $80M ABL and $85M term loan
- Approximately $56M remaining under $75M buyback authorization
Negative
- Reported Q1 net loss ($15.2M)
- Reported Q1 adjusted EBITDA ($6.5M)
- Q1 gross margin 26.8%, below typical historical levels
- Company noted a temporary dip in channel inventories affecting near‑term demand
News Market Reaction – TBCH
On the day this news was published, TBCH declined 0.89%, reflecting a mild negative market reaction. Argus tracked a trough of -5.8% from its starting point during tracking. Our momentum scanner triggered 5 alerts that day, indicating moderate trading interest and price volatility. This price movement removed approximately $2M from the company's valuation, bringing the market cap to $219.11M at that time.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
TBCH was up about 4.84% pre‑announcement, while peers were mixed: SONO up 4.16%, VUZI up 6.67%, GPRO down 4.76%, ZEPP flat, and WTO down 9.54%, pointing to stock‑specific drivers rather than a broad sector move.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Mar 12 | Q4 & FY 2025 earnings | Positive | -0.7% | Reported strong Q4 and full-year 2025 results and initiated 2026 guidance. |
| Nov 06 | Q3 2025 earnings | Positive | -3.5% | Delivered Q3 2025 growth, refinancing savings, and reiterated full-year 2025 guidance. |
| Aug 07 | Q2 2025 earnings | Positive | +8.8% | Showed Q2 2025 revenue growth, margin improvement, and reiterated full-year guidance. |
Earnings releases often saw mixed reactions, with two negative moves and one notably positive response despite generally constructive fundamentals.
Over the past few quarters, Turtle Beach has repeatedly reported improving fundamentals and reiterated guidance. On Aug 07 2025 it posted Q2 2025 growth metrics and margin expansion, leading to a positive share reaction. Subsequent Q3 and Q4/FY 2025 earnings on Nov 06 2025 and Mar 12 2026 maintained or reset guidance ranges but drew mostly negative price responses. Today’s Q1 2026 update, with guidance reaffirmation and cash generation, continues this focus on consistent outlook and capital allocation.
Historical Comparison
In the last three earnings releases, TBCH’s average move was about 1.55%, with reactions split between sharp gains and modest declines. The current Q1 2026 update, which reiterates 2026 guidance and emphasizes cash generation and capital returns, fits this pattern of earnings as a recurring but not always reliably bullish catalyst.
Recent earnings have highlighted steady guidance reiteration, gradual margin improvement, and growing emphasis on leverage reduction and buybacks as management refines its financial profile.
Market Pulse Summary
This announcement details Q1 2026 results with net revenue of $42.2M, a net loss of ($15.2M), and strong operating cash flow of $29.4M. Management reaffirmed 2026 guidance of $335–$355M revenue and $44–$48M Adjusted EBITDA, and highlighted a $75M buyback program with $56M remaining. Investors may track execution on new product launches, credit facility flexibility, and progress toward improving margins and profitability over 2026.
Key Terms
adjusted EBITDA financial
asset-based lending ("ABL") facility financial
term loan facility financial
net debt financial
revolving line of credit financial
restricted stock units (RSUs) financial
performance stock units (PSUs) financial
AI-generated analysis. Not financial advice.
–Generated
–Reaffirmed Full Year 2026 Net Revenue and Adjusted EBITDA Guidance–
SAN DIEGO, May 07, 2026 (GLOBE NEWSWIRE) -- Turtle Beach Corporation (Nasdaq: TBCH), a leading gaming accessories brand, today reported financial results for the first quarter ended March 31, 2026 and reaffirmed full year 2026 guidance for net revenue and adjusted EBITDA.
First Quarter Highlights
- Net Revenue of
$42.2 million . - Gross Margins of
26.8% . - Net Loss of (
$15.2) million . - Adjusted EBITDA of (
$6.5) million . - Generated cash flow from operations of
$29.4 million . - Enhanced financial flexibility through credit facility refinancing to accelerate the Company's capital return program.
- Reaffirmed full year 2026 net revenue and adjusted EBITDA guidance of
$335 million -$355 million and$44 million -$48 million , respectively.
"As we build momentum through our brand transformation and release of new products, our first quarter results reflect the continuation of challenging market environments that carried over from 2025," said Cris Keirn, Chief Executive Officer of Turtle Beach Corporation. “We saw a temporary dip in channel inventories, which we expect to rebound and act as a tailwind in the remaining quarters of 2026 as we ramp our new product placements at retail.
“We have strong conviction in our forward trajectory and are reaffirming our full-year 2026 guidance. This outlook reflects an expanded innovation pipeline, with over
"Additionally, we recently restructured our credit facilities to enhance our capital return flexibility. The new structure supports our existing
Debt Refinancing
On May 4, 2026, the Company announced the restructuring of the Company’s existing debt facilities. The new credit structure consists of a revolving asset-based lending ("ABL") facility of up to
Balance Sheet and Cash Flow Summary
At March 31, 2026, the Company had net debt of
Share Repurchase Program
The Company's
Financial Outlook
The Company is reiterating guidance for the full year 2026. Net revenues are expected to be between
Adjusted EBITDA is expected to be between
The Company remains encouraged by the gaming industry pipeline in 2026 and beyond. The anticipated launch of Grand Theft Auto VI in November 2026 is expected to be a significant industry event, and major game releases of this scale have historically driven increased gaming engagement and accessory demand. While the Company is not providing specific guidance beyond 2026 at this time, it believes the combination of its product innovation, brand strength, and favorable industry dynamics positions it for growth opportunities as these catalysts materialize.
Earnings Conference Call and Webcast Details
Turtle Beach will host a conference call and audio webcast today, May 7 at 4:30 p.m. Eastern Time (1:30 p.m. Pacific Time), during which management will discuss first quarter results and provide commentary on business performance and its current outlook for 2026. A question-and-answer session will follow the prepared remarks.
The conference call may be accessed by telephone by dialing 1-877-407-0792 or 1-201-689-8263.
A live audio webcast of the earnings conference call may be accessed on Turtle Beach’s website at corp.turtlebeach.com, along with a copy of the earnings press release and an updated investor presentation. A telephone replay of the call will be available through May 21, 2026, and can be accessed by dialing 1-844-512-2921 or 1-412-317-6671 and entering passcode 13759890. A replay of the webcast will also be available on the investor relations website for a limited time.
About Turtle Beach Corporation
Turtle Beach Corporation (the “Company”) (corp.turtlebeach.com) is one of the world’s leading gaming accessory providers. The Company’s namesake Turtle Beach brand (www.turtlebeach.com) is known for designing best-selling gaming headsets, top-rated game controllers, award-winning PC gaming peripherals, and groundbreaking gaming simulation accessories. Turtle Beach’s top-rated, fan-favorite Victrix brand is well-respected and favored by pro gamers in esports and the fighting game community. Innovation, first-to-market features, a broad range of products for all types of gamers, and top-rated customer support have made Turtle Beach a fan-favorite brand and the market leader in console gaming audio for over a decade. Turtle Beach’s shares are traded on the Nasdaq Exchange under the symbol: TBCH.
Non-GAAP Financial Measures
In addition to its reported results, the Company has included in this earnings release certain financial metrics, including Adjusted EBITDA, that the Securities and Exchange Commission define as “non-GAAP financial measures.” Management believes that such non-GAAP financial measures, when read in conjunction with the Company’s reported results, can provide useful supplemental information for investors analyzing period-to-period comparisons of the Company’s results. Non-GAAP financial measures are not an alternative to the Company’s GAAP financial results and may not be calculated in the same manner as similar measures presented by other companies. “Adjusted EBITDA” is defined by the Company as net income (loss) before interest, taxes, depreciation and amortization, stock-based compensation (non-cash), and certain non-recurring special items that we believe are not representative of core operations, as further described in Table 4. These non-GAAP financial measures are presented because management uses non-GAAP financial measures to evaluate the Company’s operating performance, to perform financial planning, and to determine incentive compensation. Therefore, the Company believes that the presentation of non-GAAP financial measures provides useful supplementary information to, and facilitates additional analysis by, investors. The non-GAAP financial measures included herein exclude items that management does not believe reflect the Company’s core operating performance because such items are inherently unusual, non-operating, unpredictable, non-recurring, or non-cash. See a reconciliation of GAAP results to Adjusted EBITDA included as Table 4 below for the three months ended March 31, 2026, and March 31, 2025.
By providing full year 2026 Adjusted EBITDA guidance, the Company provided its expectation of a forward-looking non-GAAP financial measure. Information reconciling full year 2026 Adjusted EBITDA to its most directly comparable GAAP financial measure, net income (loss), is unavailable to the Company without unreasonable effort due to the variability, complexity, and lack of visibility with respect to certain reconciling items between Adjusted EBITDA and net income (loss), including other income (expense), provision for income taxes and stock-based compensation. These items cannot be reasonably and accurately predicted without the investment of undue time, cost and other resources and, accordingly, a reconciliation of the Company’s Adjusted EBITDA outlook to its net income (loss) outlook for such periods is not provided. These reconciling items could be material to the Company’s actual results for such periods.
Cautionary Note on Forward-Looking Statements
This press release includes forward-looking information and statements within the meaning of the federal securities laws. Except for historical information contained in this release, statements in this release may constitute forward-looking statements regarding assumptions, projections, expectations, targets, intentions, or beliefs about future events. Statements containing the words “may”, “could”, “would”, “should”, “believe”, “expect”, “anticipate”, “plan”, “estimate”, “target”, “goal”, “project”, “intend” and similar expressions, or the negatives thereof, constitute forward-looking statements. Forward-looking statements are only predictions and are not guarantees of performance. Forward-looking statements involve known and unknown risks and uncertainties, which could cause actual results to differ materially from those contained in any forward-looking statement. The inclusion of such information should not be regarded as a representation by the Company, or any person, that the objectives of the Company will be achieved. Forward-looking statements are based on management’s current beliefs and expectations, as well as assumptions made by, and information currently available to, management.
While the Company believes that its expectations are based upon reasonable assumptions, there can be no assurances that its goals and strategy will be realized. Numerous factors, including risks and uncertainties, may affect actual results and may cause results to differ materially from those expressed in forward-looking statements made by the Company or on its behalf. Some of these factors include, but are not limited to, risks related to trade policies, including the imposition of tariffs on imported goods and other trade restrictions, the release and availability of successful game titles, macroeconomic conditions affecting the demand for our products, logistic and supply chain challenges and costs, dependence on the success and availability of third-parties to manufacture and manage the logistics of transporting and distributing our products, the substantial uncertainties inherent in the acceptance of existing and future products, the difficulty of commercializing and protecting new technology, the impact of competitive products and pricing, general business and economic conditions, the expansion of our business including the integration of any businesses we acquire and the integration of such businesses within our internal control over financial reporting and operations, our indebtedness, liquidity, and other factors discussed in our public filings, including the risk factors included in the Company’s most recent Annual Report on Form 10-K, Quarterly Report on Form 10-Q, and the Company’s other periodic reports filed with the Securities and Exchange Commission. Except as required by applicable law, including the securities laws of the United States and the rules and regulations of the Securities and Exchange Commission, the Company is under no obligation to publicly update or revise any forward-looking statement after the date of this release whether as a result of new information, future developments or otherwise.
CONTACTS
Investor Relations:
tbch@icrinc.com
| Turtle Beach Corporation Condensed Consolidated Statements of Operations (in thousands, except per-share data) (unaudited) | ||||||||
| Table 1. | ||||||||
| Three Months Ended | ||||||||
| March 31, 2026 | March 31, 2025 | |||||||
| Net revenue | $ | 42,172 | $ | 63,901 | ||||
| Cost of revenue | 30,878 | 40,534 | ||||||
| Gross profit | 11,294 | 23,367 | ||||||
| Operating expenses: | ||||||||
| Selling and marketing | 12,260 | 12,453 | ||||||
| Research and development | 4,574 | 3,993 | ||||||
| General and administrative | 8,521 | 8,216 | ||||||
| Insurance recovery | — | (3,439 | ) | |||||
| Acquisition-related cost | — | 608 | ||||||
| Total operating expenses | 25,355 | 21,831 | ||||||
| Operating (loss) income | (14,061 | ) | 1,536 | |||||
| Interest expense, net | 1,369 | 2,006 | ||||||
| Other (income) expense, net | (101 | ) | 303 | |||||
| Loss before income tax | (15,329 | ) | (773 | ) | ||||
| Income tax benefit | (123 | ) | (109 | ) | ||||
| Net loss | $ | (15,206 | ) | $ | (664 | ) | ||
| Net loss per share | ||||||||
| Basic | $ | (0.78 | ) | $ | (0.03 | ) | ||
| Diluted | $ | (0.78 | ) | $ | (0.03 | ) | ||
| Weighted average number of shares: | ||||||||
| Basic | 19,498 | 20,506 | ||||||
| Diluted | 19,498 | 20,506 | ||||||
| Turtle Beach Corporation Condensed Consolidated Balance Sheets (in thousands, except par value and share amounts) (unaudited) | ||||||||
| Table 2. | ||||||||
| March 31, | December 31, | |||||||
| 2026 | 2025 | |||||||
| ASSETS | ||||||||
| Current Assets: | ||||||||
| Cash and cash equivalents | $ | 12,320 | $ | 16,963 | ||||
| Accounts receivable, net | 30,400 | 76,797 | ||||||
| Inventories | 64,317 | 69,222 | ||||||
| Prepaid expenses and other current assets | 10,677 | 10,831 | ||||||
| Total Current Assets | 117,714 | 173,813 | ||||||
| Property and equipment, net | 2,450 | 2,995 | ||||||
| Goodwill | 50,428 | 50,428 | ||||||
| Intangible assets, net | 32,342 | 34,344 | ||||||
| Other assets | 6,993 | 7,474 | ||||||
| Total Assets | $ | 209,927 | $ | 269,054 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| Current Liabilities: | ||||||||
| Revolving credit facility | $ | — | $ | 29,383 | ||||
| Accounts payable | 20,790 | 24,934 | ||||||
| Term Loan, current | 8,571 | 8,571 | ||||||
| Other current liabilities | 18,453 | 24,789 | ||||||
| Total Current Liabilities | 47,814 | 87,677 | ||||||
| Term Loan, non-current | 44,274 | 46,339 | ||||||
| Income tax payable | 820 | 820 | ||||||
| Other liabilities | 5,161 | 5,720 | ||||||
| Total Liabilities | 98,069 | 140,556 | ||||||
| Commitments and Contingencies | ||||||||
| Stockholders’ Equity | ||||||||
| Common stock, | 20 | 19 | ||||||
| Additional paid-in capital | 228,397 | 229,189 | ||||||
| Accumulated deficit | (117,569 | ) | (102,363 | ) | ||||
| Accumulated other comprehensive income | 1,010 | 1,653 | ||||||
| Total Stockholders’ Equity | 111,858 | 128,498 | ||||||
| Total Liabilities and Stockholders’ Equity | $ | 209,927 | $ | 269,054 | ||||
| Turtle Beach Corporation Condensed Consolidated Statements of Cash Flows (in thousands) (unaudited) | ||||||||
| Table 3. | ||||||||
| Three Months Ended | ||||||||
| March 31, 2026 | March 31, 2025 | |||||||
| CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||
| Net loss | $ | (15,206 | ) | $ | (664 | ) | ||
| Adjustments to reconcile net loss to net cash provided by operating activities: | ||||||||
| Depreciation and amortization | 892 | 1,110 | ||||||
| Amortization of intangible assets | 2,001 | 2,016 | ||||||
| Amortization of debt financing costs | 195 | 276 | ||||||
| Stock-based compensation | 1,365 | 1,912 | ||||||
| Deferred income taxes | (90 | ) | (445 | ) | ||||
| Change in sales returns reserve | 3,124 | 1,873 | ||||||
| Provision for obsolete inventory | 382 | 486 | ||||||
| Changes in operating assets and liabilities, net of acquisitions: | ||||||||
| Accounts receivable | 43,274 | 48,891 | ||||||
| Inventories | 4,522 | (2,899 | ) | |||||
| Prepaid expenses and other assets | 532 | (3,473 | ) | |||||
| Accounts payable | (4,217 | ) | 4,716 | |||||
| Income taxes payable | (821 | ) | (1,401 | ) | ||||
| Other liabilities | (6,576 | ) | (11,946 | ) | ||||
| Net cash provided by operating activities | 29,377 | 40,452 | ||||||
| CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||
| Purchases of property and equipment | (276 | ) | (166 | ) | ||||
| Acquisition of a business, net of cash acquired | — | 2,515 | ||||||
| Net cash (used for) provided by investing activities | (276 | ) | 2,349 | |||||
| CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||
| Borrowings on revolving credit facilities | 3 | 65,276 | ||||||
| Repayment of revolving credit facilities | (29,386 | ) | (108,096 | ) | ||||
| Repayment of term loan | (2,143 | ) | (312 | ) | ||||
| Proceeds from exercise of stock options | 43 | 5 | ||||||
| Repurchase of common stock | (2,199 | ) | (1,750 | ) | ||||
| Net cash used for financing activities | (33,682 | ) | (44,877 | ) | ||||
| Effect of exchange rate changes on cash and cash equivalents | (62 | ) | 765 | |||||
| Net decrease in cash and cash equivalents | (4,643 | ) | (1,311 | ) | ||||
| Cash and cash equivalents - beginning of period | 16,963 | 12,995 | ||||||
| Cash and cash equivalents - end of period | $ | 12,320 | $ | 11,684 | ||||
| Turtle Beach Corporation GAAP to Adjusted EBITDA Reconciliation (in thousands) | ||||||||
| Table 4. | ||||||||
| Three Months Ended | ||||||||
| March 31, 2026 | March 31, 2025 | |||||||
| Net loss | $ | (15,206 | ) | $ | (664 | ) | ||
| Interest expense, net | 1,369 | 2,006 | ||||||
| Depreciation and amortization | 2,893 | 3,126 | ||||||
| Stock-based compensation | 1,365 | 1,912 | ||||||
| Income tax benefit | (123 | ) | (109 | ) | ||||
| Restructuring expense (1) | 224 | 5 | ||||||
| Acquisition-related costs (2) | — | 608 | ||||||
| Loss on inventory in transit and other costs (3) | — | 605 | ||||||
| Professional fees, litigation and other (4) | 2,978 | — | ||||||
| Insurance recovery (5) | — | (3,439 | ) | |||||
| Adjusted EBITDA | $ | (6,500 | ) | $ | 4,050 | |||
| (1) | Restructuring expenses are costs in connection with reorganization of our operations. These costs primarily include severance and related benefits. |
| (2) | Costs in connection with reorganization of operations which primarily include severance, related benefits and post-acquisitions costs related to PDP acquisition. |
| (3) | Loss of inventory while in transit. |
| (4) | Professional fees related to potential acquisition opportunities, warehouse relocation and certain litigation proceedings fees. |
| (5) | Insurance proceeds from claims related to a loss of inventory while in transit that occurred primarily in the fourth quarter of 2024. |
