Turtle Beach (TBCH) AI Stock Analysis

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Turtle Beach

(NASDAQ:TBCH)

Rating:68Neutral

Price Target:―

Turtle Beach's stock score reflects its strong financial recovery and positive earnings outlook. The company has demonstrated robust revenue and profitability growth, supported by strategic initiatives and market positioning. However, technical indicators suggest caution, and potential tariff impacts present risks. Valuation remains attractive, indicating potential for stock appreciation.

Positive Factors

Earnings

TBCH reported strong results, with revenue up 14% year-over-year, beating estimates and demonstrating solid growth driven by incremental PDP sales.

Financial Performance

TBCH ended with strong positive free cash flow and is not expected to require additional capital, showcasing financial strength.

Market Position

TBCH maintained its leadership in the gaming headset market, outpacing the gaming controller/gamepad market growth.

Negative Factors

Guidance

Management lowered 2025 guidance for revenue and adjusted EBITDA due to industry headwinds and uncertainty around tariffs, indicating challenges in the upcoming year.

Revenue Impact

Given the pressure from tariffs and the shift of GTA 6 out of this year, Turtle Beach is expected to lower or withdraw its full year guidance.

Tariffs

Near-term, tariffs wipe out $40 – 60 million in annual EBITDA, with downside possibility if tariffs are raised in other Asian countries.

Turtle Beach (TBCH) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$270.57M

Dividend YieldN/A

Average Volume (3M)381.53K

Price to Earnings (P/E)18.0

Beta (1Y)2.06

Revenue Growth44.41%

EPS GrowthN/A

CountryUS

Employees262

SectorTechnology

Sector Strength84

IndustryConsumer Electronics

Share Statistics

EPS (TTM)0.00

Shares Outstanding20,146,400

10 Day Avg. Volume381,152

30 Day Avg. Volume381,528

Financial Highlights & Ratios

PEG Ratio<0.01

Price to Book (P/B)1.33

Price to Sales (P/S)0.00

P/FCF Ratio-2.60

Enterprise Value/Market Cap0.00

Enterprise Value/Revenue0.00

Enterprise Value/Gross Profit0.00

Enterprise Value/Ebitda0.00

Forecast

1Y Price Target

$17.38

Price Target Upside33.18% Upside

Rating ConsensusStrong Buy

Number of Analyst Covering5

Turtle Beach Business Overview & Revenue Model

Company DescriptionTurtle Beach Corporation operates as an audio technology company in North America, Europe, the Middle East, and the Asia Pacific. It develops, commercializes, and markets gaming headset solutions for various platforms, including video game and entertainment consoles, handheld consoles, personal computers, tablets, and mobile devices under the Turtle Beach brand. The company also offers gaming headsets, keyboards, mice, and other accessories for the personal computer peripherals market under the ROCCAT brand. In addition, it provides game controllers, and gaming flight simulation and racing simulation accessories, as well as USB and analog microphones for gamers, streamers, professionals, and students. The company serves retailers and distributors. Turtle Beach Corporation was founded in 1975 and is headquartered in White Plains, New York.

How the Company Makes MoneyTurtle Beach generates revenue primarily through the sale of its gaming headsets and related audio accessories. The company markets and sells its products through various channels, including direct-to-consumer sales via its website, as well as through major retailers and online platforms. Key revenue streams include sales from its flagship Turtle Beach gaming headsets and its ROCCAT brand of PC gaming accessories. Strategic partnerships with gaming console manufacturers and collaborations with esports organizations further bolster sales. The company also benefits from the growing popularity of gaming and esports, which drives demand for high-performance audio equipment.

Turtle Beach Earnings Call Summary

Earnings Call Date:May 08, 2025

(Q1-2025)

% Change Since: 32.62%|

Next Earnings Date:Aug 07, 2025

Earnings Call Sentiment Neutral

The earnings call reflects a mixed sentiment. While Turtle Beach has shown strong financial growth, operational improvements, and strategic initiatives like new product launches and share repurchases, the company faces significant challenges due to market declines, tariff impacts, and economic uncertainties. The delay in major game releases like GTA 6 further adds to the cautious outlook for 2025.

Q1-2025 Updates

Positive Updates

Revenue Growth and EBITDA Improvement

First quarter revenue grew by 14% year-over-year to $63.9 million, and adjusted EBITDA increased by 180% to $4.1 million from $1.4 million a year ago.

Gross Margin Expansion

Gross margins improved by 470 basis points year-on-year to 36.6%, driven by operational improvements and cost efficiencies.

Inventory Management and Tariff Mitigation

Proactive increase in inventory levels and successful shift of production to Vietnam, leaving less than 10% of U.S. supply produced in China after Q1.

New Product Launches and Market Expansion

Introduction of new Nintendo Switch headsets and controllers and new Xbox accessories, aligning with growth drivers like the launch of the Nintendo Switch 2.

Share Repurchase Program

Execution of the largest share repurchase program in the company's history, with a new $75 million authorization over the next two years.

Negative Updates

Market Challenges and Revenue Guidance Revision

Revision of full year 2025 revenue guidance to $340 million to $360 million due to a 16% decline in the U.S. gaming accessories market and other macroeconomic factors.

Impact of Tariffs and Economic Uncertainty

Challenges posed by tariffs and the broader economic environment, which have introduced complexities and a lack of visibility for the full year.

Delay in GTA 6 Release

Grand Theft Auto VI release delayed to spring 2026, impacting anticipated increased demand for new accessories in 2025.

PDP Performance

On a pro forma basis, PDP's performance was in line with the market, which was down over 20% for key categories.

Company Guidance

During the Turtle Beach Q1 2025 earnings call, the company provided guidance for the fiscal year 2025, projecting full-year revenue to range between $340 million and $360 million, with adjusted EBITDA expected to be between $47 million and $53 million. The guidance revision reflects external challenges, including a 16% decline in the U.S. gaming accessories market in Q1, tariff impacts, and a delay in the release of Grand Theft Auto VI. Despite these challenges, Turtle Beach reported a 14% year-over-year revenue increase to $63.9 million and a gross margin improvement of 470 basis points to 36.6% for the first quarter. The company also highlighted strategic moves such as inventory adjustments and supply chain diversification to mitigate tariff impacts, with less than 10% of U.S. supply expected to be produced in China post-Q1. Additionally, Turtle Beach announced a new $75 million share repurchase program over the next two years, emphasizing their commitment to shareholder value and sustainable growth.

Turtle Beach Financial Statement Overview

Summary

Turtle Beach demonstrates a commendable financial recovery with robust revenue growth and improved profitability. Its balance sheet is stable, supported by a solid equity base and reasonable debt levels. Cash flow improvements indicate a positive shift in operational efficiency, though consistency in free cash flow is needed. Overall, the financial health is strong with positive trends in key financial metrics.

Income Statement

Positive

Turtle Beach shows a strong recovery in revenue with a substantial growth rate from the previous year. The company has improved its gross and net profit margins significantly, turning a previous net loss into a profit. However, the EBIT and EBITDA margins show room for improvement, indicating potential efficiency gains. The revenue growth trajectory is positive, contributing to a robust income statement performance.

Balance Sheet

Positive

The company's balance sheet reflects a healthy equity position with a satisfactory debt-to-equity ratio. The return on equity has improved with the return to profitability, but the equity ratio indicates a moderate reliance on liabilities. Overall, the balance sheet demonstrates stability with a balanced asset structure, though there are opportunities to optimize leverage.

Cash Flow

Positive

While free cash flow growth has been inconsistent, the company has managed to reverse previous negative operating cash flows to positive figures, showcasing improved cash generation capabilities. The operating and free cash flow to net income ratios are favorable, indicating effective cash conversion, but further consistency in free cash flow growth could enhance performance.

TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
380.82M	372.77M	258.12M	240.17M	366.35M	360.09M
	Gross Profit
134.56M	128.98M	75.50M	49.19M	128.38M	133.79M
	EBIT
27.28M	20.03M	-16.44M	-51.48M	20.43M	49.17M
	EBITDA
40.84M	30.13M	-12.00M	-47.42M	25.84M	58.17M
	Net Income Common Stockholders
15.36M	16.18M	-17.68M	-59.55M	17.72M	38.75M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
11.68M	12.99M	18.73M	11.40M	37.72M	46.68M
	Total Assets
247.02M	298.86M	149.97M	163.39M	230.50M	203.45M
	Total Debt
53.39M	96.28M	0.00	19.05M	0.00	0.00
	Net Debt
41.70M	83.29M	-18.73M	7.66M	-37.72M	-46.68M
	Total Liabilities
126.15M	178.26M	64.89M	74.45M	89.14M	87.05M
	Stockholders Equity
120.87M	120.60M	85.08M	88.94M	141.37M	116.40M
Cash Flow		Free Cash Flow
14.61M	847.00K	24.89M	-45.40M	-5.95M	45.39M
	Operating Cash Flow
18.96M	5.76M	27.04M	-41.85M	-327.00K	51.05M
	Investing Cash Flow
-3.63M	-82.21M	-2.16M	-3.55M	-8.12M	-5.66M
	Financing Cash Flow
-21.81M	71.05M	-17.85M	19.71M	-56.00K	-7.41M

Turtle Beach Technical Analysis

Technical Analysis Sentiment

Neutral

Last Price13.05

Price Trends

50DMA

11.55

Positive

100DMA

13.80

Negative

200DMA

14.98

Negative

Market Momentum

MACD

0.49

Negative

RSI

57.68

Neutral

STOCH

69.58

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TBCH, the sentiment is Neutral. The current price of 13.05 is above the 20-day moving average (MA) of 12.24, above the 50-day MA of 11.55, and below the 200-day MA of 14.98, indicating a neutral trend. The MACD of 0.49 indicates Negative momentum. The RSI at 57.68 is Neutral, neither overbought nor oversold. The STOCH value of 69.58 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TBCH.

Turtle Beach Risk Analysis

Turtle Beach disclosed 31 risk factors in its most recent earnings report. Turtle Beach reported the most risks in the "Finance & Corporate" category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

Turtle Beach Peers Comparison

Overall Rating

UnderperformOutperform

Sector (62)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TBCH	68 Neutral	$270.57M	18.00	12.49%	―	44.41%	―
AUDC	64 Neutral	$276.02M	16.50	9.33%	3.87%	-1.13%	61.49%
Sector *	62 Neutral	$11.96B	10.09	-7.50%	3.10%	7.33%	-8.11%
BKSY	58 Neutral	$363.37M	―	-63.35%	―	7.05%	13.73%
MVIS	51 Neutral	$314.07M	―	-135.21%	―	-41.76%	5.56%
NRDY	48 Neutral	$300.19M	―	-104.69%	―	-1.64%	9.99%
CAN	45 Neutral	$216.50M	―	-90.43%	―	65.68%	50.28%

* Technology Sector Average

Performance Comparison

TBCH

Turtle Beach

13.05

-1.23

-8.61%

AUDC

Audiocodes

9.12

-0.46

-4.80%

MVIS

Microvision

1.25

0.35

38.89%

CAN

Canaan

0.63

-0.51

-44.74%

BKSY

BlackSky Technology

11.44

10.42

1021.57%

NRDY

Nerdy

1.60

-0.13

-7.51%

Turtle Beach Corporate Events

Executive/Board ChangesBusiness Operations and Strategy

Turtle Beach Appoints New CFO for Growth Strategy

Positive

Jan 27, 2025

On January 27, 2025, Turtle Beach Corporation announced the retirement of John Hanson as Chief Financial Officer and the appointment of Mark Weinswig as his successor, effective February 3, 2025. Hanson will serve as a senior advisor during a six-month transition period. Weinswig, with over 25 years of financial leadership experience, previously served as CFO at Ouster and Velodyne Lidar, and his strategic expertise is expected to support Turtle Beach’s growth strategy and enhance shareholder value.

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.