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Turtle Beach
(NASDAQ:TBCH)
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Rating:56Neutral
Price Target:
$14.50
▲(20.43% Upside)
Action:Reiterated
Date:08/10/26
TBCH scores mid-range primarily due to mixed financial performance: strong TTM free cash flow contrasts with declining revenue, renewed losses, and a more leveraged balance sheet. Technicals are supportive with the stock trading above key moving averages and positive MACD. Valuation is a headwind due to the negative P/E and no dividend yield, while the latest earnings call adds cautious optimism from reaffirmed guidance but is tempered by a very weak Q1 and execution risk around a back-half recovery.
Positive Factors
Strong free cash flow
Consistent, sizable free cash flow across recent periods provides durable internal funding for product development, working-capital flexibility, and buybacks. This offsets earnings volatility and gives management options to invest in growth or shore up the balance sheet over the next several quarters.
Negative Factors
Declining revenue trend
Sustained revenue declines reduce operating leverage and make margin recovery harder. Structural softness across retail channels and lower unit volumes compress gross profit dollars and increase reliance on a back‑loaded product recovery, raising execution risk over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong free cash flow
Consistent, sizable free cash flow across recent periods provides durable internal funding for product development, working-capital flexibility, and buybacks. This offsets earnings volatility and gives management options to invest in growth or shore up the balance sheet over the next several quarters.
Read all positive factors
Turtle Beach (TBCH) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$217.24M
Dividend YieldN/A
Average Volume (3M)275.88K
Price to Earnings (P/E)―
Beta (1Y)2.39
Revenue Growth-17.54%
EPS Growth-118.65%
CountryUS
Employees268
SectorTechnology
Sector Strength88
IndustryConsumer Electronics
Share Statistics
EPS (TTM)-0.18
Shares Outstanding17,909,712
10 Day Avg. Volume252,073
30 Day Avg. Volume275,882
Financial Highlights & Ratios
PEG Ratio-4.86
Price to Book (P/B)2.21
Price to Sales (P/S)0.89
P/FCF Ratio8.35
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$16.40Price Target Upside36.21% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
EPS Forecast (FY)0.71
Revenue Forecast (FY)$343.47M
Turtle Beach Business Overview & Revenue Model
Company Description
Established in 1975 and based in White Plains, New York, Turtle Beach Corporation operates as a leading audio technology firm with a global footprint, serving North America, Europe, the Middle East, and the Asia Pacific. The company is primarily r...
How the Company Makes Money
Turtle Beach primarily makes money by selling branded gaming peripherals to consumers through a mix of retail partners and direct/online channels. Its key revenue stream is product sales, led by gaming headsets and related audio accessories, suppl...
Turtle Beach Earnings Call Summary
Earnings Call Date:May 07, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Nov 05, 2026
Earnings Call Sentiment Neutral
The call presented a mixed picture: Q1 showed material financial weakness (revenue down ~34%, gross margin down 9.8pp, widened net loss and negative adjusted EBITDA) driven by channel inventory compression and promotional activity. Offsetting these near-term results are several meaningful positives — a robust new product pipeline with >50% planned launch growth, strong early preorder momentum for Stealth Pro 2 (>2x predecessor), a refinancing that enhances buyback flexibility, $29.4M operating cash flow in the quarter, and expected tailwinds from GTA VI and upcoming console cycles. Management reaffirmed full-year guidance and expects a back-half weighted recovery, but execution risks and dependency on retailers and game launch timing keep the outlook uncertain.Positive Updates
Strong New Product Pipeline and Early Demand
Company is tracking to realize >50% year-over-year growth in new product launches for 2026, including Stealth Pro 2, Command Series PC lineup, and multiple Switch 2 accessories. Stealth Pro 2 preorders on company site are already more than 2x the predecessor, indicating strong early momentum.
Negative Updates
Large Revenue Decline in Q1
Q1 2026 revenue was $42.2M versus $63.9M prior year, a decline of approximately -$21.7M or -34.0% year-over-year, driven by a challenging market and channel inventory compression.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong New Product Pipeline and Early Demand
Company is tracking to realize >50% year-over-year growth in new product launches for 2026, including Stealth Pro 2, Command Series PC lineup, and multiple Switch 2 accessories. Stealth Pro 2 preorders on company site are already more than 2x the predecessor, indicating strong early momentum.
Read all positive updates
Company Guidance
Management reaffirmed full‑year 2026 guidance of $335 million to $355 million in revenue and $44 million to $48 million in adjusted EBITDA while noting Q1 softness (Q1 revenue $42.2M vs. $63.9M prior year; Q1 typically ~13% of FY revenue but they came in slightly below), gross margin of 26.8% (down from 36.6% Y/Y, including a roughly 2‑point onetime warehouse transition hit), total operating expenses of $25.4M (~60% of revenue), adjusted EBITDA loss of $6.5M (vs. $4.1M income prior year), and a net loss of $15.2M (vs. $0.7M). They generated $29.4M of operating cash flow in the quarter, ended March 31 with net debt of $41.3M (debt $53.6M, cash $12.3M) and a revolver at $0, completed a refinancing (ABL up to $80M at SOFR+150–200bps; $85M term loan at SOFR+675–750bps, 3‑year maturity) that preserves capital return flexibility with $56M remaining on a $75M buyback authorization. The company expects sequential improvement (Q2 ~17–18% of FY revenue), a back‑end loaded year driven by >50% YoY growth in new product launches, continued margin expansion as revenue scales, and potential upside from the Nov 2026 GTA VI launch.Turtle Beach Financial Statement Overview
Summary
Income Statement
48
Neutral
Balance Sheet
45
Neutral
Cash Flow
74
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 297.77M | 319.91M | 372.77M | 258.12M | 240.17M | 366.35M |
| Gross Profit | 108.81M | 119.28M | 128.98M | 75.50M | 49.19M | 128.38M |
| EBITDA | 21.23M | 39.00M | 30.13M | -12.00M | -47.42M | 25.84M |
| Net Income | -3.19M | 15.73M | 16.18M | -17.68M | -59.55M | 17.72M |
Balance Sheet | ||||||
| Total Assets | 215.17M | 269.05M | 298.86M | 149.97M | 163.39M | 230.50M |
| Cash, Cash Equivalents and Short-Term Investments | 19.57M | 16.96M | 12.99M | 18.73M | 11.40M | 37.72M |
| Total Debt | 80.69M | 84.29M | 105.19M | 0.00 | 19.05M | 0.00 |
| Total Liabilities | 134.45M | 140.56M | 178.26M | 64.89M | 74.45M | 89.14M |
| Stockholders Equity | 80.72M | 128.50M | 120.60M | 85.08M | 88.94M | 141.37M |
Cash Flow | ||||||
| Free Cash Flow | 32.25M | 34.04M | 847.00K | 24.89M | -45.40M | -5.95M |
| Operating Cash Flow | 34.02M | 35.46M | 5.76M | 27.04M | -41.85M | -327.00K |
| Investing Cash Flow | -1.77M | 1.10M | -82.21M | -2.16M | -3.55M | -8.12M |
| Financing Cash Flow | -23.22M | -32.58M | 71.05M | -17.85M | 19.71M | -56.00K |
Turtle Beach Technical Analysis
Negative
12.04
Price Trends
12.73
Negative
12.13
Positive
12.69
Negative
Market Momentum
-0.08
Positive
44.54
Neutral
14.90
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TBCH, the sentiment is Negative. The current price of 12.04 is below the 20-day moving average (MA) of 12.69, below the 50-day MA of 12.73, and below the 200-day MA of 12.69, indicating a bearish trend. The MACD of -0.08 indicates Positive momentum. The RSI at 44.54 is Neutral, neither overbought nor oversold. The STOCH value of 14.90 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TBCH.
Turtle Beach Risk Analysis
Turtle Beach disclosed 33 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $4.54T | 35.31 | 137.18% | 0.32% | 14.24% | 32.57% | |
63 Neutral | $140.75B | -102.99 | -2.74% | 0.76% | -1.74% | -118.42% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
56 Neutral | $217.24M | -68.62 | -2.96% | ― | -17.54% | -118.65% | |
54 Neutral | $1.90B | -51.06 | -9.55% | ― | 5.64% | ― | |
48 Neutral | $32.56M | -30.59 | -3.62% | ― | 3.28% | -44.36% | |
43 Neutral | $115.09M | -0.64 | -529.55% | ― | -23.86% | -41.32% |
* Technology Sector Average
TBCH
Turtle Beach
12.66
-3.46
-21.46%
AAPL
Apple
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82.43
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GPRO
GoPro
0.63
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-47.93%
KOSS
Koss
3.57
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SONY
Sony Group
23.92
-3.98
-14.26%
SONO
Sonos
15.83
2.57
19.43%
Turtle Beach Corporate Events
Executive/Board ChangesShareholder Meetings
Turtle Beach Shareholders Approve Directors, Auditor and Pay
Positive
Jun 2, 2026
On June 2, 2026, Turtle Beach Corporation held its 2026 Annual Meeting of Stockholders via live webcast, at which shareholders elected six directors, including William Wyatt and Julia W. Sze, to serve until the next annual meeting. Shareholders al...
Business Operations and StrategyExecutive/Board ChangesFinancial Disclosures
Turtle Beach Reaffirms 2026 Outlook Amid CFO Transition
Positive
May 20, 2026
On May 16, 2026, Turtle Beach announced that Chief Financial Officer Mark Weinswig intends to resign effective June 15, 2026, and the company has begun searching for a permanent successor. To ensure continuity, Senior Finance Director for EMEA and...
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.