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Turtle Beach
(NASDAQ:TBCH)
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Rating:58Neutral
Price Target:
$14.50
▲(13.28% Upside)
Action:Reiterated
Date:10/03/26
Overall score reflects a mixed fundamental picture: strong and improving free cash flow supports the rating, but renewed TTM losses, ongoing revenue contraction, and higher leverage with shrinking equity are meaningful risks. Technically, the trend is positive with price above key moving averages and a positive MACD, but elevated RSI/Stoch suggests momentum may be stretched. Valuation is less favorable due to negative earnings and no dividend data.
Positive Factors
Strong Free Cash Flow
Strong operating and free cash flow provides internal funding for product development, channel investment, and balance-sheet needs. The improvement over the prior year indicates meaningful cash-generation capacity, although its durability should be assessed alongside the company’s reported net loss.
Negative Factors
Sustained Revenue Contraction
Revenue contraction across both 2025 and the trailing period indicates that the recent weakness is more than a single-quarter fluctuation. Continued declines can reduce operating leverage, limit investment capacity, and make it harder for the company to convert its product breadth into durable growth.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong Free Cash Flow
Strong operating and free cash flow provides internal funding for product development, channel investment, and balance-sheet needs. The improvement over the prior year indicates meaningful cash-generation capacity, although its durability should be assessed alongside the company’s reported net loss.
Read all positive factors
Turtle Beach (TBCH) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$240.71M
Dividend YieldN/A
Average Volume (3M)324.03K
Price to Earnings (P/E)―
Beta (1Y)2.40
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. Volume406,990
30 Day Avg. Volume324,031
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 Cap1.25
Enterprise Value/Revenue1.01
Enterprise Value/Gross Profit2.76
Enterprise Value/Ebitda14.13
Forecast
1Y Price Target
$16.40Price Target Upside28.12% 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 gaming accessories, with revenue largely driven by unit sales of branded hardware to consumers through retail partners and direct/online channels. The core revenue stream is the sale of gaming headsets...
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
Positive
12.80
Price Trends
12.78
Positive
12.71
Positive
12.40
Positive
Market Momentum
0.19
Negative
56.97
Neutral
31.11
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TBCH, the sentiment is Positive. The current price of 12.8 is below the 20-day moving average (MA) of 12.96, above the 50-day MA of 12.78, and above the 200-day MA of 12.40, indicating a bullish trend. The MACD of 0.19 indicates Negative momentum. The RSI at 56.97 is Neutral, neither overbought nor oversold. The STOCH value of 31.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 | $4.98T | 38.92 | 137.18% | 0.31% | 14.24% | 32.57% | |
63 Neutral | $142.74B | -104.63 | -2.74% | 0.66% | -1.74% | -118.42% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
58 Neutral | $240.71M | -72.85 | -2.96% | ― | -17.54% | -118.65% | |
54 Neutral | $2.05B | -55.94 | -9.55% | ― | 5.64% | ― | |
50 Neutral | $222.70M | -1.21 | -529.55% | ― | -23.86% | -41.32% | |
48 Neutral | $36.35M | -92.53 | -1.29% | 5.12% | 3.14% | 55.77% |
* Technology Sector Average
TBCH
Turtle Beach
13.44
-1.52
-10.16%
AAPL
Apple
340.97
94.22
38.19%
GPRO
GoPro
1.19
-0.88
-42.51%
KOSS
Koss
3.84
-1.10
-22.27%
SONY
Sony Group
24.26
-4.61
-15.97%
SONO
Sonos
17.34
0.85
5.15%
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.