Turtle Beach (NASDAQ:TBCH) Releases Quarterly Earnings Results, Misses Estimates By $0.35 EPS

Turtle Beach (NASDAQ:TBCH) announced its quarterly earnings data on Thursday. The company reported ($0.78) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.43) by ($0.35), FiscalAI reports. Turtle Beach had a return on equity of 13.48% and a net margin of 4.92%.The firm had revenue of $42.17 million during the quarter.

Here are the key takeaways from Turtle Beach’s conference call:

• Q1 revenue fell to $42.2M from $63.9M a year ago, gross margin dropped to 26.8% (from 36.6%), adjusted EBITDA was a $6.5M loss and net loss was $15.2M, driven by channel inventory compression and promotional activity.
• Management reaffirmed full?year 2026 guidance of $335M–$355M revenue and $44M–$48M adjusted EBITDA, calling for a back?loaded year with sequential improvement starting in Q2 and a strong second half tied to new product placements and holiday demand.
• Company is accelerating its product pipeline (targeting >50% YoY growth in new launches), highlighted by the premium Stealth Pro II (CrossPlay 2.0, Hi?Res, Dolby Atmos, ANC) which has pre?orders more than double its predecessor, signaling early demand momentum.
• Turtle Beach refinanced credit facilities (up to $80M ABL and an $85M term loan) to enhance capital flexibility, has started share repurchases and has $56M remaining on its buyback authorization while carrying net debt of $41.3M.

Turtle Beach Stock Down 0.9%

Shares of Turtle Beach stock traded down $0.11 on Friday, reaching $12.29. 706,006 shares of the company were exchanged, compared to its average volume of 265,798. The company has a debt-to-equity ratio of 0.36, a current ratio of 1.98 and a quick ratio of 1.19. Turtle Beach has a 1-year low of $9.81 and a 1-year high of $17.39. The company has a market cap of $243.96 million, a P/E ratio of 15.76, a price-to-earnings-growth ratio of 0.90 and a beta of 2.26. The stock’s 50 day moving average price is $11.60 and its 200-day moving average price is $13.07.

Key Stories Impacting Turtle Beach

Here are the key news stories impacting Turtle Beach this week:

• Negative Sentiment: Turtle Beach reported a Q1 loss of $0.78 per share, missing the consensus estimate of a $0.43 loss and worsening from a $0.03 loss a year ago. Article Title
• Negative Sentiment: Revenue came in at $42.2 million, below estimates of about $47.8 million and down 34% year over year, signaling continued demand weakness. Article Title
• Negative Sentiment: Gross profit fell sharply year over year, reflecting lower sales and weaker product mix, which can raise concerns about near-term profitability. Article Title

Insider Activity at Turtle Beach

In related news, Director Katherine Lee Scherping sold 19,902 shares of the stock in a transaction on Monday, March 23rd. The stock was sold at an average price of $11.62, for a total value of $231,261.24. Following the transaction, the director owned 14,465 shares of the company’s stock, valued at $168,083.30. This represents a 57.91% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this hyperlink. Insiders own 3.30% of the company’s stock.

Hedge Funds Weigh In On Turtle Beach

Several hedge funds have recently added to or reduced their stakes in the stock. Envestnet Asset Management Inc. purchased a new position in shares of Turtle Beach in the 2nd quarter valued at $154,000. Geode Capital Management LLC acquired a new position in Turtle Beach in the 2nd quarter valued at about $5,438,000. JPMorgan Chase & Co. acquired a new position in shares of Turtle Beach in the second quarter valued at approximately $99,000. Franklin Resources Inc. acquired a new position in Turtle Beach in the 2nd quarter valued at $241,000. Finally, Rhumbline Advisers acquired a new position in shares of Turtle Beach during the second quarter worth about $568,000. 67.01% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

Several research analysts recently weighed in on the company. Zacks Research upgraded Turtle Beach from a “strong sell” rating to a “hold” rating in a research report on Wednesday, February 4th. Craig Hallum reiterated a “buy” rating and set a $15.00 price objective on shares of Turtle Beach in a research note on Friday. Wedbush decreased their price target on shares of Turtle Beach from $14.00 to $11.00 and set a “neutral” rating on the stock in a research note on Monday, March 16th. B. Riley Financial lowered their price objective on Turtle Beach from $21.00 to $20.00 and set a “buy” rating on the stock in a research note on Tuesday, March 10th. Finally, Weiss Ratings reissued a “hold (c)” rating on shares of Turtle Beach in a research note on Friday, March 27th. Four research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company. According to MarketBeat, the stock has a consensus rating of “Moderate Buy” and an average price target of $16.80.

Turtle Beach Company Profile

Turtle Beach Corporation (NASDAQ:TBCH) is a global developer, manufacturer and distributor of gaming audio peripherals, specializing in headsets, microphones and audio accessories for PC, console and mobile platforms. The company’s product lineup spans wired and wireless gaming headsets, mixing stations, sound cards and accessories designed to enhance the immersive experience for casual and professional gamers alike.

Founded in 1975 and headquartered in San Diego, California, Turtle Beach has built a longstanding reputation in audio innovation.