Turtle Beach Corporation functions as an audio technology enterprise. Specializing in gaming audio, the company designs, produces, and distributes headset solutions under ...
Turtle Beach Corporation is an established force in the consumer electronics and gaming industry. Founded in 1975 and headquartered in White Plains, New York, the company has evolved from its early roots in sound cards and MIDI synthesis into a premier designer and marketer of gaming accessories. The company operates ...Turtle Beach Corporation is an established force in the consumer electronics and gaming industry. Founded in 1975 and headquartered in White Plains, New York, the company has evolved from its early roots in sound cards and MIDI synthesis into a premier designer and marketer of gaming accessories. The company operates through a multi-brand strategy, with its namesake 'Turtle Beach' brand standing as a market leader in gaming headsets and audio solutions. Additionally, the portfolio includes high-quality gaming peripherals such as keyboards, mice, and controllers, as well as specialized simulation hardware for flight and racing setups under the VelocityOne brand.
From a business perspective, Turtle Beach generates revenue primarily through the distribution of hardware across major global retailers and direct-to-consumer channels. The company’s financial profile reflects a business heavily influenced by gaming hardware demand cycles, seasonality related to holiday spending, and the introduction of new console generations. While the company maintains a lean operating structure with approximately 290 employees, it invests significantly in research and development to remain competitive in a saturated market, dedicating about 5.9% of its revenue to R&D activities. The Cost of Goods Sold (COGS) is impacted by logistics, global supply chain volatility, and the manufacturing of high-spec consumer electronic components.
Financially, the company operates with a focus on brand equity and market penetration. Its financial metrics, such as a gross profit margin of approximately 36%, reflect the competitive pressures of the gaming hardware sector, where hardware margins are often compressed by marketing and distribution requirements. Management, led by CEO Cris Keirn, is currently focused on leveraging its technological expertise to expand into premium simulation categories and ecosystem growth. Despite the competitive nature of the industry and reliance on third-party manufacturing, the firm remains a critical entity in the gaming ecosystem, consistently striving to capture market share through design innovation, professional-grade product quality, and strategic retail partnerships. Future prospects hinge on the company's ability to maintain high inventory turnover and manage the costs of its complex global distribution network.
YoYYoY means Year-over-Year. It compares the latest annual value with the previous annual value to show long-term trend strength.
QoQQoQ means Quarter-over-Quarter. It compares the latest quarter with the immediately previous quarter to show short-term momentum changes.
RevenueThe total money that came through the front door from selling things, before paying a single bill. Think of it as the grand total of every credit card swipe from customers. (YoY compares this year to last year's performance, while QoQ compares the current three months to the previous three).
$319.9M
-14.2%
-64.5%
Net IncomeThe absolute bottom line. If the company paid every single supplier, employee, banker, and tax collector, this is the actual money left in their pocket at the end of the day.
$15.7M
-2.8%
-186.4%
Gross MarginThe basic markup. If they sell a $100 pair of sneakers, this percentage tells you how much of that price tag is profit right after paying for the rubber and shoelaces, but before paying for things like store rent or TV commercials.
+37.3%
+7.8%
-33.2%
Operating MarginThe 'day job' efficiency score. Out of every dollar a customer spends, this shows how many cents the company keeps after making the product AND paying for all the everyday corporate overhead (like salaries, marketing, and keeping the lights on).
+8.6%
-2.3%
-289.1%
Net MarginThe final take-home percentage. When you strip away every conceivable cost, tax, and interest payment, this is the exact number of cents the company truly gets to keep from every dollar in sales.
+4.9%
+13.3%
-343.2%
Free Cash FlowThe holy grail of corporate cash. It's the spendable, physical money left over after the business pays for its daily operations AND buys the big, expensive upgrades (like new factories or servers) it needs to survive. This is the 'free' money they can use to pay dividends or buy back stock.
$34.0M
+3918.8%
+207.0%
FCF MarginThe ultimate cash conversion rate. It shows how good the company is at turning regular sales directly into cold, hard, spendable cash. A high percentage means the business is an absolute cash-printing machine.
+10.6%
+4582.7%
+401.3%
Debt / EquityThe financial risk gauge. It compares how much of the company's empire was built using borrowed money (loans) versus the owners' own money (shareholders). A high number means they are heavily leveraged and playing a riskier game; a low number means they are playing it safe.
6.7%
-92.4%
+608.3%
Current RatioThe 12-month survival check. It simply compares the cash they have right now (plus things they can quickly turn into cash) against the immediate bills they absolutely must pay this year. A score above 1 means they have enough in the wallet to cover the upcoming bills without panicking.
1.98x
+30.2%
+24.2%
Total AssetsThe absolute size of the company's empire. It bundles together absolutely everything of value they own—from the cash in the register and the inventory in the warehouse, to the software patents in the vault and the factories on the ground.
Operator: Good afternoon, and welcome to the Turtle Beach Q1 2026 Earnings Conference Call. [Operator Instructions] Please note that this event is being recorded. I will now hand the conference over to Jacques Cornet, ICR. Please go ahead, sir.
Jacques Cornet: Thank you, operator. On today's call, we will be referring to the press release filed this afternoon that details the company's first quarter 2026 results, which is available on the news page of the company's Investor Relations website corp.turtlebeach.com, where you'll also find the latest earnings presentation that supplements the information discussed on today's call. Finally, a recording of the call will be available in the Events and Presentations section of the company's Investor Relations website later today. Please be aware that some of the comments made during this call may include forward-looking statements within the meaning of the federal securities laws. Statements about the company's beliefs and expectations containing words such as may, will, could, believe, expect, anticipate and similar expressions constitute forward-looking statements. These statements involve risks and uncertainties regarding the company's operations and future results that could cause Turtle Beach Corporation's results to differ materially from management's current expectations. While the company believes that its expectations are based upon reasonable assumptions, numerous factors may affect actual results and may cause results to differ materially. The company encourages you to review the safe harbor statements and risk factors contained in today's press release and in its filings with the Securities and Exchange Commission, including, without limitation, its annual report on Form 10-K and other periodic reports which identify specific risk factors that also may cause actual results or events to differ materially from those described in our forward-looking statements. The company does not undertake to publicly update or revise any forward-looking statements after this conference call. The company also notes that on this call, we'll be discussing non-GAAP financial information. The company is providing that information as a supplement to information prepared in accordance with accounting principles generally accepted in the United States or GAAP. You can find a reconciliation of these metrics to the company's reported GAAP results, the reconciliation tables provided in today's earnings release and presentation. Hosting the call today are Cris Keirn, Chief Executive Officer; Mark Weinswig, Chief Financial Officer. With that, I'll turn the call over to Cris.
Cristopher Keirn: Thanks, Jacques. Good afternoon, everyone, and welcome to our first quarter 2026 earnings call. As we build momentum through our brand transformation and significant releases of new products in 2026, our first quarter results reflect a continuation of a challenging market environment that carried over from 2025. The quarter was …
