Management View - Turtle Beach Corporation's CEO Cristopher Keirn highlighted that 2025 was a challenging year for the broader industry, testing the company's resilience and execution discipline due to global tariff impacts and market softness [2]. Revenue Outlook - The company is targeting a revenue range of $335 million to $355 million for 2026, driven by upcoming product launches and the anticipated release of Grand Theft Auto 6 [2].

Turtle Beach (NasdaqGM:HEAR) Q4 2025 Earnings call March 12, 2026 05:00 PM ET Company ParticipantsAlex Thompson - Investor RelationsCris Keirn - CEODrew Crum - Managing DirectorMark Weinswig - CFOConference Call ParticipantsAnthony Stoss - Senior Research AnalystJack Vander Aarde - Stock AnalystMartin Yang - Managing Director and Senior AnalystSean McGowan - Managing Director and Senior Research AnalystOperatorGood afternoon, and welcome to the Turtle Beach Q4 25 earnings conference call. All participants w ...

Financial Data and Key Metrics Changes - Fourth quarter net revenue was $118 million, a decline of 19% year-over-year compared to $446.1 million in the prior year period [16] - Full year net revenue was $319.9 million, a decline of 14% year-over-year compared to $372.8 million in 2024 [17] - Fourth quarter gross margins reached 40.1%, a year-over-year improvement of nearly 310 basis points [16] - Full year gross margins of 37.3% represented an improvement of 270 basis points year-over-year, marking the highest annual level since 2018 [18] - Net income for the fourth quarter was $17.6 million, compared to $20.1 million in the prior year period [16] - Full year net income was $15.7 million, representing a 3% year-over-year decline compared to $16.2 million in 2024 [18] Business Line Data and Key Metrics Changes - The company gained share in its core Turtle Beach headset brand despite overall market softness [6] - The racing sim product line is performing well, with share gains year-over-year [27] - The company plans to launch over 50% more new products in 2026 compared to 2025, with innovations across all categories [8][29] Market Data and Key Metrics Changes - The gaming accessories market experienced unexpected softness, particularly in North America [5] - The company anticipates a strong replacement cycle driven by major game releases, including Grand Theft Auto VI, scheduled for late 2026 [7][8] - The industry is entering a console refresh cycle, expected to drive increased hardware adoption and accessory demand [8] Company Strategy and Development Direction - The company implemented comprehensive cost optimization initiatives that drove gross margin expansion [9] - A strategic refinancing of debt was completed, lowering the base interest rate on the term loan by approximately 450 basis points [11] - The company is actively assessing bolt-on acquisitions to complement its growing platform, although no new deals have been announced [13][14] - The focus for 2026 is on leveraging operational gains and capitalizing on improving market conditions [24] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the trajectory of the business moving into 2026, despite current market headwinds [8][20] - The company expects full year 2026 revenue to be in the range of $335 million-$355 million, representing 8% growth at the midpoint compared to 2025 [21] - Management believes the current equity market does not appropriately price the stock, leading to potential increased share repurchases [15] Other Important Information - The company repurchased approximately 1.35 million shares for approximately $19 million in 2025, with a new 2-year $75 million share repurchase program authorized [12][19] - The balance sheet remains solid with a cash position of $17 million as of December 31 [18] Q&A Session Summary Question: How are the racing sim products performing and what about the 50% more products for 2026? - Management noted that racing sim products are doing well with share gains and that the 50% increase in SKUs will span across all categories, with exciting innovations coming soon [27][29] Question: Can you provide a revenue range related to GTA VI for your guidance? - Management confirmed that the second half of the year is expected to be strong, with GTA VI's launch in Q4 being a significant driver of growth [32][33] Question: What are the expectations for gross margin versus OpEx in 2026? - Management expects continued improvements in gross margin due to prior tariff mitigations and product changes, while OpEx structure will remain similar to 2025 [39] Question: What is the current state of retail inventories? - Management indicated that retail inventories ended the year in a lighter position due to softer demand, but they do not anticipate further declines in channel inventories [51] Question: What is the company's leverage threshold for potential borrowing capacity expansion? - Management is comfortable with a leverage range of 2-2.5 and is exploring options to obtain new financing for increased flexibility [59] Question: What are the drivers of optimism beyond GTA VI? - Management highlighted multiple factors including the overdue accessories replacement cycle, new product innovations, and the upcoming console refresh cycle as drivers of optimism [66]

Financial Data and Key Metrics Changes - Fourth quarter net revenue was $118 million, a decline of 19% year-over-year compared to $446.1 million in the prior year period [15] - Full year net revenue was $319.9 million, a decline of 14% year-over-year compared to $372.8 million in 2024 [16] - Fourth quarter gross margins reached 40.1%, an improvement of nearly 310 basis points year-over-year [15] - Full year gross margins of 37.3% represented an improvement of 270 basis points year-over-year, marking the highest annual level since 2018 [16] - Net income for the fourth quarter was $17.6 million, compared to $20.1 million in the prior year period [15] - Full year net income was $15.7 million, representing a 3% year-over-year decline compared to $16.2 million in 2024 [17] Business Line Data and Key Metrics Changes - The company gained share in its core Turtle Beach headset brand despite overall market softness [5] - The company is launching over 50% more new products in 2026 compared to 2025, with significant releases beginning in Q2 [7][8] - The racing sim product line is performing well, with share gains year-over-year [25] Market Data and Key Metrics Changes - The North American gaming and accessories markets experienced unexpected softness [5] - The company anticipates a strong replacement cycle driven by major game releases, particularly Grand Theft Auto VI, scheduled for late 2026 [6][19] - The industry is entering a console refresh cycle with new platforms expected from major manufacturers [7] Company Strategy and Development Direction - The company implemented comprehensive cost optimization initiatives that drove gross margin expansion [8] - A strategic refinancing of debt lowered the base interest rate on the term loan by approximately 450 basis points, generating annual interest savings of over $2 million [10] - The company is actively assessing opportunistic bolt-on acquisitions to complement its growing platform [12] - The focus for 2026 is to leverage operational gains while positioning for growth as market conditions improve [21] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the trajectory of the business as it navigates through current market headwinds [7] - The company expects full year 2026 revenue to be in the range of $335 million-$355 million, representing 8% growth at the midpoint compared to 2025 [19] - Management believes the pressures faced in 2025 were cyclical and used the year to strengthen execution and foundation [21] Other Important Information - The company repurchased approximately 1.35 million shares for about $19 million in 2025, returning nearly $47 million to shareholders over the past two years [11][18] - A new 2-year $75 million share repurchase program was authorized, the largest in company history [11] Q&A Session Summary Question: How are the racing sim products performing and what about the 50% more products for 2026? - The racing sim category is performing well with share gains, and the 50% increase in SKUs will be across all categories, including exciting innovations in headsets [25][26] Question: Can you provide a revenue range related to GTA VI? - The second half of the year is expected to be strong, with guidance built on the assumption of GTA VI launching in Q4 [30] Question: What are the expectations for gross margin versus OpEx in 2026? - Continued improvements in gross margin are expected, with a similar OpEx structure to 2025, including investments in technology and brand [35] Question: What is the outlook for retail inventories? - The company ended the year with a lighter inventory position, but does not anticipate further declines in channel inventories [47] Question: What is the leverage threshold comfortable for the company? - A leverage range of 2-2.5 is considered comfortable, with potential for additional financing to enhance flexibility [56] Question: What are the drivers of optimism beyond GTA VI? - Multiple factors contribute to optimism, including an overdue accessories replacement cycle and new product innovations [63]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark one) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2025 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-35465 TURTLE BEACH CORPORATION (Exact name of registrant as specified in its charter) Nevada 27-2767540 (State or other jurisdiction ...

FOURTH QUARTER & FULL YEAR 2025 EARNINGS PRESENTATION NASDAQ: TBCH | MARCH 12, 2026 SAFE HARBOR STATEMENT & IMPORTANT INFORMATION Forward -Looking Information and Statements This presentation, including the appendix, includes forward -looking information and statements within the meaning of the federal securities laws . Except for historical information contained in this release, statements in this release may constitute forward -looking statements regarding assumptions, projections, expectations, targets, ...

SAN DIEGO, CA – March 12, 2026 – Turtle Beach Corporation (Nasdaq: TBCH), a leading gaming accessories brand, today reported financial results for the fourth quarter and full year ended December 31, 2025 and provided full year 2026 guidance for net revenue and Adjusted EBITDA. Exhibit 99.1 TURTLE BEACH CORPORATION ANNOUNCES FOURTH QUARTER AND FULL YEAR 2025 RESULTS – Net Revenue for the Fourth Quarter of $118.8 Million and $319.9 Million for Full Year 2025 – – Gross Margin Improvement to 40.1% for the Fourt ...

Group 1 - The article does not provide any relevant content regarding company or industry insights [1]

Financial Data and Key Metrics Changes - The company generated $80.5 million in revenue for Q3 2025, with gross margins improving by nearly 120 basis points year-over-year to over 37% [5][13] - Operating expenses were $24.7 million, representing 30.7% of revenue, compared to $27.7 million or 29.4% in the prior year [14] - Net income for the quarter was $1.7 million, which included a one-time non-cash write-off of $1.9 million related to refinancing [15] - Adjusted EBITDA for the quarter was $11 million, reflecting strong performance at the current revenue level [15] - The company expects full-year revenue to be in the range of $340 million to $360 million and adjusted EBITDA to be in the range of $47 million to $53 million [17] Business Line Data and Key Metrics Changes - The company launched over 40 new products since Q2, enhancing its position in the gaming accessories market [7] - Controllers are identified as a strong growth opportunity, with the Victrix brand gaining traction among competitive gamers [9] - The simulation product line, including new racing wheels, has seen growth, while the flight simulator market remains down year-over-year [25] Market Data and Key Metrics Changes - The overall gaming accessories market remains down year-to-date, but year-over-year improvements have been observed through Q3 [11] - The accessories market was down over 20% year-over-year in Q1, improving to low to mid-teens by Q3 [22] Company Strategy and Development Direction - The company is focused on innovation and has expanded its product lineup across headsets, controllers, simulation gear, and PC peripherals [7] - The strategy includes returning capital to shareholders through share repurchases, with $10 million repurchased in Q3 [6] - The company aims to capitalize on upcoming major game releases and the anticipated growth cycle in gaming [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the industry's growth trajectory, citing upcoming game releases and a replacement cycle for accessories as catalysts for growth in 2026 [11][30] - The company has successfully mitigated tariff impacts and expects continued improvement in gross margins [32][36] Other Important Information - The company completed a refinancing of its term loan and credit facility, lowering its interest rate by over 450 basis points, which will provide annual interest savings of over $2 million [6][15] - The cash position at the end of Q3 was $12 million, with total debt at $90 million [15] Q&A Session Summary Question: What are the trends in consumer spending for headsets and controllers? - Management noted that the refresh cycle for accessories has been delayed, but the market is improving year-over-year, with expectations for growth in 2026 [22][23] Question: What is the demand for new racing wheels and the flight simulator market? - The company has seen growth in the racing wheel category, while the flight simulator market is down in line with the overall accessories market [25] Question: How will the delay of GTA 6 impact 2026 financials? - Management acknowledged the delay but remains optimistic about other upcoming game releases and overall industry momentum [30][31] Question: How sustainable are the gross margin improvements? - Management is confident in sustaining gross margin improvements due to effective tariff mitigation strategies [32][36] Question: What features in new products will drive upgrades? - New headsets feature lower power consumption and improved comfort, while controllers include technology upgrades to eliminate drift [40] Question: How is consumer strength shaping up for the holiday season? - Management observed strong demand at higher price points, with some challenges in lower and mid-tier products [46]

Financial Performance - Net revenue for the three months ended September 30, 2025 was $80.5 million, a decrease of $13.9 million or 14.7% from $94.4 million in the same period of 2024, primarily due to reduced market demand for computer gaming accessories [115]. - For the nine months ended September 30, 2025, net revenue was $201.1 million, a decrease of $25.6 million or 11.3% from $226.7 million in the same period of 2024 [117]. - Adjusted EBITDA for the three months ended September 30, 2025, was $10.975 million, a decrease from $16.268 million in the same period of 2024 [133]. Gross Profit and Margin - Gross profit for the three months ended September 30, 2025 was $30.1 million, with a gross margin of 37.4%, an increase from 36.2% in the prior year period [116]. - Gross margin for the nine months ended September 30, 2025 improved to 35.6% from 33.1% in the comparable prior year period [118]. Operating Expenses - Operating expenses for the three months ended September 30, 2025 totaled $24.7 million, a decrease of $3.0 million or 10.8% from $27.7 million in the same period of 2024 [119]. - General and administrative expenses increased by $1.2 million or 18.7% for the three months ended September 30, 2025, primarily due to higher public company costs [123]. Cash Flow and Financing - Net cash provided by operating activities for the nine months ended September 30, 2025, was $22.121 million, an increase of $30.7 million compared to a cash outflow of $8.553 million for the same period in 2024 [137]. - Cash and cash equivalents at the end of the period on September 30, 2025, were $12.257 million, down from $13.803 million at the end of September 30, 2024 [136]. - Net cash used for financing activities was $24.476 million during the nine months ended September 30, 2025, compared to net cash provided of $82.665 million in the same period of 2024 [139]. - The Company recorded a loss on extinguishment of debt of $1.7 million related to the repayment of the Term Loan Facility on August 1, 2025 [149]. - As of September 30, 2025, the Company had excess borrowing availability of approximately $34.5 million under the Credit Agreement [155]. - The Revolving Credit Facility was amended to extend the maturity date to March 13, 2027, and incorporated PDP acquisition assets into the U.S. Borrowing Base [144]. - Cash provided by investing activities was $1.346 million for the nine months ended September 30, 2025, compared to a cash outflow of $80.686 million in the same period of 2024 [138]. - The Company believes current cash and cash equivalents, along with cash flows from operations, will be sufficient for anticipated funding needs [140]. Market Conditions and Risks - The global gaming accessories market is estimated to be an $11 billion business, driven by major game launches and franchises [110]. - The launch of the Nintendo Switch 2 in June 2025 marked the fastest-selling video game console launch of all time [113]. - The Company has exposure to market risk primarily due to fluctuations in interest rates, foreign currency exchange rates, and inflation [160]. - As of September 30, 2025, and December 31, 2024, the Company did not have any derivative financial instruments to manage foreign currency risks [161]. - A hypothetical 10% change in foreign currency exchange rates is not expected to have a material impact on the Company's earnings or cash flows due to immaterial monetary assets and liabilities [162]. - Inflationary pressures have negatively impacted consumer demand, leading to reduced sales [164]. - Trade policy actions in 2025 have increased import tariffs, adversely affecting the Company's operations [163]. - The Company continues to face higher costs due to a higher interest rate environment, impacting profit margins if selling prices do not increase accordingly [166]. - Global supply chain constraints and economic conditions have caused volatility in demand and pricing of the Company's products [165]. Acquisition - The company acquired Performance Designed Products LLC in March 2024, expanding its product portfolio to include gaming controllers and accessories [109].