Turtle Beach (HEAR) - 2025 Q3 - Quarterly Results

Financial Performance - Net revenue for Q3 2025 was $80.5 million, a decrease from $94.4 million in Q3 2024[19] - Quarterly net income was $1.7 million, compared to $3.4 million in the same quarter last year[19] - Operating income for Q3 2025 was $5.4 million, compared to $6.4 million in Q3 2024[19] - Adjusted EBITDA for the quarter was reported at $11.0 million[5] - Adjusted EBITDA for the nine months ended September 30, 2025, was $11,981 million, down from $20,761 million in the same period of 2024[27] Guidance and Projections - Full year revenue guidance is reiterated at $340 million to $360 million, with Adjusted EBITDA guidance of $47 million to $53 million[8] Expenses and Cost Management - Total operating expenses for Q3 2025 were $24.7 million, down from $27.7 million in the same quarter last year[19] - Debt refinancing reduced the cost of capital on the term loan by over 450 basis points, resulting in expected annual interest savings of over $2 million[7] Assets and Liabilities - Total assets decreased from $298,861 million as of December 31, 2024, to $278,207 million as of September 30, 2025, representing a decline of approximately 6.8%[22] - Current liabilities decreased from $123,672 million to $111,554 million, a reduction of about 9.8%[22] Cash Flow and Investments - Net cash provided by operating activities was $22,121 million for the nine months ended September 30, 2025, compared to a net cash used of $8,553 million in the prior year[25] - The company made an acquisition that resulted in a cash inflow of $2,515 million, contrasting with a cash outflow of $77,294 million for acquisitions in the previous year[25] Shareholder Actions - The company repurchased approximately 695,000 shares for $10 million at an average price of $14.40 per share during Q3 2025[5] Accounts Receivable and Losses - The company reported a significant increase in accounts receivable, which rose from $93,118 million to $56,754 million, indicating improved collection efforts[22] - Net loss for the nine months ended September 30, 2025, was $1,878 million, an improvement compared to a net loss of $3,956 million for the same period in 2024[25] - The company incurred $1,923 million in loss on extinguishment of debt during the nine months ended September 30, 2025[25] Stock-Based Compensation - Stock-based compensation increased to $4,306 million for the nine months ended September 30, 2025, compared to $3,447 million in the same period of 2024[27] Product Development - The company launched or announced more than 40 new products since Q2 2025, including officially licensed PlayStation headsets and Nintendo-licensed accessories[4]