Turtle Beach (NasdaqGM:HEAR) Q3 2025 Earnings Call November 06, 2025 04:30 PM ET Speaker1Okay, ladies and gentlemen, thank you for standing by. Welcome to the Turtle Beach Corporation Third Quarter 2025 Conference Call. At this time, all participants are in listen-only mode. A question-and-answer session will follow the prepared remarks. As a reminder, the conference call is being recorded. I will now turn the conference over to Jacques Gournet from the Investor Relations Team. Jacques, you may begin.Speake ...

THIRD QUARTER 2025 EARNINGS PRESENTATION NASDAQ: TBCH | NOVEMBER 6, 2025 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, intentions or b ...

–Delivered Net Revenue of $80.5 Million––Gross Margin Improved to 37.4%, a Year-Over-Year Increase of Nearly 120 Basis Points––Quarterly Net Income of $1.7 Million––Reported Adjusted EBITDA of $11.0 Million––Reiterating Full Year Revenue and EBITDA Guidance– SAN DIEGO, Nov. 06, 2025 (GLOBE NEWSWIRE) -- Turtle Beach Corporation (Nasdaq: TBCH, the “Company”), a leading gaming accessories brand, today reported financial results for the third quarter ended September 30, 2025 and reiterated full year guidance fo ...

Core Insights - HUANUO made a significant impact at DreamHack Atlanta 2025 by showcasing its latest ergonomic products designed for gamers and creators [1][10] - The company supported over 100 creators at the Creator Hub with electric standing desks and RGB monitor arms, facilitating over 60 hours of live programming [2][10] Product Launch and Features - The Spectra Gaming Desk was officially launched, featuring a dual-motor lift system, a 63 × 31.5 inch surface, and a load capacity of up to 100 kilograms, designed for high-performance gaming [4][5] - HUANUO's product lineup includes the Titan™ and Stratos monitor arms, which offer stability, smooth movement, and height-adjustable features for versatile setups [6][7] Community Engagement - HUANUO hosted a Spin-to-Win event at its booth, attracting over 300 prize winners and offering discounts of up to 70 percent on selected products [8][9] - The company emphasized its commitment to enhancing the gaming experience by improving comfort and reducing physical strain for players [10] Company Overview - Founded in 2019, HUANUO specializes in ergonomic work and desk accessories, focusing on comfort, performance, and well-being [11] - The company has been recognized with awards such as the Red Dot and iF Design Awards, and has a global user base of over 10 million [12]

SAN DIEGO, Oct. 23, 2025 (GLOBE NEWSWIRE) -- Turtle Beach Corporation (Nasdaq: TBCH) a leading gaming accessories brand, today announced it will report financial results for the third quarter 2025 on Thursday, November 6, 2025, after the close of trading on the Nasdaq Stock Market. The Company will also host a conference call and audio webcast at 4:30p.m. ET / 1:30p.m. PT that same day to review the results. The call will be hosted by Cris Keirn, Chief Executive Officer, and Mark Weinswig, Chief Financial O ...

Core Viewpoint - Turtle Beach Corporation has entered into a definitive agreement to repurchase 694,926 shares of common stock from Diversis Capital for approximately $10 million at a price of $14.41 per share, reflecting the company's confidence in its long-term value creation strategy [1][3]. Group 1: Share Repurchase Details - The share repurchase involves 694,926 shares at a total cost of about $10 million, executed at the 30-day volume weighted average price of $14.41 per share [1]. - Simultaneously, The Donerail Group acquired 693,962 shares from Diversis at the same price, resulting in Diversis owning approximately 10% of Turtle Beach's common stock post-transaction [2]. - The remaining shares owned by Diversis will be subject to a new 90-day lock-up agreement [2]. Group 2: Management Commentary - The CEO of Turtle Beach expressed confidence in the company's strategy and long-term value creation, emphasizing the alignment of the repurchase with capital allocation priorities [3]. - A managing partner from The Donerail Group highlighted the significant transformation of Turtle Beach over the past two years and expressed excitement about increasing their investment [3]. Group 3: Financial Context - The repurchase was executed under the company's existing $75 million authorization and aligns with its credit agreement and capital return framework [3]. - The recent refinancing of Turtle Beach's debt facilities provided the necessary flexibility to carry out this transaction, demonstrating the company's commitment to utilizing share repurchases to enhance shareholder value [3]. Group 4: Company Overview - Turtle Beach Corporation is a leading provider of gaming accessories, known for its best-selling gaming headsets and top-rated gaming peripherals [4]. - The company has established itself as a market leader in console gaming audio for over a decade, with a strong reputation among gamers and a broad range of innovative products [4].

Turtle Beach (HEAR) FY Conference Summary Company Overview - **Company**: Turtle Beach - **Industry**: Gaming Accessories Key Points and Arguments Business Performance and Strategy - The CEO highlighted significant changes in Turtle Beach's business model over the past two years, focusing on improving performance and adapting to market dynamics [3][4] - The company has rationalized its SKUs, emphasizing higher productivity and margin products, and optimized its distribution channels [3][4] - The acquisition of PDP, a leader in the controller space, has diversified Turtle Beach's offerings beyond headsets, which historically accounted for 95% of the business [4][5] Market Trends and Growth Opportunities - The current gaming cycle, including the launch of Nintendo's Switch 2 and the anticipated release of GTA 6, is expected to drive accessory purchases [5][6][8] - The company is well-positioned to capitalize on upcoming hardware releases from Microsoft and Sony, which could further stimulate growth [7][8] - Despite a challenging first half of the year, the company anticipates a recovery in the second half, with a projected decline of about 10% in key categories in the U.S. [12][13] Supply Chain Management - Turtle Beach has proactively developed manufacturing capabilities in Vietnam to mitigate the impact of tariffs on production costs, with an expected 85% of production to be based in Vietnam post-Q2 2025 [9][10] - The company bulked up on inventory to counteract tariff impacts, which has helped maintain competitiveness [11] Financial Outlook - The company reiterated its revenue guidance for 2025, despite experiencing a 15-17% decline in key categories year-to-date [12][13][21] - Gross margins improved to 32.2% in Q2, with expectations to reach mid to high thirties in the latter half of the year due to better product mix and cost management [24][25] Competitive Landscape - The competitive environment is intensifying, but Turtle Beach maintains a leadership position in audio and controller markets due to its R&D investments [19][20][33] - The company is focused on leveraging new technologies and product refreshes to stay ahead in the premium headset category [33][36] R&D and Marketing Balance - Turtle Beach invests approximately 5% of its revenue back into R&D, which has led to successful product launches and technological advancements [38][39] - The marketing team has undergone significant changes, including brand refreshes and integration of acquired products, to enhance consumer engagement [40] Capital Allocation Strategy - The company has successfully refinanced its debt, reducing costs and improving cash flow generation, with a focus on three pillars: organic investment, M&A, and share repurchases [42][45] - The acquisition of PDP has been transformative, and the company remains open to further M&A opportunities across all product categories [47][48] Future Outlook - The CEO expressed optimism about the gaming industry's growth potential, particularly with the upcoming hardware cycles and the need for gamers to upgrade their accessories [49][50] - The company anticipates a multi-year growth cycle driven by high gamer engagement and the replacement of pandemic-era purchases [50][51] Additional Important Insights - The company is adapting its product designs and marketing strategies to align with macro trends in gaming, focusing on large franchise games and community engagement [41][42] - The competitive landscape for headsets is evolving, with consolidation in the market, but Turtle Beach is well-positioned to leverage its expertise and technology [33][36]

Company Overview - Turtle Beach Corporation is a leading gaming accessories brand known for designing best-selling gaming headsets, top-rated game controllers, award-winning PC gaming peripherals, and groundbreaking gaming simulation accessories [3] - The company has been a market leader in console gaming audio for over a decade and acquired Performance Designed Products LLC in 2024 [3] - Turtle Beach's shares are traded on the Nasdaq Exchange under the symbol TBCH [3] Upcoming Events - CEO Cris Keirn will host a fireside chat on August 12 at 2:55 p.m. ET during the Oppenheimer 28th Annual Technology, Internet & Communications Conference [2] - Management will be available for meetings during the conference, and a live webcast of the event will be accessible through the "Events & Presentations" section of the company's website [2] Investor Relations - A replay of the webcast will be available on the investor relations website for 90 days following the event [2]

Financial Data and Key Metrics Changes - The company reported second quarter revenue of $56.8 million, reflecting a decrease due to dampened market conditions in the gaming accessories industry [11] - Gross margins improved to 32% from 30% in the prior year, demonstrating effective cost optimization initiatives despite lower revenue [11][12] - Adjusted EBITDA loss for the second quarter was $3 million, with expectations for a notable increase in adjusted EBITDA in the second half of the year, guiding for a full year range of $47 million to $53 million [13][14] Business Line Data and Key Metrics Changes - The company has seen improvements in year-on-year market comparisons in Q2, particularly in the headset and third-party controller markets, which were down mid-teens year-to-date compared to over 20% at the end of Q1 [10][25] - The launch of Nintendo Switch 2 has driven strong sales in related accessories, indicating a positive trend in the gaming accessories market [10][29] Market Data and Key Metrics Changes - The overall gaming accessories market is expected to remain down for the full year 2025, but improvements are anticipated in the second half of the year, setting the stage for strong growth in 2026 [10][11] - The company noted that less than 15% of total U.S. supply will be produced in China after Q1, up from approximately 10% previously discussed [7] Company Strategy and Development Direction - The company is focused on three primary objectives: delivering Q2 results, advancing capital allocation strategies including stock buybacks, and refinancing credit facilities to strengthen capital structure [5][9] - The capital allocation strategy emphasizes investments in organic growth, share repurchases, and accretive mergers and acquisitions [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strengthened strategic positioning and opportunities ahead as the outlook for gaming accessories improves [19] - The macroeconomic environment has tracked closely to expectations, with improvements driven by successful product launches like the Nintendo Switch 2 [24][26] Other Important Information - The company successfully repurchased approximately $5 million of stock at an average price of $13.47 as part of its $75 million share repurchase program [8][16] - A comprehensive refinancing of the term loan and credit facility was completed, resulting in a reduced interest rate and enhanced operational flexibility [9][15] Q&A Session Summary Question: Reflection on changes since the last quarterly call regarding the U.S. economy, tariffs, and game title releases - Management noted that the macroeconomic pressures remain but improvements are expected, particularly driven by the successful launch of Nintendo Switch 2 [24][26] Question: Lift in sales of Nintendo-related products - Management confirmed strong sales in June for Nintendo-related accessories, indicating a positive trend following the hardware release [29] Question: Improvement in market conditions across product lines - Management indicated that improvements were seen across gaming accessories, particularly in controllers and headsets, with expectations for continued improvement in the back half of the year [34]

SECOND QUARTER 2025 EARNINGS PRESENTATION NASDAQ: TBCH | AUGUST 7, 2025 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, intentions or be ...