Turtle Beach (US:HEAR)2025-08-07 20:30Financial Performance - Q2 2025 revenue reached $56.8 million [4], but declined year-over-year due to dampened market conditions in the gaming accessories industry [6] - Gross margin improved to 32% in Q2 2025 from 30% in Q2 2024, a 200 basis point increase, driven by cost optimization and the PDP acquisition [4, 6] - Operating expenses decreased to 33% of revenue, compared to 36% in the prior year, reflecting operational leverage and a $6.0 million insurance recovery [6] - Net loss was $2.9 million, and adjusted EBITDA was a loss of $3.0 million [6] Capital Structure and Share Repurchase - The company refinanced its debt with a new $90 million revolving credit facility and a $60 million term loan [4] - The company repurchased $5.0 million in common shares during Q2, bringing the total to approximately $35 million over the past six quarters [4] Market Position and Product Performance - Turtle Beach gained market share in the improving gaming headset market in Q2 2025 [4] - While the overall gaming headset market was down in Q2 2025, Turtle Beach gained 130 basis points in revenue share [5] - Turtle Beach's PS5 Victrix Pro BFG was the second best-selling controller (3rd party market) and the top-selling wireless controller YTD & Q2 [5] Guidance and Long-Term Targets - The company maintains its 2025 revenue guidance of $340 million to $360 million and adjusted EBITDA guidance of $47 million to $53 million [7] - The company's long-term financial targets include revenue growth of 10%+ CAGR and adjusted EBITDA margins in the mid-to-high teens [8] Market Opportunity - The company aims to unlock potential in the $11.2 billion gaming accessories market [12]