Turtle Beach (US:HEAR)2025-11-06 21:30Financial Performance - Q3 2025 revenue reached $80.5 million, supporting the company's full-year guidance[4] - Q3 2025 gross margin improved year-over-year to 37% from 36%, driven by cost optimization initiatives[4] - Net income decreased to $1.7 million in Q3 2025 from $3.4 million in Q3 2024 due to lower revenue[8] - Adjusted EBITDA decreased to $11.0 million in Q3 2025 from $16.3 million in Q3 2024, also due to lower revenue[8] Capital Structure and Share Repurchase - The company refinanced prior debt with a new $90 million revolving credit facility and a $60 million term loan[5] - Approximately $10 million in common shares were repurchased during Q3 2025, bringing the total to approximately $45 million over the past seven quarters[5] Market Position and Product Innovation - Turtle Beach headsets gained market share amidst an improving gaming headset market year-to-date September and in Q3 2025[5] - The company revealed over 40 new gaming accessories since Q2 2025[5] - Turtle Beach products are top-sellers in the broader gaming peripherals market[5] - The company is focused on unlocking potential in the $11 billion gaming accessories market[12] Guidance and Long-Term Targets - The company's 2025 net revenue guidance is $340 million to $360 million, with adjusted EBITDA between $47 million and $53 million[9] - The company's long-term financial targets include revenue growth of 10%+ CAGR, gross margins in the mid-to-high 30s, and adjusted EBITDA margins in the mid-to-high teens[9]