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Turtle Beach Corporation Announces Fourth Quarter and Full Year 2025 Results
“Our team operated with strong discipline in 2025, executing our strategic initiatives to sharpen our competitive edge,” said Cris Keirn, Chief Executive Officer of Turtle Beach Corporation. “Although our fourth quarter and full-year results were below guidance due primarily to softness in North American gaming accessories markets and a lighter holiday sell-through environment, we took steps to manage costs, protect our brand position, and prepare the Company for renewed growth.”
Fourth Quarter Highlights
- Net Revenue was $118.8 million.
- Gross Margins were 40.1%, a year-over-year improvement of 310 basis points.
- Net Income was $17.6 million.
- Adjusted EBITDA was $28.1 million.
Full Year 2025 Highlights
- Net Revenue was $319.9 million.
- Gross Margins were 37.3%, a year-over-year improvement of 270 basis points.
- Net Income was $15.7 million.
- Adjusted EBITDA was $40.1 million.
- Repurchased $19.0 million of Turtle Beach shares during the year at an average purchase price of $14.09 per share.
“Through cost optimization initiatives and tariff mitigation strategies, we achieved gross margins of 40.1% in the fourth quarter, and 37.3% for the full year, the highest annual level since 2018. These margin improvements helped offset market pressures and preserve profitability in a difficult operating environment.
“In 2025, we remained focused on advancing innovation across our platforms while increasing the speed and efficiency of our product development cycle. We also strengthened our balance sheet by refinancing our prior debt facilities. Throughout the year, we returned $19 million to shareholders through our share buyback program, bringing the total to nearly $47 million since 2024, demonstrating our commitment to disciplined capital allocation.
“Looking ahead to 2026, we remain optimistic. Although first-quarter trends reflect continued market softness, we believe the remainder of the year presents substantial growth potential for the industry and for Turtle Beach. Our expanded lineup, improved operational efficiency, and stronger balance sheet provide multiple levers for growth as gaming engagement trends elevate and our significant product launch plans for 2026 are realized. With our operational improvements firmly embedded and a strong foundation in place, Turtle Beach is well-positioned to see momentum build meaningfully as the year progresses, enabling us to capitalize on a market recovery and drive sustainable long-term shareholder value.”
Share Repurchase Update
For the fourth quarter ended December 31, 2025, the Company repurchased approximately 140,000 shares of common stock for an aggregate purchase price of $1.9 million. For the full year ended December 31, 2025, the Company repurchased 1,345,800 shares for an aggregate purchase price of $19.0 million, or $14.09 per share. As of December 31, 2025, the Company has approximately $58 million remaining under the current share repurchase program. Share buybacks remain a cornerstone of Turtle Beach’s capital allocation strategy, and the Company intends to be opportunistic in repurchasing shares in the event of price dislocation.
Balance Sheet Summary
At December 31, 2025, the Company had net debt of $68.1 million, comprised of $85.1 million of borrowings less $17.0 million of cash. The Company expects net debt to decline substantially in the first quarter as holiday season receivables are collected, consistent with normal seasonal working capital patterns. First quarter trends to date support this expectation.
Financial Outlook
The Company is initiating guidance for the full year 2026. Net revenues are expected to be between $335 million and $355 million, representing 5% to 11% year-over-year growth.
Adjusted EBITDA is expected to be between $44 million and $48 million, representing 10% to 20% year-over-year growth.
The Company’s outlook for both net revenue and Adjusted EBITDA include continued headwinds for gaming accessories markets in the first quarter of 2026, and we are forecasting a modest and gradual improvement in market trends as the year progresses.
Looking ahead beyond 2026, the Company is encouraged by the gaming industry pipeline. The anticipated launch of Grand Theft Auto VI in late 2026 is expected to be a significant industry event, and major game releases of this scale have historically driven increased gaming engagement and accessory demand. While the Company is not providing specific guidance beyond 2026 at this time, it believes the combination of its product innovation, brand strength, and favorable industry dynamics positions it for growth opportunities as these catalysts materialize.
Earnings Conference Call and Webcast Details
Turtle Beach will host a conference call and audio webcast today, March 12, at 5:00 p.m. Eastern Time (2:00 p.m. Pacific Time), during which management will discuss fourth quarter and full year results and provide commentary on business performance and its current outlook for 2026. A question-and-answer session will follow the prepared remarks.
