Revenue: As of FY2026 Q2, the actual value is USD 56.37 M, missing the estimate of USD 60.1 M.

EPS: As of FY2026 Q2, the actual value is USD -0.38, missing the estimate of USD -0.312.

EBIT: As of FY2026 Q2, the actual value is USD 615 K.

Second Quarter 2026 Financial Highlights

Turtle Beach Corporation reported net revenue of $56.4 million for the second quarter ended June 30, 2026, compared to $56.8 million in the prior year period. Gross margin improved to 38.8%, marking a year-over-year increase of 660 basis points, primarily due to tariff refunds received. The company recorded a net loss of -$7.3 million, an increase from a net loss of -$2.9 million in the prior year. Adjusted EBITDA was $1.3 million, up from a loss of -$3.0 million in the prior year. Cash flow from operations generated $6.5 million, a significant improvement from a cash outflow of -$3.1 million in the prior year.

Operational Metrics (Three Months Ended June 30)

• Cost of Revenue: $34,502 thousand in 2026, compared to $38,515 thousand in 2025.
• Gross Profit: $21,863 thousand in 2026, compared to $18,262 thousand in 2025.
• Selling and Marketing Expenses: $14,700 thousand in 2026, up from $12,731 thousand in 2025.
• Research and Development Expenses: $4,813 thousand in 2026, up from $4,471 thousand in 2025.
• General and Administrative Expenses: $5,401 thousand in 2026, down from $7,354 thousand in 2025.
• Insurance Recovery: $0 thousand in 2026, compared to -$5,965 thousand in 2025.
• Total Operating Expenses: $24,914 thousand in 2026, compared to $18,591 thousand in 2025.
• Operating (Loss) Income: -$3,051 thousand in 2026, compared to -$329 thousand in 2025.
• Interest Expense, Net: $3,666 thousand in 2026, compared to $2,049 thousand in 2025.
• Other Expense (Income), Net: $73 thousand in 2026, compared to $799 thousand in 2025.
• Loss Before Income Tax: -$6,790 thousand in 2026, compared to -$3,177 thousand in 2025.
• Income Tax Expense (Benefit): $521 thousand in 2026, compared to -$246 thousand in 2025.

Operational Metrics (Six Months Ended June 30)

• Net Revenue: $98,537 thousand in 2026, compared to $120,678 thousand in 2025.
• Net Loss: -$22,517 thousand in 2026, compared to -$3,595 thousand in 2025.
• Operating (Loss) Income: -$17,112 thousand in 2026, compared to $1,207 thousand in 2025.

Cash Flow Summary (Six Months Ended June 30)

• Net Cash Provided by Operating Activities: $35,869 thousand in 2026, compared to $37,303 thousand in 2025.
• Net Cash Used in Financing Activities: -$32,380 thousand in 2026, compared to -$41,746 thousand in 2025.
• Cash and Cash Equivalents at End of Period: $19,565 thousand as of June 30, 2026, compared to $11,705 thousand as of June 30, 2025.

Share Repurchases

During the second quarter, Turtle Beach Corporation repurchased 2.0 million shares of common stock for $25.0 million at an average price of $12.53 per share. The company has approximately $31.0 million of remaining capacity in its current share repurchase program, and since commencing buybacks in 2024, has repurchased approximately $74 million of common stock.

Debt Refinancing

Turtle Beach Corporation refinanced its credit facilities during the second quarter, establishing a new credit structure consisting of an up to $80 million revolving asset-based lending (ABL) facility and an $85 million term loan facility. These new facilities replaced the company’s prior $150 million credit agreement, enhancing financial flexibility and accelerating the capital return program.

Net Debt

As of June 30, 2026, Turtle Beach Corporation had net debt of $64.4 million, comprising $83.9 million of borrowings less $19.6 million of cash.

Financial Outlook / Guidance

Turtle Beach Corporation reaffirmed its full year 2026 guidance, projecting net revenues between $335 million and $355 million, representing 5% to 11% year-over-year growth. Adjusted EBITDA is forecasted to be between $44 million and $48 million, indicating 10% to 20% year-over-year growth. The company anticipates a meaningful business rebound as retailers rebuild inventory and renewed consumer demand is driven by anticipated new game titles.