Turtle Beach | 8-K: FY2026 Q1 Revenue Misses Estimate at USD 42.17 M

Revenue: As of FY2026 Q1, the actual value is USD 42.17 M, missing the estimate of USD 46.87 M.

EPS: As of FY2026 Q1, the actual value is USD -0.78, missing the estimate of USD -0.4433.

EBIT: As of FY2026 Q1, the actual value is USD -12.69 M.

First Quarter 2026 Financial Highlights

• Net Revenue: Turtle Beach Corporation reported net revenue of $42.2 million for the first quarter ended March 31, 2026, a decrease of $21.7 million year-over-year compared to $63.9 million for the same period in 2025.
• Gross Margins: Gross margins were 26.8% for Q1 2026.
• Net Loss: The company experienced a net loss of -$15.2 million for Q1 2026, compared to a net loss of -$0.7 million in Q1 2025.
• Adjusted EBITDA: Adjusted EBITDA for the quarter was -$6.5 million, a decrease from $4.1 million in Q1 2025.
• Operating Loss: Operating loss was -$14.1 million in Q1 2026, contrasting with an operating income of $1.5 million in Q1 2025.

Operational Metrics

• Total Operating Expenses: Total operating expenses for Q1 2026 were $25.4 million, up from $21.8 million in Q1 2025.
• Selling and Marketing Expenses: Selling and marketing expenses were $12.3 million in Q1 2026, slightly down from $12.5 million in Q1 2025.
• Research and Development Expenses: Research and development expenses increased to $4.6 million in Q1 2026 from $4.0 million in Q1 2025.
• General and Administrative Expenses: General and administrative expenses were $8.5 million in Q1 2026, up from $8.2 million in Q1 2025.

Cash Flow

• Cash Flow from Operations: Cash flow from operations generated $29.4 million during the first quarter ended March 31, 2026, a decrease from $40.5 million in Q1 2025.
• Net Cash Used for Investing Activities: Net cash used for investing activities was -$0.3 million in Q1 2026, compared to net cash provided of $2.3 million in Q1 2025.
• Net Cash Used for Financing Activities: Net cash used for financing activities was -$33.7 million in Q1 2026, compared to -$44.9 million in Q1 2025.
• Cash and Cash Equivalents: Cash and cash equivalents at the end of Q1 2026 were $12.3 million, down from $17.0 million at December 31, 2025.

Balance Sheet and Debt

• Net Debt: At March 31, 2026, Turtle Beach Corporation had net debt of $41.3 million, consisting of $53.6 million in borrowings less $12.3 million in cash.
• Revolving Credit Facility: The revolving credit facility had a zero balance as of March 31, 2026, down from $29.4 million at December 31, 2025.
• Accounts Receivable, Net: Accounts receivable, net, decreased to $30.4 million at March 31, 2026, from $76.8 million at December 31, 2025.
• Inventories: Inventories were $64.3 million at March 31, 2026, compared to $69.2 million at December 31, 2025.
• Total Liabilities: Total liabilities decreased to $98.1 million at March 31, 2026, from $140.6 million at December 31, 2025.

Share Repurchase Program

• Remaining Capacity: The company’s $75 million share repurchase program has approximately $56 million of capacity remaining.
• Total Repurchased: Since commencing buybacks in 2024, Turtle Beach Corporation has repurchased approximately $50 million of common stock.

Financial Outlook

Turtle Beach Corporation reaffirmed its full year 2026 net revenue guidance 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, reflecting 10% to 20% year-over-year growth. The company anticipates that the anticipated November 2026 launch of Grand Theft Auto VI will drive increased gaming engagement and accessory demand.