Gaming accessories firm Turtle Beach Q3 revenue slightly misses expectations

Turtle Beach

06/11/2025 21:35

Overview

Turtle Beach Q3 revenue slightly misses analyst expectations

Net income for Q3 misses analyst estimates

Gross margin improved to 37.4%, up nearly 120 basis points yr/yr

Outlook

Turtle Beach reiterates full-year revenue guidance of $340 mln to $360 mln

Company maintains full-year Adjusted EBITDA guidance of $47 mln to $53 mln

Result Drivers

COST OPTIMIZATION - Gross margin improved nearly 120 basis points due to ongoing cost optimization initiatives

DEBT REFINANCING - Refinancing reduced cost of capital by over 450 basis points, saving $2 mln annually in interest

PRODUCT EXPANSION - Launched over 40 new products, including licensed PlayStation and Nintendo accessories

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Slight Miss*
$80.46 mln
$80.50 mln (5 Analysts)
Q3 EPS
$0.08
Q3 Net Income
Miss
$1.72 mln
$2.28 mln (5 Analysts)
Q3 Gross Margin
37.40%


*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the computer hardware peer group is "buy"

Wall Street's median 12-month price target for Turtle Beach Corp is $20.00, about 20.7% above its November 5 closing price of $15.87

The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 15 three months ago

Press Release: ID:nGNX1ymcvc

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact RefinitivNewsSupport@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)