Turtle Beach misses Q1 estimates on challenging market; backs FY outlook

Turtle Beach

07/05/2026 21:18

Overview

Gaming accessories maker's Q1 revenue and net income missed analyst expectations

Company reaffirmed full-year 2026 revenue and adjusted EBITDA guidance

Turtle Beach restructured credit facilities to support ongoing share repurchases

Outlook

Turtle Beach sees 2026 net revenue between $335 mln and $355 mln

Company expects 2026 adjusted EBITDA between $44 mln and $48 mln

Company expects channel inventories to rebound and act as a tailwind in 2026

Result Drivers

CHALLENGING MARKET ENVIRONMENT - Co said Q1 results reflected continuation of difficult market conditions from 2025

CHANNEL INVENTORY DIP - Co cited a temporary dip in channel inventories, which it expects to rebound and act as a tailwind in coming quarters

HIGHER PROFESSIONAL FEES - Q1 results included increased professional fees related to potential acquisitions, warehouse relocation, and litigation

Company press release: ID:nGNXb2sZZ7

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
Miss
$42.17 mln
$46.87 mln (6 Analysts)
Q1 Net Income
Miss
-$15.21 mln
-$8.64 mln (6 Analysts)
Q1 Gross Margin
26.80%
Q1 Operating Income
Miss
-$14.06 mln
-$6.76 mln (6 Analysts)
Q1 Gross Profit
$11.29 mln
Q1 Operating Expenses
$25.36 mln


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 $17.50, about 38.1% above its May 6 closing price of $12.68

The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 10 three months ago

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