Turtle Beach Q4 revenue misses estimates as North American market softens

Turtle Beach

12/03/2026 20:28

Overview

Gaming accessories maker's Q4 revenue, net income, and operating income missed analyst expectations

Company cited North American market softness and lighter holiday sell-through for results below guidance

Gross margin for Q4 improved to 40.1% from prior year

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 forecasts continued market headwinds in Q1 2026, with gradual improvement through the year

Result Drivers

MARKET SOFTNESS - Co said North American gaming accessories market softness and lighter holiday sell-through led to results below guidance

COST OPTIMIZATION - Gross margin improvement attributed to cost optimization initiatives and tariff mitigation strategies

Company press release: ID:nGNXgLt5B

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Revenue
Miss
$118.78 mln
$144.13 mln (6 Analysts)
Q4 EPS
$0.87
Q4 Net Income
Miss
$17.61 mln
$22.89 mln (5 Analysts)
Q4 Gross Margin
40.1%
Q4 Operating Income
Miss
$20.94 mln
$28.81 mln (6 Analysts)
Q4 Gross Profit
$47.60 mln
Q4 Operating Expenses
$26.65 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 $20.00, about 48.8% above its March 11 closing price of $13.44

The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 12 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.)