Turtle Beach (TBCH) AI Stock Analysis

• Market Cap: $288.70M
• Dividend Yield: N/A
• Average Volume (3M): 253.32K
• Price to Earnings (P/E): 17.3
• Beta (1Y): 2.24
• Revenue Growth: 6.43%
• EPS Growth: 196.68%
• Country: US
• Employees: 262
• Sector: Technology
• Sector Strength: 88
• Industry: Consumer Electronics
• EPS (TTM): 0.10
• Shares Outstanding: 19,311,014
• 10 Day Avg. Volume: 195,137
• 30 Day Avg. Volume: 253,323
• PEG Ratio: -0.12
• Price to Book (P/B): 2.87
• Price to Sales (P/S): 0.93
• P/FCF Ratio: 409.19
• Enterprise Value/Market Cap: 1.39
• Enterprise Value/Revenue: 1.16
• Enterprise Value/Gross Profit: 3.26
• Enterprise Value/Ebitda: 9.70
• 1Y Price Target: $20.00
• Price Target Upside: 33.78% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): 0.98
• Revenue Forecast (FY): $349.46M

• Rating: 62 Neutral
• Price Target: $13.50 ▼(-9.70% Downside)

Turtle Beach's overall stock score reflects a solid financial foundation with improved operational efficiency and strategic initiatives highlighted in the earnings call. However, technical indicators show bearish momentum, and the valuation is moderate. The company's optimistic outlook for 2026 and product innovation are positive factors, but challenges in the gaming accessories market and tariff impacts remain concerns.

Positive Factors

Product Innovation

The launch of over 40 new products strengthens Turtle Beach's market position and demonstrates its commitment to innovation, potentially driving future revenue growth and market share expansion.

Gross Margin Improvement

Improved gross margins indicate effective cost management and pricing strategy, enhancing profitability and providing a buffer against market fluctuations.

Successful Refinancing

Refinancing reduces interest expenses, improving cash flow and financial flexibility, which supports long-term strategic investments and stability.

Negative Factors

Revenue Decline

The decline in revenue suggests challenges in maintaining sales growth, which could impact future earnings and market competitiveness if not addressed.

Challenges in Gaming Accessories Market

A declining market for gaming accessories poses a risk to Turtle Beach's core business, potentially affecting sales and necessitating adaptation to market conditions.

Impact of Tariffs

Tariff impacts increase costs and require strategic adjustments, which can strain resources and impact profitability if not effectively managed.

Turtle Beach Business Overview & Revenue Model

Company Description

Turtle Beach Corporation operates as an audio technology company in North America, Europe, the Middle East, and the Asia Pacific. It develops, commercializes, and markets gaming headset solutions for various platforms, including video game and entertainment consoles, handheld consoles, personal computers, tablets, and mobile devices under the Turtle Beach brand. The company also offers gaming headsets, keyboards, mice, and other accessories for the personal computer peripherals market under the ROCCAT brand. In addition, it provides game controllers, and gaming flight simulation and racing simulation accessories, as well as USB and analog microphones for gamers, streamers, professionals, and students. The company serves retailers and distributors. Turtle Beach Corporation was founded in 1975 and is headquartered in White Plains, New York.

How the Company Makes Money

Turtle Beach generates revenue primarily through the sale of its gaming headsets and audio accessories. The company operates on a direct-to-consumer model through its online store, as well as through partnerships with major retailers and e-commerce platforms. Key revenue streams include sales of wired and wireless gaming headsets, which are often priced at a premium due to their advanced technology and features. Additionally, Turtle Beach benefits from seasonal sales boosts during peak gaming periods and new product launches. The company also occasionally collaborates with game developers and publishers for co-branded products, further enhancing its market reach and revenue potential.

Turtle Beach Financial Statement Overview

Summary

Turtle Beach demonstrates a solid financial position with strengths in cash flow generation and operational efficiency. However, the decline in revenue growth and relatively low net profit margin indicate areas for improvement. The company appears to be managing its debt effectively, contributing to a stable financial outlook.

Income Statement

Turtle Beach's income statement shows a mixed performance. The TTM gross profit margin is healthy at 35.38%, indicating effective cost management. However, the net profit margin is relatively low at 5.53%, and revenue has declined by 5.17% in the TTM, suggesting challenges in maintaining sales growth. The EBIT and EBITDA margins have improved over the past year, reflecting better operational efficiency.

Balance Sheet

The balance sheet reveals moderate financial stability. The debt-to-equity ratio has improved to 0.53 in the TTM, indicating a manageable level of debt. Return on equity is strong at 17.35%, showing effective use of equity to generate profits. However, the equity ratio is not explicitly provided, which limits a full assessment of asset financing.

Cash Flow

Cash flow analysis shows a significant improvement in free cash flow growth at 71.21% in the TTM, indicating strong cash generation capabilities. The operating cash flow to net income ratio is 0.38, suggesting that operating cash flow is covering net income adequately. The free cash flow to net income ratio is high at 0.88, reflecting efficient cash conversion.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	347.21M	372.77M	258.12M	240.17M	366.35M	360.09M
Gross Profit	123.68M	128.98M	75.50M	49.19M	128.38M	133.79M
EBITDA	41.51M	30.13M	-12.00M	-47.42M	25.84M	58.17M
Net Income	18.26M	16.18M	-17.68M	-59.55M	17.72M	38.75M
Balance Sheet
Total Assets	278.21M	298.86M	149.97M	163.39M	230.50M	203.45M
Cash, Cash Equivalents and Short-Term Investments	12.26M	12.99M	18.73M	11.40M	37.72M	46.68M
Total Debt	90.46M	105.19M	0.00	19.05M	0.00	0.00
Total Liabilities	167.56M	178.26M	64.89M	74.45M	89.14M	87.05M
Stockholders Equity	110.65M	120.60M	85.08M	88.94M	141.37M	116.40M
Cash Flow
Free Cash Flow	33.74M	847.00K	24.89M	-45.40M	-5.95M	45.39M
Operating Cash Flow	36.44M	5.76M	27.04M	-41.85M	-327.00K	51.05M
Investing Cash Flow	-176.00K	-82.21M	-2.16M	-3.55M	-8.12M	-5.66M
Financing Cash Flow	-36.09M	71.05M	-17.85M	19.71M	-56.00K	-7.41M

Turtle Beach Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 14.95
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TBCH, the sentiment is Positive. The current price of 14.95 is above the 20-day moving average (MA) of 13.98, below the 50-day MA of 15.04, and above the 200-day MA of 13.97, indicating a neutral trend. The MACD of -0.05 indicates Negative momentum. The RSI at 55.79 is Neutral, neither overbought nor oversold. The STOCH value of 91.47 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TBCH.

Turtle Beach Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TBCH	62 Neutral	$288.70M	17.33	17.19%	―	6.43%	196.68%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
SONO	59 Neutral	$2.21B	-35.15	-15.60%	―	-4.93%	-59.17%
GPRO	50 Neutral	$280.89M	-2.23	-91.95%	―	-27.37%	70.46%
KOSS	49 Neutral	$43.31M	-197.41	-0.69%	―	11.58%	81.08%
UEIC	48 Neutral	$43.71M	-1.96	-14.35%	―	2.35%	18.83%
VUZI	47 Neutral	$217.14M	-5.53	-96.37%	―	-4.31%	59.68%

Turtle Beach Corporate Events

Turtle Beach Director David Muscatel Resigns

On September 12, 2025, David Muscatel, a director of Turtle Beach Corporation, announced his resignation effective September 30, 2025. His departure was not due to any disagreements with the company’s operations or management, indicating a smooth transition and stability in the company’s governance.