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Turtle Beach Corp (TBCH)
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Turtle Beach (TBCH) AI Stock Analysis

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Turtle Beach

(NASDAQ:TBCH)

Rating:68Neutral
Price Target:
Turtle Beach's stock score reflects its strong financial recovery and positive earnings outlook. The company has demonstrated robust revenue and profitability growth, supported by strategic initiatives and market positioning. However, technical indicators suggest caution, and potential tariff impacts present risks. Valuation remains attractive, indicating potential for stock appreciation.
Positive Factors
Financial Performance
TBCH reported strong results with revenue up 14% year-over-year, beating estimates and demonstrating solid growth driven by incremental PDP sales.
Market Position
TBCH maintained its leadership in the gaming headset market, outpacing the gaming controller/gamepad market growth.
Operations Strategy
TBCH has significantly transitioned production out of China to Vietnam, reducing exposure to tariff impacts and having mitigation plans in place.
Negative Factors
Guidance
Management lowered 2025 guidance for revenue and adjusted EBITDA due to industry headwinds and uncertainty around tariffs, indicating challenges in the upcoming year.
Sales Forecast
The GTA 6 release date delays a significant uptick of sales from this coming holiday period to Q2 – Q4 next year.
Tariffs Impact
Tariffs in China create a material impact on Turtle Beach, given that over 75% of its revenue is from domestic sales, while roughly 50% of its manufacturing is from China.

Turtle Beach (TBCH) vs. SPDR S&P 500 ETF (SPY)

Turtle Beach Business Overview & Revenue Model

Company DescriptionTurtle 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 MoneyTurtle Beach generates revenue primarily through the sale of its gaming headsets and related audio accessories. The company markets and sells its products through various channels, including direct-to-consumer sales via its website, as well as through major retailers and online platforms. Key revenue streams include sales from its flagship Turtle Beach gaming headsets and its ROCCAT brand of PC gaming accessories. Strategic partnerships with gaming console manufacturers and collaborations with esports organizations further bolster sales. The company also benefits from the growing popularity of gaming and esports, which drives demand for high-performance audio equipment.

Turtle Beach Earnings Call Summary

Earnings Call Date:May 08, 2025
(Q1-2025)
|
% Change Since: 33.03%|
Next Earnings Date:Aug 07, 2025
Earnings Call Sentiment Neutral
The earnings call reflects a mixed sentiment. While Turtle Beach has shown strong financial growth, operational improvements, and strategic initiatives like new product launches and share repurchases, the company faces significant challenges due to market declines, tariff impacts, and economic uncertainties. The delay in major game releases like GTA 6 further adds to the cautious outlook for 2025.
Q1-2025 Updates
Positive Updates
Revenue Growth and EBITDA Improvement
First quarter revenue grew by 14% year-over-year to $63.9 million, and adjusted EBITDA increased by 180% to $4.1 million from $1.4 million a year ago.
Gross Margin Expansion
Gross margins improved by 470 basis points year-on-year to 36.6%, driven by operational improvements and cost efficiencies.
Inventory Management and Tariff Mitigation
Proactive increase in inventory levels and successful shift of production to Vietnam, leaving less than 10% of U.S. supply produced in China after Q1.
New Product Launches and Market Expansion
Introduction of new Nintendo Switch headsets and controllers and new Xbox accessories, aligning with growth drivers like the launch of the Nintendo Switch 2.
Share Repurchase Program
Execution of the largest share repurchase program in the company's history, with a new $75 million authorization over the next two years.
Negative Updates
Market Challenges and Revenue Guidance Revision
Revision of full year 2025 revenue guidance to $340 million to $360 million due to a 16% decline in the U.S. gaming accessories market and other macroeconomic factors.
Impact of Tariffs and Economic Uncertainty
Challenges posed by tariffs and the broader economic environment, which have introduced complexities and a lack of visibility for the full year.
Delay in GTA 6 Release
Grand Theft Auto VI release delayed to spring 2026, impacting anticipated increased demand for new accessories in 2025.
PDP Performance
On a pro forma basis, PDP's performance was in line with the market, which was down over 20% for key categories.
Company Guidance
During the Turtle Beach Q1 2025 earnings call, the company provided guidance for the fiscal year 2025, projecting full-year revenue to range between $340 million and $360 million, with adjusted EBITDA expected to be between $47 million and $53 million. The guidance revision reflects external challenges, including a 16% decline in the U.S. gaming accessories market in Q1, tariff impacts, and a delay in the release of Grand Theft Auto VI. Despite these challenges, Turtle Beach reported a 14% year-over-year revenue increase to $63.9 million and a gross margin improvement of 470 basis points to 36.6% for the first quarter. The company also highlighted strategic moves such as inventory adjustments and supply chain diversification to mitigate tariff impacts, with less than 10% of U.S. supply expected to be produced in China post-Q1. Additionally, Turtle Beach announced a new $75 million share repurchase program over the next two years, emphasizing their commitment to shareholder value and sustainable growth.

Turtle Beach Financial Statement Overview

Summary
Turtle Beach demonstrates a commendable financial recovery with robust revenue growth and improved profitability. Its balance sheet is stable, supported by a solid equity base and reasonable debt levels. Cash flow improvements indicate a positive shift in operational efficiency, though consistency in free cash flow is needed. Overall, the financial health is strong with positive trends in key financial metrics.
Income Statement
72
Positive
Turtle Beach shows a strong recovery in revenue with a substantial growth rate from the previous year. The company has improved its gross and net profit margins significantly, turning a previous net loss into a profit. However, the EBIT and EBITDA margins show room for improvement, indicating potential efficiency gains. The revenue growth trajectory is positive, contributing to a robust income statement performance.
Balance Sheet
68
Positive
The company's balance sheet reflects a healthy equity position with a satisfactory debt-to-equity ratio. The return on equity has improved with the return to profitability, but the equity ratio indicates a moderate reliance on liabilities. Overall, the balance sheet demonstrates stability with a balanced asset structure, though there are opportunities to optimize leverage.
Cash Flow
65
Positive
While free cash flow growth has been inconsistent, the company has managed to reverse previous negative operating cash flows to positive figures, showcasing improved cash generation capabilities. The operating and free cash flow to net income ratios are favorable, indicating effective cash conversion, but further consistency in free cash flow growth could enhance performance.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue380.82M372.77M258.12M240.17M366.35M360.09M
Gross Profit134.56M128.98M75.50M49.19M128.38M133.79M
EBITDA40.84M30.13M-12.00M-47.42M25.84M58.17M
Net Income15.36M16.18M-17.68M-59.55M17.72M38.75M
Balance Sheet
Total Assets247.02M298.86M149.97M163.39M230.50M203.45M
Cash, Cash Equivalents and Short-Term Investments11.68M12.99M18.73M11.40M37.72M46.68M
Total Debt53.39M96.28M0.0019.05M0.000.00
Total Liabilities126.15M178.26M64.89M74.45M89.14M87.05M
Stockholders Equity120.87M120.60M85.08M88.94M141.37M116.40M
Cash Flow
Free Cash Flow14.61M847.00K24.89M-45.40M-5.95M45.39M
Operating Cash Flow18.96M5.76M27.04M-41.85M-327.00K51.05M
Investing Cash Flow-3.63M-82.21M-2.16M-3.55M-8.12M-5.66M
Financing Cash Flow-21.81M71.05M-17.85M19.71M-56.00K-7.41M

Turtle Beach Technical Analysis

Technical Analysis Sentiment
Negative
Last Price13.09
Price Trends
50DMA
12.62
Positive
100DMA
12.96
Positive
200DMA
14.91
Negative
Market Momentum
MACD
0.11
Positive
RSI
45.40
Neutral
STOCH
12.36
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TBCH, the sentiment is Negative. The current price of 13.09 is below the 20-day moving average (MA) of 13.75, above the 50-day MA of 12.62, and below the 200-day MA of 14.91, indicating a neutral trend. The MACD of 0.11 indicates Positive momentum. The RSI at 45.40 is Neutral, neither overbought nor oversold. The STOCH value of 12.36 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TBCH.

Turtle Beach Risk Analysis

Turtle Beach disclosed 31 risk factors in its most recent earnings report. Turtle Beach reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Turtle Beach Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
68
Neutral
$262.10M18.0512.49%44.41%
65
Neutral
$267.71M19.169.33%3.33%-1.13%61.49%
62
Neutral
£519.74M22.62-8.61%2.56%4.26%-25.59%
55
Neutral
$331.52M-135.21%-41.76%5.56%
54
Neutral
$819.48M-63.35%7.05%13.73%
48
Neutral
$290.98M-104.69%-1.64%9.99%
CACAN
48
Neutral
$300.87M-90.43%65.68%50.28%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TBCH
Turtle Beach
13.09
-2.20
-14.39%
AUDC
Audiocodes
10.80
0.36
3.45%
MVIS
Microvision
1.38
0.25
22.12%
CAN
Canaan
0.95
-0.26
-21.49%
BKSY
BlackSky Technology
28.29
27.18
2448.65%
NRDY
Nerdy
1.60
-0.06
-3.61%

Turtle Beach Corporate Events

Executive/Board ChangesBusiness Operations and Strategy
Turtle Beach Appoints New CFO for Growth Strategy
Positive
Jan 27, 2025

On January 27, 2025, Turtle Beach Corporation announced the retirement of John Hanson as Chief Financial Officer and the appointment of Mark Weinswig as his successor, effective February 3, 2025. Hanson will serve as a senior advisor during a six-month transition period. Weinswig, with over 25 years of financial leadership experience, previously served as CFO at Ouster and Velodyne Lidar, and his strategic expertise is expected to support Turtle Beach’s growth strategy and enhance shareholder value.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: May 03, 2025