Turtle Beach (NASDAQ:TBCH) Posts Quarterly Earnings Results

Turtle Beach (NASDAQ:TBCH) released its earnings results on Thursday. The company reported $0.24 earnings per share for the quarter, missing the consensus estimate of $0.26 by ($0.02), FiscalAI reports. Turtle Beach had a negative return on equity of 2.26% and a negative net margin of 1.07%. The firm had revenue of $84.70 million during the quarter.

Here are the key takeaways from Turtle Beach’s conference call:

• Revenue returned to growth in Q3, rising 5.3% year over year to $84.7 million, supported by wireless headsets and new products. Turtle Beach ranked No. 1 in U.S. gaming headsets and third-party controllers for the quarter, with Nintendo controller sales up more than 70% year over year.
• Gross margin fell to 34.9% from 37.4%, reflecting product mix and higher promotional, tariff, and logistics costs; Adjusted EBITDA declined to $8.1 million from $11 million. Management expects Q4 margin to improve and reiterated its full-year target of a mid-to-high-30% gross margin.
• Retailers shifted more holiday purchases into Q4 rather than building inventory in Q3, making the full-year outlook dependent on a substantial Q4 contribution. The company reaffirmed 2026 revenue guidance of $335 million–$355 million and Adjusted EBITDA guidance of $44 million–$48 million, citing accelerating October orders and sell-through, while noting purchase timing and holiday demand remain key variables.
• Management highlighted a broader product lineup and upcoming game releases, including GTA VI, as potential drivers of accessory demand through the holiday season and into 2027. New launches and licensing partnerships with Epic Games, Disney, and Marvel aim to expand the company’s reach.

Turtle Beach Stock Down 8.8%

TBCH stock traded down $1.46 during trading hours on Friday, hitting $15.19. The company’s stock had a trading volume of 1,083,342 shares, compared to its average volume of 558,456. The stock has a 50 day moving average price of $13.97 and a two-hundred day moving average price of $12.64. Turtle Beach has a 12 month low of $9.84 and a 12 month high of $17.10. The company has a market capitalization of $272.05 million, a PE ratio of -303.80 and a beta of 2.36. The company has a quick ratio of 1.30, a current ratio of 2.38 and a debt-to-equity ratio of 0.95.

More Turtle Beach News

Here are the key news stories impacting Turtle Beach this week:

• Positive Sentiment: Zacks added TBCH to its Rank #1 (Strong Buy) list. Its report also said third-quarter EPS of $0.26 matched consensus and rose from $0.08 a year earlier. Zacks Strong Buy list
• Neutral Sentiment: Turtle Beach reaffirmed FY 2026 revenue guidance of $335 million–$355 million, a range that includes the $343.7 million analyst consensus. Third-quarter results and guidance
• Negative Sentiment: B. Riley cut its rating from Buy to Neutral, although it kept its $17 price target. The downgrade may be pressuring shares; the target still implies potential upside from the reported trading level. B. Riley rating change
• Negative Sentiment: Third-quarter EPS reports conflict: Zacks cited $0.26, in line with consensus, while MarketBeat reported $0.24 versus a $0.26 estimate. That discrepancy leaves investors with mixed signals on whether results met expectations. MarketBeat earnings report

Wall Street Analysts Forecast Growth

Several equities analysts have weighed in on TBCH shares. Wall Street Zen raised Turtle Beach from a “hold” rating to a “buy” rating in a research note on Saturday, October 3rd. Zacks Research upgraded Turtle Beach from a “hold” rating to a “strong-buy” rating in a report on Thursday. Roth Capital reissued a “buy” rating and set a $18.00 price objective on shares of Turtle Beach in a research report on Thursday, October 15th. Weiss Ratings upgraded Turtle Beach from a “sell (d)” rating to a “sell (d+)” rating in a research note on Monday, October 19th. Finally, B. Riley Financial lowered Turtle Beach from a “buy” rating to a “neutral” rating and set a $17.00 target price on the stock. in a research report on Friday. One investment analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating, two have given a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, Turtle Beach presently has an average rating of “Moderate Buy” and a consensus target price of $15.80.

Insider Buying and Selling at Turtle Beach

In related news, major shareholder Dc Vga Llc sold 140,000 shares of Turtle Beach stock in a transaction on Monday, August 10th. The shares were sold at an average price of $12.70, for a total value of $1,778,000.00. Following the completion of the sale, the insider owned 1,921,112 shares of the company’s stock, valued at approximately $24,398,122.40. The trade was a 6.79% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Corporate insiders own 3.40% of the company’s stock.

Institutional Investors Weigh In On Turtle Beach

Large investors have recently bought and sold shares of the business. Pullen Investment Management LLC raised its holdings in Turtle Beach by 20.6% during the third quarter. Pullen Investment Management LLC now owns 193,581 shares of the company’s stock valued at $2,472,000 after buying an additional 33,013 shares in the last quarter. WINTON GROUP Ltd bought a new stake in shares of Turtle Beach during the 2nd quarter worth about $141,000. AXQ Capital LP bought a new stake in shares of Turtle Beach during the 2nd quarter worth about $211,000. Hennessy Advisors Inc. acquired a new position in shares of Turtle Beach during the 2nd quarter valued at about $150,000. Finally, Pinnacle Holdings LLC acquired a new position in shares of Turtle Beach during the 2nd quarter valued at about $798,000. 67.01% of the stock is currently owned by institutional investors.

About Turtle Beach

Turtle Beach Corporation (NASDAQ: TBCH) develops and markets gaming accessories and related consumer technology products. Its portfolio includes gaming headsets, controllers, keyboards, mice, microphones, and other accessories designed for use with consoles, PCs, and mobile devices. The company also offers products for flight simulation and other gaming applications.

The company’s products are sold under the Turtle Beach brand and, following its acquisition of Performance Designed Products, under brands including PDP.