Turtle Beach Restores Year-Over-Year Growth

The Tip Desk · November 5, 2026 · 2 min read

Third-quarter net revenue reached $84.7 million, up 5.3% from a year earlier, as the gaming accessories maker reaffirmed full-year 2026 guidance.

Turtle Beach Corporation (TBCH), a gaming accessories brand, reported third-quarter net revenue of $84.7 million, a 5.3% increase from $80.5 million a year earlier, returning to year-over-year growth after the second quarter’s $56.4 million.

The company said the rebound was supported by an expanded product portfolio and progress on strategic priorities. Chief Executive Officer Cris Keirn said Turtle Beach ranked first in U.S. gaming headsets and third-party gaming controllers during the quarter, according to Circana, and called the controllers ranking a first in any quarter since the PDP acquisition.

Gross margin was 34.9%, down from 38.8% in the second quarter. The company attributed the sequential compression to product mix and higher promotional, tariff and logistics costs, and said it maintained its full-year gross margin outlook. Gross profit was $29.6 million.

Net income was $4.4 million, or $0.24 a share, compared with $1.7 million, or $0.09 a share, a year earlier. Adjusted EBITDA was $8.1 million. Operating income was $5.9 million. Selling and marketing expense was $15.0 million. The company recorded a $1.2 million insurance recovery in the quarter.

Inventory stood at $79.8 million on September 30, 2026, an increase of $23.2 million from the second quarter. Net debt was $71.7 million, comprising $82.9 million of borrowings less $11.2 million of cash. Cash and cash equivalents were $11.2 million. Accounts receivable were $60.4 million. The revolving credit facility had a zero balance.

Keirn said retailers maintained lean inventory levels through the third quarter. The company said it has seen early fourth-quarter retail orders accelerating year over year through October and improving consumer sell-through in the back half of October as the industry approaches major game releases, including Grand Theft Auto VI.

Turtle Beach reaffirmed full-year 2026 net revenue guidance of $335 million to $355 million, representing 5% to 11% year-over-year growth, and adjusted EBITDA guidance of $44 million to $48 million, representing 10% to 20% year-over-year growth. The outlook reflects expectations for a substantial fourth-quarter revenue contribution from retailer holiday inventory replenishment, new product introductions and increased gamer engagement around major releases. The company said early fourth-quarter ordering trends have been encouraging and that the timing and magnitude of retailer purchases, consumer sell-through and prevailing cost conditions remain important factors.

The company said it anticipates having balance-sheet capacity to resume share repurchases following the holiday season. It is not providing specific financial guidance beyond 2026.