Turtle Beach Q4 revenue misses estimates as North American market softens
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
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