$TBCH

Turtle Beach Corp

CIK:0001493761|SEC Filings

Condensed Consolidated Statements of Operations (unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
Income Statement [Abstract]
Net revenue	$ 56,365	$ 56,777	$ 98,537	$ 120,678
Cost of revenue	34,502	38,515	65,380	79,049
Gross profit	21,863	18,262	33,157	41,629
Operating expenses:
Selling and marketing	14,700	12,731	26,960	25,184
Research and development	4,813	4,471	9,387	8,464
General and administrative	5,401	7,354	13,922	15,570
Insurance recovery		(5,965)		(9,404)
Acquisition-related cost				608
Total operating expenses	24,914	18,591	50,269	40,422
Operating (loss) income	(3,051)	(329)	(17,112)	1,207
Interest expense, net	3,666	2,049	5,035	4,055
Other expense (income), net	73	799	(28)	1,102
Loss before income tax	(6,790)	(3,177)	(22,119)	(3,950)
Income tax expense (benefit)	521	(246)	398	(355)
Net loss	$ (7,311)	$ (2,931)	$ (22,517)	$ (3,595)
Net loss per share
Basic (in dollars per share)	$ (0.38)	$ (0.14)	$ (1.16)	$ (0.17)
Diluted (in dollars per share)	$ (0.38)	$ (0.14)	$ (1.16)	$ (0.17)
Weighted average number of shares:
Basic (in shares)	19,182	20,667	19,339	20,587
Diluted (in shares)	19,182	20,667	19,339	20,587

Condensed Consolidated Statements of Cash Flows (unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss	$ (22,517)	$ (3,595)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization	1,669	2,191
Amortization of intangible assets	3,968	4,033
Amortization of debt financing costs	486	553
Stock-based compensation	2,636	2,920
Deferred income taxes	(227)	231
Change in sales returns reserve	3,379	2,962
Provision for obsolete inventory	678	1,176
Loss on extinguishment of debt	1,755
Changes in operating assets and liabilities, net of acquisitions:
Accounts receivable	35,476	53,727
Inventories	12,000	(6,731)
Prepaid expenses and other assets	636	(681)
Accounts payable	2,515	(990)
Income taxes payable	(821)	(3,367)
Other liabilities	(5,764)	(15,126)
Net cash provided by operating activities	35,869	37,303
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of property and equipment	(848)	(496)
Cash acquired in business combination		2,515
Net cash (used in) provided by investing activities	(848)	2,019
CASH FLOWS FROM FINANCING ACTIVITIES
Borrowings on revolving credit facilities	33	140,346
Repayment of revolving credit facilities	(29,416)	(169,819)
Proceeds from term loan	82,450
Repayment of term loan	(56,777)	(5,625)
Proceeds from exercise of stock options	274	112
Repurchase of restricted stock	(500)
Repurchase of common stock	(27,197)	(6,760)
Debt financing costs	(1,247)
Net cash used in financing activities	(32,380)	(41,746)
Effect of exchange rate changes on cash and cash equivalents	(39)	1,134
Net increase (decrease) in cash and cash equivalents	2,602	(1,290)
Cash and cash equivalents at the beginning of period	16,963	12,995
Cash and cash equivalents at the end of period	19,565	11,705
SUPPLEMENTAL DISCLOSURE OF INFORMATION
Property and equipment purchases included in accounts payable and accrued liabilities	372	$ 753
Unpaid debt financing costs	$ 75

Condensed Consolidated Balance Sheets (unaudited) - USD ($) $ in Thousands	Jun. 30, 2026	Dec. 31, 2025
Current Assets:
Cash and cash equivalents	$ 19,565	$ 16,963
Accounts receivable, net	37,941	76,797
Inventories	56,544	69,222
Prepaid expenses and other current assets	10,935	10,831
Total Current Assets	124,985	173,813
Property and equipment, net	2,372	2,995
Goodwill	50,428	50,428
Intangible assets, net	30,376	34,344
Other assets	7,006	7,474
Total Assets	215,167	269,054
Current Liabilities:
Revolving credit facility		29,383
Accounts payable	27,863	24,934
Term Loan, current	4,250	8,571
Other current liabilities	20,435	24,789
Total Current Liabilities	52,548	87,677
Term Loan, non-current	76,439	46,339
Income tax payable	820	820
Other liabilities	4,644	5,720
Total Liabilities	134,451	140,556
Commitments and Contingencies
Stockholders’ Equity
Common stock, $0.001 par value - 25,000,000 shares authorized; 17,909,711 and 19,185,869 shares issued and outstanding as of June 30, 2026 and December 31, 2025, respectively	18	19
Additional paid-in capital	204,401	229,189
Accumulated deficit	(124,880)	(102,363)
Accumulated other comprehensive income	1,177	1,653
Total Stockholders’ Equity	80,716	128,498
Total Liabilities and Stockholders’ Equity	$ 215,167	$ 269,054