Free cash flow remains highly erratic, swinging from a $15.9 million outflow in 2025Q3 to a $29.1 million inflow in 2026Q1, largely driven by volatile working capital changes.
| Cash from Operations | 24.38M | 35.46M | 5.76M | 27.04M | -41.85M | -327K | 51.05M |
| Operating CF Margin % | - | 11.08% | 1.55% | 10.48% | -17.42% | -0.09% | 14.18% |
| Operating CF Growth % | 75.36% | 515.48% | -78.7% | 164.63% | -12696.94% | -100.64% | - |
| Net Income | 1.19M | 15.73M | 16.18M | -17.68M | -59.55M | 17.72M | 38.75M |
| Depreciation & Amortization | 12.2M | 12.43M | 11.39M | 4.84M | 5.82M | 5.31M | 5.25M |
| Stock-Based Compensation | 1.39M | 0 | 6.17M | 11.98M | 7.98M | 7.66M | 5.55M |
| Deferred Taxes | 240K | -115K | -6.86M | -44K | 6.2M | 1.12M | 468K |
| Other Non-Cash Items | 10.39M | 11.26M | 10.19M | 1.58M | 5.71M | -1.9M | 6.83M |
| Working Capital Changes | -1.02M | -3.85M | -31.31M | 26.36M | -8.01M | -30.24M | -5.79M |
| Change in Receivables | 11.47M | 17.09M | -15.62M | -5.76M | -4.84M | 9.68M | -1.75M |
| Change in Inventory | 6.44M | -983K | -12.26M | 27.34M | 22.1M | -32.24M | -30.68M |
| Change in Payables | -18.89M | -9.96M | -4.02M | 1.77M | -23.35M | -2.79M | 18.67M |
| Cash from Investing | -1.53M | 1.1M | -82.21M | -2.16M | -3.55M | -8.12M | -5.66M |
| Capital Expenditures | -1.53M | -1.42M | -4.91M | -2.16M | -3.55M | -5.62M | -5.66M |
| CapEx % of Revenue | 0.51% | 0.44% | 1.32% | 0.84% | 1.48% | 1.53% | 1.57% |
| Acquisitions | -5.03M | -2.52M | -77.29M | 0 | 0 | -2.5M | 0 |
| Investments | - | - | - | - | - | - | - |
| Other Investing | 5.03M | 5.03M | 0 | 0 | 0 | 0 | 0 |
| Cash from Financing | -21.39M | -32.58M | 71.05M | -17.85M | 19.71M | -56K | -7.41M |
| Debt Issued (Net) | -1.67M | -15.61M | 98.37M | -19.05M | 19.05M | 0 | -15.65M |
| Equity Issued (Net) | -19.18M | -16.98M | -27.78M | -974K | 0 | -5.34M | 4.05M |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | -19.41M | -18.96M | -27.78M | -974K | 0 | -5.34M | -325K |
| Other Financing | -546K | 0 | 459K | 2.18M | 653K | 5.29M | 4.2M |
| Net Change in Cash | 636K | 3.97M | -5.73M | 7.33M | -26.32M | -8.96M | 38.43M |
| Free Cash Flow | 22.85M | 34.04M | 847K | 24.89M | -45.4M | -5.95M | 45.39M |
| FCF Margin % | 7.66% | 10.64% | 0.23% | 9.64% | -18.9% | -1.62% | 12.6% |
| FCF Growth % | 56.46% | 3918.77% | -96.6% | 154.82% | -663.2% | -113.11% | - |
| FCF per Share | 1.17 | 1.66 | 0.04 | 1.45 | -2.76 | -0.33 | 2.77 |
| FCF Conversion (FCF/Net Income) | 19.22x | 2.25x | 0.36x | -1.53x | 0.70x | -0.02x | 1.32x |
| Interest Paid | 0 | 0 | 7.14M | 500K | 979K | 194K | 309K |
| Taxes Paid | 0 | 0 | 193K | 63K | 0 | 6.56M | 8.04M |
Extreme working capital volatility
As reported in recent financial statements, the relationship between net income and operating cash flow is highly erratic, with OCF/NI ratios swinging from -60.92 in 2025Q1 to -1.93 in 2026Q1, indicating that reported earnings are frequently decoupled from the actual cash generated by core operations.
The extreme variance in the OCF/NI ratio suggests that net income is a poor proxy for the company's underlying cash-generating capability. Investors should monitor these discrepancies, as they appear to be driven by significant non-cash adjustments and timing differences rather than sustainable operational performance.
Based on the provided cash flow data, free cash flow margins have exhibited severe instability, ranging from a high of 69.0% in 2026Q1 to a low of -26.1% in 2024Q3, reflecting a business model that struggles to maintain consistent cash conversion throughout the fiscal year.
The inability to generate positive free cash flow in multiple quarters suggests that the company's cash position is highly sensitive to seasonal inventory cycles. This inconsistency warrants further investigation into whether the business can achieve self-sustaining cash flow without relying on periodic working capital liquidations.
According to the company's cash flow statements, working capital changes are the primary driver of liquidity, with a massive $36.7 million inflow in 2026Q1 contrasting sharply with a $40.0 million outflow in 2024Q3, highlighting the company's reliance on aggressive inventory and receivables management to fund operations.
These dramatic swings in working capital suggest that the company is highly vulnerable to channel inventory build-ups and subsequent clearance cycles. The reliance on these fluctuations to manage cash flow implies that operational liquidity is not derived from steady-state sales but rather from the timing of retail sell-in.
As evidenced by the cash flow data, the company has continued to prioritize share repurchases, with $10.3 million deployed in 2025Q3 despite significant revenue contraction, which may indicate a management preference for supporting the stock price over preserving cash for R&D or strategic diversification efforts.
The decision to allocate capital toward buybacks during periods of negative free cash flow appears questionable given the company's lean cash position. Investors should monitor whether this deployment strategy limits the firm's flexibility to navigate future industry downturns or fund necessary product innovation.
Quick answers to the most common questions about buying TBCH stock.
Turtle Beach Corporation (TBCH) generated $35.5M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Turtle Beach Corporation (TBCH) generated $34.0M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Turtle Beach Corporation (TBCH) spent $1.4M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Turtle Beach Corporation (TBCH) spent $19.0M on share repurchases. This shows the company's commitment to returning capital to its equity investors.