Revenue growth has contracted sharply from a 59.5% YoY peak in 2024Q3 to -0.7% in 2026Q2, with gross margin swinging between 22.0% (2026Q1) and 40.1% (2025Q4), indicating heavy mix-driven volatility rather than a stable structural margin profile.
Turtle Beach Corporation (TBCH) annual income statement — 6-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 |
|---|
| Sales/Revenue | 302.02M | 319.91M | 372.77M | 258.12M | 240.17M | 366.35M | 360.09M |
| Revenue Growth % | -13.02% | -14.18% | 44.41% | 7.48% | -34.44% | 1.74% | - |
| Cost of Goods Sold | 193.67M | 200.63M | 243.78M | 182.62M | 190.98M | 237.97M | 226.31M |
| COGS % of Revenue | - | 62.71% | 65.4% | 70.75% | 79.52% | 64.96% | 62.85% |
| Gross Profit | 108.35M | 119.28M | 128.98M | 75.5M | 49.19M | 128.38M | 133.79M |
| Gross Margin % | 35.87% | 37.29% | 34.6% | 29.25% | 20.48% | 35.04% | 37.15% |
| Gross Profit Growth % | - | -7.52% | 70.83% | 53.5% | -61.69% | -4.04% | - |
| Operating Expenses | 99.24M | 99.75M | 108.95M | 91.95M | 100.67M | 107.95M | 84.62M |
| OpEx % of Revenue | - | 31.18% | 29.23% | 35.62% | 41.92% | 29.47% | 23.5% |
| Selling, General & Admin | 81.04M | 82.86M | 80.82M | 74.81M | 79.65M | 90.46M | 72.36M |
| SG&A % of Revenue | - | 25.9% | 21.68% | 28.98% | 33.16% | 24.69% | 20.09% |
| Research & Development | 18.2M | 16.89M | 17.3M | 17.14M | 19.12M | 17.49M | 12.27M |
| R&D % of Revenue | - | 5.28% | 4.64% | 6.64% | 7.96% | 4.77% | 3.41% |
| Other Operating Expenses | 0 | 0 | 10.83M | 0 | 1.9M | 0 | 0 |
| Operating Income | 10.28M | 19.54M | 20.03M | -16.44M | -51.48M | 20.43M | 49.17M |
| Operating Margin % | 3.4% | 6.11% | 5.37% | -6.37% | -21.44% | 5.58% | 13.65% |
| Operating Income Growth % | - | -2.45% | 221.81% | 68.06% | -351.97% | -58.45% | - |
| EBITDA | 19.04M | 31.97M | 31.42M | -11.6M | -45.66M | 25.74M | 54.41M |
| EBITDA Margin % | 6.3% | 9.99% | 8.43% | -4.5% | -19.01% | 7.03% | 15.11% |
| EBITDA Growth % | -48.21% | 1.74% | 370.77% | 74.59% | -277.38% | -52.69% | - |
| D&A (Non-Cash Add-back) | 8.76M | 12.43M | 11.39M | 4.84M | 5.82M | 5.31M | 5.25M |
| EBIT | 3.69M | 26.57M | 18.74M | -16.84M | -53.23M | 20.53M | 52.92M |
| Net Interest Income | -7.03M | -9.77M | -8.07M | -504K | -1.22M | -383K | -467K |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 9.74M | 9.77M | 8.07M | 504K | 1.22M | 383K | 467K |
| Other Income/Expense | -10.65M | -2.74M | -9.36M | -898K | -2.97M | -282K | 3.29M |
| Pretax Income | -373K | 16.8M | 10.67M | -17.34M | -54.45M | 20.15M | 52.46M |
| Pretax Margin % | -0.12% | 5.25% | 2.86% | -6.72% | -22.67% | 5.5% | 14.57% |
| Income Tax | 149K | 1.07M | -5.51M | 338K | 5.09M | 2.43M | 13.71M |
| Effective Tax Rate % | -39.95% | 6.37% | -51.64% | -1.95% | -9.35% | 12.05% | 26.14% |
| Net Income | -522K | 15.73M | 16.18M | -17.68M | -59.55M | 17.72M | 38.75M |
| Net Margin % | -0.17% | 4.92% | 4.34% | -6.85% | -24.79% | 4.84% | 10.76% |
| Net Income Growth % | -102.86% | -2.79% | 191.54% | 70.31% | -436.02% | -54.26% | - |
| Net Income (Continuing) | -522K | 15.73M | 16.18M | -17.68M | -59.55M | 17.72M | 38.75M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -0.03 | 0.77 | 0.78 | -1.03 | -3.62 | 0.97 | 2.37 |
| EPS Growth % | -105.8% | -1.28% | 175.73% | 71.55% | -473.2% | -59.07% | - |
| EPS (Basic) | - | 0.78 | 0.81 | -1.03 | -3.62 | 1.11 | 2.62 |
| Diluted Shares Outstanding | 18.2M | 20.46M | 20.83M | 17.14M | 16.45M | 18.25M | 16.36M |
| Basic Shares Outstanding | 17.93M | 20.26M | 20.02M | 17.14M | 16.45M | 15.91M | 14.8M |
| Dividend Payout Ratio | - | - | - | - | - | - | - |
Quick answers to the most common questions about buying TBCH stock.
For fiscal year 2025, Turtle Beach Corporation (TBCH) reported total revenue of $319.9M. This represents a 11.2% decline compared to $360.1M in 2020.
Turtle Beach Corporation (TBCH) is profitable, generating $15.7M in net income for the fiscal year ending 2025 with a net profit margin of 4.9%.
Turtle Beach Corporation (TBCH) reported an operating income of $19.5M, resulting in an operating profit margin of 6.1%. This margin reflects the operational efficiency of the business before interest and taxes.
Turtle Beach Corporation (TBCH) generated $119.3M in gross profit for the year, representing a gross profit margin of 37.3%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Seasonal revenue concentration risk
Post-2024 Revenue Roll-Over Deepens
After a robust 2024 in which quarterly revenue grew up to 59.5% year over year, Turtle Beach's top line has rolled over decisively, with 2026Q2 revenue of $56.4 million down 0.7% YoY following a 34.0% decline in 2026Q1, as reported in the company's quarterly filings.
The 2024 surge, peaking at $146.1 million in Q4 with 46.8% YoY growth, appears to have reflected a favorable product-cycle and channel-restocking dynamic that has since exhausted itself, with five consecutive quarters of negative YoY growth from 2025Q2 onward. The near-flat -0.7% in 2026Q2 off a depressed $56.8 million prior-year base suggests stabilization at a lower run-rate rather than renewed momentum, and the durability of even this stabilization is questionable. Given the pronounced seasonality, investors should treat Q1 and Q2 trough quarters as poor proxies for full-year trajectory and focus on whether Q4 holiday revenue holds above the $118 million set in 2025.
Gross Margin Volatility Signals Mix Fragility
Gross margin is unusually volatile, swinging from 37.0% in 2024Q4 to just 22.0% in 2026Q1 before rebounding to 38.8% in 2026Q2, a pattern suggesting heavy product-mix and promotional effects rather than a stable structural cost advantage, based on the reported income statements.
The 2026Q1 collapse to 22.0% on $42.2 million of revenue implies either deep discounting or an adverse mix shift toward low-margin SKUs, and the sharp 2026Q2 recovery to 38.8% appears driven by a different revenue composition rather than a durable cost-down program. Against peers, TBCH's normalized mid-30s gross margin sits well below Logitech's 43.1% and Sonos's 43.7%, indicating weaker pricing power and a more promotion-dependent positioning in the gaming-headset category. This volatility makes forward gross-margin forecasting inherently unreliable, and we would discount any single-quarter margin print heavily.
Fixed Cost Base Exposes Operating Leverage
Combined R&D and SG&A exceeded $38 million in 2026Q2 against only $21.9 million of gross profit, producing a -$3.1 million operating loss despite an otherwise healthy 38.8% gross margin, highlighting a cost structure that appears poorly scaled to trough-quarter revenue, per the company's reported figures.
SG&A has remained stubbornly in the $18-22 million range for eight of ten quarters regardless of revenue level, and R&D has drifted upward from $3.9 million in 2024Q1 to $4.8 million in 2026Q2, meaning the company carries a largely fixed overhead load that swings operating income violently with gross profit. This creates extreme operating leverage in both directions: modest revenue declines translate to outsized margin erosion in trough quarters, while Q4 volume spikes convert efficiently into profit ($23.4 million operating income in 2024Q4). The structural implication is that TBCH's profitability is a function of hitting seasonal volume targets, leaving limited cushion if holiday demand disappoints.
Holiday-Dependent Model Masks Structural Weakness
The strongest bear case centers on a holiday-concentrated P&L: 2024Q4 and 2025Q4 produced operating income of $23.4 million and $21.3 million, respectively, masking operating losses in most other quarters, which appears to indicate a structurally unprofitable business outside the Q4 selling window, per reported financials.
Stripping out Q4, the remaining nine quarters show operating losses in five, including deep losses of -$13.8 million in 2026Q1 and -$6.2 million in 2025Q2, which suggests the annual profitability narrative rests almost entirely on one quarter of consumer demand. The declining Q4 peak itself, from $146.1 million to $118.8 million of revenue and $23.4 million to $21.3 million of operating income, implies the holiday engine is also decelerating, raising the risk of an unprofitable full year if 2026Q4 follows the trend. With negative net income in three of the last four quarters and cumulative SBC of roughly $14 million over ten quarters diluting EPS further, we would characterize TBCH's equity as offering asymmetric downside if the Q4 cycle fails to deliver.