Q2 2025 Turtle Beach Corp Earnings Call Transcript
Key Points
- Turtle Beach Corp (TBCH) successfully delivered on its Q2 objectives, including navigating a quickly evolving environment and setting up a robust structure for the remainder of the year.
- The company advanced its capital allocation strategy by initiating stock buybacks and reducing high-cost debt.
- A comprehensive refinancing of credit facilities was completed, significantly strengthening the company's capital structure with a reduced interest rate and greater operational flexibility.
- Gross margins improved to 32% in Q2, up from 30% in the prior year, demonstrating effective cost optimization initiatives.
- The company is optimistic about the upcoming gaming cycle, with strong growth expected in 2026 due to new hardware launches and game releases like GTA VI.
- Second quarter revenue of $56.8 million reflected dampened market conditions within the gaming accessories industry.
- The company experienced a $3 million adjusted EBITDA loss in Q2, primarily due to lower revenues.
- Direct tariff costs had a roughly 150 basis point impact on gross margins, with similar impacts expected for the full year.
- The market for headsets and third-party controllers is anticipated to remain down for the full year 2025.
- The shift of some production to Vietnam resulted in direct and indirect cost impacts.
welcome to Turtle Beach Corporation second quarter 2025 conference call. (Operator Instructions)
As a reminder, the conference is being recorded. I will now turn the call over to Jacques Cornet from the investor relations team. Jacques, you may begin.
Thank you, operator. On today's call, we'll be referring to the press release filed this afternoon that details the company's second quarter 2025 results, which is available on the Press Releases pages of the company's Investor Relations website corp.turtlebeach.com, where you'll also find the latest earnings presentation that supplements the information discussed on today's call. Finally, a recording of the call will be available on the events and presentations section of the company's Investor Relations website later today.
Please be aware that some of the comments made during this call may include forward-looking statements within the meaning of the federal securities laws. Statements about the company's beliefs and expectations
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