Turtle Beach's Q2 2025 Earnings Call: Diverging Views on Market Recovery, Tariffs, and Accessory Trends

Market improvements and economic outlooks, gaming accessories market decline, tariffs and economic pressures, impact of tariffs on business, gaming accessories market trends are the key contradictions discussed in Turtle Beach Corporation's latest 2025Q2 earnings call.



Revenue Guidance and Market Conditions:
- Turtle Beach reiterated its full year 2025 revenue guidance of $340 million to $360 million, with adjusted EBITDA in the range of $47 million to $53 million.
- The company is seeing improving market trends, despite the gaming accessories industry experiencing dampened conditions, and anticipates stronger second half results.

Capital Allocation and Refinancing:
- Turtle Beach completed a comprehensive refinancing of its term loan and credit facility, reducing its interest rate by approximately 450 basis points, resulting in an annual cost savings of over $2 million.
- The refinancing provided additional capacity, lower cost of capital, and greater operational flexibility, strengthening the company's capital structure.

Economic and Tariff Environment:
- Despite macroeconomic pressures, Turtle Beach's sales improved due to strong performance in gaming, particularly driven by the successful launch of the Nintendo Switch 2.
- The company has mitigated its tariff exposure, now expecting less than 15% of its total U.S. supply to be produced in China after Q1, due to a shift in production to Vietnam.

Product and Market Expectations:
- Turtle Beach anticipates continued market improvement in the second half of 2025 and strong growth in 2026, driven by the success of Nintendo Switch 2 and upcoming game releases like GTA 6.
- The company's optimism is based on the growing gamer base and expanding engagement with next-generation systems.