Turtle Beach Reports 14.5% Revenue Growth to $63.9 Million in Q1 2025

Turtle Beach Corporation reported its financial results for the first quarter of 2025, revealing a net revenue of $63.9 million, a 14.5% increase from $55.8 million in the same period last year. The company achieved a gross profit of $23.4 million, up from $17.8 million, resulting in a gross margin improvement to 36.6% from 31.8%. Despite the revenue growth, Turtle Beach recorded a net loss of $664,000, compared to a net income of $155,000 in the prior year, primarily due to increased interest expenses and acquisition-related costs.

The increase in revenue was largely attributed to the integration of Performance Designed Products, LLC (PDP), which Turtle Beach acquired in March 2024. The PDP acquisition contributed $5.9 million to Turtle Beach's revenue for the quarter. Operating expenses decreased to $21.8 million from $23.5 million, aided by an insurance recovery of $3.4 million and lower promotional spending. However, selling and marketing expenses rose to $12.5 million, reflecting increased media marketing efforts and amortization of intangible assets related to the acquisition.

Operationally, Turtle Beach's customer base and geographic reach expanded, with North America generating $47.0 million in revenue, up from $42.2 million, while Europe and the Middle East contributed $13.6 million, an increase from $11.0 million. The Asia Pacific region also saw growth, with revenues rising to $3.3 million from $2.7 million. The company reported a weighted average of 20.5 million shares outstanding, compared to 18.3 million in the previous year, reflecting ongoing stock repurchase activities.

Looking ahead, Turtle Beach's management expressed optimism about future growth driven by the gaming accessories market, which is projected to continue expanding. The company plans to leverage its strengthened product portfolio following the PDP acquisition to capture a larger share of the market. However, management also acknowledged potential challenges, including inflationary pressures and the impact of rising interest rates on operational costs. The company remains committed to monitoring its liquidity and capital resources to support ongoing operations and strategic initiatives.