Turtle Beach shares dropped 3.1% after earnings as investors were disappointed by continued deceleration in headset and controller markets, driven by retailer-led channel inventory reductions, overshadowing early product momentum.

• Q1 2026 results were impacted by a temporary dip in channel inventories as retailers cleared stock ahead of new product launches in Q2.
• The headset and controller markets remain at multiyear lows, contributing to challenging near-term sales trends.
• Management highlighted early strength in new product preorders, with the Stealth Pro 2 headset preorders already more than double its predecessor.
• Full-year 2026 guidance was reaffirmed, supported by anticipated retail placements, new product introductions, and the expected impact of the November launch of Grand Theft Auto VI.
• The company restructured credit facilities to maintain flexibility for share repurchases, with $56 million remaining on the buyback authorization.