Turtle Beach (HEAR) Q4 2024 earnings summary

Executive summary

• Achieved record Q4 2024 net revenue of $146.1M, up 47% year-over-year, and record full-year revenue of $372.8M, up 44% year-over-year, driven by the PDP acquisition, organic growth, and strong execution.

• Integration of PDP expanded the product portfolio, market reach, and delivered over $13M in annual cost synergies, exceeding initial expectations.

• Gained value share across all gaming accessories categories, maintaining #1 position in gaming headsets and expanding in controllers and simulation.

• Largest share repurchase in company history executed in 2024, with $27.8M repurchased and $18.9M remaining authorization.

• Leadership transition with a new CFO and retirement of the previous CFO after 11 years.

Financial highlights

• Q4 2024 gross margin improved 500 bps to 37.0%; full-year gross margin up 530 bps to 34.6%.

• Q4 net income was $20.1M (vs. $8.6M prior year); full-year net income $16.2M (vs. loss of $17.7M prior year).

• Q4 Adjusted EBITDA rose to $35.7M (up 156% YoY); full-year Adjusted EBITDA $56.4M (vs. $6.5M prior year).

• Diluted EPS for Q4 was $0.95 (vs. $0.47); full-year EPS $0.78 (vs. loss of $1.03).

• Operating expenses were $30.6M (21% of revenue) in Q4, down from 24% in the prior year.

Outlook and guidance

• FY2025 revenue guidance is $395–$405M, representing 6–9% growth vs. 2024.

• FY2025 adjusted EBITDA guidance is $68–$72M, a 21–28% increase and over 200 basis point margin improvement at the midpoint.

• Expectation for a second-half weighted revenue year, with Q1 accounting for 15–16% of annual revenue due to seasonality and major product launches.

• Long-term targets: 10%+ revenue CAGR, gross margins in mid-to-high 30s, Adjusted EBITDA margins in mid-to-high teens.

• Guidance includes the expected net impact of current tariffs; further updates will be provided as the situation evolves.