Turtle Beach (HEAR) Q4 2024 earnings summary

Executive summary

• Achieved record Q4 2024 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 next-generation product launches.

• Adjusted EBITDA reached $35.7M in Q4 (up 156% YoY) and $56.4M for the year (vs. $6.5M prior year), both records.

• Integration of PDP exceeded expectations, delivering immediate positive impact and over $13M in annual cost synergies.

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

• Leadership transition with Mark Weinswig appointed as CFO and John Hanson retiring after 11 years.

Financial highlights

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

• Operating expenses increased due to PDP acquisition and related costs.

• Net debt at year-end was $85.4M, with $98.4M in borrowings and $13.0M in cash.

Outlook and guidance

• FY2025 revenue guidance is $395M–$405M, representing 7% growth at the midpoint.

• FY2025 adjusted EBITDA guidance is $68M–$72M, a 24% increase and over 200 basis point margin improvement at the midpoint.

• Expectation of a back-half weighted year due to new game and console launches, with Q1 accounting for 15–16% of annual revenue.

• 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.