Quality Investor

Turtle Beach Corporation

Rank #65Hypergrowth

TBCH · Nasdaq · Technology

Turtle Beach Corporation (TBCH) — Rank #65 by gross profitability (GP/assets 0.55) · ROE 19.5% · Piotroski F-Score 7 / 9.

As-of 2026-09-15 · CIK 0001493761 · all metrics point-in-time as of the filing date.

About

Turtle Beach Corporation, an audio and gaming technology company, develops and markets audio and gaming accessory products under the Turtle Beach brand in the Americas, Europe, the Middle East, and the Asia Pacific.

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The company offers headsets, controllers, keyboards, mice, flight and racing simulation hardware, microphones, and fight sticks; accessories, such as mousepads, headset stands and cases, and chargers; and replacement parts for transmitters, headsets, mice, keyboards, controllers, and flight simulation products. Its products are used with video game and entertainment consoles, handheld consoles, personal computers, tablets, and mobile devices. The company serves professional streamers, content creators, and esports gamers; and retailers, distributors, and online customers.

Turtle Beach Corporation was founded in 1975 and is headquartered in San Diego, California.

Industry
Consumer Electronics
Sector
Technology
State
NV
Filer Category
Accelerated filer
Fiscal Year End
December 31

Price History

TBCH-55.1% · -14.8% CAGRSPY+80.5% · +12.5% CAGR

Company Snapshot

P/S is the primary valuation lens — earnings are reinvested, not available for P/E.

Market Cap

$224.05M

P/E (annual)

16.2

P/S (annual)

0.7

P/B

2.8

P/OCF (annual)

6.3

Shareholder Yield

-65.8%

Employees

268

Industry

Consumer Electronics

Exchange

Nasdaq

Signal Flags

2 green2 yellow1 red
Revenue growth acceleratingGrowth rate increasing year over year
Operating leverage expandingOperating income growing faster than revenue
Dilution above 2%Annual share count increase exceeds 2%. May be acceptable for high-growth companies funding talent via stock compensation
Disclosure regressionA previously-disclosed line item is no longer reported — worth checking the filing for why
Balance sheet deterioratingNet cash collapsed with receivables or inventory outpacing revenue

Quality Profile

Profitability

1/1 pass
GP / assets
0.55
Return on equity
19.5%
Gross margin trend
PASS

Safety

1/1 pass
Balance-sheet safety
PASS
Debt / equity
1.67
Current ratio
2.38×
Net cash
-$62.79M

Cash Flow

3/3 pass
Positive FCF
PASS
Cash-backed earnings
PASS
Accruals healthy
PASS
SBC / revenue
1.9%

Growth

1/2 pass
Revenue growth
114.5%
Piotroski F-Score
7 / 9
Share dilution
65.8%

Terry Smith quality gate

Passes 1/5 Terry Smith thresholds

1 of 5 threshold not computable from filed data.

What Growth Is Priced In

Implied revenue growth (10Y)

-6.0%

incredible deal

The annual FCF growth rate today's price requires over a 10-year horizon (discount rate 10%, terminal growth 2.5%).

Dilution drag: 65.8% — per-share value needs a total required return of 59.9% once share-count change is priced in.

vs. own 6-year median revenue growth: 92.7%

within its own history

Cost-of-equity sensitivity (implied growth at different discount rates)

r = 8%

-9.4%

r = 10% (base)

-6.0%

r = 12%

-2.9%

Net debt / market cap: 24.5%

Base FCF: $34M3Y mean FCF: $37.2M

Valuation History

Current multiple vs historical range at each filing date. Band spans 25th-75th percentile.

P / S

Price / revenue per share

0.6xCheap
0.6xmed 348.0x2957.8x

P / B

Price / book value per share

4.7xCheap
4.7xmed 110.8x6502.8x

P / GP

Price / gross profit per share

1.6xCheap
1.6xmed 1043.3x5365.3x

Revenue growth and the path to profitability (margin trend) are the primary reads at this stage.

Profitability

Gross profitability (GP / assets)

0.55

Primary signal (Novy-Marx).

2nd of 5 SIC 3669 peers

Return on equity

19.5%

Gross margin

37.3%

5th of 5 SIC 3669 peers

Revenue growth (YoY)

114.5%

Gross margin improving

Margin trend vs prior year.

PASS

Operating Leverage

2013201620172018
Revenue vs COGS
Revenue vs OpEx
Op. Income vs Revenue

Anti-fragile safety

Balance-sheet safety

Composite anti-fragile check.

PASS

Debt / equity

1.67

Current ratio

2.38×

2nd of 5 SIC 3669 peers

Quick ratio

1.09×

Net cash

-$62.79M

Cash & equivalents minus total debt.

Cash-flow health

Free cash flow

$34.04M

Operating cash flow minus capex.

Positive free cash flow

PASS

FCF / net income

1.16

Cash-backing of earnings.

FCF/NI divergence

Unfavorable divergence (yellow flag).

PASS

Accruals healthy

Cash-backed earnings.

PASS

SBC / revenue

1.9%

Stock-based comp intensity.

Piotroski F-Score

F-Score

7 / 9

Fundamental-strength score (0-9).

Lifecycle Phase History

20112018
Decline
Hypergrowth