Turtle Beach Corporation

Good day, ladies and gentlemen. Thank you for standing by. Welcome to the Turtle Beach Corporation third quarter 2025 conference call. At this time, all participants are in listen-only mode. A question and answer session will follow the prepared remarks. As a reminder, the conference call is being recorded. I will now turn the conference over to Jacques Cornet from the Investor Relations team. Jacques, you may begin.

Thank you, operator. On today's call, we'll be referring to the press release file this afternoon that details the company's third quarter 2025 results, which is available on the news page of the company's investor relations website, corp.turtlebeach.com, where you'll also find the latest earnings presentation that supplements the information discussed on today's call. Finally, A recording of the call will be available on the events and presentation section of the company's investor relations website later today. Please be aware that some of the comments made during this call may include forward-looking statements within the meaning of the federal securities laws, statements about the company's beliefs and expectations containing words such as may, will, could, believe, expect, anticipate, and similar expressions constitute forward-looking statements. These statements involve risks and uncertainties regarding the company's operations and future results that could cause Turtle Beach Corporation's results to differ materially from management's current expectations. While the company believes that its expectations are based upon reasonable assumptions, numerous factors may affect actual results and may cause results to differ materially. So the company encourages you to review the safe harbor statements and risk factors contained in today's press release and in its filings with the Securities and Exchange Commission, including, without limitation, its annual report on Form 10-K and other periodic reports, which identify specific risk factors that also may cause actual results or events to differ materially from those described in our forward-looking statements. The company does not undertake to publicly update or revise any forward-looking statements after this conference call. The company also notes that on this call, we will be discussing non-GAAP financial information. The company is providing that information as a supplement to information prepared in accordance with accounting principles generally accepted in the United States or GAAP. You can find a reconciliation of these metrics to the company's reported GAAP results in the reconciliation tables provided in today's earnings release and presentation. Hosting the call today are Chris Kern, Chief Executive Officer, and Mark Weinswig, Chief Financial Officer. With that, I'll turn the call over to Chris. Chris?

Thanks, Jacques. Good afternoon, everyone, and thanks for joining us for Turtle Beach's third quarter 2025 earnings call. Turtle Beach delivered another quarter of solid execution against our strategic priorities, with results that met our expectations in the face of the ongoing challenges in the gaming accessories market. Today, I'd like to touch on four highlights from the quarter. First, we generated $80.5 million in revenue, and we continue to make progress on profitability with gross margins up nearly 120 basis points year over year, coming in at over 37%. That improvement reflects the team's continued focus on operational discipline and cost management. I'm especially proud that we were able to fully offset the margin impact of tariffs this quarter, thanks to strong execution across the board, including partner cost negotiations, selective price adjustments, and selling inventory that we proactively brought in before the latest tariff increases. Second, as we mentioned last quarter, we completed a refinancing of our term loan and credit facility. This was an important milestone for us. We strengthened our balance sheet, lowered our cost of capital, and extended our maturity profile, giving us more flexibility going forward. The refinancing also cut our term loan interest rate by more than 450 basis points, which will provide meaningful savings and help us continue building long-term shareholder value. Third, we continue to return capital to shareholders through our repurchase program. During the quarter, we bought back $10 million of stock from our existing shareholder, Diversus Capital, roughly 695,000 shares and an average price of $14.41. That brings our year-to-date repurchases to about $17 million. Share repurchases remain an important part of our strategy. They demonstrate both our confidence in the business and our ongoing commitment to creating value for our shareholders. And finally, we maintained our focus on innovation, announcing and launching more than 40 new products since Q2. This momentum strengthens our position heading into the holiday season and sets us up for continued growth in 2026. Our accelerated launch cadence across headsets, controllers, simulation gear, and PC peripherals highlights our transformation into a comprehensive gaming accessories leader with the added advantage of official partnerships with all three major console platforms. Let's take a closer look at the product side, where we've made some exciting additions across our entire Turtle Beach lineup. Starting with headsets, we've expanded our portfolio with several new wired models since Q2. Our AirLite Fit, one of our officially licensed headsets for Nintendo Switch and Switch 2, delivers great audio, a super lightweight fit, and comes in a range of fun color options for Nintendo fans everywhere. We also launched an officially licensed Switch version of our Recon 70, which continues to hold its spot as the industry's best-selling wired gaming headset year after year. For PlayStation and other platforms, we rolled out the new Atlas 200 series, which includes our first-ever officially licensed PlayStation headset and features our premium 50-millimeter NanoClear drivers for incredible sound clarity. The response has been fantastic, and it even received a perfect 10 out of 10 score and Editor's Choice Award from CGMagOnline, which we're thrilled about. Through our ongoing partnership with Nintendo, we also announced a broad lineup of officially licensed accessories for both Switch and Switch 2. This includes new Rematch, Afterglow, and Afterglow Wave wired and wireless controllers, along with travel cases and other accessories that are rolling out now through the end of the year. Controllers continue to be one of our strongest growth opportunities, and we're proud to now be one of the leading third-party controller brands in the market. We've grown thanks in part to our premium Victrix brand, which is well-known among competitive gamers. The new Victrix Pro BFG Reloaded controllers for PlayStation, Xbox, and PC raised the bar again with upgrades like Hall Effect triggers and mechanical buttons that give players a real performance edge. For Nintendo fans, we also launched two new wireless lenticular controllers, themed for Donkey Kong and Super Mario, featuring dynamic artwork that shifts with different viewing angles. On the Xbox side, we've added new Afterglow Wave and Rematch Core wired controllers and several exciting colorways, plus the Afterglow Ignite RGB controller for Xbox and PC, which looks incredible. We even expanded further into music gaming with our new Riftmaster wireless guitar controller for Nintendo Switch and Switch 2, building on the success that we've seen with our Xbox and PlayStation models. On the simulation front, our Velocity One series continues to push boundaries. We introduced the Velocity One Race KD3 wheel and pedals, the Velocity One FRX formula-style wheel, and the Racer wireless wheel for Xbox and Windows. Each of these amazing new products were engineered to bring even more realism and fun, whether you're a dedicated sim racer or just want a great driving experience. And in PC gaming, we're broadening our footprint with high-performance peripherals like the Vulcan 2 TKL hot-swappable mechanical keyboard and the Burst 2 Pro wireless eSports mouse. both earning top-tier reviews for speed, accuracy, and design. Altogether, these new products show how Turtle Beach has evolved into a true gaming accessories powerhouse, while delivering innovation, quality, and value across every major category and platform. We're pleased with how our team continues to execute by growing our portfolio, driving efficiency, and laying down a strong financial foundation for the future. Even though the overall gaming accessories market remains down year-to-date, we've seen year-over-year improvements as expected through Q3. We're encouraged by the improvement trends we've seen and remain confident in the industry's growth trajectory. Looking ahead to 2026, there's a lot to be excited about. The upcoming release of GTA 6, other major AAA game launches, the continued momentum of the Switch 2, and an overdue replacement cycle for accessories bought during COVID are all setting the stage for a new multi-year growth cycle in gaming. Combine that with our expanded product lineup and stronger balance sheet, and we're in a great position to capitalize on what's next for Turtle Beach and the broader gaming market. With that, I'll hand it over to Mark to walk through the quarterly financials. Mark?