Turtle Beach Corporation

Good afternoon and welcome to the Turtle Beach Q1 2026 earnings conference call. All participants will be in a listen-only mode. There will be an opportunity to ask questions after the presentation. If you should need assistance during the call, please signal an operator by pressing star then zero. Please note that this event is being recorded. I will now hand the conference over to Jacques Cornette, ICR. Please go ahead, sir.

Thank you, operator. On today's call, we'll be referring to the press release file this afternoon that details the company's first quarter 2026 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 in 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 and 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. 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 it 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, Mark Weinswig, Chief Financial Officer. With that, I'll turn the call over to Chris.

Thanks, Jacques. Good afternoon, everyone, and welcome to our first quarter 2026 earnings call. As we build momentum through our brand transformation and significant releases of new products in 2026, Our first quarter results reflect a continuation of a challenging market environment that carried over from 2025. The quarter was impacted by a temporary dip in channel inventories as our retail partners managed stock levels in consideration of the short-term dynamic of multi-year market lows for Q1 in the headset and controller markets. This channel reduction included clearing retail inventories to support the load-in of our new product launches in Q2. We expect channel inventory to rebound in the coming quarters, which should act as a tailwind to year-over-year growth as we ramp new product placements at retail and prepare for improving market conditions leading up to holiday 2026. At the same time, we executed in Q1 to lay the groundwork for a meaningful step up in our new product introduction cycle. We are tracking with excellent progress on our plan to realize over 50% year-over-year growth in new product launches for 2026, including our recently announced Stealth Pro 2 flagship headset, our new Command Series PC lineup, and multiple accessories across categories that are officially licensed for the Nintendo Switch 2 ecosystem. Stealth Pro 2 represents the next evolution of our premium audio platform, Combining Japan Audio Society certified high-res audio, our patented 60mm Eclipse dual drivers for powerful bass and crisp highs with exceptional precision, Dolby Atmos spatial audio for immersive 3D gaming and entertainment, and active noise cancellation to reduce background distractions. It also introduces our new Crossplay 2.0 multi-platform wireless audio system, building on the cross-play wireless technology pioneered by Turtle Beach, and now supporting up to four audio sources. This industry-leaning innovation gives gamers greater flexibility and seamless control across multiple audio sources without the need for cables running to a separate audio hub. All of this is paired with a refined premium build featuring anodized aluminum components, soft touch materials, a fabric suspension headband, and memory foam ear cushions for long-lasting comfort. Together, these innovations reinforce our leadership in premium gaming audio and provide gamers with the pinnacle of gaming audio technology. To amplify this fantastic new addition to our headset lineup, we have also initiated our brand transformation to reinvent how Turtle Beach engages with gamers. A key example of this is our campaign for the Stealth Pro 2 launch, The Last Ninja, the ultimate stealth showdown highlighting Turtle Beach's legacy of gaming sound and industry-leading audio performance. We believe this fun and more resonant approach to storytelling will strengthen brand affinity and drive deeper engagement with gamers. The combined benefits of Stealth Pro 2's new standard for gaming audio experiences and the Last Ninja campaign have resulted in very strong early momentum for Stealth Pro 2, with pre-orders on our site so far already more than double that of its predecessor, our original Stealth Pro. Looking ahead, we have strong conviction in our forward trajectory and are reaffirming our full year 2026 guidance, which considers several growth drivers for our business and the industry. Our outlook reflects our expanded innovation pipeline with accelerating momentum from confirmed new retail placements across multiple categories starting in Q2. We are also advantageously positioned ahead of the anticipated November 2026 launch of Grand Theft Auto VI. As one of the biggest gaming releases in history, We expect it to serve as a meaningful catalyst for gamer engagement and accessory demand in the second half of the year and beyond. Importantly, with only PlayStation 5 and Xbox Series X and S currently confirmed as supported platforms at launch, we believe Turtle Beach is well positioned to see an outsized initial benefit given our strong presence in these console ecosystems. We are prepared to capture that demand as it materializes. Across the opportunities that our new product launches and brand engagement will provide, upcoming market lift from GTA 6 and the next generation of console hardware platforms in the coming years, our focus remains consistent. Executing for success, driving operational discipline, and delivering meaningful value for our shareholders. In addition, we announced earlier this week that we recently restructured our credit facilities to enhance our capital return flexibility. With $56 million remaining on our current $75 million share repurchase authorization, this new financing structure supports our active and systematic buyback strategy. We have both the capacity and the commitment to return capital shareholders while investing in the strategic growth initiatives that will drive long-term value creation. Given our confidence in the business and the strength of our outlook, We believe there continues to be a meaningful disconnect between our current stock price and the intrinsic value of Turtle Beach, and we will remain disciplined and opportunistic in deploying capital under this program. Overall, we remain focused on our strategic priorities as we move through 2026. We're executing against a clear strategy as we continue to optimize our cost structure, accelerate product innovations, and prepare the company to capitalize on significant upcoming industry catalysts. With our transformative work on the business over the last few years, we are exceptionally well positioned for the opportunities that lie ahead. Mark will now take us through the financials in more detail. Mark?