Turtle Beach Corporation

Good day, ladies and gentlemen. Thank you for standing by. We welcome you to the Turtle Beach Corporation's second quarter 2026 conference call. At this time, all participants are in a listen-only mode. A question and answer session will follow the prepared remarks presentation. As a reminder, the conference is being recorded. I will now turn the call over to Jacques Cornet from Investor Relations Team. Jacques, you may begin.

Thank you, operator. On today's call, we'll be referring to the press release filed this afternoon that details the company's second 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 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. 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, the 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. Company does not undertake to publicly update or revise any forward-looking statements after this conference call. Company also notes that on this call, it will be discussing non-GAAP financial information. 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 and the reconciliation tables provided in today's earnings release and the presentation. Hosting the call today are Chris Keirn, Chief Executive Officer, and Andrew Klipscham, Interim Chief Financial Officer. With that, I'll turn the call over to Chris.

Thanks, Jacques. Good afternoon, everyone, and welcome to our second quarter 2026 earnings call. During the second quarter, we continued executing against the strategic priorities we've outlined throughout the year. We expanded our product portfolio, advanced our brand transformation, returned significant capital to shareholders through share repurchases, and prepared Turtle Beach for what we believe will be a stronger demand environment in the second half of 2026. Revenue for the quarter was $56.4 million, essentially flat year over year. Continuing the trends we discussed on our last call, retail partners remain disciplined in managing inventory through much of the quarter with further reductions in channel inventory through the first half of Q2. As the quarter progressed, however, we began to see encouraging signs that retailers have now stabilized inventory ahead of what we expect will be a stronger second half of the year. We believe the combination of historically low channel inventory improving early Q3 sell-through trends, and the industry's upcoming content releases create a favorable setup for the second half of the year. Together, these factors prepare the business for a return to growth during the back half of 2026. One of the defining characteristics of Turtle Beach in 2026 has been the pace of innovation across our portfolio. We are delivering a significant increase in new product introductions this year, and we're encouraged by the early performance of those models. The launch of Stealth Pro 2, our new flagship headset, added share in the premium price tier for U.S. gaming headsets, supported by our new brand initiatives and building on the exceptional pre-order demand we mentioned in our previous call. We also recently announced the industry's first officially licensed wireless gaming headset for Nintendo Switch 2, further reinforcing Turtle Beach's leadership in gaming audio and our collaborative partnership with Nintendo. In addition to this latest audio innovation, our new Nintendo Switch 2 controllers and incremental retail placements drove year-over-year US share growth in Nintendo controllers for the quarter, building momentum for Turtle Beach in this key growth segment. More importantly, these launches With more to be announced, strengthen our leadership heading into what we believe will be one of the strongest gaming content calendars in years. Looking ahead, Grand Theft Auto VI remains on track for its confirmed November launch, while Call of Duty Modern Warfare 4 has been confirmed to launch in October. Rather than simply benefiting from the increased demand these releases have historically generated, We've spent the past several quarters aligning our product roadmap, brand investments, retail distribution, and operations to proactively set up Turtle Beach for the anticipated increase in gamer engagement. With GTA 6 launching first on consoles, we believe Turtle Beach is particularly well positioned given our leadership across console gaming accessories and the timing of our newest product introductions as the market strengthens. Capital allocation also remained an important area of execution throughout the quarter. Following the refinancing of our credit facilities in May, we repurchased approximately $25 million of our common stock during the second quarter. Those repurchases reflect our disciplined approach to capital allocation and our continued belief that the market does not fully recognize the long-term value of Turtle Beach. With approximately $31 million remaining under our current authorization, we will continue balancing opportunistic share repurchases with investments that support long-term value creation for the growth opportunities ahead. Given our confidence in our new product pipeline, the strength of the second half gaming release calendar, and our expectation that channel inventories will rebuild toward more normalized levels We are reaffirming our full year 2026 guidance. Before turning to the financials, I'd like to introduce Andrew Klipschum, our recently appointed interim chief financial officer. Andrew has been with Turtle Beach for nearly eight years and brings more than 20 years of global financial leadership experience. Throughout his time with the company, he has played an important role in strengthening our financial operations, and supporting many of the strategic initiatives we've discussed over the past several years. I'm pleased to welcome Andrew to his first earnings call as interim CFO. With that, I'll turn it over to Andrew to provide additional details on our second quarter financials.