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TM TURTLE BEACH CORPORATION EARNINGS PRESENTATION SECOND QUARTER 2026
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2 SAFE HARBOR STATEMENT & IMPORTANT INFORMATION Forward-Looking Information and Statement This presentation, including the appendix, includes forward -looking information and statements within the meaning of the federal securities laws. Except for historical information contained in this presentation, statements in this presentation may constitute forward -looking statements regarding assumptions, projections, expe ctations, targets, intentions or beliefs about future events. Statements containing the words “may”, “could”, “would”, “should”, “believe”, “expect”, “anticipate”, “plan”, “estimate”, “ta rget”, “goal”, “project”, “intend” and similar expressions, or the negatives thereof, constitute forward -looking statements. Forward -looking statements are only predictions and are not guarantees of perfor mance. Forward -looking statements involve known and unknown risks and uncertainties, which could cause actual results to differ materially from those contained in any forward -looking statement. The inclusion of such information should not be regarded as a representation by the Company, or any person, that the objectives of the Company will be achieved. Forward-looking statements ar e based on management’s current beliefs and expectations, as well as assumptions made by, and information currently available to, management. While the Company believes that its expectations are based upon reasonable assumptions, there can be no assurances that its goals and strategy will be realized. Numerous factors, including risks and uncertainties, may affect actu al results and may cause results to differ materially from those expressed in forward-looking statements made by the Company or on its behalf. Some of these factors include, but are not limited to, risks re lated to trade policies, including the imposition of tariffs on imported goods and other trade restrictions, the release and availability of successful game titles, macroeconomic conditions affectin g the demand for our products, logistic and supply chain challenges and costs, dependence on the success and availability of third -parties to manufacture and manage the logistics of transporting and d istributing our products, the substantial uncertainties inherent in the acceptance of existing and future products, the difficulty of commercializing and protecting new technology, the impact of co mpetitive products and pricing, general business and economic conditions, the expansion of our business including the integration of any businesses we acquire and the integration of such bus inesses within our internal control over financial reporting and operations, our indebtedness, liquidity, and other factors discussed in our public filings, including the risk factors includ ed in the Company’s most recent Annual Report on Form 10 -K, Quarterly Report on Form 10 -Q and the Company's other periodic reports filed with the Securities and Exchange Commission. Except as requir ed by applicable law, including the securities laws of the United States and the rules and regulations of the Securities and Exchange Commission, the Company is under no obligation to publicl y update or revise any forward -looking statement after the date of this release whether as a result of new information, future developments or otherwise. This presentation also contains trademarks and trade names that are property of their respective owners. Non-GAAP Financial Measures In addition to its reported results, the Company has included in this presentation, including in the appendix, certain financial metrics, including Adjusted EBITDA, that the Securities and Exchange Commission define as “non -GAAP financial measures.” Management believes that such non -GAAP financial measures, when read in conj unction with the Company's reported results, can provide useful supplemental information for investors analyzing period -to-period comparisons of the Company's results. Non -GAAP financial measures are not an alternative to the Company’s GAAP financial results and may not be calculated in the same manner as similar measures presented by other companies. “Adjusted EBITDA” is defined by the Company as net income (loss) before interest, taxes, depreciation and amortization, stock -based compensation (non -cash), and certain non -recurring special items tha t we believe are not representative of core operations, as further described in the appendix hereto. These non -GAAP financial measures are presented because management uses non -GAAP financial mea sures to evaluate the Company’s operating performance, to perform financial planning, and to determine incentive compensation. Therefore, the Company believes that the presentation of non-GAAP financial measures provides useful supplementary information to, and facilitates additional analysis by, investors. The presented non -GAAP financial measures exclude items that management does not believe reflect the Company’s core operating performance because such items are inherently unusual, non -operating, unpredictable, non -recurring, or non -cash. See a reconcili ation of GAAP results to Adjusted EBITDA included in the appendix hereto for the three and six months ended June 30, 2026 and June 30, 2025. By providing full year 2026 Adjusted EBITDA guidance, the Company provided its expectation of a forward -looking non-GAAP financial measure. Information reconciling full year 2026 Adjusted EBITDA to its most directly comparable GAAP financial measure, net income (loss), is unavailable to the Company without unrea sonable effort due to the variability, complexity, and lack of visibility with respect to certain reconciling items between Adjusted EBITDA and net income (loss), including other income (expense), pr ovision for income taxes and stock -based compensation. These items cannot be reasonably and accurately predicted without the investment of undue time, cost and other resources and, accordingly , a reconciliation of the Company’s Adjusted EBITDA outlook to its net income (loss) outlook for such periods is not provided. These reconciling items could be material to the Company’s actual res ults for such periods. TM
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3 SECOND QUARTER 2026 FINANCIAL OVERVIEW Q2 Revenue of $56.4M ▪ Flat YoY driven by continued conservative channel inventory management amongst retail partners Q2 Gross Margins of 38.8% ▪ Margin improvement of 660 basis points due to $8.2M tariff refunds received during the quarter, of which $4.3M benefited cost of goods sold Q2 Net Loss of $(7.3M) ▪ Driven by increased marketing investments to support 2026 product roadmap and modestly higher interest expense Q2 Adjusted EBITDA of $1.3M ▪ Stronger gross margins and flow through to profitability Repurchased $25M in common shares during Q2 Refinanced credit facilities to enhance financial flexibility $ Millions (except per - share data) Q2 2026 Q2 2025 Revenue $56.4 $56.8 Gross Margin 38.8% 32.2% Operating Expenses $24.9 $18.6 Net Loss $(7.3) $(2.9) Diluted EPS $(0.38) $(0.14) Adjusted EBITDA (1) $1.3 $(3.0) Weighted - Average Diluted Shares 19.2 20.7 TM
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4 Circana, LLC, Retail Tracking Service, US, Video Games, Gaming Accessories, Headsets & Headphones, Turtle Beach & PDP combined, Dollar share, Jan – June 2026 BRAND TRANSFORMATION REINVENTING GAMER ENGAGEMENT EXPANDED PRODUCT PLACEMENTS EXPANDED LINEUP INCLUDING SWITCH 2 NEW RETAIL NINTENDO TOP SELLING PRODUCTS IN THE GAMING PERIPHERALS MARKET LEADING SHARE IN THE US HEADSET MARKET GAMING ~50% MORE NEW LAUNCHES PIPELINE WITH TURTLE BEACH FIRST HALF 2026 OVERVIEW TM
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5 Newzoo Peripheral Market Forecast, June 2023 and internal estimates updated July 2025 STRENGHTENING TURTLE BEACH’S POSTION AS A LEADING 3 RD PARTY GAMING ACCESSORIES MAKER HEADSETS HEADSETS Continue Leadership in Gaming Headsets $2.9B Market Continue Leadership in Gaming Headsets $2.9B Market $ 3 . 0 B Market Growth in Gamepads / Controllers CONTROLLERS $ 3 .9B Market Expanding Turtle Beach In PC Gaming Peripherals $ 1 . 4 B Market Growth in Gaming Simulation Accessories SIMULATION HEADSETS PC PERIPHERALS Leadership in Gaming Headsets UNLOCKING POTENTIAL IN THE $11.2 BILLION ACCESSORIES MARKET
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6 LONG - TERM GROWTH REMAINS THE GUIDING PRINCIPLE Guidance considers a return to growth for gaming accessories markets in 2026 and positive momentum for Turtle Beach - Expanded product pipeline - - Brand transformation underway - - Confirmed new retail placements - - Advantageous position ahead of GTA VI - 2026 Guidance Net Revenue $335M – $355M Adj. EBITDA $44M – $48 M Long - Term Financial Targets Metric Target Revenue 10%+ CAGR Gross Margins % Mid - to - High 30’s Adjusted EBITDA Margins Mid - to - High Teens TM
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7 BALANCE SHEET SUMMARY Balance Sheet Highlights $ Millions As of June 30th, 2026 Cash & Cash Equivalents $19.6 Inventory $56.5 R evolving Credit Facility $0.0 Term Loan $83.9 Net Debt (debt less cash) $64.4 In April 2026, Turtle Beach refinanced credit facilities to enhance capital return flexibility 7
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8 1. Restructuring expenses are costs in connection with reorganization of operations. These costs primarily include severance and re lated benefits. 2. Costs in connection with reorganization of operations which primarily include severance, related benefits and post - acquisition c osts related to PDP acquisition. 3. Loss of inventory while in transit. 4. Professional fees related to potential acquisition opportunities, warehouse relocation and certain litigation proceedings fee s. 5. Insurance proceeds from claims related to a loss of inventory while in transit that occurred primarily in the fourth quarter of 2024. GAAP NET INCOME TO ADJUSTED EBITDA RECONCILIATION Three Months Ended Six Months Ended (in thousands) June 30, 2026 June 30, 2025 June 30, 2026 June 30, 2025 Net Loss ($7,311) ($2,931) ($22,517) ($3,595) Interest expense, net 3,666 2,049 5,035 4,055 Depreciation and amortization 2,744 3,098 5,637 6,224 Stock - based compensation 1,271 1,008 2,636 2,920 Income tax expense (benefit) 521 (246) 398 (355) Restructuring expense (1) 173 125 397 130 Acquisition - related costs (2) — — — 608 Loss on inventory in transit and other costs (3) — — — 605 Professional fees, litigation and other (4) 238 (182) 3,216 (182) Insurance recovery (5) — (5,965) — (9,404) Adjusted EBITDA $1,302 ($3,044) ($5,198) $1,006 SECOND QUARTER 2026 COMPARED TO 2025 TM
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9 NEW PRODUCTS & HIGHLIGHTS Updated
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10 STEALTH PRO II: A LEGACY OF AUDIO ELITE SOUND AND COMFORT THE TECHNE HIGHLY RECOMMENDED “Turtle Beach Has Nailed The Headset Game. A True Winner!” GAME TYRANT 9.5/10 “BEYOND THE GOLD STANDARD ” GAMING TREND 100/100 “The Go - To High - End Gaming Headset, No Matter Your Platform Or Use Case Scenario” Launched: May 17, 2026 TM
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11 Launched : Q2 (Keyboards) | Q3 (Mice) COMMAND SERIES: YOUR COMMAND. YOUR CONTROL. An All - New Command Ecosystem Turtle Beach expands its PC portfolio with the launch of the Command Series, an all - new ecosystem of gaming keyboards and mice built for enhanced control, customization, and performance. TOTAL CONTROL FOR PC GAMING GStyle Turtle Beach Command Series KB7 & KP7 “ The Command Series is not attempting to be another premium gaming keyboard, it’s aiming to become the centerpiece of your entire setup.”
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12 STEALTH 500 : WIRELESS NINTENDO HEADSET FIRST OFFICIALLY LICENSED WIRELESS HEADSET FOR THE NINTENDO SWIT CH 2 Pre - Order: July 8, 2026 Launch: August 6, 2026 TM TM TM
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13 SWITCH 2 JUST GOT AN EXPANSION FROM CASUAL PLAY TO GAME NIGHT LEGENDS Pre - Order: July 8, 2026 Launch: August 6, 2026 REMATCH® WIRELESS Iconic character designs illuminate with unique RGB lighting! PLAYTREK TRAVEL CASE Matching case designs letting you game and travel in style! TM TM
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14 PACIFIC SKYLINE CONTROLLER OFFICIALLY LICENSED XBOX CONTROLLER Launched: May 15, 2026 HYPEBEAST “Gear isn’t just a hardware game anymore. Ushering in its new lifestyle chapter, Turtle Beach’s new rollout is about more than just performance, but creating a controller that’s tapped into culture across the board” 14
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15 VELOCITYONE H.O.T.A.S. AND SIM MOUNT: TAKE FLIGHT SERIOUS ENGINEERING, FOR SERIOUS FUN Pre - Order: July 23, 2026 Launch: Sep 21, 2026 THE XBOX ® HUB HEADLINE "These latest products represent another significant step forward - designed to appeal to both newcomers and dedicated simulation enthusiasts" TM
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16 Investor Information: ICR TBCH@icrinc.com Corporate Communications & Media: Kim DeNapoli SVP, Head of Brand Turtle Beach Corporation kim.denapoli@turtlebeach.com CONTACTS