Bear of the Day: Turtle Beach Corporation (TBCH)

Turtle Beach Corporation TBCH is a gaming accessories maker best known for its headsets. TBCH’s earnings revisions tanked after its disappointing second-quarter release on August 6.

The gaming accessories standout’s recent downward earnings revision trend lands it a Zacks Rank #5 (Strong Sell) and prolongs a run of negativity that began in early 2025.  

Should Investors Stay Away from Gaming Stock TBCH?

Turtle Beach is a video gaming accessories firm known for its popular gaming headsets that work with Xbox, PlayStation, Nintendo, PCs, and mobile devices. The company has expanded into controllers, keyboards, flight and racing simulation gear, and more.

TBCH has faced pressure mainly from soft demand in the broader gaming accessories market. The company’s sales fell 14% in 2025, marking its second YoY revenue drop in the last four years.

Worst still, its GAAP earnings appear to have peaked all the way back in 2018, and its adjusted earnings dropped 25% YoY in 2025.

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The gaming accessories firm’s FY26 earnings estimate is down 30% since its release, dropping from $0.71 a share to $0.50, with its FY27 outlook 19% lower.

TBCH adjusted earnings are projected to drop another 40% YoY in 2026.

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TBCH stock has fallen 55% in the past five years as the S&P 500 climbed 80% and its sector soared 100%.

On top of that, it’s part of the Computer - Peripheral Equipment industry that ranks in the bottom 5% of over 240 Zacks industries. Studies have shown that roughly half of a stock's price movement can be attributed to a stock's industry group.

The top 50% of Zacks Ranked Industries outperforms the bottom 50% by a factor of more than 2 to 1. This adds to the list of reasons why investors might want to avoid Turtle Beach stock for now, or just put it on their watchlists.

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This article originally published on Zacks Investment Research (zacks.com).

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