Turtle Beach Corporation reported significant financial improvements in its third quarter and year-to-date results for 2024, driven by increased revenues and a strategic acquisition. For the three months ended September 30, 2024, net revenue reached $94.4 million, a substantial increase of $35.2 million compared to $59.2 million in the same period of 2023. For the nine months ended September 30, 2024, net revenue totaled $226.7 million, up from $158.6 million in the prior year.

Gross profit for the third quarter of 2024 was $34.1 million, compared to $17.7 million in the same quarter of 2023. The gross margin improved to 36.2%, up from 29.9% year-over-year. Operating income for the third quarter was $6.4 million, a turnaround from an operating loss of $2.5 million in the same quarter of 2023. The company reported net income of $3.4 million for the third quarter of 2024, compared to a net loss of $3.6 million in the prior year. For the nine-month period, however, Turtle Beach recorded a net loss of $3.9 million, significantly improved from a loss of $26.2 million in the same period of 2023.

The acquisition of Performance Designed Products, LLC (PDP) in March 2024 for approximately $116.9 million, which included both cash and stock, contributed to the revenue growth. PDP generated net revenue of $26.7 million for the third quarter and $54.4 million for the nine months ended September 30, 2024. The acquisition-related costs recognized during the nine months were $9.8 million.

Turtle Beach's total current assets increased to $196.5 million as of September 30, 2024, up from $124.9 million at the end of 2023. However, cash and cash equivalents decreased to $13.8 million from $18.7 million. Total liabilities rose to $211.4 million, compared to $64.9 million at the end of 2023, primarily due to the new revolving credit facility and term loan established to finance the PDP acquisition.

The company’s stock repurchase program was expanded to allow for repurchases of up to $55 million, with 1.6 million shares repurchased in the nine months ended September 30, 2024. Interest expenses increased significantly, reflecting the new debt incurred for the acquisition, totaling $5.1 million for the nine months ended September 30, 2024, compared to $0.3 million in the same period of 2023.

Overall, Turtle Beach's strategic initiatives, including the PDP acquisition and improved operational performance, have positioned the company for growth in the competitive gaming accessories market.