Turtle Beach (TBCH) 10-Q 8 Aug 24 2024 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2024	Jul. 31, 2024
Document Information [Line Items]
Entity Registrant Name	TURTLE BEACH CORPORATION
Entity Central Index Key	0001493761
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Emerging Growth Company	false
Entity Small Business	false
Document Type	10-Q
Document Period End Date	Jun. 30, 2024
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q2
Amendment Flag	false
Entity Common Stock, Shares Outstanding		20,754,274
Entity Shell Company	false
Entity Current Reporting Status	Yes
Entity File Number	001-35465
Entity Tax Identification Number	27-2767540
Entity Address, Address Line One	44 South Broadway
Entity Address, Address Line Two	4th Floor
Entity Address, City or Town	White Plains
Entity Address, State or Province	NY
Entity Address, Postal Zip Code	10601
City Area Code	888
Local Phone Number	496-8001
Entity Incorporation, State or Country Code	NV
Document Quarterly Report	true
Document Transition Report	false
Entity Interactive Data Current	Yes
Common Stock
Document Information [Line Items]
Trading Symbol	HEAR
Title of 12(b) Security	Common Stock, par value $0.001
Security Exchange Name	NASDAQ
Preferred Stock Purchase Rights
Document Information [Line Items]
No Trading Symbol Flag	true
Title of 12(b) Security	Preferred Stock Purchase Rights
Security Exchange Name	NASDAQ

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Income Statement [Abstract]
Net revenue	$ 76,478	$ 47,982	$ 132,326	$ 99,426
Cost of revenue	53,402	36,110	91,464	73,415
Gross profit	23,076	11,872	40,862	26,011
Operating expenses:
Selling and marketing	13,741	10,351	22,754	19,874
Research and development	4,589	4,189	8,491	8,290
General and administrative	7,463	13,125	13,137	20,132
Acquisition-related costs	1,394		6,304
Total operating expenses	27,187	27,665	50,686	48,296
Operating loss	(4,111)	(15,793)	(9,824)	(22,285)
Interest expense (income)	2,220	(17)	2,370	146
Other non-operating expense, net	352	198	722	318
Loss before income tax	(6,683)	(15,974)	(12,916)	(22,749)
Income tax expense (benefit)	841	(54)	(5,547)	(124)
Net loss	$ (7,524)	$ (15,920)	$ (7,369)	$ (22,625)
Net loss per share
Basic (in dollars per share)	$ (0.35)	$ (0.93)	$ (0.37)	$ (1.34)
Diluted (in dollars per share)	$ (0.35)	$ (0.93)	$ (0.37)	$ (1.34)
Weighted average number of shares:
Basic (in shares)	21,252	17,156	19,795	16,869
Diluted (in shares)	21,252	17,156	19,795	16,869

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Comprehensive Income (Loss) (unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Statement of Comprehensive Income [Abstract]
Net Income (Loss)	$ (7,524)	$ (15,920)	$ (7,369)	$ (22,625)
Foreign currency translation adjustment	236	(35)	(182)	410
Other comprehensive income (loss)	236	(35)	(182)	410
Comprehensive loss	$ (7,288)	$ (15,955)	$ (7,551)	$ (22,215)

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (unaudited) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Current Assets:
Cash and cash equivalents	$ 12,462	$ 18,726
Accounts receivable, net	46,474	54,390
Inventories	73,347	44,019
Prepaid expenses and other current assets	11,380	7,720
Total Current Assets	143,663	124,855
Property and equipment, net	6,295	4,824
Goodwill	56,762	10,686
Intangible assets, net	46,683	1,734
Other assets	10,985	7,868
Total Assets	264,388	149,967
Current Liabilities:
Revolving credit facility	24,029
Accounts payable	48,380	26,908
Other current liabilities	30,827	29,424
Total Current Liabilities	103,236	56,332
Debt, non-current	45,772
Income tax payable	1,508	1,546
Other liabilities	8,611	7,012
Total Liabilities	159,127	64,890
Commitments and Contingencies
Stockholders’ Equity
Common stock, $0.001 par value - 25,000,000 shares authorized; 20,753,358 and 17,531,702 shares issued and outstanding as of June 30, 2024 and December 31, 2023, respectively	21	18
Additional paid-in capital	247,917	220,185
Accumulated deficit	(141,646)	(134,277)
Accumulated other comprehensive income (loss)	(1,031)	(849)
Total Stockholders’ Equity	105,261	85,077
Total Liabilities and Stockholders’ Equity	$ 264,388	$ 149,967

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (unaudited) (Parenthetical) - $ / shares	Jun. 30, 2024	Dec. 31, 2023
Statement of Financial Position [Abstract]
Common stock par value	$ 0.001	$ 0.001
Common stock shares authorized	25,000,000	25,000,000
Common stock shares issued	20,753,358	17,531,702
Common stock shares outstanding	20,753,358	17,531,702

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Cash Flows (unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income (Loss)	$ (7,369)	$ (22,625)
Adjustments to reconcile net income (loss) to net cash provided by (used for) operating activities:
Depreciation and amortization	2,084	1,948
Costs recognized on sale of acquired inventory	1,251
Amortization of intangible assets	2,698	513
Amortization of debt financing costs	348	75
Stock-based compensation	1,951	6,929
Deferred income taxes	(6,339)	(209)
Change in sales returns reserve	(3,209)	(2,419)
Provision for obsolete inventory	2,081	(1,098)
Changes in operating assets and liabilities, net of acquisitions:
Accounts receivable	32,616	32,685
Inventories	(11,238)	5,457
Accounts payable	11,281	7,452
Prepaid expenses and other assets	(1,300)	691
Income taxes payable	192	(261)
Other liabilities	(10,434)	(4,928)
Net cash provided by (used for) operating activities	14,613	24,210
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of property and equipment	(1,967)	(1,252)
Acquisition of a business, net of cash acquired	(77,294)
Net cash used for investing activities	(79,261)	(1,252)
CASH FLOWS FROM FINANCING ACTIVITIES
Borrowings on revolving credit facilities	80,288	99,785
Repayment of revolving credit facilities	(56,259)	(118,838)
Proceeds of term loan	50,000
Repayment of term loan	(417)
Proceeds from exercise of stock options and warrants	2,941	1,358
Repurchase of common stock	(15,207)	(974)
Debt issuance costs	(3,170)	(80)
Net cash provided by (used for) financing activities	58,176	(18,749)
Effect of exchange rate changes on cash and cash equivalents	208	182
Net increase (decrease) in cash and cash equivalents	(6,264)	4,391
Cash and cash equivalents - beginning of period	18,726	11,396
Cash and cash equivalents - end of period	12,462	15,787
SUPPLEMENTAL DISCLOSURE OF INFORMATION
Cash paid for interest	2,224	226
Cash paid (received) for income taxes	$ 159	$ (137)

Condensed Consolidated Statem_4

Condensed Consolidated Statement of Stockholders' Equity (Unaudited) - USD ($) $ in Thousands	Total	Common stock	Additional Paid-in Capital	Accumulated Deficit	Accumulated Other Comprehensive Income (Loss)
Beginning Balance at Dec. 31, 2022	$ 88,941	$ 17	$ 206,916	$ (116,598)	$ (1,394)
Beginning Balance, shares at Dec. 31, 2022		16,569,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net Income (Loss)	(6,705)			(6,705)
Other comprehensive income (loss), net of tax	445				445
Issuance of restricted stock, shares		14,000
Stock options exercised	124		124
Stock options exercised, shares		21,000
Stock-based compensation	1,959		1,959
Ending Balance at Mar. 31, 2023	84,764	$ 17	208,999	(123,303)	(949)
Ending Balance, shares at Mar. 31, 2023		16,604,000
Beginning Balance at Dec. 31, 2022	88,941	$ 17	206,916	(116,598)	(1,394)
Beginning Balance, shares at Dec. 31, 2022		16,569,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net Income (Loss)	(22,625)
Other comprehensive income (loss), net of tax	410
Ending Balance at Jun. 30, 2023	74,055	$ 17	214,245	(139,223)	(984)
Ending Balance, shares at Jun. 30, 2023		17,309
Beginning Balance at Mar. 31, 2023	84,764	$ 17	208,999	(123,303)	(949)
Beginning Balance, shares at Mar. 31, 2023		16,604,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net Income (Loss)	(15,920)			(15,920)
Other comprehensive income (loss), net of tax	(35)				(35)
Issuance of restricted stock, shares		469
Stock options exercised	1,234		1,234
Stock options exercised, shares		322
Stock-based compensation	4,986		4,986
Repurchase of common stock	(974)		(974)
Repurchase of common stock, shares		(86)
Ending Balance at Jun. 30, 2023	74,055	$ 17	214,245	(139,223)	(984)
Ending Balance, shares at Jun. 30, 2023		17,309
Beginning Balance at Dec. 31, 2023	85,077	$ 18	220,185	(134,277)	(849)
Beginning Balance, shares at Dec. 31, 2023		17,532,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net Income (Loss)	155			155
Other comprehensive income (loss), net of tax	(418)				(418)
Issuance of acquisition-related stock	38,050	$ 3	38,047
Issuance of acquisition-related stock , Shares		3,450,000
Issuance of restricted stock, shares		12,000
Stock options exercised	1,257		1,257
Stock options exercised, shares		171,000
Stock-based compensation	1,105		1,105
Ending Balance at Mar. 31, 2024	125,226	$ 21	260,594	(134,122)	(1,267)
Ending Balance, shares at Mar. 31, 2024		21,165,000
Beginning Balance at Dec. 31, 2023	85,077	$ 18	220,185	(134,277)	(849)
Beginning Balance, shares at Dec. 31, 2023		17,532,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net Income (Loss)	(7,369)
Other comprehensive income (loss), net of tax	$ (182)
Stock options exercised, shares	346,842
Repurchase of common stock	$ (15,200)
Repurchase of common stock, shares	(1,000,000)
Ending Balance at Jun. 30, 2024	$ 105,261	$ 21	247,917	(141,646)	(1,031)
Ending Balance, shares at Jun. 30, 2024		20,754
Beginning Balance at Mar. 31, 2024	125,226	$ 21	260,594	(134,122)	(1,267)
Beginning Balance, shares at Mar. 31, 2024		21,165,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net Income (Loss)	(7,524)			(7,524)
Other comprehensive income (loss), net of tax	236				236
Issuance of restricted stock, shares		365
Stock options exercised	1,684	$ 1	1,683
Stock options exercised, shares		176
Stock-based compensation	846		846
Repurchase of common stock	$ (15,207)	$ (1)	(15,206)
Repurchase of common stock, shares	(1,000,000)	(952)
Ending Balance at Jun. 30, 2024	$ 105,261	$ 21	$ 247,917	$ (141,646)	$ (1,031)
Ending Balance, shares at Jun. 30, 2024		20,754

Pay vs Performance Disclosure

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended				6 Months Ended
	Jun. 30, 2024	Mar. 31, 2024	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2024	Jun. 30, 2023
Pay vs Performance Disclosure
Net Income (Loss)	$ (7,524)	$ 155	$ (15,920)	$ (6,705)	$ (7,369)	$ (22,625)

Insider Trading Arrangements

Insider Trading Arrangements	3 Months Ended	6 Months Ended
	Jun. 30, 2024 shares	Jun. 30, 2024 shares
Trading Arrangements, by Individual
Material Terms of Trading Arrangement		On June 5, 2024 , Gregory Ballard , a member of the Company's board of directors , entered into a Rule 10b5-1 trading arrangement (the "10b5-1 Plan") that is intended to satisfy the affirmative defense of Rule 10b5-1(c) under the Exchange Act, as amended. Mr. Ballard's 10b5-1 Plan provides for the potential sale of 5,542 shares of common stock, including the potential exercise of vested stock options and the associated sale of up to 2,000 shares of common stock, in amounts and prices set forth in the plan. The 10b5-1 Plan terminates on June 4, 2025 or upon the date that all shares under the plan are sold. Except as described above, none of our other directors or executive officers adopted or terminated a Rule 10b5-1 Trading Plan, or a "non-Rule 10b5-1 trading arrangement" (as each term is defined in Item 408(a) of Regulation S-K) during the three months ended June 30, 2024.
Gregory Ballard
Trading Arrangements, by Individual
Name		Gregory Ballard
Title		board of directors
Rule 10b5-1 Arrangement Adopted		true
Adoption Date		June 5, 2024
Rule 10b5-1 Arrangement Terminated		true
Termination Date		June 4, 2025
Aggregate Available	5,542	5,542
Other Directors or Executive Officers
Trading Arrangements, by Individual
Title	other directors or executive officers
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

Background and Basis of Present

Background and Basis of Presentation	6 Months Ended
	Jun. 30, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Background and Basis of Presentation	Note 1. Background and Basis of Presentation Organization Turtle Beach Corporation (“Turtle Beach” or the “Company”), headquartered in White Plains, New York and incorporated in the state of Nevada in 2010, is a premier audio and gaming technology company with expertise and experience in developing, commercializing, and marketing innovative products across a range of large addressable markets under the Turtle Beach®, PDP® and ROCCAT® brands. Turtle Beach is a worldwide leader of feature-rich headset solutions for use across multiple platforms, including video game and entertainment consoles, handheld consoles, personal computers (“PC”), tablets and mobile devices. ROCCAT is a gaming keyboards, mice and other accessories brand focused on the PC peripherals market. Acquired in March 2024, Performance Designed Products, LLC (“PDP”) is a gaming accessories leader that designs and distributes video game accessories, including controllers, headsets, power supplies, cases, and other accessories. VTB Holdings, Inc. (“VTBH”), a wholly-owned subsidiary of Turtle Beach Corporation and the owner of Voyetra Turtle Beach, Inc. (“VTB”), was incorporated in the state of Delaware in 2010. VTB, the owner of Turtle Beach Europe Limited (“TB Europe”), was incorporated in the state of Delaware in 1975 with operations principally located in White Plains, New York. Basis of Presentation The accompanying interim condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) and, in the opinion of management, reflect all adjustments (which include normal recurring adjustments) considered necessary for a fair presentation of the financial position, results of operations, and cash flows for the periods presented. All intercompany accounts and transactions have been eliminated in consolidation. Certain information and footnote disclosures, normally included in annual financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”), have been condensed or omitted pursuant to those rules and regulations. The Company believes that the disclosures made are adequate to make the information presented not misleading. The results of operations for the interim periods are not necessarily indicative of the results of operations for the entire fiscal year. The December 31, 2023 Condensed Consolidated Balance Sheet has been derived from the Company’s audited financial statements included in its Annual Report on Form 10-K filed with the SEC on March 13, 2024 (“Annual Report”). These financial statements should be read in conjunction with the annual financial statements and the notes thereto included in the Annual Report that contains information useful to understanding the Company’s businesses and financial statement presentations. Use of estimates : The preparation of financial statements in conformity with generally accepted accounting principles requires management to use estimates and assumptions that affect the reported amount of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements, as well as the reported amounts of revenue and expenses during the reporting period. The significant estimates and assumptions used by management affect: sales return reserve, allowances for cash discounts, warranty reserve, valuation of inventory, valuation of long-lived assets, goodwill and other intangible assets, depreciation and amortization of long-lived assets, valuation of deferred tax assets, probability of performance shares vesting and forfeiture rates utilized in issuing stock-based compensation awards. The Company evaluates estimates and assumptions on an ongoing basis using historical experience and other factors and adjusts those estimates and assumptions when facts and circumstances dictate. As future events and their effects cannot be determined with precision, actual results could differ from these estimates, and those differences could be material to the consolidated financial statements.

Summary of Significant Accounti

Summary of Significant Accounting Policies	6 Months Ended
	Jun. 30, 2024
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Note 2. Summary of Significant Accounting Policies The preparation of consolidated annual and quarterly financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amount of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the Company’s consolidated financial statements, and the reported amounts of revenue and expenses during the reporting periods. The Company can give no assurance that actual results will not differ from those estimates. There have been no material changes to the significant accounting policies and estimates from the information provided in Note 1 of the notes to our consolidated financial statements in our Annual Report.

Acquisitions

Acquisitions	6 Months Ended
	Jun. 30, 2024
Business Combinations [Abstract]
Acquisitions	Note 3. Acquisitions On March 13, 2024, the Company acquired all the issued and outstanding equity of Performance Designed Products, LLC (“PDP”, collectively with FSAR, “PDP Group”) for consideration that included cash and common stock. PDP was a privately held gaming accessories leader that designs and distributes video game accessories, including controllers, headsets, power supplies, cases, and other accessories. As a result of the acquisition, the Company will strengthen its leadership position in hardware gaming accessories and expand its product portfolio. Consideration for the Transaction consisted of the issuance of 3.45 million shares of Company common stock and approximately $ 78.9 million in cash, subject to customary post-closing adjustments for working capital, closing cash, closing debt and closing third party expenses. On a fully-diluted basis, issued stock represented approximately 16.4 % of the total issued and outstanding shares of the Company as of the closing date. The fair value of the 3.45 million common shares issued as part of the consideration was determined on the basis of the closing market price of the Company’s common shares on the acquisition date, or $ 11.03 per share. As a result, the total preliminary purchase consideration was $ 116.9 million, partially funded by borrowing on the new term loan facility (see Note 8). Additionally, the Company recognized $ 6.3 million of acquisition-related costs that were expensed during the six months ended June 30, 2024, and are included as a component of general & administrative expenses in the Condensed Consolidated Statement of Operations. The following table summarizes preliminary allocation of the consideration transferred to the assets acquired and liabilities assumed at the acquisition date: (In thousands) Amount Cash 1,562 Accounts Receivable 21,491 Inventory 21,423 Prepaid and Other Current Assets 2,360 Property, Plant & Equipment 1,161 Other Assets 3,478 Intangible Assets 47,769 Accounts Payable ( 11,009 ) Accrued Liabilities ( 8,215 ) Lease Payable ( 2,726 ) Deferred Tax Liability ( 6,461 ) Total identifiable net assets 70,833 Goodwill 46,076 Total consideration paid $ 116,909 The fair values assigned to PDP’s assets and liabilities are provisional and were determined based on preliminary estimates and assumptions that management believes are reasonable. The preliminary purchase price allocation is subject to further refinement and may require significant adjustments to arrive at the final purchase price allocation. The final determination of the fair value of certain assets and liabilities will be completed as soon as the necessary information is available, but no later than one year from the acquisition date. During the three months ended June 30, 2024, we recognized measurement period adjustments primarily to establish preliminary values for the opening balance sheet of the net assets acquired including intangibles assets, which also resulted in a reduction in goodwill from the previously reported preliminary amount. The goodwill from the acquisition, which is fully deductible for tax purposes, consists largely of synergies and economies of scale expected from adding the operations of PDP's and the Company’s existing business and supply channels. The preliminary fair value of PDP’s identifiable intangible assets was determined primarily using the “income approach,” which requires a forecast of all expected future cash flows either through the use of the multi-period excess earnings method or the relief-from-royalty method. Such forecasts are based on inputs that are unobservable and significant to the overall fair value measurement, and as such, are classified as Level 3 inputs (see Note 4). Some of the more significant assumptions inherent in the development of intangible asset values include: the amount and timing of projected future cash flows, the discount rate selected to measure the risks inherent in the future cash flows, the assessment of the intangible asset’s life cycle, as well as other factors. The following table summarizes the preliminary allocation of purchase consideration to identifiable intangible assets: (In thousands) Life Amount Tradenames 7 Years $ 15,607 Customer relationships 6 Years 4,456 Developed technology 6 Years 27,706 Total $ 47,769 PDP's net revenue included in the Company’s consolidated results was $ 21.8 million and $ 27.7 million for the three and six months ended June 30, 2024, respectively. PDP’s net income included in the Company’s consolidated results for the same period was not material. Pro Forma Financial Information (Unaudited) The following table reflects the unaudited pro forma operating results of the Company for the three and six months ended June 30, 2024 and 2023, which give effect to the acquisition of PDP as if it had occurred on January 1, 2023. Three Months Ended Six Months Ended June 30, June 30, June 30, June 30, 2024 2023 2024 2023 (in thousands) Net revenue $ 76,478 $ 65,709 $ 152,344 $ 135,702 Net loss $ ( 4,541 ) $ ( 24,045 ) $ ( 14,434 ) $ ( 35,380 ) The pro forma results are based on assumptions that the Company believes are reasonable under the circumstances. The pro forma results are not necessarily indicative of the operating results that would have occurred had the acquisition been effective January 1, 2023, nor are they intended to be indicative of results that may occur in the future.

Fair Value Measurement

Fair Value Measurement	6 Months Ended
	Jun. 30, 2024
Fair Value Disclosures [Abstract]
Fair Value Measurement	Note 4. Fair Value Measurement The Company follows a three-level fair value hierarchy that prioritizes the inputs used to measure fair value. This hierarchy requires entities to maximize the use of observable inputs and minimize the use of unobservable inputs. The three levels of inputs used to measure fair value are as follows: • Level 1 — Quoted prices in active markets for identical assets or liabilities. • Level 2 — Observable inputs other than quoted prices included in Level 1, such as quoted prices for markets that are not active, or other inputs that are observable or can be corroborated by observable market data. • Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs. Financial instruments consist of cash and cash equivalents, accounts receivable, accounts payable, debt instruments and certain warrants. As of June 30, 2024 and December 31, 2023 , the Company had not elected the fair value option for any financial assets and liabilities for which such an election would have been permitted. The following is a summary of the carrying amounts and estimated fair values of our financial instruments as of June 30, 2024 and December 31, 2023: June 30, 2024 December 31, 2023 Reported Fair Value Reported Fair Value (in thousands) Financial Assets and Liabilities: Cash and cash equivalents $ 12,462 $ 12,462 $ 18,726 $ 18,726 Term Loan $ 49,583 $ 49,583 $ — $ — Revolving credit facility $ 24,029 $ 24,029 $ — $ — Cash equivalents are stated at amortized cost, which approximates fair value as of the consolidated balance sheet dates, due to the short period of time to maturity; and accounts receivable and accounts payable are stated at their carrying value, which approximates fair value due to the short time to the expected receipt or payment. The carrying value of the Credit Facility and Term Loan due 2027 equals fair value as the stated interest rate approximates market rates currently available to the Company. The carrying value of the Credit Facility approximates fair value, due to the variable rate nature of the debt, as of June 30, 2024 and December 31, 2023 .

Allowance for Sales Returns

Allowance for Sales Returns	6 Months Ended
	Jun. 30, 2024
Allowance For Sales Returns [Abstract]
Allowance for Sales Returns	Note 5. Allowance for Sales Returns The following table provides the changes in our sales return reserve, which is classified as a reduction of accounts receivable: Three Months Ended Six Months Ended June 30, June 30, 2024 2023 2024 2023 (in thousands) Balance, beginning of period $ 6,039 $ 6,639 $ 8,449 $ 7,817 Reserve accrual 2,692 2,556 5,433 6,150 Recoveries and deductions, net ( 3,491 ) ( 3,797 ) ( 8,642 ) ( 8,569 ) Balance, end of period $ 5,240 $ 5,398 $ 5,240 $ 5,398

Composition of Certain Financia

Composition of Certain Financial Statement Items	6 Months Ended
	Jun. 30, 2024
Condensed Consolidated Balance Sheet Components [Abstract]
Composition of Certain Financial Statement Items	Note 6. Composition of Certain Financial Statement Items Inventories Inventories consist of the following: June 30, December 31, (in thousands) Finished goods $ 62,379 $ 43,579 Raw materials 10,968 440 Total inventories $ 73,347 $ 44,019 Property and Equipment, net Property and equipment, net, consists of the following: June 30, December 31, (in thousands) Machinery and equipment $ 2,781 $ 2,597 Software and software development 2,858 2,438 Furniture and fixtures 1,686 1,700 Tooling 14,071 11,250 Leasehold improvements 2,327 1,988 Demonstration units and convention booths 16,008 15,767 Total property and equipment, gross 39,731 35,740 Less: accumulated depreciation and amortization ( 33,436 ) ( 30,916 ) Total property and equipment, net $ 6,295 $ 4,824 Other Current Liabilities Other current liabilities consist of the following: June 30, December 31, (in thousands) Accrued employee expenses $ 3,009 $ 3,944 Accrued royalty 6,596 5,275 Accrued tax-related payables 4,350 5,206 Accrued freight 2,215 2,917 Accrued marketing 1,858 3,335 Accrued expenses 12,799 8,747 Total other current liabilities $ 30,827 $ 29,424

Goodwill and Other Intangible A

Goodwill and Other Intangible Assets	6 Months Ended
	Jun. 30, 2024
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill and Other Intangible Assets	Note 7. Goodwill and Other Intangible Assets Acquired Intangible Assets Acquired identifiable intangible assets, and related accumulated amortization, as of June 30, 2024 and December 31, 2023 consisted of: June 30, 2024 Gross Accumulated Net Book (in thousands) Customer relationships $ 12,541 $ 7,530 $ 5,011 Tradenames 18,673 3,468 15,205 Developed technology 29,590 3,148 26,442 Foreign currency ( 1,189 ) ( 1,214 ) 25 Total Intangible Assets (1) $ 59,615 $ 12,932 $ 46,683 December 31, 2023 Gross Accumulated Net Book (in thousands) Customer relationships $ 8,085 $ 7,214 $ 871 Tradenames 3,066 2,607 459 Developed technology 1,884 1,613 271 Foreign currency ( 1,159 ) ( 1,292 ) 133 Total Intangible Assets (1) $ 11,876 $ 10,142 $ 1,734 (1) The accumulated amortization includes $ 1.9 million of accumulated impairment charges as of June 30, 2024 and December 31, 2023. In May 2019, the Company completed its acquisition of the business and assets of ROCCAT. The acquired intangible assets relating to developed technology, customer relationships, and trade name are subject to amortization. In January 2021, the Company completed its acquisition of the business and assets relating to the Neat Microphones business. The acquired intangible assets relating to developed technology, customer relationships, and trade name are subject to amortization. In March 2024, the Company completed its acquisition of the business and assets of PDP. The acquired intangible assets relating to developed technology, customer relationships, and trade name are subject to amortization. Refer to Note 3, “Acquisitions” for additional information related to PDP’s identifiable intangible assets. Amortization expense related to definite lived intangible assets of $ 2.1 million and $ 2.7 million was recognized for the three and six months ended June 30, 2024, respectively, and $ 0.2 million and $ 0.5 million was recognized for the three and six months ended June 30, 2023, respectively. As of June 30, 2024, estimated annual amortization expense related to definite lived intangible assets in future periods was as follows: (in thousands) 2024 $ 4,299 2025 8,016 2026 7,761 2027 7,591 Thereafter 18,991 Total $ 46,658 Changes in the carrying values of goodwill for the six months ended June 30, 2024 from the balance as of December 31, 2023. (in thousands) Balance as of January 1, 2024 $ 10,686 PDP acquisition 46,076 Balance as of June 30, 2024 $ 56,762

Revolving Credit Facility and L

Revolving Credit Facility and Long-Term Debt	6 Months Ended
	Jun. 30, 2024
Debt Disclosure [Abstract]
Revolving Credit Facility and Long-Term Debt	Note 8. Revolving Credit Facility and Long-Term Debt June 30, December 31, (in thousands) Revolving credit facility, maturing March 2027 $ 24,029 $ — Term loan Due 2027 $ 49,583 $ — Total interest expense, inclusive of amortization of deferred financing costs, on long-term debt obligations was $ 2.2 million and $ 2.7 million for the three and six months ended June 30, 2024, respectively, and $ 0.1 million and $ 0.2 million for the three and six months ended June 30, 2023, respectively. Amortization of deferred financing costs was $ 0.3 million for the three and six months ended June 30, 2024 and $ 33 thousand and $ 75 thousand for the three and six months ended June 30, 2023, respectively. Revolving Credit Facility On March 5, 2018, Turtle Beach and certain of its subsidiaries entered into an amended and restated loan, guaranty and security agreement (the “Credit Facility”) with Bank of America, N.A. (“Bank of America”), as administrative agent, collateral agent and security trustee for Lenders (as defined therein), which replaced the then existing asset-based revolving loan agreement. The Credit Facility was amended on each of December 17, 2018, May 31, 2019, and March 10, 2023. The Credit Facility, as amended, expires on March 13, 2027 and provides for a line of credit of up to $ 50 million inclusive of a sub-facility limit of $ 10 million for TB Europe, a wholly-owned subsidiary of Turtle Beach. On March 13, 2024, the Company entered into a Fourth Amendment, dated as of March 13, 2024 (the “Fourth Amendment”), by and among the Company, VTB, TBC Holding Company LLC, TB Europe, VTBH, the financial institutions party thereto from time to time and Bank of America, as administrative agent, collateral agent and security trustee for the lenders. The Fourth Amendment provided for, among other things: (i) the acquisition of PDP; (ii) revised the calculation of the U.S. Borrowing Base to include certain acquired assets of PDP equal to the lesser of (a) the sum of the accounts formula amount and the inventory formula amount (each as defined in the Fourth Amendment), (b) $ 15,000,000 , and (c) 30 % of the aggregate Revolver Commitments; (iii) extending the maturity date of the Credit Facility from April 1, 2025 to March 13, 2027 ; and (iv) updated the interest rate and margin terms such that the loans will bear interest at a rate equal to (1) SOFR, (2) the U.S. Base Rate, (3) the Sterling Overnight Index Average Reference Rate (“SONIA”) for loans denominated in Sterling, and (4) the Euro Interbank Offered Rate (“EUIBOR”) for loans denominated in Euros, plus in each case, an applicable margin, which is between 0.50 % and 2.50 % for Base Rate Loans and 1.75 % and 3.50 % for Term SOFR Loans, SONIA Rate Loans and EUIBOR Loans. The maximum credit availability for loans and letters of credit under the Credit Facility is governed by a borrowing base determined by the application of specified percentages to certain eligible assets, primarily eligible trade accounts receivable and inventories, and is subject to discretionary reserves and revaluation adjustments. The Credit Facility may be used for working capital, the issuance of bank guarantees, letters of credit and other corporate purposes. Amounts outstanding under the Credit Facility bear interest at a rate equal to (i) a rate published by Bank of America or the U.S. Bloomberg Short-Term Bank Yield Index (“BSBY”) rate for loans denominated in U.S. Dollars, (ii) the Sterling Overnight Index Average Reference Rate (“SONIA”) for loans denominated in Sterling, (iii) and the Euro Interbank Offered Rate (“EUIBOR”) for loans denominated in Euros, plus in each case, an applicable margin, which is between 0.50 % to 2.50 % for base rate loans and UK base rate loans, and 1.75 % to 3.50 % for U.S. BSBY rate loans, U.S. BSBY daily floating rate loans and UK alternative currency loans. In addition, Turtle Beach is required to pay a commitment fee on the unused revolving loan commitment at a rate ranging from 0.375 % to 0.50 % and letter of credit fees and agent fees. As of June 30, 2024, interest rates for outstanding borrowings were 9.10 % for base rate loans and 7.19 % for Term SOFR loans. The Company is subject to quarterly financial covenant testing if certain availability thresholds are not met or certain other events occur (as set forth in the Credit Facility). At such times, the Credit Facility requires the Company and its restricted subsidiaries to maintain a fixed charge coverage ratio of at least 1.00 to 1.00 as of the last day of each fiscal quarter. The Credit Facility also contains affirmative and negative covenants that, subject to certain exceptions, limit our ability to take certain actions, including the Company’s ability to incur debt, pay dividends and repurchase stock, make certain investments and other payments, enter into certain mergers and consolidations, engage in sale leaseback transactions and transactions with affiliates, and encumber and dispose of assets. Obligations under the Credit Facility are secured by a security interest and lien upon substantially all of the Company’s assets. As of June 30, 2024, the Company was in compliance with all financial covenants under the Credit Facility, as amended, and excess borrowing availability was approximately $ 34.6 million. Term Loan On March 13, 2024, Turtle Beach and certain of its subsidiaries entered into a new financing agreement with Blue Torch Finance, LLC, (“Blue Torch”), pursuant to which Blue Torch for an aggregate amount of $ 50 million (the “Term Loan Facility”), the proceeds of which were used to (i) fund a portion of the PDP acquisition purchase price; (ii) repay certain existing indebtedness of the acquired business; (iii) to pay fees and expenses related to such transactions and (iv) for general corporate purposes. The Term Loan Facility will amortize in a monthly amount equal to 0.208333 % during the first two years and 0.416667 % during the third year and may be prepaid at any time subject to a prepayment premium during the first year of the interest payments payable during the first year plus 3.00 %. The Term Loan Facility is secured by substantially all of the assets of the Company and its subsidiaries which are party to the Term Loan Facility. The Term Loan Facility (a) matures on March 13, 2027 ; (b) bears interest at a rate equal to (i) a base rate plus 7.25 % per annum for Reference Rate Loans and Secured Overnight Financing Rate (“SOFR”) plus 8.25 % per annum for SOFR Loans if the total net leverage ratio is greater than or equal to 2.25 x and (ii) a base rate plus 6.75 % per annum for Reference Rate Loans and SOFR plus 7.75 % per annum for SOFR Loans if the total net leverage ratio is less than 2.25 x; and (c) is subject to certain affirmative, negative and financial covenants, including a minimum liquidity covenant and a quarterly total net leverage ratio covenant. As of June 30, 2024 , interest rates for outstanding borrowings was 13.69 %. As of June 30, 2024 , the Company was in compliance with all financial covenants under the Term Loan.

Income Taxes

Income Taxes	6 Months Ended
	Jun. 30, 2024
Income Tax Disclosure [Abstract]
Income Taxes	Note 9. Income Taxes Generally, in order to determine the quarterly provision for income taxes, the Company uses an estimated annual effective tax rate, which is based on expected annual income and statutory tax rates in the various jurisdictions. However, to the extent that application of the estimated annual effective tax rate is not representative of the quarterly portion of actual tax expense expected to be recorded for the year in a jurisdiction, the Company determines the provision for income taxes based on actual year-to-date income (loss) which it has done for certain jurisdictions for the quarter ended June 30, 2024. Certain significant or unusual items are separately recognized as discrete items in the period during which they occur and can be a source of variability in the effective tax rates from quarter to quarter. The following table presents the Company’s income tax expense and effective income tax rate: Three Months Ended Six Months Ended June 30, June 30, 2024 2023 2024 2023 (in thousands) Income tax expense (benefit) $ 841 $ ( 54 ) $ ( 5,547 ) $ ( 124 ) Effective income tax rate ( 12.6 %) 0.3 % 42.9 % 0.5 % The effective tax rate for the three and six months ended June 30, 2024 was primarily impacted by the change in U.S. valuation allowance related to the acquisition of PDP, foreign taxes, state tax and interest on uncertain tax positions. The Company recognizes only those tax positions that meet the more-likely-than-not recognition threshold and establishes tax reserves for uncertain tax positions that do not meet this threshold. Interest and penalties associated with income tax matters are included in the provision for income taxes in the condensed consolidated statements of operations. As of June 30, 2024, the Company had uncertain tax positions of $ 2.8 million , inclusive of $ 0.6 million of interest and penalties. As required by the authoritative guidance on accounting for income taxes, the Company evaluates the realizability of deferred tax assets on a jurisdictional basis at each reporting date. Accounting for income taxes requires that a valuation allowance be established when it is more likely than not that all or a portion of the deferred taxes will not be realized. The Company considers all positive and negative evidence in determining if, based on the weight of such evidence, a valuation allowance is required. In circumstances where there is sufficient negative evidence indicating that the deferred tax assets are not more likely than not realizable, the Company establishes a valuation allowance. Due to the significant 2022 pre-tax loss, coupled with cumulative book losses projected in early future years, the Company recorded a valuation allowance on its net U.S. deferred tax assets as of December 31, 2022. While the Company continues to maintain this valuation allowance for the three and six months ended June 30, 2024 , it did release $ 6.4 million of valuation allowance for PDP acquired net deferred tax liabilities. The Company is subject to income taxes domestically and in various foreign jurisdictions. The Company files U.S., state and foreign income tax returns in jurisdictions with various statutes of limitations. The federal tax years open under the statute of limitations are 2019 through 2021, and the state tax years open under the statute of limitations are 2019 through 2022.

Equity and Stock-Based Compensa

Equity and Stock-Based Compensation	6 Months Ended
	Jun. 30, 2024
Share-Based Payment Arrangement [Abstract]
Equity and Stock-Based Compensation	Note 10. Equity and Stock-Based Compensation Stock Repurchase Activity On April 9, 2019, the Company’s Board of Directors authorized a stock repurchase program to acquire up to $ 15.0 million of its common stock. Any repurchases under the program will be made from time to time on the open market at prevailing market prices. On April 1, 2021, the Board of Directors approved an extension and expansion of this stock repurchase program up to $ 25.0 million of its common shares, expiring April 9, 2023 . On March 3, 2023, the Company’s Board of Directors approved a two-year extension of this stock repurchase plan. On April 9, 2024, the Board of Directors approved an additional expansion of this stock repurchase program to up to $ 55 million of the Company’s common shares. During the three and six months ended June 30, 2024 , the Company has repurchased 1.0 million shares of its common stock for a total cost of $ 15.2 million. Stock-Based Compensation Total estimated stock-based compensation expense for employees and non-employees, related to all of the Company’s stock-based awards, was as follows: Three Months Ended Six Months Ended June 30, June 30, 2024 2023 2024 2023 (in thousands) Cost of revenue $ 159 $ 162 $ 290 $ 337 Selling and marketing 375 410 862 900 Research and development 273 324 497 680 General and administrative 39 4,074 302 5,012 Total stock-based compensation $ 846 $ 4,970 $ 1,951 $ 6,929 The following table presents the stock activity and the total number of shares available for grant as of June 30, 2024: (in thousands) Balance at December 31, 2023 1,059 Options Cancelled 1 Restricted Stock Granted ( 205 ) Restricted Stock Forfeited 19 Performance Shares Granted ( 171 ) Balance at June 30, 2024 703 Stock Option Activity Options Outstanding Number of Weighted- Weighted- Aggregate (in years) Outstanding at December 31, 2023 1,041,452 $ 9.10 4.22 $ 3,137,285 Options Granted - - Options Exercised ( 346,842 ) 8.27 Options Forfeited ( 824 ) 60.87 Outstanding at June 30, 2024 693,786 $ 9.45 4.85 $ 4,060,476 Vested and expected to vest at June 30, 2024 695,434 $ 9.53 4.85 $ 4,060,476 Exercisable at June 30, 2024 693,421 $ 9.49 4.85 $ 4,060,476 Stock options are time-based and the majority are exercisable within 10 years of the date of grant, but only to the extent they have vested. The options generally vest as specified in the option agreements subject to acceleration in certain circumstances. In the event participants in the plan cease to be employed or engaged by the Company, all vested options would be forfeited if they are not exercised within 90 days. Forfeitures on option grants are estimated at 10 % for non-executives and 0 % for executives based on evaluation of historical and expected future turnover. Stock-based compensation expense was recorded net of estimated forfeitures, such that expense was recorded only for those stock-based awards expected to vest. The Company reviews this assumption periodically and will adjust it if it is not representative of future forfeiture data and trends within employee types (executive vs. non-executive). Aggregate intrinsic value represents the difference between the estimated fair value of the underlying common stock and the exercise price of outstanding, in-the-money options. The aggregate intrinsic value of options exercised was $ 2.3 million for the six months ended June 30, 2024. The Company uses the Black-Scholes option-pricing model to estimate the fair value of options granted as of the grant date. There were no new options granted during the six months ended June 30, 2024. The total estimated fair value of employee options vested during the six months ended June 30, 2024 was $ 1.2 million . As of June 30, 2024 , total unrecognized compensation cost related to non-vested stock options granted to employees was less than $ 0.1 million, which is expected to be recognized over a remaining weighted average vesting period of 0.5 years. Restricted Stock Activity Shares Weighted Nonvested restricted stock at December 31, 2023 764,942 $ 14.76 Granted 205,268 17.05 Vested ( 317,552 ) 14.16 Shares forfeited ( 19,236 ) 10.47 Nonvested restricted stock at June 30, 2024 633,422 $ 15.93 As of June 30, 2024, total unrecognized compensation costs related to the nonvested restricted stock awards was $ 9.1 million , which will be recognized over a remaining weighted average vesting period of 1.5 years. Performance-Based Restricted Share Units As of June 30, 2024 , the Company had 253,395 performance-based restricted share units outstanding. On April 1, 2024, the Company granted 171,393 PSUs to certain executives, of which 50 % vest based on achievement of defined Company stock price appreciation over the period of April 1, 2024 through May 9, 2025, and 50 % vest based on defined Adjusted EBITDA targets for the period commencing on the second fiscal quarter in 2024 through the first fiscal quarter of 2025. The awards granted on April 1, 2024 are also subject to three year service-based vesting periods with the ability to earn and vest into such units ranging from 0 % to 200 % of the granted PSUs. The remaining 82,002 PSUs outstanding were granted to executives on April 1, 2023 and 2022, and will vest over a three-year period from the respective grant dates based on (i) the amount by which revenue growth exceeds a defined baseline market growth each year and (ii) the achievement of specified tiers of Adjusted EBITDA as a percentage of net revenue each year, with the ability to earn and vest into such units ranging from 0 % to 200 % of the granted PSUs. As of June 30, 2024 , achievement of the performance conditions associated with the outstanding 2024, 2023 and 2022 performance shares was deemed not probable.

Net Income (Loss) Per Share

Net Income (Loss) Per Share	6 Months Ended
	Jun. 30, 2024
Earnings Per Share [Abstract]
Net Income (Loss) Per Share	Note 11. Net Income (Loss) Per Share The following table sets forth the computation of basic and diluted net income (loss) per share of common stock attributable to common stockholders: Three Months Ended Six Months Ended June 30, June 30, 2024 2023 2024 2023 (in thousands, except per-share data) Net income (loss) $ ( 7,524 ) $ ( 15,920 ) $ ( 7,369 ) $ ( 22,625 ) Weighted average common shares outstanding — Basic 21,252 17,156 19,795 16,869 Plus incremental shares from assumed conversions: Dilutive effect of restricted stock — — — — Dilutive effect of stock options — — — — Dilutive effect of warrants — — — — Weighted average common shares outstanding — Diluted 21,252 17,156 19,795 16,869 Net income (loss) per share: Basic $ ( 0.35 ) $ ( 0.93 ) $ ( 0.37 ) $ ( 1.34 ) Diluted $ ( 0.35 ) $ ( 0.93 ) $ ( 0.37 ) $ ( 1.34 ) Incremental shares from stock options and restricted stock awards are computed using the treasury stock method. The weighted average shares listed below were not included in the computation of diluted earnings per share because to do so would have been anti-dilutive for the periods presented or were otherwise excluded under the treasury stock method. The treasury stock method calculates dilution assuming the exercise of all in-the-money options and vesting of restricted stock, reduced by the repurchase of shares with the proceeds from the assumed exercises and unrecognized compensation expense for outstanding awards. Three Months Ended Six Months Ended June 30, June 30, 2024 2023 2024 2023 (in thousands) Stock options 782 1,363 820 1,384 Unvested restricted stock awards 646 908 676 860 Warrants 550 550 550 550 Total 1,978 2,821 2,046 2,794

Segment Information

Segment Information	6 Months Ended
	Jun. 30, 2024
Segment Reporting [Abstract]
Segment Information	Note 12. Segment Information The following table represents total net revenues based on where customers are physically located: Three Months Ended Six Months Ended June 30, June 30, 2024 2023 2024 2023 (in thousands) North America $ 61,993 $ 32,356 $ 104,152 $ 73,068 Europe and Middle East 11,983 11,861 22,944 21,587 Asia Pacific 2,502 3,765 5,230 4,771 Total net revenues $ 76,478 $ 47,982 $ 132,326 $ 99,426

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 30, 2024
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Note 13. Commitments and Contingencies Litigation The Company is subject to various legal proceedings and claims that arise in the ordinary course of its business. Although the amount of any liability that could arise with respect to these actions cannot be determined with certainty, in the Company’s opinion, any such liability will not have a material adverse effect on its consolidated financial position, consolidated results of operations or liquidity. Shareholders Class Action : On August 5, 2013, VTB Holdings, Inc. (“VTBH”) and the Company (f/k/a Parametric Sound Corporation) announced that they had entered into the Merger Agreement pursuant to which VTBH would acquire an approximately 80 % ownership interest and existing shareholders would maintain an approximately 20 % ownership interest in the combined company (the “Merger”). Following the announcement, several shareholders filed class action lawsuits in California and Nevada seeking to enjoin the Merger. The plaintiffs in each case alleged that members of the Company’s Board of Directors breached their fiduciary duties to the shareholders by agreeing to a merger that allegedly undervalued the Company. VTBH and the Company were named as defendants in these lawsuits under the theory that they had aided and abetted the Company’s Board of Directors in allegedly violating their fiduciary duties. The plaintiffs in both cases sought a preliminary injunction seeking to enjoin closing of the Merger, which, by agreement, was heard by the Nevada court with the California plaintiffs invited to participate. On December 26, 2013, the court in the Nevada case denied the plaintiffs’ motion for a preliminary injunction. Following the closing of the Merger, the Nevada plaintiffs filed a second amended complaint, which made essentially the same allegations and sought monetary damages as well as an order rescinding the Merger. The California plaintiffs dismissed their action without prejudice, and sought to intervene in the Nevada action, which was granted. Subsequent to the intervention, the plaintiffs filed a third amended complaint, which made essentially the same allegations as prior complaints and sought monetary damages. On June 20, 2014, VTBH and the Company moved to dismiss the action, but that motion was denied on August 28, 2014. On September 14, 2017, a unanimous en banc panel of the Nevada Supreme Court granted defendants’ petition for writ of mandamus and ordered the trial court to dismiss the complaint but provided a limited basis upon which plaintiffs could seek to amend their complaint. Plaintiffs amended their complaint on December 1, 2017 to assert the same claims in a derivative capacity on behalf of the Company, as a well as in a direct capacity, against VTBH, Stripes Group, LLC, SG VTB Holdings, LLC, and the former members of the Company’s Board of Directors. All defendants moved to dismiss this amended complaint on January 2, 2018, and those motions were denied on March 13, 2018. Defendants petitioned the Nevada Supreme Court to reverse this ruling on April 18, 2018. On June 15, 2018, the Nevada Supreme Court denied defendants’ writ petition without prejudice. The district court subsequently entered a pretrial schedule and set trial for November 2019. On January 18, 2019, the district court certified a class of shareholders of the Company as of January 15, 2014. On October 11, 2019, the parties notified the district court that they had reached a settlement that would resolve the pending action if ultimately approved by the Court. On January 13, 2020, the district court preliminarily approved the settlement between the plaintiffs and all defendants. A final hearing was held on May 18, 2020, wherein the Court approved the settlement and entered final judgment. On May 22, 2020, PAMTP LLC, which purports to hold the claims of eight shareholders who opted out of the class settlement described above, brought suit against the Company, the Company’s former Chief Executive Officer, Juergen Stark, Stripes Group, LLC, SG VTB Holdings, LLC, Kenneth Fox, and former members of the Company’s Board of Directors in Nevada state court. This opt-out action asserts the same direct claims that were asserted by the class of shareholders described above. The defendants filed two motions to dismiss this complaint, which were heard on August 10, 2020. The Court denied those motions by order of August 20, 2020. The case was tried in August 2021 and all remaining defendants, including the Company, prevailed on all counts with final judgment entered in their favor on September 3, 2021. Plaintiff appealed that judgment. On June 6, 2024, the Nevada Supreme Court affirmed the judgment in Defendants’ favor and subsequently denied Plaintiff’s petition for rehearing on July 22, 2024. Employment Litigation: On April 20, 2017, a former employee filed an action in the Superior Court for the County of San Diego, State of California. The complaint alleges claims including wrongful termination, retaliation and various other provisions of the California Labor Code. The complaint seeks unspecified economic and non-economic losses, as well as allegedly unpaid wages, unreimbursed business expenses statutory penalties, interest, punitive damages and attorneys’ fees. The Company filed a cross-complaint against the former employee on May 25, 2017 for certain activities related to his employment with the Company. The matter was tried between September 24 and October 7, 2021. On October 8, 2021 a jury rendered a unanimous verdict in favor of the Company on the employment claims. The Court granted a directed verdict to the Company on its cross-complaint against the former employee. Judgment was entered in favor of the Company on October 27, 2021. On December 20, 2021, the former employee filed a notice of appeal of the judgment. On November 14, 2023, the court of appeal issued its opinion affirming the judgment in favor of the Company. On the Company’s cross-complaint, the court of appeal directed the Company to elect either punitive or statutory treble damages, but otherwise affirmed. On March 8, 2024, the Superior Court entered an amended judgment in favor of the Company and awarding the Company monetary damages, injunctive relief, attorneys’ fees and costs. Insolvency Dispute in Germany: On February 15, 2024, TBC Holding Company LLC (“TBCH”), a wholly-owned subsidiary of Turtle Beach Corporation, was served with a lawsuit that was brought to the German Higher Regional Court in Stade by the insolvency administrator of KJE Europe GmbH, a company registered and existing under the laws of Germany. In his complaint, the insolvency administrator claims that TBCH is liable to reimburse any payments received by the TBCH under a certain settlement agreement with KJE Europe GmbH dated June 30, 2020. TBCH filed its statement of defense to the complaint on April 30, 2024 and the insolvency administrator filed his response in a brief on June 11, 2024. TBCH does not believe the claims have merit and intends to defend itself in this proceeding. The Company will continue to vigorously defend itself in the foregoing unresolved matters. However, litigation and investigations are inherently uncertain. Accordingly, the Company cannot predict the outcome of these matters. The Company has not recorded any accrual at June 30, 2024 for contingent losses associated with these matters based on its belief that losses, while possible, are not probable. Further, any possible range of loss cannot be reasonably estimated at this time. The unfavorable resolution of these matters could have a material adverse effect on the Company’s business, results of operations, financial condition, or cash flows. The Company is engaged in other legal actions, not described above, arising in the ordinary course of its business and, while there can be no assurance, believes that the ultimate outcome of these other legal actions will not have a material adverse effect on its business, results of operations, financial condition, or cash flows. Warranties The Company warrants its products against certain manufacturing and other defects. These product warranties are provided for specific periods of time depending on the nature of the product. Warranties are generally fulfilled by replacing defective products with new products. The following table provides the changes in our product warranty reserve, which are included in accrued liabilities: Three Months Ended Six Months Ended June 30, June 30, 2024 2023 2024 2023 (in thousands) Warranty, beginning of period $ 687 $ 616 $ 670 $ 618 Warranty costs accrued 263 190 483 375 Settlements of warranty claims ( 215 ) ( 166 ) ( 418 ) ( 353 ) Warranty, end of period $ 735 $ 640 $ 735 $ 640 Operating Leases - Right of Use Assets The Company determines whether an arrangement is a lease at inception. The Company leases office spaces that provide for future minimum rental lease payments under non-cancelable operating leases that have remaining lease terms of one year to nine years , and do not contain any material residual value guarantees or material restrictive covenants. The components of the right-of-use assets and lease liabilities were as follows: Balance Sheet Classification June 30, 2024 (in thousands) Right-of-use assets Other assets $ 9,717 Lease liability obligations, current Other current liabilities $ 2,108 Lease liability obligations, noncurrent Other liabilities 7,714 Total lease liability obligations $ 9,822 Weighted-average remaining lease term (in years) 4.5 Weighted-average discount rate 8.6 % During the six months ended June 30, 2024, the Company recognized approximately $ 0.8 million of lease costs in operating expenses and approximately $ 0.9 million of operating cash flows from operating leases. Approximate future minimum lease payments for the Company’s right of use assets over the remaining lease periods as of June 30, 2024, are as follows: (in thousands) 2024 $ 1,174 2025 2,360 2026 2,314 2027 2,284 2028 1,282 Thereafter 2,007 Total minimum payments 11,421 Less: Imputed interest ( 1,599 ) Total $ 9,822

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2024
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The accompanying interim condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) and, in the opinion of management, reflect all adjustments (which include normal recurring adjustments) considered necessary for a fair presentation of the financial position, results of operations, and cash flows for the periods presented. All intercompany accounts and transactions have been eliminated in consolidation. Certain information and footnote disclosures, normally included in annual financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”), have been condensed or omitted pursuant to those rules and regulations. The Company believes that the disclosures made are adequate to make the information presented not misleading. The results of operations for the interim periods are not necessarily indicative of the results of operations for the entire fiscal year. The December 31, 2023 Condensed Consolidated Balance Sheet has been derived from the Company’s audited financial statements included in its Annual Report on Form 10-K filed with the SEC on March 13, 2024 (“Annual Report”). These financial statements should be read in conjunction with the annual financial statements and the notes thereto included in the Annual Report that contains information useful to understanding the Company’s businesses and financial statement presentations.
Use of Estimates	Use of estimates : The preparation of financial statements in conformity with generally accepted accounting principles requires management to use estimates and assumptions that affect the reported amount of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements, as well as the reported amounts of revenue and expenses during the reporting period. The significant estimates and assumptions used by management affect: sales return reserve, allowances for cash discounts, warranty reserve, valuation of inventory, valuation of long-lived assets, goodwill and other intangible assets, depreciation and amortization of long-lived assets, valuation of deferred tax assets, probability of performance shares vesting and forfeiture rates utilized in issuing stock-based compensation awards. The Company evaluates estimates and assumptions on an ongoing basis using historical experience and other factors and adjusts those estimates and assumptions when facts and circumstances dictate. As future events and their effects cannot be determined with precision, actual results could differ from these estimates, and those differences could be material to the consolidated financial statements.

Acquisitions (Tables)

Acquisitions (Tables)	6 Months Ended
	Jun. 30, 2024
Business Combinations [Abstract]
Summary of Preliminary Allocation of Consideration Transferred to Assets Acquired and Liabilities Assumed	The following table summarizes preliminary allocation of the consideration transferred to the assets acquired and liabilities assumed at the acquisition date: (In thousands) Amount Cash 1,562 Accounts Receivable 21,491 Inventory 21,423 Prepaid and Other Current Assets 2,360 Property, Plant & Equipment 1,161 Other Assets 3,478 Intangible Assets 47,769 Accounts Payable ( 11,009 ) Accrued Liabilities ( 8,215 ) Lease Payable ( 2,726 ) Deferred Tax Liability ( 6,461 ) Total identifiable net assets 70,833 Goodwill 46,076 Total consideration paid $ 116,909
Summary of Preliminary Allocation of Purchase Consideration to Identifiable Intangible Assets	The following table summarizes the preliminary allocation of purchase consideration to identifiable intangible assets: (In thousands) Life Amount Tradenames 7 Years $ 15,607 Customer relationships 6 Years 4,456 Developed technology 6 Years 27,706 Total $ 47,769
Summary of Pro Forma Financial Information (Unaudited)	The following table reflects the unaudited pro forma operating results of the Company for the three and six months ended June 30, 2024 and 2023, which give effect to the acquisition of PDP as if it had occurred on January 1, 2023. Three Months Ended Six Months Ended June 30, June 30, June 30, June 30, 2024 2023 2024 2023 (in thousands) Net revenue $ 76,478 $ 65,709 $ 152,344 $ 135,702 Net loss $ ( 4,541 ) $ ( 24,045 ) $ ( 14,434 ) $ ( 35,380 )

Fair Value Measurement (Tables)

Fair Value Measurement (Tables)	6 Months Ended
	Jun. 30, 2024
Fair Value Disclosures [Abstract]
Summary of Carrying Amounts and Estimated Fair Values of Financial Instruments	The following is a summary of the carrying amounts and estimated fair values of our financial instruments as of June 30, 2024 and December 31, 2023: June 30, 2024 December 31, 2023 Reported Fair Value Reported Fair Value (in thousands) Financial Assets and Liabilities: Cash and cash equivalents $ 12,462 $ 12,462 $ 18,726 $ 18,726 Term Loan $ 49,583 $ 49,583 $ — $ — Revolving credit facility $ 24,029 $ 24,029 $ — $ —

Allowance for Sales Returns (Ta

Allowance for Sales Returns (Tables)	6 Months Ended
	Jun. 30, 2024
Allowance For Sales Returns [Abstract]
Schedule of Allowances for Sales Returns	The following table provides the changes in our sales return reserve, which is classified as a reduction of accounts receivable: Three Months Ended Six Months Ended June 30, June 30, 2024 2023 2024 2023 (in thousands) Balance, beginning of period $ 6,039 $ 6,639 $ 8,449 $ 7,817 Reserve accrual 2,692 2,556 5,433 6,150 Recoveries and deductions, net ( 3,491 ) ( 3,797 ) ( 8,642 ) ( 8,569 ) Balance, end of period $ 5,240 $ 5,398 $ 5,240 $ 5,398

Composition of Certain Financ_2

Composition of Certain Financial Statement Items (Tables)	6 Months Ended
	Jun. 30, 2024
Condensed Consolidated Balance Sheet Components [Abstract]
Schedule of Inventory	Inventories consist of the following: June 30, December 31, (in thousands) Finished goods $ 62,379 $ 43,579 Raw materials 10,968 440 Total inventories $ 73,347 $ 44,019
Schedule of Property and Equipment	Property and equipment, net, consists of the following: June 30, December 31, (in thousands) Machinery and equipment $ 2,781 $ 2,597 Software and software development 2,858 2,438 Furniture and fixtures 1,686 1,700 Tooling 14,071 11,250 Leasehold improvements 2,327 1,988 Demonstration units and convention booths 16,008 15,767 Total property and equipment, gross 39,731 35,740 Less: accumulated depreciation and amortization ( 33,436 ) ( 30,916 ) Total property and equipment, net $ 6,295 $ 4,824
Other Current Liabilities	Other current liabilities consist of the following: June 30, December 31, (in thousands) Accrued employee expenses $ 3,009 $ 3,944 Accrued royalty 6,596 5,275 Accrued tax-related payables 4,350 5,206 Accrued freight 2,215 2,917 Accrued marketing 1,858 3,335 Accrued expenses 12,799 8,747 Total other current liabilities $ 30,827 $ 29,424

Goodwill and Other Intangible_2

Goodwill and Other Intangible Assets (Tables)	6 Months Ended
	Jun. 30, 2024
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Intangible Assets	Acquired identifiable intangible assets, and related accumulated amortization, as of June 30, 2024 and December 31, 2023 consisted of: June 30, 2024 Gross Accumulated Net Book (in thousands) Customer relationships $ 12,541 $ 7,530 $ 5,011 Tradenames 18,673 3,468 15,205 Developed technology 29,590 3,148 26,442 Foreign currency ( 1,189 ) ( 1,214 ) 25 Total Intangible Assets (1) $ 59,615 $ 12,932 $ 46,683 December 31, 2023 Gross Accumulated Net Book (in thousands) Customer relationships $ 8,085 $ 7,214 $ 871 Tradenames 3,066 2,607 459 Developed technology 1,884 1,613 271 Foreign currency ( 1,159 ) ( 1,292 ) 133 Total Intangible Assets (1) $ 11,876 $ 10,142 $ 1,734 (1) The accumulated amortization includes $ 1.9 million of accumulated impairment charges as of June 30, 2024 and December 31, 2023.
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense	As of June 30, 2024, estimated annual amortization expense related to definite lived intangible assets in future periods was as follows: (in thousands) 2024 $ 4,299 2025 8,016 2026 7,761 2027 7,591 Thereafter 18,991 Total $ 46,658
Schedule of Changes in Carrying Values of Goodwill	Changes in the carrying values of goodwill for the six months ended June 30, 2024 from the balance as of December 31, 2023. (in thousands) Balance as of January 1, 2024 $ 10,686 PDP acquisition 46,076 Balance as of June 30, 2024 $ 56,762

Revolving Credit Facility and_2

Revolving Credit Facility and Long-Term Debt (Tables)	6 Months Ended
	Jun. 30, 2024
Debt Disclosure [Abstract]
Schedule of Debt	June 30, December 31, (in thousands) Revolving credit facility, maturing March 2027 $ 24,029 $ — Term loan Due 2027 $ 49,583 $ —

Income Taxes (Tables)

Income Taxes (Tables)	6 Months Ended
	Jun. 30, 2024
Income Tax Disclosure [Abstract]
Summary of Income Tax Expense and Effective Income Tax Rate	The following table presents the Company’s income tax expense and effective income tax rate: Three Months Ended Six Months Ended June 30, June 30, 2024 2023 2024 2023 (in thousands) Income tax expense (benefit) $ 841 $ ( 54 ) $ ( 5,547 ) $ ( 124 ) Effective income tax rate ( 12.6 %) 0.3 % 42.9 % 0.5 %

Equity and Stock-Based Compen_2

Equity and Stock-Based Compensation (Tables)	6 Months Ended
	Jun. 30, 2024
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock-based Compensation Expense	Total estimated stock-based compensation expense for employees and non-employees, related to all of the Company’s stock-based awards, was as follows: Three Months Ended Six Months Ended June 30, June 30, 2024 2023 2024 2023 (in thousands) Cost of revenue $ 159 $ 162 $ 290 $ 337 Selling and marketing 375 410 862 900 Research and development 273 324 497 680 General and administrative 39 4,074 302 5,012 Total stock-based compensation $ 846 $ 4,970 $ 1,951 $ 6,929
Stock Activity and Total Number of Shares Available for Grant	The following table presents the stock activity and the total number of shares available for grant as of June 30, 2024: (in thousands) Balance at December 31, 2023 1,059 Options Cancelled 1 Restricted Stock Granted ( 205 ) Restricted Stock Forfeited 19 Performance Shares Granted ( 171 ) Balance at June 30, 2024 703
Stock Option Activity	Options Outstanding Number of Weighted- Weighted- Aggregate (in years) Outstanding at December 31, 2023 1,041,452 $ 9.10 4.22 $ 3,137,285 Options Granted - - Options Exercised ( 346,842 ) 8.27 Options Forfeited ( 824 ) 60.87 Outstanding at June 30, 2024 693,786 $ 9.45 4.85 $ 4,060,476 Vested and expected to vest at June 30, 2024 695,434 $ 9.53 4.85 $ 4,060,476 Exercisable at June 30, 2024 693,421 $ 9.49 4.85 $ 4,060,476
Restricted Stock Awards
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Restricted Stock Activity	Shares Weighted Nonvested restricted stock at December 31, 2023 764,942 $ 14.76 Granted 205,268 17.05 Vested ( 317,552 ) 14.16 Shares forfeited ( 19,236 ) 10.47 Nonvested restricted stock at June 30, 2024 633,422 $ 15.93

Net Income (Loss) Per Share (Ta

Net Income (Loss) Per Share (Tables)	6 Months Ended
	Jun. 30, 2024
Earnings Per Share [Abstract]
Schedule of Computation of Basic and Diluted Net Income (Loss) per Share of Common Stock	The following table sets forth the computation of basic and diluted net income (loss) per share of common stock attributable to common stockholders: Three Months Ended Six Months Ended June 30, June 30, 2024 2023 2024 2023 (in thousands, except per-share data) Net income (loss) $ ( 7,524 ) $ ( 15,920 ) $ ( 7,369 ) $ ( 22,625 ) Weighted average common shares outstanding — Basic 21,252 17,156 19,795 16,869 Plus incremental shares from assumed conversions: Dilutive effect of restricted stock — — — — Dilutive effect of stock options — — — — Dilutive effect of warrants — — — — Weighted average common shares outstanding — Diluted 21,252 17,156 19,795 16,869 Net income (loss) per share: Basic $ ( 0.35 ) $ ( 0.93 ) $ ( 0.37 ) $ ( 1.34 ) Diluted $ ( 0.35 ) $ ( 0.93 ) $ ( 0.37 ) $ ( 1.34 )
Schedule of Antidilutive Securities Excluded from Computation of Diluted Net Income per Share of Common Stock	Three Months Ended Six Months Ended June 30, June 30, 2024 2023 2024 2023 (in thousands) Stock options 782 1,363 820 1,384 Unvested restricted stock awards 646 908 676 860 Warrants 550 550 550 550 Total 1,978 2,821 2,046 2,794

Segment Information (Tables)

Segment Information (Tables)	6 Months Ended
	Jun. 30, 2024
Segment Reporting [Abstract]
Schedule of Total Net Revenues	The following table represents total net revenues based on where customers are physically located: Three Months Ended Six Months Ended June 30, June 30, 2024 2023 2024 2023 (in thousands) North America $ 61,993 $ 32,356 $ 104,152 $ 73,068 Europe and Middle East 11,983 11,861 22,944 21,587 Asia Pacific 2,502 3,765 5,230 4,771 Total net revenues $ 76,478 $ 47,982 $ 132,326 $ 99,426

Commitments and Contingencies (

Commitments and Contingencies (Tables)	6 Months Ended
	Jun. 30, 2024
Commitments and Contingencies Disclosure [Abstract]
Schedule of Product Warranty Liability	The following table provides the changes in our product warranty reserve, which are included in accrued liabilities: Three Months Ended Six Months Ended June 30, June 30, 2024 2023 2024 2023 (in thousands) Warranty, beginning of period $ 687 $ 616 $ 670 $ 618 Warranty costs accrued 263 190 483 375 Settlements of warranty claims ( 215 ) ( 166 ) ( 418 ) ( 353 ) Warranty, end of period $ 735 $ 640 $ 735 $ 640
Components of the Right-of-Use Assets and Lease Liabilities	The components of the right-of-use assets and lease liabilities were as follows: Balance Sheet Classification June 30, 2024 (in thousands) Right-of-use assets Other assets $ 9,717 Lease liability obligations, current Other current liabilities $ 2,108 Lease liability obligations, noncurrent Other liabilities 7,714 Total lease liability obligations $ 9,822 Weighted-average remaining lease term (in years) 4.5 Weighted-average discount rate 8.6 %
Schedule of Future Minimum Rental Payments for Operating Leases	Approximate future minimum lease payments for the Company’s right of use assets over the remaining lease periods as of June 30, 2024, are as follows: (in thousands) 2024 $ 1,174 2025 2,360 2026 2,314 2027 2,284 2028 1,282 Thereafter 2,007 Total minimum payments 11,421 Less: Imputed interest ( 1,599 ) Total $ 9,822

Acquisitions - Summary of Preli

Acquisitions - Summary of Preliminary Allocation of Consideration Transferred to Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Mar. 13, 2024	Dec. 31, 2023
Business Acquisition [Line Items]
Goodwill	$ 56,762		$ 10,686
PDP
Business Acquisition [Line Items]
Cash		$ 1,562
Accounts Receivable		21,491
Inventory		21,423
Prepaid and Other Current Assets		2,360
Property, Plant & Equipment		1,161
Other Assets		3,478
Intangible assets		47,769
Accounts Payable		(11,009)
Accrued Liabilities		(8,215)
Lease Payable		(2,726)
Deferred Tax Liability		(6,461)
Total identifiable net assets		70,833
Goodwill		46,076
Total consideration paid		$ 116,909

Acquisitions - Additional Infor

Acquisitions - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands		3 Months Ended		6 Months Ended
	Mar. 13, 2024	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Business Acquisition [Line Items]
Revenue		$ 76,478	$ 47,982	$ 132,326	$ 99,426
Acquisition-related costs		1,394		6,304
PDP
Business Acquisition [Line Items]
Revenue		$ 21,800		27,700
Acquisition-related costs				$ 6,300
Common stock price per share on acquisition date	$ 11.03
Preliminary purchase consideration	$ 116,909
Common stock shares issued	3,450
Cash	$ 78,900
Percentage of issued stock	16.40%

Acquisitions - Summary of Pre_2

Acquisitions - Summary of Preliminary Allocation of Purchase Consideration to Identifiable Intangible Assets (Details) - PDP $ in Thousands	Jun. 30, 2024 USD ($)
Business Acquisition [Line Items]
Intangible assets	$ 47,769
Customer Relationships
Business Acquisition [Line Items]
Useful life	6 years
Intangible assets	$ 4,456
Trade Names
Business Acquisition [Line Items]
Useful life	7 years
Intangible assets	$ 15,607
Developed Technology
Business Acquisition [Line Items]
Useful life	6 years
Intangible assets	$ 27,706

Acquisitions - Summary of Pro F

Acquisitions - Summary of Pro Forma Financial Information (Unaudited) (Details) - PDP - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Business Acquisition [Line Items]
Net revenue	$ 76,478	$ 65,709	$ 152,344	$ 135,702
Net loss	$ (4,541)	$ (24,045)	$ (14,434)	$ (35,380)

Fair Value Measurement - Summar

Fair Value Measurement - Summary of Carrying Amounts and Estimated Fair Values of Financial Instruments (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Reported Value Measurement
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and cash equivalents, fair value disclosure	$ 12,462	$ 18,726
Term Loan, fair value disclosure	49,583
Revolving credit facility, fair value disclosure	24,029
Estimate of Fair Value Measurement
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and cash equivalents, fair value disclosure	12,462	$ 18,726
Term Loan, fair value disclosure	49,583
Revolving credit facility, fair value disclosure	$ 24,029

Allowance for Sales Returns - S

Allowance for Sales Returns - Schedule of Allowances for Sales Returns (Details) - Sales Returns and Allowances - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward]
Balance, beginning of period	$ 6,039	$ 6,639	$ 8,449	$ 7,817
Reserve accrual	2,692	2,556	5,433	6,150
Recoveries and deductions, net	(3,491)	(3,797)	(8,642)	(8,569)
Balance, end of period	$ 5,240	$ 5,398	$ 5,240	$ 5,398

Composition of Certain Financ_3

Composition of Certain Financial Statement Items - Schedule of Inventory (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Condensed Consolidated Balance Sheet Components [Abstract]
Finished goods	$ 62,379	$ 43,579
Raw materials	10,968	440
Total inventories	$ 73,347	$ 44,019

Composition of Certain Financ_4

Composition of Certain Financial Statement Items - Schedule of Property and Equipment (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Property, Plant and Equipment [Line Items]
Total property and equipment, gross	$ 39,731	$ 35,740
Less: accumulated depreciation and amortization	(33,436)	(30,916)
Total property and equipment, net	6,295	4,824
Machinery and equipment
Property, Plant and Equipment [Line Items]
Total property and equipment, gross	2,781	2,597
Software and software development
Property, Plant and Equipment [Line Items]
Total property and equipment, gross	2,858	2,438
Furniture and fixtures
Property, Plant and Equipment [Line Items]
Total property and equipment, gross	1,686	1,700
Tooling
Property, Plant and Equipment [Line Items]
Total property and equipment, gross	14,071	11,250
Leasehold improvements
Property, Plant and Equipment [Line Items]
Total property and equipment, gross	2,327	1,988
Demonstration units and convention booths
Property, Plant and Equipment [Line Items]
Total property and equipment, gross	$ 16,008	$ 15,767

Composition of Certain Financ_5

Composition of Certain Financial Statement Items - Other Current Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Condensed Consolidated Balance Sheet Components [Abstract]
Accrued employee expenses	$ 3,009	$ 3,944
Accrued royalty	6,596	5,275
Accrued tax-related payables	4,350	5,206
Accrued freight	2,215	2,917
Accrued marketing	1,858	3,335
Accrued expenses	12,799	8,747
Total other current liabilities	$ 30,827	$ 29,424

Goodwill and Other Intangible_3

Goodwill and Other Intangible Assets - Schedule of Intangible Assets (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Finite-lived Intangible Assets [Roll Forward]
Total intangible assets, gross carrying value	$ 59,615	$ 11,876
Finite-lived intangible assets, accumulated amortization	12,932	10,142
Total intangible assets, net book value	46,683	1,734
Total	46,658
Finite-lived intangible assets, gross carrying value	(1,189)	(1,159)
Finite-lived intangible assets, accumulated amortization	(1,214)	(1,292)
Total	25	133
Customer Relationships
Finite-lived Intangible Assets [Roll Forward]
Finite-lived intangible assets, gross carrying value	12,541	8,085
Finite-lived intangible assets, accumulated amortization	7,530	7,214
Total	5,011	871
Trade Names
Finite-lived Intangible Assets [Roll Forward]
Finite-lived intangible assets, gross carrying value	18,673	3,066
Finite-lived intangible assets, accumulated amortization	3,468	2,607
Total	15,205	459
Developed Technology
Finite-lived Intangible Assets [Roll Forward]
Finite-lived intangible assets, gross carrying value	29,590	1,884
Finite-lived intangible assets, accumulated amortization	3,148	1,613
Total	$ 26,442	$ 271

Goodwill and Other Intangible_4

Goodwill and Other Intangible Assets - Schedule of Intangible Assets (Parenthetical) (Details) - USD ($) $ in Millions	6 Months Ended	12 Months Ended
	Jun. 30, 2024	Dec. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
Accumulated impairment charges	$ 1.9	$ 1.9

Goodwill and Other Intangible_5

Goodwill and Other Intangible Assets - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Finite Lived Intangible Assets [Line Items]
Amortization of intangible assets	$ 2,100	$ 200	$ 2,698	$ 513

Goodwill and Other Intangible_6

Goodwill and Other Intangible Assets - Schedule of Finite-Lived Intangible Assets, Future Amortization Expense (Details) $ in Thousands	Jun. 30, 2024 USD ($)
Finite-Lived Intangible Assets, Amortization Expense, Maturity Schedule [Abstract]
2024	$ 4,299
2025	8,016
2026	7,761
2027	7,591
Thereafter	18,991
Total	$ 46,658

Goodwill and Other Intangible_7

Goodwill and Other Intangible Assets - Schedule of Changes in Carrying Values of Goodwill (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2024 USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
Balance as of January 1, 2024	$ 10,686
PDP acquisition	46,076
Balance as of June 30, 2024	$ 56,762

Revolving Credit Facility and_3

Revolving Credit Facility and Long-Term Debt - Schedule Of Debt (Details) $ in Thousands	Jun. 30, 2024 USD ($)
Debt Instrument [Line Items]
Revolving credit facility, maturing March 2027	$ 24,029
Term loan Due 2027	$ 49,583

Revolving Credit Facility and_4

Revolving Credit Facility and Long-Term Debt - Schedule Of Debt (Parenthetical) (Details)	6 Months Ended
	Jun. 30, 2024
Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Debt instrument maturity term	2027-03

Revolving Credit Facility and_5

Revolving Credit Facility and Long-Term Debt - Additional Information (Details) - USD ($)				3 Months Ended		6 Months Ended
	Mar. 13, 2024	Mar. 12, 2024	Mar. 05, 2018	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Debt Instrument [Line Items]
Interest expense, debt				$ 2,200,000	$ 100,000	$ 2,700,000	$ 200,000
Amortization of debt financing costs				$ 300,000	$ 33,000	$ 348,000	$ 75,000
Revolving Credit Facility, Maturing March 13, 2027
Debt Instrument [Line Items]
Expiration date			Mar. 13, 2027
Maximum borrowing capacity			$ 50,000,000
Debt instrument, covenant, current fixed charge ratio required, minimum				1%		1%
Remaining borrowing capacity				$ 34,600,000		$ 34,600,000
Revolving Credit Facility, Maturing March 13, 2027 | Base Rate
Debt Instrument [Line Items]
Basis spread on variable rate						9.10%
Revolving Credit Facility, Maturing March 13, 2027 | SOFR
Debt Instrument [Line Items]
Basis spread on variable rate						7.19%
Revolving Credit Facility, Maturing March 13, 2027 | U.S. BSBY Rate Loans, U.S. BSBY Daily Floating Rate Loans
Debt Instrument [Line Items]
Basis spread on variable rate						1.75%
Revolving Credit Facility, Maturing March 13, 2027 | UK Alternative Currency Loans
Debt Instrument [Line Items]
Basis spread on variable rate						3.50%
Revolving Credit Facility, Maturing March 13, 2027 | Minimum
Debt Instrument [Line Items]
Unused commitment fee, percent						0.375%
Revolving Credit Facility, Maturing March 13, 2027 | Minimum | Base Rate
Debt Instrument [Line Items]
Basis spread on variable rate						0.50%
Revolving Credit Facility, Maturing March 13, 2027 | Maximum
Debt Instrument [Line Items]
Unused commitment fee, percent						0.50%
Revolving Credit Facility, Maturing March 13, 2027 | Maximum | Base Rate
Debt Instrument [Line Items]
Basis spread on variable rate						2.50%
Revolving Credit Facility, Maturing March 13, 2027 | UK Borrower
Debt Instrument [Line Items]
Maximum borrowing capacity			$ 10,000,000
Term Loan Facility
Debt Instrument [Line Items]
Expiration date	Mar. 13, 2027
Maximum borrowing capacity	$ 50,000,000
Monthly amortize percentage	0.20833%
Third year interest percetage	0.41667%
Prepayment premium interest percentage	3%
Interest rates for outstanding borrowings				13.69%		13.69%
Term Loan Facility | Minimum
Debt Instrument [Line Items]
Debt leverage ratio	2.25
Term Loan Facility | Minimum | Base Rate
Debt Instrument [Line Items]
Basis spread on variable rate	6.75%
Term Loan Facility | Minimum | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate
Debt Instrument [Line Items]
Basis spread on variable rate	7.75%
Term Loan Facility | Maximum
Debt Instrument [Line Items]
Debt leverage ratio	2.25
Term Loan Facility | Maximum | Base Rate
Debt Instrument [Line Items]
Basis spread on variable rate	7.25%
Term Loan Facility | Maximum | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate
Debt Instrument [Line Items]
Basis spread on variable rate	8.25%
Fourth Amendment | PDP Merger Agreement
Debt Instrument [Line Items]
Expiration date	Mar. 13, 2027	Apr. 01, 2025
Maximum borrowing capacity	$ 15,000,000
Aggregate Revolver Commitments	30%
Fourth Amendment | Minimum | PDP Merger Agreement | Base Rate
Debt Instrument [Line Items]
Basis spread on variable rate	0.50%
Fourth Amendment | Minimum | PDP Merger Agreement | SOFR SONIA and EUIBOR Loans
Debt Instrument [Line Items]
Basis spread on variable rate	1.75%
Fourth Amendment | Maximum | PDP Merger Agreement | Base Rate
Debt Instrument [Line Items]
Basis spread on variable rate	2.50%
Fourth Amendment | Maximum | PDP Merger Agreement | SOFR SONIA and EUIBOR Loans
Debt Instrument [Line Items]
Basis spread on variable rate	3.50%

Income Taxes - Summary of Incom

Income Taxes - Summary of Income Tax Expense and Effective Income Tax Rate (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Income Tax Disclosure [Abstract]
Income tax expense (benefit)	$ 841	$ (54)	$ (5,547)	$ (124)
Effective income tax rate	(12.60%)	0.30%	42.90%	0.50%

Income Taxes - Additional Infor

Income Taxes - Additional Information (Details) $ in Millions	Jun. 30, 2024 USD ($)
Income Tax [Line Items]
Unrecognized tax benefits inclusive of interest and penalties	$ 2.8
Interest and penalties	0.6
PDP
Income Tax [Line Items]
Deferred tax liabilities, valuation allowance	$ 6.4

Equity and Stock-Based Compen_3

Equity and Stock-Based Compensation - Stock-based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Stock-based compensation	$ 846	$ 4,970	$ 1,951	$ 6,929
Cost of revenue
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Stock-based compensation	159	162	290	337
Selling and marketing
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Stock-based compensation	375	410	862	900
Research and development
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Stock-based compensation	273	324	497	680
General and administrative
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Stock-based compensation	$ 39	$ 4,074	$ 302	$ 5,012

Equity and Stock-Based Compen_4

Equity and Stock-Based Compensation - Additional Information (Details) - USD ($)					3 Months Ended		6 Months Ended
	Apr. 01, 2024	Apr. 01, 2023	Mar. 03, 2023	Apr. 01, 2021	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023	Apr. 09, 2024	Dec. 31, 2023	Apr. 09, 2019
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock repurchase activity, authorized amount											$ 15,000,000
Stock repurchase program expiration date				Apr. 09, 2023
Stock repurchase program, period			2 years
Stock repurchased during period, shares					1,000,000		1,000,000
Stock repurchased during period, value					$ 15,207,000	$ 974,000	$ 15,200,000
Forfeiture period after ending employment							90 days
Options exercised, intrinsic value							$ 2,300,000
Estimated grant date fair value of options vested							$ 1,200,000
Maximum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock repurchase activity, authorized amount				$ 25,000,000					$ 55,000,000
Stock Options
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Award expiration period							10 years
Options granted							0
Compensation cost not yet recognized, period for recognition							6 months
Stock Options | Maximum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Total unrecognized compensation cost					100,000		$ 100,000
Restricted Stock Awards
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Total unrecognized compensation cost					$ 9,100,000		$ 9,100,000
Compensation cost not yet recognized, period for recognition							1 year 6 months
Outstanding balance					633,422		633,422			764,942
Shares granted							205,268
Performance Based Restricted Stock
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Outstanding balance					253,395		253,395
Shares granted	171,393	82,002
Vesting period							3 years	3 years
Performance Based Restricted Stock | Minimum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Service-based vesting percentage							0%
Adjusted EBITDA percentage								0%
Performance Based Restricted Stock | Maximum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Service-based vesting percentage							200%
Adjusted EBITDA percentage								200%
Performance Based Restricted Stock | Tranche One
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Award vesting percentage				50%
Performance Based Restricted Stock | Tranche Two
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Award vesting percentage				50%
Non-Executives
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Forfeiture rate							10%
Executive Officer
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Forfeiture rate							0%

Equity and Stock-Based Compen_5

Equity and Stock-Based Compensation - Stock Activity and Total Number of Shares Available for Grant (Details)	6 Months Ended
	Jun. 30, 2024 shares
Share-based Compensation Arrangement by Share-based Payment Award, Options, Shares Available for Grant [Roll Forward]
Balance, beginning of period	1,059,000
Options Cancelled	824
Balance, end of period	703,000
Restricted Stock Awards
Share-based Compensation Arrangement by Share-based Payment Award, Options, Shares Available for Grant [Roll Forward]
Stock Granted	(205,268)
Stock Forfeited	19,236
Performance Shares
Share-based Compensation Arrangement by Share-based Payment Award, Options, Shares Available for Grant [Roll Forward]
Stock Granted	(171,000)

Equity and Stock-Based Compen_6

Equity and Stock-Based Compensation - Stock Option Activity (Details)	6 Months Ended	12 Months Ended
	Jun. 30, 2024 USD ($) $ / shares shares	Dec. 31, 2023 USD ($) $ / shares shares
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Outstanding beginning of period (in shares) | shares	1,041,452
Options 'Exercised (in shares) | shares	(346,842)
Options Forfeited (in shares) | shares	(824)
Outstanding end of period (in shares) | shares	693,786	1,041,452
Vested and expected to vest (in shares) | shares	695,434
Exercisable (in shares) | shares	693,421
Weighted-Average Exercise Price
Outstanding beginning of period (in dollars per share) | $ / shares	$ 9.1
Options Exercised (in dollars per share) | $ / shares	8.27
Options Forfeited (in dollars per share) | $ / shares	60.87
Outstanding end of period (in dollars per share) | $ / shares	9.45	$ 9.1
Vested and expected to vest (in dollars per share) | $ / shares	9.53
Exercisable (in dollars per share) | $ / shares	$ 9.49
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract]
Outstanding, weighted average remaining contractual term	4 years 10 months 6 days	4 years 2 months 19 days
Vested and expected to vest, weighted average remaining contractual term	4 years 10 months 6 days
Exercisable, weighted average remaining contractual term	4 years 10 months 6 days
Outstanding, intrinsic value | $	$ 4,060,476	$ 3,137,285
Vested and expected to vest, intrinsic value | $	4,060,476
Exercisable, intrinsic value | $	$ 4,060,476

Equity and Stock-Based Compen_7

Equity and Stock-Based Compensation - Restricted Stock Activity (Details) - Restricted Stock Awards	6 Months Ended
	Jun. 30, 2024 $ / shares shares
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Outstanding beginning of period (in shares) | shares	764,942
Shares granted | shares	205,268
Vested (in shares) | shares	(317,552)
Forfeited (in shares) | shares	(19,236)
Outstanding end of period (in shares) | shares	633,422
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]
Outstanding beginning of period (in dollars per share) | $ / shares	$ 14.76
Granted (in dollars per share) | $ / shares	17.05
Vested (in dollars per share) | $ / shares	14.16
Forfeited (in dollars per share) | $ / shares	10.47
Outstanding end of period (in dollars per share) | $ / shares	$ 15.93

Net Income (Loss) Per Share - S

Net Income (Loss) Per Share - Schedule of Computation of Basic and Diluted Net Income (Loss) per Share of Common Stock (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended				6 Months Ended
	Jun. 30, 2024	Mar. 31, 2024	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2024	Jun. 30, 2023
Basic and diluted:
Net Income (Loss)	$ (7,524)	$ 155	$ (15,920)	$ (6,705)	$ (7,369)	$ (22,625)
Basic:
Weighted-average common shares outstanding, basic (in shares)	21,252		17,156		19,795	16,869
Diluted:
Weighted-average common shares outstanding, diluted (in shares)	21,252		17,156		19,795	16,869
Net income (loss) per share:
Basic (in dollars per share)	$ (0.35)		$ (0.93)		$ (0.37)	$ (1.34)
Diluted (in dollars per share)	$ (0.35)		$ (0.93)		$ (0.37)	$ (1.34)

Net Income (Loss) Per Share -_2

Net Income (Loss) Per Share - Schedule of Antidilutive Securities Excluded from Computation of Diluted Net Income per Share of Common Stock (Details) - shares shares in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share	1,978	2,821	2,046	2,794
Stock options
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share	782	1,363	820	1,384
Restricted Stock Awards
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share	646	908	676	860
Warrants
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share	550	550	550	550

Segment Information - Schedule

Segment Information - Schedule of Total Net Revenues (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Revenues from External Customers and Long-Lived Assets [Line Items]
Net revenue	$ 76,478	$ 47,982	$ 132,326	$ 99,426
North America
Revenues from External Customers and Long-Lived Assets [Line Items]
Net revenue	61,993	32,356	104,152	73,068
Europe and Middle East
Revenues from External Customers and Long-Lived Assets [Line Items]
Net revenue	11,983	11,861	22,944	21,587
Asia Pacific
Revenues from External Customers and Long-Lived Assets [Line Items]
Net revenue	$ 2,502	$ 3,765	$ 5,230	$ 4,771

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Details) $ in Millions	6 Months Ended
	Jun. 30, 2024 USD ($)	May 22, 2020 Claim	Aug. 05, 2013
Operating Leased Assets [Line Items]
Number of shareholder claims | Claim		8
Operating lease, expense	$ 0.8
Operating lease, payments	$ 0.9
Minimum
Operating Leased Assets [Line Items]
Operating lease remaining lease term	1 year
Maximum
Operating Leased Assets [Line Items]
Operating lease remaining lease term	9 years
Merger of VTB Holdings, Inc. and Parametric Sound Corporation | VTB Holdings, Inc
Operating Leased Assets [Line Items]
Ownership percentage			80%
Merger of VTB Holdings, Inc. and Parametric Sound Corporation | Parametric Sound Corporation
Operating Leased Assets [Line Items]
Ownership percentage			20%

Commitments and Contingencies_2

Commitments and Contingencies - Schedule of Product Warranty Liability (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Movement in Standard Product Warranty Accrual [Roll Forward]
Warranty, beginning of period	$ 687	$ 616	$ 670	$ 618
Warranty costs accrued	263	190	483	375
Settlements of warranty claims	(215)	(166)	(418)	(353)
Warranty, end of period	$ 735	$ 640	$ 735	$ 640

Commitments and Contingencies_3

Commitments and Contingencies - Components of the Right-of-Use Assets and Lease Liabilities (Details) $ in Thousands	Jun. 30, 2024 USD ($)
Lessee, Lease, Description [Line Items]
Right-of-use assets	$ 9,717
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration]	Other assets
Lease liability obligations, current	$ 2,108
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration]	Other current liabilities
Lease liability obligations, noncurrent	$ 7,714
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration]	Other liabilities
Total lease liability obligations	$ 9,822
Weighted-average remaining lease term (in years)	4 years 6 months
Weighted Average
Lessee, Lease, Description [Line Items]
Weighted-average discount rate	8.60%

Commitments and Contingencies_4

Commitments and Contingencies - Schedule of Future Minimum Rental Payments for Operating Leases (Details) $ in Thousands	Jun. 30, 2024 USD ($)
Commitments and Contingencies Disclosure [Abstract]
2024	$ 1,174
2025	2,360
2026	2,314
2027	2,284
2028	1,282
Thereafter	2,007
Total minimum payments	11,421
Less: Imputed interest	(1,599)
Total	$ 9,822