GoPro, Inc. Q2 FY2025 earnings call

Product Highlights - Launched HERO13 Black Ultra Wide Edition and limited-edition Forest Green colorway of HERO13 Black. - Added new 360 editing tools (MotionFrame and POV) to the GoPro App. - Subscription attach rate from cameras sold across all channels was 56% (24% improvement YOY), with aggregate retention above 67% for past 7 quarters. ### IP Projection - ITC issued initial determination that Insta360 violated federal law by importing/infringing GoPro's patent, with commission expected to issue final determination by Nov 10, 2025. ### Board Refresh - Added 3 seasoned executives to the Board. ### Outlook - Priorities include managing operating expenses, protecting IP, and launching new products, aiming for revenue and profitability growth starting Q4 2025.

In the second quarter, revenue was $153 million, 6% higher than the midpoint of the guidance of $145 million. Retail channel revenue was $111 million (73% of Q2 2025 revenue), while GoPro.com channel revenue was $41 million (27% of Q2 2025 revenue). Subscription and service revenue was $26 million, flat year-over-year. Gross margin improved to 36% compared to 30.7% in Q2 2024. Non-GAAP operating expenses were $63 million, a 32% reduction year-over-year. Adjusted EBITDA improved 83% year-over-year to negative $6 million. Cash flow from operations was $9 million, an improvement of $8 million year-over-year. Inventory was $84 million, a 12% decrease sequentially and 30% decrease since Q4 2024.

Second Half - Expected revenue ~$390 million ±$20 million, non-GAAP net income per share ~$0.04 ±$0.04, adjusted EBITDA $20 million (vs prior year loss $9 million). ### Q3 - Anticipated to be breakeven. ### Q4 - Expected to resume revenue growth. ### Full Year 2025 - Operating expenses expected to be in range of $240 million to $250 million (down >$100 million YOY); expect to offset ~50% of tariff impact with modest price moves; expect 2.4 million subscribers by year-end.

• Volatility in tariff rates. - Consumer confidence concerns. - Competition. - Global economic uncertainty.

Q: Can you help us understand where you believe kind of consumer spending intentions, especially on more discretionary products is kind of tracking? Is it improving? Is it worsening? And how does that differ by region?

A: Consumers are becoming choosier, but GoPro's product ethos aligns with stable demand. Tariffs impact margin, but managed with modest price increases. Upcoming product launches are optimistic for unit growth and profitability.

Q: About the Max camera market, the 360 market. What was GoPro's share in that 360 market in the last 5 years and how has the market changed?

A: When Max was launched, GoPro had bulk share, but competition entered and Max eroded. Market has grown to 1.5-2 million units estimated. Max 2 refresh is key to regaining share. Also, there's opportunity in the premium low-light camera category (estimated >2 million units).