GoPro, Inc. Q3 FY2025 earnings call

• Launched 3 new hardware products in Q3: MaX2 360-camera, LIT HERO, and Fluid Pro AI.
• Launched several new software products, including 360-related editing tools and updates to the Quik mobile app.
• Subscription model exceeded expectations, with subscribers contributing over 270,000 hours of video content for AI training.
• Tech-enabled motorcycle helmets initiative with AGV is underway.
• MaX2 360-camera opens a new growth segment with an estimated TAM of nearly 2 million units annually.
• LIT HERO is an ultra-compact lifestyle camera appealing to a younger demographic.
• Fluid Pro AI is a multi-camera compatible gimbal for content creators.

In the third quarter of 2025, revenue was $163 million with a gross profit of 35.2%, in line with guidance. For the fourth quarter, revenue is expected to grow at the midpoint of guidance to $220 million, with non-GAAP net income per share of $0.03 ± $0.02 and adjusted EBITDA positive $12 million. In 2026, the company expects unit and revenue growth, with adjusted EBITDA greater than $40 million. Subscription ARPU is expected to grow 5%, and the number of subscribers is projected to end 2026 at 2.4 million.

• Q4 2025: Revenue midpoint $220 million (10% growth), non-GAAP net income per share $0.03 ± $0.02, adjusted EBITDA positive $12 million. Street ASP ~$350, unit sell-through midpoint 625,000 units (down 18% YOY), gross margin midpoint 32% (37% excluding tariffs).
• 2026: Expect unit and revenue growth each quarter, adjusted EBITDA >$40 million, subscription ARPU growth 5%, subscribers end at 2.4 million, full-year operating expenses ~$250 million.

• Volatility in tariff rates
• Consumer confidence issues
• Competition in the market
• Component supply chain challenges
• Global economic uncertainty

Q: Erik Woodring asks about 4Q sell-through being down and the timing of new camera launches.

A: Nicholas Woodman responds that it's strategic for 2026 launches, expecting significant upside in 2026.

Q: Erik Woodring asks about camera innovation and differentiated end markets.

A: Nicholas Woodman mentions diversification to meet specific market needs, and Brian McGee adds about the GP3 processor.

Q: Erik Woodring asks about confidence in 2026 guidance and world view.

A: Nicholas Woodman and Brian McGee discuss market demand for diversification, GP3 processor, and upcoming 2026 product launches.