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GoPro, Inc. (GPRO)·Q1 2025 Earnings Summary

Executive Summary

  • Q1 2025 revenue of $134.3M was at the high end of guidance and beat S&P Global consensus of $124.6M; non-GAAP EPS was -$0.12, in line with consensus (revenue down 13.6% YoY; GAAP EPS -$0.30) . Values retrieved from S&P Global.*
  • Gross margin compressed to 32.3% (non-GAAP), impacted by a one-time ~$5M sell-through of slower-moving product; excluding this, gross margin would have been ~35.5%, above prior year .
  • Operating discipline continued: non-GAAP OpEx fell 26% YoY to $62M; adjusted EBITDA loss improved ~46% YoY to -$15.7M .
  • Q2 2025 guidance: revenue $145M ±$10M, non-GAAP EPS -$0.07, gross margin ~35.5%, Street ASP ~$370, sell-through ~500k units, and sequential working capital improvements (inventory to ~$75M; cash net of debt +$25M) .
  • Strategic catalysts: supply chain diversification mitigating tariffs, MAX2 launch planned for 2025, and AGV partnership for tech-enabled helmets; management expects product innovation to drive a return to growth and profitability in 2026 .

What Went Well and What Went Wrong

What Went Well

  • Revenue delivered at the high end of guidance on stronger sell-through; subscription ARPU +5% YoY and aggregate retention reached a record 70% .
  • Non-GAAP OpEx down 26% YoY to $62M, reflecting restructuring benefits and focused spending while preserving the product roadmap (GP3 completion) .
  • Channel mix improved toward retail (70% of revenue) driven by big box retailers; adjusted EBITDA loss improved nearly 50% YoY .
  • “Our teams are excelling as a more efficient organization and we believe the new products we have planned for the balance of 2025 and 2026 set us up for a return to growth in revenue and profitability,” — CEO Nicholas Woodman .

What Went Wrong

  • APAC weakness and competition led to unit sell-through declines (Asia down ~54%, notably China, Japan, South Korea); overall sell-through ~440k units (-18% YoY) .
  • Gross margin fell to 32.3% (non-GAAP) from 34.4% YoY due to one-time inventory action; GAAP operating loss increased to -$45.2M (from -$41.4M YoY) .
  • GoPro subscriber count ended Q1 at 2.47M (-1% YoY), and goodwill impairment of $18.6M weighed on GAAP results .

Financial Results

Revenue, EPS, Margins vs. Prior Periods

MetricQ3 2024Q4 2024Q1 2025
Revenue ($USD Millions)$258.9 $200.9 $134.3
GAAP Diluted EPS ($)-$0.05 -$0.24 -$0.30
Non-GAAP Diluted EPS ($)-$0.00 -$0.09 -$0.12
GAAP Gross Margin (%)35.5% 34.7% 32.1%
Non-GAAP Gross Margin (%)35.6% 35.1% 32.3%

Actual vs. S&P Global Consensus

MetricQ4 2024 ActualQ4 2024 ConsensusQ1 2025 ActualQ1 2025 Consensus
Revenue ($USD Millions)$200.9 $196.5*$134.3 $124.6*
Primary EPS (non-GAAP, $)-$0.09 -$0.115*-$0.12 -$0.12*

Values retrieved from S&P Global.*

Channel Mix and Subscription

MetricQ3 2024Q4 2024Q1 2025
Retail Channel Revenue ($M)$208 (80%) $150 (74%) $94 (70%)
GoPro.com Revenue incl. Subs/Service ($M)$51 (20%) $51 (26%) $40 (30%)
Subscription & Service Revenue ($M)$27.5 $27 $27
Subscribers (M, end of period)2.56 2.52 2.47

KPIs and Operating Metrics

KPIQ3 2024Q4 2024Q1 2025
Sell-through units (k)~—~775 ~440
Subscription ARPU YoY+9% +8% +5%
Subscription attach rate——49%
Adjusted EBITDA ($M)$5.4 -$14.4 -$15.7
Inventory ($M)$155.3 $120.7 $96.3
Cash & Equivalents ($M)$130.2 $102.8 $69.6 (incl. $25M ABL draw)

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Revenue ($M)Q2 2025N/A$145 ± $10 New
Non-GAAP EPS ($)Q2 2025N/A-$0.07 New
Gross Margin (%)Q2 2025N/A~35.5% midpoint New
Street ASP ($)Q2 2025N/A$370 (+15% YoY) New
Sell-through units (k)Q2 2025N/A~500 (-20% YoY) New
Channel inventory (units)Q2 2025N/A-~60k sequential New
OpEx ($M, non-GAAP)Q2 2025N/A$60 ± $1 New
Cash net of debt ($M)Q2 2025N/A+$25 sequential New
Inventory ($M)Q2 2025N/A~$75 (seq. -$20) New
Full-year OpEx ($M, non-GAAP)FY 2025N/A$240–$250 New; lower vs 2024 actual
Tariff impact ($M)FY 2025N/A~$8 (offset by <5% price moves) New
Subscribers (M, year-end)FY 2025N/A~2.4 New
Ending cash ($M) and debtFY 2025N/A~$75 cash, no debt; $50M ABL available Improved vs last report

Earnings Call Themes & Trends

TopicQ3 2024 (Nov-24)Q4 2024 (Feb-25)Q1 2025 (May-25)Trend
Supply chain diversificationEmphasis on restructuring and margins improvement Diversifying supply chain outside China; margin improved YoY Diversified camera manufacturing outside China; further accessory shifts to Vietnam Strengthening
Tariffs/macroLimited commentary FX/macro affected margins (USD strength) Tariff impact ~$8M in 2025, largely offset by <5% price moves; zero U.S. camera tariff due to Thailand production Mitigation in place
Product performanceHERO13 and entry-level 4K HERO launched Roadmap focus; 2026 return to growth MAX refresh, MAX2 planned; lens mods expand use cases; Ultra Wide Edition launched Innovation pipeline building
Regional trendsRevenue down; ASP down 8% YoY YoY revenue down; sell-through 775k APAC notably weak (Asia -54%), U.S. relatively resilient APAC pressure
Regulatory/legal——ITC case against competitor; ruling expected July Pending outcome
R&D execution——GP3 SoC completion aiding OpEx reduction Execution benefits

Management Commentary

  • “First quarter revenue was $134 million, which was at the high end of our guidance … Subscription and service revenue grew 4% year-over-year … aggregate retention rates … reached a record 70%.” — Brian McGee, CFO/COO .
  • “Our focus … is to continue making strategic investments in product innovation to return GoPro to growth, vigorously protecting our IP and further diversifying our supply chain, including exploring domestic production.” — Nicholas Woodman, CEO .
  • “At current tariff rates, we expect the tariff impact in 2025 will be approximately $8 million … fully offset by modest product price moves of less than 5% globally.” — Brian McGee .
  • “We recently kicked off a joint development partnership with AGV … bringing meaningful innovation … to motorcycling.” — Nicholas Woodman .

Q&A Highlights

  • Demand linearity: No evidence of pull-forward ahead of pricing; sales were back-end loaded, raising DSO — alleviating concerns about artificial demand .
  • Asia weakness: Revenue down ~54% in Asia due to macro and competition (China, Japan, South Korea), while U.S. performed best; one-time $5M inventory sale affected gross margin but expected to sell through quickly .
  • Tariffs and supply chain: Cameras for U.S. produced in Thailand (zero China camera tariff exposure); modest global pricing (+3–4%) to offset accessory tariffs; continued migration of accessories to Vietnam .
  • Capital structure: On reverse split question, management emphasized improving fundamentals (growth, margins, OpEx, cash flow) to drive stock performance .

Estimates Context

  • Q1 2025 beat on revenue and was in line on non-GAAP EPS: Actual revenue $134.3M vs. $124.6M consensus; non-GAAP EPS -$0.12 vs. -$0.12 consensus . Values retrieved from S&P Global.*
  • Q4 2024 beat on both: Actual revenue $200.9M vs. $196.5M consensus; non-GAAP EPS -$0.09 vs. -$0.115 consensus . Values retrieved from S&P Global.*
  • Coverage is limited (2 estimates for quarterly metrics), increasing potential for revisions post-print; Q2 guidance implies higher ASP and margin, but unit volume down ~20% YoY, likely prompting mixed estimate adjustments (margin up, revenue down YoY) .

Key Takeaways for Investors

  • Revenue execution in Q1 was solid relative to expectations; watch for margin normalization in Q2 as the one-time inventory action rolls off and gross margin targets revert toward ~35.5% .
  • Operating discipline is taking hold (OpEx -26% YoY); track non-GAAP OpEx trajectory toward $240–$250M in FY25 and adjusted EBITDA improvements quarter-on-quarter .
  • Regional risk persists in APAC; U.S. strength and broader retail mix are offsets—monitor sell-through in Asia and competitive intensity (especially China) .
  • Supply chain diversification is a differentiator amid tariff volatility; modest price increases (<5%) should protect margins without materially impacting demand elasticity .
  • Product pipeline is a key catalyst (MAX2, lens mods, Ultra Wide Edition); innovation breadth supports ASP uplift and ecosystem engagement into 2026 .
  • Balance sheet actions (inventory down to ~$75M; improve cash net of debt by $25M) point to better working capital discipline; monitor paydown of $25M ABL draw in Q2 .
  • Near-term trading: stock likely sensitive to Q2 margin delivery and proof points on APAC stabilization; medium-term thesis hinges on product-led growth and successful tariff mitigation translating into sustainable profitability .