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GoPro, Inc. (GPRO)·Q2 2025 Earnings Summary

Executive Summary

  • Q2 2025 revenue was $152.6M, down 18% year-over-year, but gross margin expanded 530 bps to 36.0% and non-GAAP OpEx fell 32%; adjusted EBITDA improved 83% year-over-year to -$5.7M, underscoring cost discipline despite top-line pressure .
  • EPS missed Wall Street: non-GAAP diluted EPS was -$0.08 vs S&P Global consensus of -$0.06*, while GAAP diluted EPS was -$0.10 .
  • Management guided to second-half revenue of ~$390M ±$20M, adjusted EBITDA of +$20M, Q3 adjusted EBITDA breakeven, and a return to revenue and profitability growth starting in Q4 2025 .
  • Catalysts: opt-in AI data licensing program (early traction), an initial ITC determination against Insta360 on HERO design infringement, and the upcoming MAX2 360 camera launch; balance sheet bolstered by a $50M second-lien term loan ahead of November 2025 convertible repayment .

What Went Well and What Went Wrong

What Went Well

  • Gross margin expanded to 36.0% (non-GAAP) from 30.7% Y/Y and GAAP gross margin to 35.8% from 30.5%, driven by reduced discounting and higher mix of subscription/service revenue; CFO: “improved gross margin to 36%” .
  • Operating efficiency: non-GAAP OpEx fell 32% Y/Y to $63M; CEO: “consistent operational execution and efficiency” .
  • Commercial KPIs: ASP rose 16% Y/Y to $374 and subscription attach rate rose to 56% (vs 45% Q2’24), supporting monetization progress .

What Went Wrong

  • Top-line and volume pressure: revenue -18% Y/Y; sell-through ~500K units (-23% Y/Y); subscriber count declined 3% Y/Y to 2.45M; subscription/service revenue flat at $26M .
  • Tariff headwinds intensified: 2025 tariff impact expected ~$18M vs ~$8M prior, only ~50% offset via modest price increases (<5%) and supply chain diversification .
  • Continued net losses: GAAP net loss of -$16.4M (EPS -$0.10) and non-GAAP net loss of -$12.0M (EPS -$0.08) still negative, though improved materially vs prior year .

Financial Results

MetricQ2 2024Q1 2025Q2 2025
Revenue ($USD Millions)$186.2 $134.3 $152.6
GAAP Gross Margin %30.5% 32.1% 35.8%
Non-GAAP Gross Margin %30.7% 32.3% 36.0%
GAAP Net Loss ($USD Millions)$(47.8) $(46.7) $(16.4)
Non-GAAP Net Loss ($USD Millions)$(36.2) $(19.4) $(12.0)
GAAP Diluted EPS ($)$(0.31) $(0.30) $(0.10)
Non-GAAP Diluted EPS ($)$(0.24) $(0.12) $(0.08)
Adjusted EBITDA ($USD Millions)$(33.4) $(15.7) $(5.7)

Channel mix and KPIs:

MetricQ1 2025Q2 2025
Retail Revenue ($USD Millions)$94 $111
GoPro.com Revenue incl. Sub/Service ($USD Millions)$40 $41
Retail % of Total70% 73%
GoPro.com % of Total30% 27%
Subscription & Service Revenue ($USD Millions)$27 $26
Subscriber Count (Millions)2.47 2.45
Sell-through Units (Thousands)440 500
ASP ($)n/a$374
Subscription Attach Rate (%)n/a56% (vs 45% Q2’24)
Channel Inventory Delta (Units)n/a-60K seq.
Cash from Operations ($USD Millions)$(57.2) $8.8

Estimate comparison (S&P Global):

MetricConsensusActual
Primary EPS (Q2 2025)-$0.06*-$0.08
Revenue (Q2 2025)n/a*$152.6M

Values retrieved from S&P Global.*

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Revenue ($)H2 2025n/a~$390M ±$20M New
Adjusted EBITDA ($)H2 2025n/a+$20M New
Adjusted EBITDAQ3 2025n/aBreakeven New
Non-GAAP EPS ($)H2 2025n/a+$0.04 ±$0.04 New
Revenue ($)Q3 2025n/a~$160M ±$10M New
Gross Margin (%)Q3 2025n/a~35.5% (midpoint) New
Operating Expenses ($)Q3 2025n/a~$60M ±$1M New
Non-GAAP Tax Expense ($)Q3 2025n/a~$1.5M New
Non-GAAP Tax (Credit) ($)Q4 2025n/a~$(1.2)M New
FY Operating Expenses ($)FY 2025n/a$240–$250M New
Tariff Impact ($)FY 2025~$8M prior year~$18M; ~50% offset via <5% price increases Higher tariffs, partial offset
Year-end Cash ($)FY 2025n/a~$80M + $50M ABL availability New
Inventory ($)Q3 2025n/a~$75M target New

Earnings Call Themes & Trends

TopicPrevious Mentions (Q4 2024 and Q1 2025)Current Period (Q2 2025)Trend
AI/data licensingNo formal program in Q4’24; Q1’25 focused on Quik/360 editing enhancements Launched opt-in AI Training Licensing; 450 PB/13M hours available; subscribers share 50% of license revenue; early opt-ins >125K hours in ~2 weeks Rising strategic priority
Supply chain & tariffs2025 plans to diversify supply chain; emphasis on OpEx reductions 2025 tariff impact ~$18M (vs ~$8M prior); offset ~50% with <5% price moves; diversification outside China and exploring US production Tariff headwind up; mitigation ongoing
Product roadmapHERO13 Black launch (Q3’24); entry-level camera update (Q1’25) Launch of HERO13 Black Ultra Wide Edition; two new cameras expected in H2 including MAX2 360 Portfolio broadening
Legal/IPNo major legal update in Q4’24/Q1’25 PRs ITC initial determination against Insta360 on HERO design; final determination due by Nov 10, 2025 Positive IP defense
Financial disciplineRestructuring to reduce OpEx and target profitability in 2025 Non-GAAP OpEx -32% Y/Y; H2 EBITDA +$20M guide; Q3 breakeven EBITDA Execution improving

Management Commentary

  • CEO Nicholas Woodman: “We’re excited to launch a broader, more diversified suite of hardware and software products in the second half of 2025, which we believe will restore revenue growth and profitability to our business starting in Q4 2025” .
  • CFO/COO Brian McGee: “In Q2 2025… we improved gross margin to 36.0%, up from 30.7%, reduced operating expenses 32% and improved adjusted EBITDA 83%” .
  • CEO on AI program: “GoPro subscribers will earn 50% of the license revenue… AI developers [seek] diverse, real-world footage to enhance model performance” .
  • CEO on ITC: “Initial determination… Insta360 violated federal law… recommendation for cease and desist and exclusion order; final determination on or before 11/10/2025” .
  • CFO on tariffs: “We expect the impact on tariffs… ~$18M… offset ~50% by modest price moves of less than 5% globally” .

Q&A Highlights

  • Demand/macro: Management sees “pretty stable demand” while acknowledging consumer discretion; tariffs biting gross margin, partially offset; optimism around upcoming launches vs premium/pro segments .
  • 360/MAX market: GoPro historically had ~90% share but lost ground due to slower refresh; market now ~1.5–2.0M units; MAX2 refresh is “an important milestone” to regain share .
  • Broader opportunity: Low-light capable camera segment ~2.0–2.5M units annually; brand/tech positioned to participate meaningfully .
  • Inventory/sell-through: Q2 sell-through ~500K; channel inventory down ~60K sequentially, in line with guidance .

Estimates Context

  • EPS: Q2 non-GAAP EPS of -$0.08 missed S&P Global consensus of -$0.06*; coverage limited (1 estimate)*.
  • Revenue: S&P Global revenue consensus unavailable for Q2; actual $152.6M.
  • Implications: Given margin outperformance and OpEx discipline, estimate revisions may tilt positive on EBITDA/H2 EPS trajectory, but persistent unit declines and tariff headwinds could cap near-term top-line expectations .
    Values retrieved from S&P Global.*

Key Takeaways for Investors

  • Cost actions are working: >500 bps gross margin expansion and 32% OpEx reduction drove a sharp improvement in losses and EBITDA; continued discipline is central to H2 profitability goals .
  • Near-term catalysts: MAX2 launch, AI data licensing monetization, and potential ITC remedies against a key competitor; each could support narrative and valuation re-rating into Q4 .
  • Tariff risk remains material: 2025 impact ~$18M with only ~50% offset; watch supply-chain diversification and pricing actions to preserve margins .
  • H2 setup: Guide implies Q4 inflection to growth/profitability; Q3 breakeven EBITDA and revenue ~$160M midpoint frame execution risk and timing .
  • Mix improvement: Higher ASP, rising subscription attach, and subscription/service contribution supported margins; sustained attach/retention and subscriber growth are key to model durability .
  • Balance sheet: $50M term loan and escrow to retire ~$94M converts in November de-risk liquidity; warrants at $1.25 may be dilutive over time .
  • Trading lens: The stock likely reacts to evidence of Q4 demand inflection, MAX2 reception, and any ITC final determinations; monitor margin resilience vs tariff and competitive pricing pressure .