GoPro (GPRO) investor relations material

Executive summary

• Q3 2025 revenue was $163 million, down 37% year-over-year, with a GAAP net loss of $21.3 million and gross margin at 35.2%; camera units shipped declined 48% to 459,000, but average selling price rose 21% to $355.

• Launched three new hardware products (MAX2 360 camera, LIT HERO camera, Fluid Pro AI gimbal) and several software offerings, expanding the addressable market and targeting new customer segments.

• Achieved a second consecutive quarter of positive operating cash flow ($12 million), a $14 million year-over-year improvement, and reduced channel inventory for four straight quarters.

• Subscription attach rate improved to 57% in Q3 2025, with an annual subscriber retention rate of 68%, though total subscribers declined 5% year-over-year to 2.42 million.

• Management anticipates a return to unit, revenue, and profitability growth in Q4 2025 and throughout 2026, driven by new product launches, operational improvements, and cost-saving measures.

Financial highlights

• Q3 2025 revenue reached $163 million; gross profit margin was 35.2%, in line with guidance; adjusted EBITDA was negative $7.9 million.

• Positive cash flow from operations of $12 million, a $14 million year-over-year improvement; cash and equivalents at quarter end were $58.4 million.

• Channel inventory declined 30% year-over-year and has decreased for four consecutive quarters; sell-through exceeded expectations by 5%.

• Operating expenses for Q3 2025 were $73.1 million, a 27% decrease from Q3 2024.

• Retail channel represented 75% of Q3 2025 revenue, while GoPro.com (including subscriptions) accounted for 25%.

Outlook and guidance

• Q4 2025 revenue expected at $220 million (10% growth at midpoint); non-GAAP net income per share of $0.03 ± $0.02; adjusted EBITDA of $12 million, a $26 million improvement year-over-year.

• Q4 gross margin expected at 32% (down from 35% prior year), primarily due to tariffs; excluding tariffs, margin would be 37%.

• Q4 unit sell-through forecasted to be down 18% year-over-year to 625,000 units; ASP expected at $350, up slightly year-over-year.

• 2026 guidance: unit and revenue growth each quarter year-over-year, operating expenses ~$250 million, adjusted EBITDA >$40 million, ending cash ~$80 million.

• Management expects cost-saving measures and restructuring actions to support liquidity and operations for at least 12 months, including repayment of 2025 Notes.