[GoPro Second Quarter 2025 Financial Results](index=1&type=section&id=GoPro%20Announces%20Second%20Quarter%20Results) [Q2 2025 Financial & Business Highlights](index=1&type=section&id=Q2%202025%20Financial%20%26%20Business%20Highlights) The company's Q2 revenue declined 18% YoY, but cost management drove significant improvements in gross margin and adjusted EBITDA **Q2 2025 Key Financial Metrics (YoY)** | Metric | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | Revenue | $152.6M | $186.2M | (18.0)% | | GAAP Gross Margin | 35.8% | 30.5% | +530 bps | | Non-GAAP Gross Margin | 36.0% | 30.7% | +530 bps | | GAAP Net Loss | $(16.4)M | $(47.8)M | (65.7)% | | Non-GAAP Net Loss | $(12.0)M | $(36.2)M | (67.0)% | | GAAP Diluted EPS | $(0.10) | $(0.31) | (67.7)% | | Non-GAAP Diluted EPS | $(0.08) | $(0.24) | (66.7)% | | Adjusted EBITDA | $(5.7)M | $(33.4)M | (83.0)% | - Management attributes the improved gross margin and adjusted EBITDA to successful initiatives to reduce operating expenses, which were **down 32% YoY**[3](index=3&type=chunk) - Subscription and service revenue remained flat YoY at **$26 million**, with the subscriber count ending Q2 at **2.45 million**, a 3% decrease YoY[7](index=7&type=chunk) - GoPro launched a new opt-in **AI Training program**, allowing U.S. subscribers to license their content for AI model training[9](index=9&type=chunk) - An Administrative Law Judge issued a favorable initial determination that competitor **Insta360 infringed on a GoPro patent**[7](index=7&type=chunk) - The company closed a **$50 million second lien credit facility** and issued 11.1 million warrants at an exercise price of $1.25 per share[7](index=7&type=chunk) [Financial Statements](index=5&type=section&id=Financial%20Statements) This section presents the unaudited condensed consolidated statements of operations, balance sheets, and cash flows [Statements of Operations](index=5&type=section&id=Preliminary%20Condensed%20Consolidated%20Statements%20of%20Operations) The company reported a Q2 net loss of $16.4 million, a significant improvement driven by a 33% reduction in operating expenses **Statement of Operations Summary (Three Months Ended June 30)** | (in thousands) | 2025 | 2024 | | :--- | :--- | :--- | | Revenue | $152,643 | $186,224 | | Gross Profit | $54,663 | $56,710 | | Total Operating Expenses | $68,670 | $103,219 | | Operating Loss | $(14,007) | $(46,509) | | Net Loss | $(16,422) | $(47,821) | [Balance Sheets](index=6&type=section&id=Preliminary%20Condensed%20Consolidated%20Balance%20Sheets) The balance sheet shows total assets of $439.0 million, with notable decreases in cash and inventory from year-end 2024 **Balance Sheet Summary** | (in thousands) | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $58,571 | $102,811 | | Inventory | $84,482 | $120,716 | | Total Assets | $438,990 | $543,678 | | Total Liabilities | $341,075 | $391,989 | | Total Stockholders' Equity | $97,915 | $151,689 | [Statements of Cash Flows](index=7&type=section&id=Preliminary%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash used in operating activities improved to $48.4 million for the first half of 2025, with total cash decreasing by $44.2 million **Cash Flow Summary (Six Months Ended June 30)** | (in thousands) | 2025 | 2024 | | :--- | :--- | :--- | | Net cash provided by (used in) operating activities | $(48,434) | $(97,798) | | Net cash provided by (used in) investing activities | $(1,783) | $10,012 | | Net cash provided by (used in) financing activities | $4,750 | $(800) | | Net change in cash and cash equivalents | $(44,240) | $(89,672) | [Reconciliation of GAAP to Non-GAAP Financial Measures](index=8&type=section&id=Reconciliation%20of%20Preliminary%20GAAP%20to%20Non-GAAP%20Financial%20Measures) This section reconciles GAAP to non-GAAP measures, showing a Q2 non-GAAP net loss of $12.0 million and adjusted EBITDA of negative $5.7 million - The company uses non-GAAP measures to facilitate comparability, identify business trends, and compare results against analyst models[21](index=21&type=chunk)[22](index=22&type=chunk) **Q2 2025 GAAP to Non-GAAP Net Loss Reconciliation** | (in thousands) | Amount | | :--- | :--- | | **GAAP net loss** | **$(16,422)** | | Stock-based compensation | $5,116 | | Acquisition-related costs | $469 | | Restructuring and other costs | $(58) | | Income tax adjustments | $(1,062) | | **Non-GAAP net loss** | **$(11,957)** | **Q2 2025 Adjusted EBITDA Reconciliation** | (in thousands) | Amount | | :--- | :--- | | **GAAP net loss** | **$(16,422)** | | Adjustments (Taxes, Interest, D&A, etc.) | $10,732 | | **Adjusted EBITDA** | **$(5,690)** | [Other Information](index=3&type=section&id=Other%20Information) This section contains investor call details, legal disclaimers, and outlines forward-looking statements and associated business risks - GoPro will host a conference call for analysts and investors to discuss the financial results[10](index=10&type=chunk) - The company warns that forward-looking statements are subject to risks, including **economic downturns, supply chain reliance, and competition**[16](index=16&type=chunk) - GoPro uses its investor relations website, SEC filings, and social media channels to announce material financial information[14](index=14&type=chunk)

Core Viewpoint - US stock markets experienced collective gains, with the Dow Jones up 0.47%, the Nasdaq up 0.98%, and the S&P 500 up 0.78%, indicating a positive market sentiment for the week [1] Group 1: Market Performance - The Dow Jones increased by 1.35% over the week, while the Nasdaq saw a significant rise of 3.87%, and the S&P 500 rose by 2.43% [1] - Notable tech stocks performed well, with Apple rising over 4% and achieving a weekly gain of 13%, marking its best weekly performance since July 2020 [1] - Other tech stocks like Google and Tesla increased by over 2%, while Nvidia saw a rise of over 1% [1] Group 2: Sector Performance - The automotive and consumer electronics sectors led the gains, with GoPro rising over 7%, Sony up over 4%, and both Toyota and Honda increasing by over 3% [1] - Conversely, the sports betting and cruise sectors faced declines, with Flutter Entertainment dropping over 8%, and Carnival and Royal Caribbean cruise lines falling by over 2% [1] Group 3: Chinese Stocks - The Nasdaq Golden Dragon China Index fell by 0.26% but still recorded a weekly gain of 2.39% [1] - Among popular Chinese stocks, NIO rose over 3% and XPeng Motors nearly 3%, while Bilibili, iQIYI, and Miniso saw declines of over 1% [1]

Core Viewpoint - GoPro, Inc. will present at the Oppenheimer 28th Annual Technology, Internet & Communications Conference on August 12, 2025, at 2:05 pm EDT, featuring CEO Nicholas Woodman and CFO Brian McGee [1]. Company Information - GoPro, Inc. is recognized for helping individuals capture and share experiences in immersive ways and has been acknowledged as a top employer by Outside Magazine and U.S. News & World Report [3]. - The company offers open roles on its careers page, indicating ongoing recruitment efforts [3]. Event Details - A live webcast of the conference presentation will be available, with replay access on the "Events & Presentations" section of GoPro's investor website [2].

Core Viewpoint - GoPro, Inc. has secured a $50 million second lien credit agreement with Farallon Capital Management to strengthen its balance sheet and address upcoming convertible debt obligations [1][2]. Financial Details - The second lien credit agreement involves a secured term loan of $50 million and includes placing approximately $94 million in escrow for convertible debt repayment due in November 2025 [1]. - GoPro is required to maintain liquidity of at least $40 million, which may reduce to $30 million upon achieving a total leverage ratio below 1.00:1.00 [3]. - The financial covenants stipulate minimum EBITDA requirements, starting with $10 million for the fiscal quarter ending December 31, 2025, and increasing to $40 million for any period ending on or after December 31, 2026 [3]. Security and Guarantees - Obligations under the second lien credit agreement are guaranteed by certain domestic subsidiaries and secured by a second lien on substantially all of GoPro's assets, including intellectual property [2][3]. - An amendment to the existing credit agreement with Wells Fargo was made to allow the entry into the second lien credit agreement and to grant first-priority security interest in GoPro's intellectual property [4]. Warrants Issuance - GoPro has agreed to issue warrants to Farallon or its affiliates for the purchase of 11,076,968 shares of Class A Common Stock at an exercise price of $1.25 per share, expiring on August 4, 2035 [5].

Core Viewpoint - GoPro has launched an opt-in program allowing U.S. subscribers to monetize their cloud-based video content by licensing it for AI training purposes, with participants earning 50% of the generated license revenue [1][2][5]. Group 1: Program Details - The opt-in AI Training program enables GoPro subscribers to make their user-generated content available for licensing to technology companies that require diverse, real-world footage for AI model training [2][5]. - Participation in the program is voluntary, and those who opt out will not have their content included [3][5]. - The program is set to launch by invitation only in early August, with plans to expand to all U.S. subscribers over time [6]. Group 2: Community and Data Value - GoPro's subscriber community has a vast data lake of over 450 petabytes of high-quality video content, which presents a significant opportunity for AI developers to utilize a rich dataset for training [5]. - The initiative aims to empower the GoPro community to participate in the advancement of AI video technology while providing them with a revenue stream [5][4]. Group 3: Company Background - GoPro is recognized for its innovative approach to capturing and sharing immersive experiences and has been acknowledged as a top employer by various publications [7].

Group 1 - Acushnet (GOLF) is currently ranked 2 (Buy) in the Zacks Rank, indicating a positive earnings outlook and potential for outperforming the market in the next one to three months [3] - Year-to-date, Acushnet has gained approximately 15.8%, outperforming the Consumer Discretionary sector average return of 10.1% [4] - Acushnet is part of the Leisure and Recreation Products industry, which has seen a year-to-date gain of about 22.9%, indicating that GOLF is slightly underperforming its industry [5] Group 2 - The Consumer Discretionary group consists of 254 companies and is currently ranked 9 within the Zacks Sector Rank [2] - GoPro (GPRO), another stock in the Consumer Discretionary sector, has significantly outperformed with a year-to-date return of 38.5% [4] - The Audio Video Production industry, to which GoPro belongs, is ranked 58 and has moved up by 15.5% year to date [6]

Core Viewpoint - The resurgence of meme stocks is driven by retail traders, reminiscent of the 2021 craze, with potential for even larger rallies as they mobilize online and disregard Wall Street skepticism [1][6]. Group 1: Retailer Performance - Retailers such as Kohl's, GoPro, Wendy's, and Krispy Kreme experienced significant stock rallies, with Kohl's up 32%, GoPro up 66%, and Krispy Kreme up 41% over the week [6]. - American Eagle Outfitters saw a 10% increase in shares after actress Sydney Sweeney was announced as the face of its marketing campaign [3]. Group 2: Market Dynamics - The current market environment, characterized by high trading volumes and speculative behavior, is conducive to meme stock rallies, similar to the conditions during the Covid era [6][10]. - The meme-stock phenomenon is often detached from traditional economic fundamentals, with investors supporting brands for emotional or ideological reasons rather than financial metrics [7][10]. Group 3: Community Influence - The wallstreetbets forum empowers retail traders to share research and ideas, leading to a decentralization of financial analysis and investment power [5]. - The community's influence is evident as retail traders push stock prices significantly, demonstrating the power of collective action [5]. Group 4: Cultural Impact - The meme culture surrounding stocks, such as Wendy's, illustrates how humor and social media can drive investment decisions, often independent of market fundamentals [8][10]. - The evolving landscape of finance, including the rise of blockchain and AI trading, reflects a shift in how retail traders engage with the market [4].

Core Viewpoint - The DORK meme stocks, representing a new wave of retail speculation, have shown significant volatility, with initial surges followed by sharp declines, indicating a speculative bubble rather than a reflection of strong fundamentals [1][2]. Group 1: DORK Meme Stocks Performance - DORK stocks, including Opendoor, Kohl's, Krispy Kreme, and GoPro, experienced dramatic price movements, with Opendoor rising 43% and GoPro soaring 73% before facing declines of over 20% and 14% respectively [1][2]. - Retail investors have shown a strong speculative interest, with net purchases of $155.3 billion in stocks in the first half of the year, the highest in at least a decade [1]. Group 2: Financial Performance of DORK Stocks - The financial performance of DORK stocks is generally weak, with Opendoor reporting a 26% year-over-year revenue decline and a net loss of $392 million, while GoPro saw a 20% revenue drop and a net loss of $432 million [2]. - Analysts describe these companies as fundamentally impaired, indicating that the current trading behavior is driven more by speculation than by financial health [2]. Group 3: Market Dynamics and Retail Investor Behavior - The DORK phenomenon marks a shift in meme stocks from a rebellious symbol to a regular market element, with the current trading activity lasting only one to two days compared to previous trends [3]. - The options market's role in this recent surge is less pronounced, with only 21% of the top 100 S&P 500 stocks showing bullish options activity, compared to over half during the 2021 meme stock craze [3]. Group 4: Diversification of Speculative Investments - Retail speculative funds are diversifying into various risk assets beyond meme stocks, with significant increases in high-yield bonds and cryptocurrency investments, reflecting a shift in market sentiment [4]. - The popularity of platforms for sports betting and complex stock betting has contributed to a more widespread speculative environment, reducing the focus on individual meme stocks [4].

Core Insights - GoPro's stock has experienced a significant resurgence, with shares surging and trading volume increasing dramatically, indicating a potential meme stock rally [1][2] - The company is undergoing a fundamental transformation, focusing on long-term financial health and new growth avenues [3] Financial Discipline - GoPro has reported a 26% year-over-year reduction in operating expenses in its first-quarter 2025 results, addressing past concerns about inconsistent profitability and high spending [4] - The company aims to achieve full-year profitability in 2025 and strengthen its balance sheet, targeting approximately $75 million in cash with no debt by year-end [5] Product Ecosystem and Brand Defense - GoPro is enhancing its product ecosystem by launching the HERO13 camera and interchangeable HB-Series Lenses, which aim to increase customer loyalty and revenue per user [7] - A recent ruling from the U.S. International Trade Commission favored GoPro against competitor Insta360, protecting its camera design patent and brand identity [8] Leadership and Strategic Growth - The appointment of Mike Dennison to the board brings operational expertise, supporting GoPro's strategic execution and supply chain management [9] - GoPro's acquisition of Forcite Helmet Systems represents a strategic move into the tech-enabled smart gear market, potentially creating a new product category and revenue stream [10] Market Perception and Future Outlook - Analysts have a modest price target of $0.75 for GoPro, based on historical performance, which may not fully account for the potential of entering new markets [11] - The upcoming Q2 2025 earnings call will be crucial for validating the company's turnaround strategy, with key metrics including progress toward a 35.5% gross margin target [13]

Financial Results Announcement - GoPro, Inc. will release its financial results for the second quarter ended June 30, 2025, after market close on August 11, 2025 [1] - A conference call and live webcast will follow the release at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time) to discuss the financial results [1] Conference Call Details - To listen to the live conference call, participants can dial +1 833-470-1428 (US) or +1 404-975-4839 (International) and enter access code 363381 [2] - A replay of the call will be available on the investor page approximately two hours after the call through November 9, 2025 [2] Company Overview - GoPro, Inc. is recognized for helping the world capture and share experiences in immersive ways [3] - The company has been acknowledged as an employer of choice by Outside Magazine and U.S. News & World Report [3]