GoPro(GPRO) - 2025 Q2 - Quarterly Results

GoPro Second Quarter 2025 Financial Results Q2 2025 Financial & Business Highlights 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] - 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] - GoPro launched a new opt-in AI Training program, allowing U.S. subscribers to license their content for AI model training[9] - An Administrative Law Judge issued a favorable initial determination that competitor Insta360 infringed on a GoPro patent[7] - 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] Financial Statements This section presents the unaudited condensed consolidated statements of operations, balance sheets, and cash flows Statements of Operations 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 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 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 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][22] 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 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] - The company warns that forward-looking statements are subject to risks, including economic downturns, supply chain reliance, and competition[16] - GoPro uses its investor relations website, SEC filings, and social media channels to announce material financial information[14]