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GoPro's Q2 Loss Wider Than Expected, Revenues Down Y/Y
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Key Takeaways
GPRO's Q2 revenue of $152.6M fell 18% YoY but exceeded company and consensus expectations.
GPRO's non-GAAP gross margin improved to 36% from 30.7% in the prior-year quarter.
U.S. sales surged 20%, offsetting steep declines in Europe, the Middle East, Africa and Asia Pacific.
GoPro, Inc. (GPRO - Free Report) reported second-quarter 2025 non-GAAP loss per share of 8 cents, wider than the Zacks Consensus Estimate of a loss of 7 cents. This came within the company’s forecast of non-GAAP adjusted loss of 7 cents per share (+/- 4 cents). The firm reported a loss of 24 cents per share in the year-ago quarter.
GPRO generated revenues of $152.6 million, down 18% year over year. The figure was within the company’s expectation of $145 million (+/- $10 million). The top line beat the consensus mark by 3.4%.
Management stated that the second-quarter performance demonstrates steady operational execution and efficiency, and it looks forward to introducing a wider, more diversified range of hardware and software products in the second half of 2025, which the company expects will drive a return to revenue growth and profitability beginning in the fourth quarter of 2025.
Following the announcement, GPRO's shares were marginally up around 1% in the after-market session yesterday. In the past six months, shares have surged 57.9% compared with the Audio-Video Production industry’s growth of 15.2%.
Image Source: Zacks Investment Research
GPRO’s Q2 Results in Details
GPRO sold 500,000 camera units in the second quarter, down 23% year over year.
Based on channels, revenues from GoPro.com of $41 million (27% of total revenues) plunged 16% year over year. Our estimate was pegged at $42.8 million. Subscription and service revenue amounted to $26 million, while GoPro’s subscriber base recorded 2.45 million at the end of the second quarter, marking a 3% decline year over year.
Retail channel registered revenues of $111 million (73%), which fell 19% year over year. We estimated the metric to be $103.7 million.
Region-wise, revenues from the Americas were up 11% from the prior-year levels. Revenues from Europe, the Middle East and Africa were down 46% year over year. The Asia Pacific region was down 43%. U.S. revenues reached $82 million in the second quarter of 2025, marking a 20% increase from the same period last year. Year-over-year revenue declines in EMEA and Asia-Pacific were due to consumer-related macroeconomic challenges, increased competition and significant channel inventory reductions in preparation for new product launches in the second half of 2025.
GPRO’s Margin Performance
Non-GAAP gross margin was 36% compared with 30.7% in the year-ago quarter. Non-GAAP operating loss totaled $8.5 million compared with an operating loss of $35.4 million in the prior-year quarter. Non-GAAP operating expenses were $63.4 million compared with $92.6 million in the prior-year quarter.
Adjusted EBITDA loss was $5.7 million against adjusted EBITDA of $33.4 million a year ago.
The subscription attach rate for cameras sold through all channels reached 56%, up from 45% in the second quarter of 2024, marking a 24% increase. Street ASP was $374, up 16% year over year.
GPRO’s Cash Flow & Liquidity
In the quarter under review, GoPro generated $8.8 million of net cash from operating activities compared with $0.6 million in the year-earlier quarter. As of June 30, 2025, the company had $58.6 million of cash and cash equivalents.
GPRO’s Guidance
For the third quarter of 2025, the company projects revenues of $160 million (+/- $10 million), representing a 38% year-over-year decline.
Non-GAAP gross margin is expected at 35.5% (+/- 50 bps), unchanged from last year. Street ASP is expected to be around $370, up nearly 26% year over year, while unit sell-through is projected to decline 25% to about 500,000 units, with channel inventory remaining flat.
Operating expenses are projected at $60 million (+/- $1 million), down 34% from the prior year due to reduced headcount, lower marketing spend and decreased nonrecurring engineering costs following GP3’s completion.
The company projects a non-GAAP loss per share of 4 cents (+/- 2 cents) for the third quarter.
For 2025, the company plans to introduce two new cameras this year, including the Max 2 360.
GoPro anticipates full-year operating expenses of $240–$250 million, implying a reduction of over $100 million from last year.
To offset roughly half of the expected tariff costs, the company will implement modest price increases and further diversify its supply chain outside of China, while exploring the option of producing certain products in the United States.
The company expects improvements in subscription ARPU and cost efficiency, finishing the year with 2.4 million subscribers.
The expense and margin initiatives undertaken in 2024 are already delivering benefits, and the company is focused on leveraging new product launches in 2025 and 2026 to return to growth and profitability beginning in the fourth quarter of 2025.
Performance of Other Firms in Audio-Video Production Space
Sony Group Corporation (SONY - Free Report) reported first-quarter fiscal 2025 net income per share (on a GAAP basis) of ¥42.84, up from ¥34.37 in the year-ago quarter. Adjusted net income came in at ¥259 billion compared with ¥210.2 billion in the prior-year quarter.
Quarterly total revenues grew 2% year over year to ¥2,621.6 billion, driven by higher revenues in the Game & Network Services (G&NS) and Imaging & Sensing Solutions (I&SS) segments, partially offset by a decline in the Entertainment, Technology & Services (ET&S) segment.
Shares of SONY have gained 53.1% in the past year.
Dolby Laboratories, Inc. (DLB - Free Report) reported third-quarter fiscal 2025 non-GAAP EPS of 78 cents, surpassing the Zacks Consensus Estimate by 8.3%. It reported 71 cents in the prior-year quarter. Total revenues were $315.6 million, up from $288.8 million in the year-ago quarter and surpassing the Zacks Consensus Estimate by 3.9%. This uptick was driven by higher revenues in the Licensing segment and the Product and Services segment.
In the past year, shares have inched up 3.4%.
Sonos, Inc. (SONO - Free Report) reported third-quarter fiscal 2025 non-GAAP EPS of 19 cents, meeting the Zacks Consensus Estimate. The company reported EPS of 23 cents in the prior-year quarter. On a GAAP basis, the company reported a loss of 3 cents against EPS of 3 cents in the year-ago quarter.
Quarterly revenues declined 13.2% year over year to $344.8 million. However, the figure came above the high end of the company’s guidance of $310 million to $340 million, fueled by stronger-than-anticipated sales of portables and components. The Zacks Consensus Estimate for the top line was pegged at $324 million.
Shares of SONO have lost 3.7% in the past year.
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GoPro's Q2 Loss Wider Than Expected, Revenues Down Y/Y
Key Takeaways
GoPro, Inc. (GPRO - Free Report) reported second-quarter 2025 non-GAAP loss per share of 8 cents, wider than the Zacks Consensus Estimate of a loss of 7 cents. This came within the company’s forecast of non-GAAP adjusted loss of 7 cents per share (+/- 4 cents). The firm reported a loss of 24 cents per share in the year-ago quarter.
GPRO generated revenues of $152.6 million, down 18% year over year. The figure was within the company’s expectation of $145 million (+/- $10 million). The top line beat the consensus mark by 3.4%.
Management stated that the second-quarter performance demonstrates steady operational execution and efficiency, and it looks forward to introducing a wider, more diversified range of hardware and software products in the second half of 2025, which the company expects will drive a return to revenue growth and profitability beginning in the fourth quarter of 2025.
Following the announcement, GPRO's shares were marginally up around 1% in the after-market session yesterday. In the past six months, shares have surged 57.9% compared with the Audio-Video Production industry’s growth of 15.2%.
Image Source: Zacks Investment Research
GPRO’s Q2 Results in Details
GPRO sold 500,000 camera units in the second quarter, down 23% year over year.
Based on channels, revenues from GoPro.com of $41 million (27% of total revenues) plunged 16% year over year. Our estimate was pegged at $42.8 million.
Subscription and service revenue amounted to $26 million, while GoPro’s subscriber base recorded 2.45 million at the end of the second quarter, marking a 3% decline year over year.
Retail channel registered revenues of $111 million (73%), which fell 19% year over year. We estimated the metric to be $103.7 million.
GoPro, Inc. Price, Consensus and EPS Surprise
GoPro, Inc. price-consensus-eps-surprise-chart | GoPro, Inc. Quote
Region-wise, revenues from the Americas were up 11% from the prior-year levels. Revenues from Europe, the Middle East and Africa were down 46% year over year. The Asia Pacific region was down 43%. U.S. revenues reached $82 million in the second quarter of 2025, marking a 20% increase from the same period last year. Year-over-year revenue declines in EMEA and Asia-Pacific were due to consumer-related macroeconomic challenges, increased competition and significant channel inventory reductions in preparation for new product launches in the second half of 2025.
GPRO’s Margin Performance
Non-GAAP gross margin was 36% compared with 30.7% in the year-ago quarter. Non-GAAP operating loss totaled $8.5 million compared with an operating loss of $35.4 million in the prior-year quarter. Non-GAAP operating expenses were $63.4 million compared with $92.6 million in the prior-year quarter.
Adjusted EBITDA loss was $5.7 million against adjusted EBITDA of $33.4 million a year ago.
The subscription attach rate for cameras sold through all channels reached 56%, up from 45% in the second quarter of 2024, marking a 24% increase. Street ASP was $374, up 16% year over year.
GPRO’s Cash Flow & Liquidity
In the quarter under review, GoPro generated $8.8 million of net cash from operating activities compared with $0.6 million in the year-earlier quarter.
As of June 30, 2025, the company had $58.6 million of cash and cash equivalents.
GPRO’s Guidance
For the third quarter of 2025, the company projects revenues of $160 million (+/- $10 million), representing a 38% year-over-year decline.
Non-GAAP gross margin is expected at 35.5% (+/- 50 bps), unchanged from last year. Street ASP is expected to be around $370, up nearly 26% year over year, while unit sell-through is projected to decline 25% to about 500,000 units, with channel inventory remaining flat.
Operating expenses are projected at $60 million (+/- $1 million), down 34% from the prior year due to reduced headcount, lower marketing spend and decreased nonrecurring engineering costs following GP3’s completion.
The company projects a non-GAAP loss per share of 4 cents (+/- 2 cents) for the third quarter.
For 2025, the company plans to introduce two new cameras this year, including the Max 2 360.
GoPro anticipates full-year operating expenses of $240–$250 million, implying a reduction of over $100 million from last year.
To offset roughly half of the expected tariff costs, the company will implement modest price increases and further diversify its supply chain outside of China, while exploring the option of producing certain products in the United States.
The company expects improvements in subscription ARPU and cost efficiency, finishing the year with 2.4 million subscribers.
The expense and margin initiatives undertaken in 2024 are already delivering benefits, and the company is focused on leveraging new product launches in 2025 and 2026 to return to growth and profitability beginning in the fourth quarter of 2025.
GPRO’s Zacks Rank
GoPro currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Firms in Audio-Video Production Space
Sony Group Corporation (SONY - Free Report) reported first-quarter fiscal 2025 net income per share (on a GAAP basis) of ¥42.84, up from ¥34.37 in the year-ago quarter. Adjusted net income came in at ¥259 billion compared with ¥210.2 billion in the prior-year quarter.
Quarterly total revenues grew 2% year over year to ¥2,621.6 billion, driven by higher revenues in the Game & Network Services (G&NS) and Imaging & Sensing Solutions (I&SS) segments, partially offset by a decline in the Entertainment, Technology & Services (ET&S) segment.
Shares of SONY have gained 53.1% in the past year.
Dolby Laboratories, Inc. (DLB - Free Report) reported third-quarter fiscal 2025 non-GAAP EPS of 78 cents, surpassing the Zacks Consensus Estimate by 8.3%. It reported 71 cents in the prior-year quarter. Total revenues were $315.6 million, up from $288.8 million in the year-ago quarter and surpassing the Zacks Consensus Estimate by 3.9%. This uptick was driven by higher revenues in the Licensing segment and the Product and Services segment.
In the past year, shares have inched up 3.4%.
Sonos, Inc. (SONO - Free Report) reported third-quarter fiscal 2025 non-GAAP EPS of 19 cents, meeting the Zacks Consensus Estimate. The company reported EPS of 23 cents in the prior-year quarter. On a GAAP basis, the company reported a loss of 3 cents against EPS of 3 cents in the year-ago quarter.
Quarterly revenues declined 13.2% year over year to $344.8 million. However, the figure came above the high end of the company’s guidance of $310 million to $340 million, fueled by stronger-than-anticipated sales of portables and components. The Zacks Consensus Estimate for the top line was pegged at $324 million.
Shares of SONO have lost 3.7% in the past year.