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GoPro Announces Third Quarter Results

prnewswire.com

Revenue was $163 million

Cash Flow from Operations was $12 million, a $14 million Improvement Year-over-Year

SAN MATEO, Calif., Nov. 6, 2025 /PRNewswire/ -- GoPro, Inc. (NASDAQ: GPRO) announced financial results for its third quarter ended September 30, 2025, and posted management commentary, including forward-looking guidance, in the investor relations section of its website at https://investor.gopro.com.

"Q3 marked a meaningful step forward in our strategy to diversify, grow and restore profitability to GoPro's business," said Nicholas Woodman, GoPro's founder and CEO. "We successfully launched three new TAM-expanding hardware products—our MAX2 360 camera, LIT HERO camera and Fluid Pro AI gimbal—alongside several new software offerings. We expect to return to revenue growth and profitability beginning Q4 2025 and in 2026."

"We delivered encouraging results in Q3, with revenue of $163 million and gross margin of 35.2%, in-line with our guidance ranges," said Brian McGee, GoPro's CFO and COO. "We generated $12 million in cash flow from operations—our second consecutive quarter of positive cash flow from operations and a $14 million improvement year-over-year. Additionally, sell-through exceeded our expectations by 5% and channel inventory declined 30% from a year ago and has reduced for four consecutive quarters."

Q3 2025 Financial Results

Recent Business Highlights

Results Summary:

Three months ended September 30,

($ in thousands, except per share amounts)

2025

2024

% Change

Revenue

$ 162,918

$ 258,898

(37.1) %

Gross margin

GAAP

35.1 %

35.5 %

(40) bps

Non-GAAP

35.2 %

35.6 %

(40) bps

Operating income (loss)

GAAP

$ (15,885)

$ (8,011)

98.3 %

Non-GAAP

$ (11,044)

$ 950

(1,262.5) %

Net loss

GAAP

$ (21,252)

$ (8,211)

158.8 %

Non-GAAP

$ (13,907)

$ (463)

2,903.7 %

Diluted net loss per share

GAAP

$ (0.13)

$ (0.05)

160.0 %

Non-GAAP

$ (0.09)

$ (0.00)

(100.0) %

Adjusted EBITDA

$ (7,903)

$ 5,447

(245.1) %

Conference Call

GoPro management will host a conference call and live webcast for analysts and investors today at 2 p.m. Pacific Time (5 p.m. Eastern Time) to discuss the Company's financial results.

Prior to the start of the call, the Company will post Management Commentary on the "Events & Presentations" section of its investor relations website at https://investor.gopro.com. Management will make brief opening comments before taking questions.

To listen to the live conference call, please dial +1 833-470-1428 (US) or + 1 646-844-6383 (International) and enter access code 597836, approximately 15 minutes prior to the start of the call. A live webcast of the conference call will be accessible on the "Events & Presentations" section of the Company's website at https://investor.gopro.com. An archived audio webcast will be accessible for at least 90 days on GoPro's website, https://investor.gopro.com.

About GoPro, Inc. (NASDAQ: GPRO)

GoPro helps the world capture and share itself in immersive and exciting ways.

GoPro was named one of the World's Most Trustworthy Companies by Newsweek for the second consecutive year, recognized globally for earning and maintaining the trust of customers, investors and employees.

GoPro has been recognized as an employer of choice by both Outside Magazine and U.S. News & World Report for being among the best places to work. Open roles can be found on our careers page. For more information, visit GoPro.com.

Connect with GoPro on Facebook, Instagram, LinkedIn, TikTok, X, YouTube, and GoPro's blog, The Current. GoPro customers can submit their photos and videos to GoPro Awards for an opportunity to be featured on GoPro's social channels and receive gear and cash awards. Members of the press can access official logos and imagery on our press portal.

GoPro, HERO and their respective logos are trademarks or registered trademarks of GoPro, Inc. in the United States and other countries.

Note Regarding Use of Non-GAAP Financial Measures

GoPro reports gross profit, gross margin percentage, operating expenses, operating income (loss), other income (expense), tax expense (benefit), net income (loss) and diluted net income (loss) per share in accordance with U.S. generally accepted accounting principles (GAAP) and on a non-GAAP basis. Additionally, GoPro reports non-GAAP adjusted EBITDA. Non-GAAP items exclude, where applicable, the effects of stock-based compensation, acquisition-related costs, restructuring and other related costs, (gain) loss on insurance proceeds, (gain) loss on extinguishment of debt, (gain) loss on revaluation of warrants, gain on the sale and license of intellectual property, goodwill impairment charges, and the tax impact of these items. When planning, forecasting, and analyzing gross profit, gross margin percentage, operating expenses, operating income (loss), other income (expense), tax expense (benefit), net income (loss) and net income (loss) per share for future periods, GoPro does so primarily on a non-GAAP basis without preparing a GAAP analysis as that would require estimates for reconciling items which are inherently difficult to predict with reasonable accuracy. A reconciliation of preliminary GAAP to non-GAAP measures has been provided in this press release, and investors are encouraged to review the reconciliation.

Note on Forward-looking Statements

This press release may contain projections or other forward-looking statements within the meaning Section 27A of the Private Securities Litigation Reform Act. Words such as "anticipate," "believe," "estimate," "expect," "intend," "should," "will," "plan" and variations of these terms or the negative of these terms and similar expressions are intended to identify these forward-looking statements. Forward-looking statements in this press release may include but are not limited to statements regarding our expectations for profitability, improved gross margin, revenue growth, subscription growth, expanding our TAM and reduced operating expenses; hardware and software product launch, product diversification and statements related to the Company's new opt-in AI learning program, revenue opportunities for participants and the Company, licensing of user-generated content. These statements involve risks and uncertainties, and actual events or results may differ materially. Among the important factors that could cause actual results to differ materially from those in the forward-looking statements include the inability to achieve our revenue growth or profitability in the future, and if revenue growth or profitability is achieved, the inability to sustain it; the fact that an economic downturn or economic uncertainty in our key U.S. and international markets, inflation, and fluctuations in interest rates or currency exchange rates may adversely affect consumer discretionary spending and demand for our products; changes to trade agreements, trade policies, increased tariffs and import/export regulations which may negatively effect on our business and supply chain expenses; the fact that our goal to grow revenue and be profitable relies upon our ability to manage expenses and grow sales from our direct-to-consumer business, our retail partners, and distributors; our ability to acquire and retain subscribers; our reliance on third-party suppliers, some of which are sole-source suppliers, to provide services and components for our products which may be impacted due to supply shortages, long lead times or other service disruptions that may lead to increased costs due to the effects of global conflicts and geopolitical issues such as the ongoing conflicts in the Middle East, Ukraine or China-Taiwan relations; our ability to maintain the value and reputation of our brand and protect our intellectual property and proprietary rights; the risk that our sales fall below our forecasts, especially during the holiday season; the risk we fail to manage our operating expenses effectively, which may result in our financial performance suffering; the fact that our profitability depends in part on further penetrating our total addressable market, and we may not be successful in doing so; the risk we are able to reduce our operating expenses; the fact that we rely on sales of our cameras, mounts and accessories for substantially all of our revenue, and any decrease in the sales or change in sales mix of these products could harm our business; the risk that we may not successfully manage product introductions, product transitions, product pricing and marketing; our ability to achieve or maintain profitability if there are delays or issues in our product launches; the fact that a small number of retailers and distributors account for a substantial portion of our revenue and our level of business with them could be significantly reduced; our ability to attract, engage and retain qualified personnel; the impact of competition on our market share, revenue and profitability; the fact that we may experience fluctuating revenue, expenses and profitability in the future; risks related to inventory, purchase commitments and long-lived assets; the risk that we will encounter problems with our distribution system; the threat of a security breach or other disruption including cyberattacks; the concern that our intellectual property and proprietary rights may not adequately protect our products and services; the outcome of pending or future litigation and legal proceedings; and other factors detailed in the Risk Factors section of our Annual Report on Form 10-K for the year ended December 31, 2024, which is on file with the Securities and Exchange Commission (SEC). These forward-looking statements speak only as of the date hereof or as of the date otherwise stated herein. GoPro disclaims any obligation to update these forward-looking statements.

GoPro, Inc.

Preliminary Condensed Consolidated Statements of Operations

(unaudited)

Three months ended September 30,

Nine months ended September 30,

(in thousands, except per share data)

2025

2024

2025

2024

Revenue

$ 162,918

$ 258,898

$ 449,869

$ 600,591

Cost of revenue

105,751

167,052

294,890

398,997

Gross profit

57,167

91,846

154,979

201,594

Operating expenses:

Research and development

34,603

44,328

94,663

135,872

Sales and marketing

24,956

40,686

73,489

117,185

General and administrative

13,493

14,843

43,327

44,470

Goodwill impairment

18,600

Total operating expenses

73,052

99,857

230,079

297,527

Operating loss

(15,885)

(8,011)

(75,100)

(95,933)

Other income (expense):

Interest expense

(2,715)

(808)

(4,948)

(2,272)

Other income (expense), net

(1,881)

2,691

(603)

4,710

Total other income (expense), net

(4,596)

1,883

(5,551)

2,438

Loss before income taxes

(20,481)

(6,128)

(80,651)

(93,495)

Income tax expense

771

2,083

3,732

301,625

Net loss

$ (21,252)

$ (8,211)

$ (84,383)

$ (395,120)

Basic and diluted net loss per share

$ (0.13)

$ (0.05)

$ (0.53)

$ (2.59)

Shares used to compute basic and diluted net

loss per share

158,933

153,741

157,747

152,449

GoPro, Inc.

Preliminary Condensed Consolidated Balance Sheets

(unaudited)

(in thousands)

September 30,

2025

December 31,

2024

Assets

Current assets:

Cash and cash equivalents

$ 58,431

$ 102,811

Restricted cash

94,340

Accounts receivable, net

87,388

85,944

Inventory

84,064

120,716

Prepaid expenses and other current assets

34,547

29,774

Total current assets

358,770

339,245

Property and equipment, net

7,118

8,696

Operating lease right-of-use assets

12,448

14,403

Goodwill

133,751

152,351

Other long-term assets

26,521

28,983

Total assets

$ 538,608

$ 543,678

Liabilities and Stockholders' Equity

Current liabilities:

Accounts payable

$ 77,836

$ 85,936

Accrued expenses and other current liabilities

98,902

110,769

Short-term operating lease liabilities

11,884

10,936

Deferred revenue

52,006

55,418

Short-term debt

138,463

93,208

Total current liabilities

379,091

356,267

Long-term taxes payable

16,057

11,621

Long-term debt

43,916

Long-term operating lease liabilities

10,661

18,067

Other long-term liabilities

8,389

6,034

Total liabilities

458,114

391,989

Stockholders' equity:

Common stock and additional paid-in capital

1,039,715

1,026,527

Treasury stock, at cost

(193,231)

(193,231)

Accumulated deficit

(765,990)

(681,607)

Total stockholders' equity

80,494

151,689

Total liabilities and stockholders' equity

$ 538,608

$ 543,678

GoPro, Inc.

Preliminary Condensed Consolidated Statements of Cash Flows

(unaudited)

Three months ended September 30,

Nine months ended September 30,

(in thousands)

2025

2024

2025

2024

Operating activities:

Net loss

$ (21,252)

$ (8,211)

$ (84,383)

$ (395,120)

Adjustments to reconcile net loss to net cash

provided by (used in) operating activities:

Depreciation and amortization

1,800

1,827

5,216

4,711

Non-cash operating lease cost

802

1,326

1,955

(285)

Stock-based compensation

4,663

7,372

15,149

23,933

Goodwill impairment

18,600

Deferred income taxes, net

(22)

49

(152)

296,759

Impairment of right-of-use assets

3,276

Other

598

(1,731)

882

(627)

Net changes in operating assets and

liabilities

25,573

(2,876)

6,461

(32,689)

Net cash provided by (used in) operating

activities

12,162

(2,244)

(36,272)

(100,042)

Investing activities:

Purchases of property and equipment, net

(934)

(1,943)

(2,717)

(3,623)

Maturities of marketable securities

24,000

Acquisition, net of cash acquired

(12,308)

Net cash provided by (used in) investing

activities

(934)

(1,943)

(2,717)

8,069

Financing activities:

Proceeds from issuance of common stock

332

770

706

2,150

Taxes paid related to net share settlement of

equity awards

(538)

(667)

(1,162)

(2,847)

Proceeds from borrowings

88,174

113,174

Repayment of debt

(2,601)

(22,601)

Payment of debt issuance costs

(2,282)

(2,282)

Net cash provided by (used in) financing

activities

83,085

103

87,835

(697)

Effect of exchange rate changes on cash,

cash equivalents, and restricted cash

(113)

1,243

1,114

157

Net change in cash, cash equivalents, and

restricted cash

94,200

(2,841)

49,960

(92,513)

Cash, cash equivalents, and restricted cash

at beginning of period

58,571

133,036

102,811

222,708

Cash, cash equivalents, and restricted cash

at end of period

$ 152,771

$ 130,195

$ 152,771

$ 130,195

GoPro, Inc.

Reconciliation of Preliminary GAAP to Non-GAAP Financial Measures

To supplement our unaudited selected financial data presented on a basis consistent with GAAP, we disclose certain non-GAAP financial measures, including non-GAAP gross profit, gross margin percentage, operating expenses, operating income (loss), other income (expense), tax expense (benefit), net income (loss), diluted net income (loss) per share and adjusted EBITDA. We also provide forecasts of non-GAAP gross margin, non-GAAP operating expenses, non-GAAP other income (expense), non-GAAP tax expense (benefit), non-GAAP net income (loss) and non-GAAP diluted net income (loss) per share. We use non-GAAP financial measures to help us understand and evaluate our core operating performance and trends, to prepare and approve our annual budget, and to develop short-term and long-term operational plans. Our management uses and believes that investors benefit from referring to these non-GAAP financial measures in assessing our operating results. These non-GAAP financial measures should not be considered in isolation from, or as an alternative to, the measures prepared in accordance with GAAP, and are not based on any comprehensive set of accounting rules or principles. We believe that these non-GAAP measures, when read in conjunction with our GAAP financials, provide useful information to investors by facilitating:

These non-GAAP financial measures have limitations in that they do not reflect all of the amounts associated with our results of operations as determined in accordance with GAAP. Some of these limitations are:

GoPro, Inc.

Reconciliation of Preliminary GAAP to Non-GAAP Financial Measures

(unaudited)

Reconciliations of non-GAAP financial measures are set forth below:

Three months ended September 30,

Nine months ended September 30,

(in thousands, except per share data)

2025

2024

2025

2024

GAAP net loss

$ (21,252)

$ (8,211)

$ (84,383)

$ (395,120)

Stock-based compensation:

Cost of revenue

238

349

726

1,103

Research and development

2,573

3,669

8,074

11,950

Sales and marketing

885

1,603

2,702

4,892

General and administrative

967

1,751

3,647

5,988

Total stock-based compensation

4,663

7,372

15,149

23,933

Acquisition-related costs:

Research and development

468

469

1,406

1,094

General and administrative

9

15

12

796

Total acquisition-related costs

477

484

1,418

1,890

Restructuring and other costs:

Cost of revenue

(17)

(49)

137

Research and development

(179)

679

(199)

2,941

Sales and marketing

(151)

314

170

1,612

General and administrative

48

112

1,827

1,061

Total restructuring and other costs

(299)

1,105

1,749

5,751

(Gain) loss on insurance recovery

158

(266)

(Gain) on sale and/or license of intellectual

property

(999)

(999)

(Gain) loss on revaluation of warrants

2,594

2,594

Goodwill impairment

18,600

Income tax adjustments

(248)

(214)

(169)

8,546

Non-GAAP net loss

$ (13,907)

$ (463)

$ (45,308)

$ (355,999)

GAAP and non-GAAP shares for diluted

net loss per share

158,933

153,741

157,747

152,449

GAAP diluted net loss per share

$ (0.13)

$ (0.05)

$ (0.53)

$ (2.59)

Non-GAAP diluted net loss per share

$ (0.09)

$ (0.00)

$ (0.29)

$ (2.34)

Three months ended September 30,

Nine months ended September 30,

(dollars in thousands)

2025

2024

2025

2024

GAAP gross margin as a % of revenue

35.1 %

35.5 %

34.4 %

33.6 %

Stock-based compensation

0.1

0.1

0.2

0.2

Non-GAAP gross margin as a % of

revenue

35.2 %

35.6 %

34.6 %

33.8 %

GAAP operating expenses

$ 73,052

$ 99,857

$ 230,079

$ 297,527

Stock-based compensation

(4,425)

(7,023)

(14,423)

(22,830)

Acquisition-related costs

(477)

(484)

(1,418)

(1,890)

Restructuring and other costs

282

(1,105)

(1,798)

(5,614)

Goodwill impairment

(18,600)

Non-GAAP operating expenses

$ 68,432

$ 91,245

$ 193,840

$ 267,193

GAAP operating loss

$ (15,885)

$ (8,011)

$ (75,100)

$ (95,933)

Stock-based compensation

4,663

7,372

15,149

23,933

Acquisition-related costs

477

484

1,418

1,890

Restructuring and other costs

(299)

1,105

1,749

5,751

Goodwill impairment

18,600

Non-GAAP operating income (loss)

$ (11,044)

$ 950

$ (38,184)

$ (64,359)

Three months ended September 30,

Nine months ended September 30,

(in thousands)

2025

2024

2025

2024

GAAP net loss

$ (21,252)

$ (8,211)

$ (84,383)

$ (395,120)

Income tax expense

771

2,083

3,732

301,625

Interest expense (income), net

1,897

(152)

3,061

(1,667)

Depreciation and amortization

1,800

1,826

5,216

4,710

POP display amortization

1,765

1,424

5,248

3,488

Stock-based compensation

4,663

7,372

15,149

23,933

(Gain) loss on insurance recovery

158

(266)

(Gain) loss on revaluation of warrants

2,594

2,594

Goodwill impairment

18,600

Restructuring and other costs

(299)

1,105

1,749

5,751

Adjusted EBITDA

$ (7,903)

$ 5,447

$ (29,300)

$ (57,280)

SOURCE GoPro, Inc.