GoPro Q2 revenue falls 18%
Overview
GoPro Q2 revenue falls 18% yr/yr, adjusted EPS misses analyst expectations
Company improves gross margin to 36.0% from 30.7% yr/yr
Adjusted EBITDA improves 83% yr/yr, reflecting successful cost-cutting measures
Outlook
GoPro expects Q4 2025 revenue growth and profitability restoration
Company plans diversified product launches in H2 2025
GoPro sees AI program as potential revenue opportunity
Company anticipates improved profitability starting in Q4 2025
Result Drivers
COST REDUCTION - GoPro attributes improved gross margin and reduced operating expenses to initiatives started in 2024, per CFO Brian McGee
FLAT SUBSCRIPTION REVENUE - Subscription and service revenue remained flat year-over-year at $26 mln, with subscriber count down 3%
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Revenue | $152.64 mln | ||
Q2 Adjusted EPS | Miss | -$0.08 | -$0.06 (1 Analyst) |
Q2 Net Income | -$16.42 mln | ||
Q2 Adjusted EBITDA | -$5.69 mln | ||
Q2 Gross Profit | $54.66 mln | ||
Q2 Operating Expenses | $68.67 mln | ||
Q2 Operating Income | -$14.01 mln | ||
Q2 Pretax Profit | -$15.11 mln |
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 1 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the household electronics peer group is "hold"
Wall Street's median 12-month price target for GoPro Inc is $0.99, about 43.1% below its August 8 closing price of $1.41
Press Release:
