GoPro NASDAQ: GPRO used its fourth quarter and fiscal 2025 earnings call to outline leadership changes, review cost and cash flow improvements made during 2025, and preview an upcoming product cycle anchored by its next-generation GP3 processor. Executives also discussed early progress in an AI content licensing initiative and provided a 2026 outlook that factors in tariff and component-related uncertainty, including higher memory costs.
Leadership changes effective March 17
Founder and CEO Nicholas Woodman opened the call by announcing a set of executive role changes. Brian McGee, currently EVP, CFO and COO, was appointed President and COO, with Woodman saying the expanded role is intended to strengthen alignment and execution across the company.
Woodman also said Brian Tratt, GoPro’s VP of Finance, will become CFO. Both changes are scheduled to become effective March 17.
Product expansion and software updates in 2025
Woodman said GoPro broadened its hardware and software offerings in 2025 as part of a push to diversify the business and expand total addressable market. He highlighted several product launches during the year:
- MAX2, a new 360 camera that Woodman said delivers “the only true 8K video resolution” in the consumer 360 category, with replaceable lenses and a new ecosystem of 16 accessories.
- LIT HERO, an ultra-compact action and lifestyle camera with an integrated light aimed at capturing content in very low light.
- Fluid Pro AI, a professional-grade gimbal featuring AI subject tracking and compatibility with GoPro cameras, smartphones, and point-and-shoot cameras up to 400 grams.
On the software side, Woodman pointed to new 360 editing capabilities in the Quik mobile app, including AI-powered subject tracking and cloud-based 360 editing. He also cited the launch of a GoPro ReFrame plugin for DaVinci Resolve, low-light de-noise enhancements in the GoPro Player desktop app, and support for Apple’s projected media profile for playback in Apple Vision Pro.
AI content licensing initiative and helmet partnership
Woodman said GoPro made progress in the fourth quarter on an AI training program and on development of a “tech-enabled motorcycle helmet” with AGV, an Italian motorcycle helmet brand.
On the AI program, Woodman said GoPro is working with select AI partners and providing access to authentic GoPro content contributed by U.S. subscribers who opted in to monetize their cloud-based content for AI model training. The company expects to recognize revenue from the program in the first quarter and plans to make its first monetary payouts later this year to subscribers whose content is selected. Woodman described the initiative as a high-margin, scalable revenue stream for GoPro and said that since launching the program in the third quarter of 2025, subscribers have submitted more than 500,000 hours of video content. He added that GoPro expects to close additional third-party licensing agreements throughout 2026.
On the helmet partnership, Woodman said GoPro and AGV are combining design and engineering capabilities to develop innovations intended to enhance safety and performance, and he said the company expects to provide more substantive updates later this year and share product teasers in the near future.
Patent enforcement update and GP3 processor preview
Woodman also addressed intellectual property enforcement. He said that on Feb. 26 the U.S. International Trade Commission reaffirmed GoPro’s design patent rights by issuing exclusion and cease-and-desist orders against Insta360, blocking infringing products from the U.S. market. He said the decision follows Patent Trial and Appeal Board rulings last year upholding multiple patents covering GoPro’s HyperSmooth technology. Woodman noted that GoPro’s patent portfolio exceeds 1,500 U.S. patents.
Looking ahead, Woodman framed the upcoming GP3 processor as central to the next product cycle. He said the prior GP2 processor imposed constraints in areas such as power efficiency, thermal performance, and low-light performance, which he said limited GoPro’s competitiveness in a premium low-light-capable camera segment that the company estimates at roughly 2 million to 2.5 million units annually in 2025.
Woodman said GP3 is a 5-nanometer system-on-chip, compared with GP2’s 12-nanometer design, and is intended to deliver more than twice the pixel processing power. He added that GP3 includes a dedicated AI NPU designed to improve low-light image quality and that internal testing shows camera run times ranging from 40% to 90% longer than competitors, along with improved thermal performance. GoPro said it plans to launch GP3-based cameras in the second quarter.
Financial results and 2026 outlook
CFO and COO Brian McGee said fiscal 2025 improved substantially versus 2024, citing operating expense reductions of $93 million, gross margin of 34% despite an approximately $20 million impact from IEEPA tariffs, a 35% reduction in inventory, and a $104 million improvement in cash flow from operations.
For the fourth quarter of 2025, McGee reported revenue of $202 million, below the company’s guidance of $220 million plus or minus $5 million. He said adjusted EBITDA was positive $1 million and cash flow from operations was positive for the third consecutive quarter at $16 million, a $41 million year-over-year improvement. Sell-through was 625,000 camera units, and channel inventory decreased by 30,000 units.
For full-year 2025, McGee said retail channel revenue was $482 million, representing 74% of revenue, while the gopro.com channel (including subscription and services) was $170 million, or 26%. Subscription and service revenue was $106 million, flat year-over-year and representing 16% of revenue. He also said 2025 street ASP was $357, up 8% year-over-year. Gross margin was 33.8% versus 34.1% in 2024, while operating expenses declined to $261 million from $354 million.
McGee reported GAAP loss per share of $0.59 and non-GAAP loss per share of $0.30, compared with GAAP and non-GAAP loss per share of $2.82 and $2.42 in 2024. He noted that 2024 results were impacted by $1.93 per share related to establishing a $295 million tax valuation allowance. Adjusted EBITDA was negative $29 million in 2025 versus negative $72 million in 2024. Cash flow used in operations was $21 million in 2025, compared with $125 million used in 2024.
For 2026, McGee said the outlook is subject to uncertainty tied to tariffs, memory pricing and availability, consumer confidence, competition, component supply constraints, and broader global economic volatility. Still, the company expects revenue of $750 million to $800 million, representing nearly 20% growth at the midpoint, based on the existing lineup, new products beginning in the second quarter, and additional AI content licensing.
GoPro expects subscription and service revenue to increase about 10% driven by ARPU growth of 10%, improved attach and retention rates, and a subscriber base projected to decline 7% year-over-year to 2.2 million. Operating expenses are expected to be $220 million to $230 million in 2026, down from $261 million in 2025, with reductions attributed primarily to lower litigation expense, restructuring-related cost reductions, and ongoing expense discipline. McGee also said the company expects operating expenses to decline further in 2027 to $200 million to $210 million.
McGee said memory price increases for DRAM and NAND are expected to pressure margin by about 500 basis points year-over-year, though the company expects enough memory supply to meet its 2026 unit and revenue goals.
On liquidity, McGee said GoPro announced a $50 million financing and closed $25 million, and it amended loan covenants for its ABL and debt agreements. He said the company expects to end 2026 with about $50 million plus or minus $5 million in cash, with an additional $35 million available under its ABL facility and $25 million available under the financing agreement.
GoPro expects 2026 adjusted EBITDA of $10 million to $20 million, improving from a $29 million loss in 2025. McGee also addressed a prior outlook calling for trailing twelve-month adjusted EBITDA of $40 million in 2026, saying that memory pricing alone reduced that figure by $40 million, for a total impact of nearly $60 million in 2026.
The call concluded without any analyst questions. In closing remarks, Woodman reiterated that GoPro is focused on the upcoming second-quarter launch of GP3-based cameras, which the company believes will help drive revenue and profit growth.
About GoPro NASDAQ: GPRO
GoPro, Inc NASDAQ: GPRO is an American technology company specializing in the design and manufacture of compact, high-definition cameras and related accessories. Headquartered in San Mateo, California, GoPro's product lineup is centered on its flagship HERO series of action cameras, which combine rugged construction, waterproof housings and advanced imaging capabilities. In addition to the HERO line, the company offers the MAX camera for 360-degree video capture, along with an array of mounts, grips and protective cases to support use in extreme sports, travel and professional video production.
Since its founding in 2002 by Nicholas Woodman, who continues to serve as chief executive officer, GoPro has expanded beyond hardware into software and cloud-based services.
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