GoPro Inc. reported third‑quarter 2025 revenue of $163 million, a 37% decline from $263 million in the same period last year, and a non‑GAAP loss per share of $0.09, missing the consensus estimate of $-0.03 by $0.06. The revenue beat was modest—$0.51 million above the $162.09 million estimate—because the company’s new MAX2 360 camera, LIT HERO, and Fluid Pro AI gimbal drove incremental sales, but the decline in its core retail channel offset that growth.
Revenue from the retail channel fell 41% YoY to $123 million, while GoPro.com revenue dropped 22% YoY to $40 million. The retail decline reflects broader consumer spending weakness and intensified competition in the action‑camera market, whereas the online channel’s slower growth is partly due to inventory shortages and a shift in consumer buying patterns toward direct‑to‑consumer brands.
GAAP gross margin contracted to 35.1% from 35.5% in the prior year, and non‑GAAP gross margin fell to 35.2% from 35.6%. The compression is largely attributable to higher tariff rates on camera components—raised from 10% to 19%—and increased raw‑material costs, which eroded the company’s pricing power in its high‑volume product lines.
CEO Nicholas Woodman said the quarter “marked a meaningful step forward in our strategy to diversify, grow and restore profitability.” CFO Brian McGee highlighted that cash flow from operations rose to $12 million, the second consecutive quarter of positive cash flow, and that sell‑through exceeded expectations by 5%. Management guided for revenue growth and profitability beginning in Q4 2025, projecting $220 million in revenue for the next quarter and a 10% year‑over‑year increase.
Investors reacted cautiously to the results. The wider‑than‑expected non‑GAAP loss and the 37% revenue decline prompted analysts to express concern about the company’s near‑term profitability, despite the modest revenue beat and the launch of new product lines.
Overall, GoPro’s Q3 2025 earnings underscore a challenging period marked by declining sales and margin pressure, but the company’s focus on cost discipline, new product launches, and a return to growth in Q4 2025 signals a strategic pivot toward long‑term profitability.
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