GPRO
Gopro, INC
NASDAQ
10-Q: GoPro Reports Q1 2025 Results: Revenue Declines Amid Macroeconomic Headwinds, Goodwill Impairment Recorded
Sentiment:
Quarterly Report
12 May 2025 4:58 PM
GoPro's Q1 2025 revenue decreased by 13.6% year-over-year, with the company reporting a net loss and a goodwill impairment charge.
Delay expected
There was a delay in the company's next-generation 360-camera.
Worse than expected
Revenue decreased by 13.6% year-over-year.
Camera unit shipments decreased by 2.0% year-over-year.
Average selling price decreased by 11.8% year-over-year.
Gross margin decreased from 34.1% to 32.1%.
Summary
- GoPro's Q1 2025 revenue was $134.3 million, a 13.6% decrease compared to Q1 2024.
- The company reported a net loss of $46.7 million for Q1 2025, compared to a net loss of $339.1 million in Q1 2024.
- A goodwill impairment charge of $18.6 million was recorded in Q1 2025.
- Subscription and service revenue increased by 3.9% to $26.9 million.
- Camera units shipped decreased by 2.0% to 385,000.
- The average selling price decreased by 11.8% to $349.
- Gross margin was 32.1%, down from 34.1% in the same period last year.
- Operating expenses decreased by 6% year-over-year.
- The company drew $25.0 million from its 2021 Credit Agreement in February 2025.
- As of March 31, 2025, GoPro had $69.6 million in cash and cash equivalents.
- The company's 2025 Notes, with an outstanding principal of $93.8 million, mature on November 15, 2025.
Sentiment
Score: 4
Explanation: The document presents a mixed picture. While the net loss decreased significantly, revenue declined, and a goodwill impairment charge was recorded. The company faces macroeconomic headwinds and competitive pressures, but is taking steps to manage costs and improve efficiency. The sentiment is cautiously negative.
Positives
- Subscription and service revenue increased by 3.9% year-over-year.
- Operating expenses decreased by 6% year-over-year.
- Net loss decreased significantly from $339.1 million to $46.7 million year-over-year, although this was largely due to a one-time tax expense in the prior year.
- The company is taking actions to manage inventory levels and collection of accounts receivables.
Negatives
- Overall revenue decreased by 13.6% year-over-year.
- Camera unit shipments decreased by 2.0% year-over-year.
- Average selling price decreased by 11.8% year-over-year.
- Gross margin decreased from 34.1% to 32.1%.
- A goodwill impairment charge of $18.6 million was recorded.
- The company drew $25.0 million from its 2021 Credit Agreement in February 2025.
- The company's 2025 Notes, with an outstanding principal of $93.8 million, mature on November 15, 2025.
Risks
- Consumer-related macroeconomic issues are impacting the global consumer market.
- The company faces an increasingly global competitive landscape.
- There was a delay in the company's next-generation 360-camera.
- Further inflation, rising interest rates, tariffs, and ongoing recessionary conditions could impact future cash generation.
- The company may need additional financing to execute its business strategy, which may not be available or on favorable terms.
- The company's Class A common stock may cease to be listed on The Nasdaq Global Select Market.
Future Outlook
The company's future success depends on factors such as driving profitability through improved efficiency, investing in research and development, enhancing customer experience, and marketing the GoPro experience effectively.
Industry Context
The digital imaging market is highly competitive, with increasing competition from established camera manufacturers, diversified electronics companies, and smartphone manufacturers.
Comparison to Industry Standards
- The document does not contain specific comparisons to industry standards or benchmarks.
- Without specific data, it's difficult to compare GoPro's performance directly to competitors like Canon, Nikon, Samsung, Sony, Garmin, Ricoh, Insta360, or DJI.
- A more detailed analysis would require comparing GoPro's growth rate, profitability, and market share to these companies.
Stakeholder Impact
- Shareholders may be concerned about the revenue decline and net loss.
- Employees may be affected by restructuring plans and workforce reductions.
- Customers may be impacted by product delays and pricing changes.
- Suppliers and creditors may be affected by the company's financial performance and liquidity.
Next Steps
- The company intends to monitor the closing bid price of the Class A common stock and may consider taking actions to regain compliance with the Bid Price Requirement, including implementing a reverse stock split.
- The company will continue to monitor its financial results and future projections to assess the realizability of its deferred tax assets.
- The company will continue to monitor future guidance issued and assess the potential impact to the Companys condensed consolidated financial statements.
Legal Proceedings
- Contour IP Holdings LLC (CIPH) and related entities have filed lawsuits alleging patent infringement in relation to certain GoPro products.
- GoPro filed a complaint with the U.S. International Trade Commission (ITC) and a lawsuit in the U.S. District Court for the Central District of California against Arashi Vision Inc., d/b/a Insta360, and Arashi Vision (U.S.) LLC, d/b/a Insta360, alleging infringement of certain GoPro patents.
- Insta360 has filed inter partes review (IPR) petitions seeking to challenge the validity of the GoPro patents asserted against Insta360.
- Insta360 has also filed three patent infringement actions against the Company in China (Jiangsu High Court, Changsha Intermediate Court IP Tribunal, and Shenzhen Intermediate Peoples Court).
Key Dates
- 2020-11-24: Initial issuance of Convertible Senior Notes due 2025
- 2021-01-22: GoPro entered into a Credit Agreement which provides for a revolving credit facility (2021 Credit Facility)
- 2024-02-27: Acquisition of Forcite Helmet Systems completed
- 2025-02: GoPro drew $25.0 million from its 2021 Credit Agreement
- 2025-03-31: End of the quarterly period
- 2025-04-30: Shares of Class A and Class B common stock outstanding
- 2025-08-15: Date after which holders may convert 2025 Notes
- 2025-11-15: Maturity date of the 2025 Convertible Senior Notes
Keywords
GoPro, revenue, subscription, camera, financial results, Q1 2025, impairment, loss, EBITDA
GPRO
Gopro, INC
NASDAQ
Sector: TBD
Filings with Classifications
Worse than expected
12 May 2025 4:58 PM
Quarterly Report
- Revenue decreased by 13.6% year-over-year.
- Camera unit shipments decreased by 2.0% year-over-year.
- Average selling price decreased by 11.8% year-over-year.
- Gross margin decreased from 34.1% to 32.1%.
Delay expected
12 May 2025 4:58 PM
Quarterly Report
- There was a delay in the company's next-generation 360-camera.
Worse than expected
22 April 2025 4:13 PM
Proxy Statement
- Revenue decreased by 20% year-over-year.
- Camera unit sales decreased by 19% year-over-year.
Worse than expected
28 March 2025 4:36 PM
8-K Filing
- The company's stock price falling below $1.00 indicates a negative market perception and potential financial difficulties.
Worse than expected
17 March 2025 2:51 PM
Annual Results
- The company's revenue decreased by 20.3% year-over-year.
- The company experienced an operating loss of $135.0 million in 2024.
- Adjusted EBITDA was negative $71.6 million.
Delay expected
17 March 2025 2:51 PM
Annual Results
- The delay of the next generation 360-camera contributed to the revenue decrease.
Worse than expected
6 February 2025 4:09 PM
Earnings Release
- The company's revenue and net losses were significantly worse than the previous year, indicating a challenging financial performance.
Worse than expected
7 November 2024 5:22 PM
Quarterly Report
- The company's revenue decreased by 12% year-over-year, indicating worse than expected results.
- The company's net loss increased to $8.2 million, indicating worse than expected results.
- The company's adjusted EBITDA decreased to $5.4 million, indicating worse than expected results.
Worse than expected
7 November 2024 4:10 PM
Quarterly Report
- The company reported a net loss of $8 million, which is worse than the $4 million loss in the prior year period.
- Non-GAAP net loss was $0.5 million, compared to a $9 million profit in the prior year period.
- Overall revenue decreased by 12% year-over-year.
Worse than expected
29 October 2024 4:18 PM
Restructuring Announcement
- The workforce reduction has increased from 15% to 26%, indicating a more severe restructuring than initially planned.
- The company expects to incur significant charges between $15.5 million and $18.5 million, which is a negative financial impact.
Delay expected
6 August 2024 5:05 PM
Quarterly Report
- The launch of the new entry-level camera was delayed from the second quarter of 2024 to the third quarter of 2024.
Worse than expected
6 August 2024 5:05 PM
Quarterly Report
- The company's revenue declined by 22.7% year-over-year, indicating worse than expected performance.
- The company's net loss increased to $47.8 million, indicating worse than expected profitability.
- The company's adjusted EBITDA was negative $33.4 million, indicating worse than expected operational performance.
Worse than expected
6 August 2024 4:09 PM
Quarterly Report
- The company's net loss significantly increased year-over-year, indicating a worsening financial performance.
- The overall revenue decreased by 23% year-over-year, which is a negative trend.
- The adjusted EBITDA was negative $33 million, compared to negative $10 million in the prior year period, showing a deterioration in profitability.
Worse than expected
7 May 2024 5:04 PM
Quarterly Report
- The company reported a significant net loss of $339.1 million, primarily due to a $294.9 million valuation allowance on deferred tax assets.
- Camera unit shipments decreased by 15% year-over-year, indicating weaker consumer demand.
- Total revenue decreased by 11% year-over-year, driven by lower unit sales.
Delay expected
7 May 2024 5:04 PM
Quarterly Report
- The company announced plans to delay the launch of its entry level product from Q2 to Q3 2024, and its next generation 360 camera to late 2024 due to the development cycles taking longer than expected.
Better than expected
7 May 2024 4:09 PM
Quarterly Report
- The company's revenue exceeded guidance by 7%, indicating better-than-expected sales performance.
Worse than expected
9 February 2024 4:07 PM
Annual Results
- The company's revenue decreased by 8.1% year-over-year, indicating worse than expected performance.
- The company reported a net loss of $53.2 million for 2023, a significant downturn from the previous year's profit, indicating worse than expected profitability.
- The gross margin decreased to 32.2%, impacted by price protection charges and a shift towards lower-margin products, indicating worse than expected profitability.
Worse than expected
7 February 2024 9:32 PM
Quarterly Report
- Q4 revenue was below guidance at $295 million, compared to the $325 million target.
- Full year 2023 revenue was down 8% year-over-year.
- First quarter 2024 revenue is projected to be down 17% year-over-year.
Worse than expected
7 February 2024 4:09 PM
Quarterly Report
- The company's revenue was down 8% year-over-year for both the full year and Q4.
- GoPro reported a GAAP net loss of $53 million for the full year and $2 million for Q4.
- The company missed its Q4 revenue guidance due to lower-than-expected demand in North America.
Disclaimer: This summary was generated by artificial intelligence and its accuracy is not guaranteed. The information provided here is for general informational purposes only and does not constitute financial advice, recommendation, or endorsement of any kind. It may contain errors or omissions. You should not rely on this information to make financial decisions. Always seek the advice of a qualified financial professional before making any investment or financial decisions. Use of this information is at your own risk.