GoPro Reports Q2 2025 Revenue Down 18% YoY, Gross Margin Up 36.0%

GoPro reported Q2 2025 revenue of $153 million, down 18% YoY, despite a 36% improvement in non-GAAP gross margin to 36%. Camera sales declined 23% to 500,000 units, while subscription revenue remained steady at $26 million. Adjusted EBITDA improved 83% YoY to a negative $6 million. GoPro secured a $50 million second lien credit facility but issued 11.1 million warrants, potentially diluting existing shareholders. The company aims to restore revenue growth and profitability by Q4 2025 through new products and a patent infringement case win.

GoPro Inc. (NASDAQ: GPRO) reported its second-quarter 2025 financial results, with revenue falling 18% year-over-year (YoY) to $153 million, despite a significant improvement in non-GAAP gross margin to 36% [1]. The company's camera sales declined by 23% to 500,000 units, while subscription revenue remained steady at $26 million. Adjusted EBITDA improved by 83% YoY to a negative $6 million, reflecting successful cost-cutting measures [2].

The company's gross margin improved to 36% from 30.7% YoY, driven by initiatives started in 2024 to reduce operating expenses and improve gross margin [1]. This improvement was largely attributed to the cost-cutting measures implemented by the company, which led to a 32% reduction in operating expenses and an 83% improvement in adjusted EBITDA [2].

GoPro secured a $50 million second lien credit facility, but issued 11.1 million warrants, potentially diluting existing shareholders [2]. The company aims to restore revenue growth and profitability by Q4 2025 through new product launches and a potential win in a patent infringement case against Insta360 [2].

Analysts remain cautious, with an average rating of "hold" and a median 12-month price target of $0.99, about 43.1% below its August 8 closing price of $1.41 [1]. The company's Q2 results reflect consistent operational execution and efficiency, and it plans to launch a broader, more diversified suite of hardware and software products in the second half of 2025 [2].

References:
[1] Reuters. (2025). GoPro Q2 revenue falls 18% yr/yr, adjusted EPS misses analyst expectations. Retrieved from https://www.tradingview.com/news/reuters.com,2025:newsml_PLX7BE7E2:0-gopro-q2-revenue-falls-18/
[2] GoPro Inc. (2025). GoPro Announces Second Quarter Results. Retrieved from https://investor.gopro.com/press-releases/press-release-details/2025/GoPro-Announces-Second-Quarter-Results/default.aspx