GoPro, Inc.

Hello everyone and welcome to the GoPro third quarter 2025 earnings call. My name is Charlie and I'll be coordinating the call today. You will have the opportunity to ask a question at the end of the presentation. If you'd like to register a question, please press star followed by one on your telephone keypad. I'll now hand over to your host, Robin Stecker, Director, Corporate Communications of GoPro Inc. To begin, Robin, please go ahead.

Thank you, Charlie. Good afternoon and welcome to GoPro's third quarter 2025 earnings conference call. With me today are GoPro's CEO, Nicholas Woodman, and CFO and COO, Brian McGee. Today's agenda will include brief commentary from Nick and Brian, followed by Q&A. For detailed information about our third quarter, as well as outlook, please read our Q3 earnings press release and management commentary we've posted to the investor relations section of GoPro's website. Before I pass the call to Nick, I'd like to remind everybody that our remarks today may include forward-looking statements. Forward-looking statements and all other statements that are not historical facts are not guarantees of future performance and are subject to a number of risks and uncertainties which may cause actual results to differ materially. Additionally, any forward-looking statements made today are based on assumptions as of today. This means that results could change at any time, and we do not undertake any obligation to update these statements as a result of new information or future events. To better understand the risks and uncertainties that could cause actual results to differ from our commentary, we refer you to our most recent annual report on Form 10-K for the year ended December 31, 2024, which is on file with the Securities and Exchange Commission and other reports that we may file from time to time with the SEC. Today, we may discuss gross margin, operating expense, net profit and loss, adjusted EBITDA, as well as basic and diluted net profit and loss per share in accordance with GAAP and on a non-GAAP basis. A reconciliation of GAAP to non-GAAP operating expenses can be found in the press release that was issued this afternoon, which is posted on the investor relations section of our website. Unless otherwise noted, all income statement related numbers that are discussed in the management commentary and remarks made today other than revenue, are non-GAAP. Now, I'll turn the call over to GoPost founder and CEO, Nicholas Woodman.

Thanks, Robin, and thanks, everybody, for joining us today. As Robin mentioned, Brian and I will share brief remarks before going into Q&A, and I want to encourage all on the call to read the detailed management commentary we posted on our investor relations websites. The third quarter marked significant progress in our strategy to grow our business by developing our hardware and software offerings and diversifying our hardware and software offerings. In Q3, we launched three new hardware products and several new software products that helped us exceed our Q3 revenue guidance. Our teams are executing with efficient precision, and we're excited to build on this momentum. As you'll hear from Brian, we believe we have turned an important corner. and we expect to return to unit revenue and profitability growth on a year-over-year basis this Q4 and for 2026. Our innovation machine is accelerating to increase our CAM beyond the 3 million unit action camera category. In Q3, we launched our highly anticipated MAXII 360 camera, our new ultra-compact lit hero camera, and Fluid Pro AI, our new multi-camera compatible gimbal designed for creators that own multiple types of cameras and need one gimbal to meet their multi-camera stabilization needs. Max 2 360 camera opens up a new growth segment, which we estimate the TAM to be nearly 2 million units annually. We're excited to regain market share with the launch of our Max 2 360 camera, and we're fully excited further expanding our TAM with Lit Hero, with its playful aesthetic, ease of use, and versatility, making it especially appealing to a younger demographic looking to capture and share moments on the go. Additionally, the low-light capable camera segment, which we estimate the TAM to be 2 to 2.5 million units annually, represents a significant opportunity for GoPro, as we do not currently participate in this market, but plan to. Our tech-enabled motorcycle helmets initiative is progressing, and collaboration with AGV is already underway. Both teams are working closely to deliver innovative safety and performance features combined with the fun of effortlessly capturing immersive GoPro video while riding. We look forward to providing updates as development progresses. Starting with MAX 2, what a game changer. Its industry-leading 360 technology combines with its true 8K video resolution to capture up to 21% more resolution than the competition. MAX II also features convenient and durable twist-and-go replaceable lenses, making it easy to swap out a lens in the field without tools or calibration, an inconvenience inherent with competitive products. And we recently launched an innovative and expansive new line of 16 cameras 360-centric accessories and mounts that expand MAX II's creative potential and versatility. Early customer feedback has been resoundingly positive, with many praising MAX II's superior image quality, ease of use, and durability. And in September, GoPro won a 2025 Technology and Engineering Emmy Award in recognition of our innovative 360 technology. which is core to our 360 cameras and software. This is GoPro's third Emmy for innovations related to digital imaging and our first in the 360 technology category. We believe MAX 2 will help grow share in the global 360 camera market. MAX 2 is now available online and on shelf at retailers globally. We're also excited about a second new camera we launched in Q3, Lit Hero. an ultra-compact lifestyle camera designed for whatever, whenever capture with its built-in photo and video light. Lit Hero opens up creative possibility in any setting, day or night, and delivers a fun, retro-inspired look to the images it captures. And the third new hardware product we launch in Q3 is Fluid Pro AI, our advanced multi-camera camera AI subject tracking gimbal designed for today's multi-camera content creators looking for a high performance gimbal that meets their multi-camera needs. Fluid Pro AI is compatible with all GoPro cameras, smartphones, and point and shoot cameras up to 400 grams, making it remarkably versatile for capturing smooth, professional-looking content while vlogging, capturing sports, or documenting life's most meaningful moments. Fluid Pro AI represents an exciting opportunity for GoPro to participate in the global gimbal market. As we enter the holiday season, GoPro now offers a diversified line of eight industry-leading camera SKUs that range from an MSRP of $199 to $649. More than 70 versatility expanding camera mounts and accessories and an industry-leading mobile app and subscription experience that adds enormous convenience and value to GoPro subscribers. And we're just getting started. We believe our current offerings serve as an incredible foundation to build on with the planned launch of several exciting new products in 2026 that we believe will result in revenue, profit, and market share growth across our business. Turning to software, in Q3 we launched several new 360-related editing tools that make immersive 360 content creation easy for everyone. And we updated our quick mobile app with several new 360 editing features, including AI-powered subject tracking, convenient POV and selfie modes, and cloud-based 360 editing. These powerful new features significantly enhance the convenience and creative experience for Max and Max 2 owners and GoPro subscribers. Our subscription model continues to exceed our expectations, contributing enormous value to both subscribers and our bottom line. We anticipate renewed subscriber and associated revenue growth in 2026, fueled by camera unit growth and the launch of new editing and content management features that we expect to significantly enhance convenience, capability, and value. And we continue to see strong engagement from subscribers opting into our AI training program, which will earn them 50% of the third-party licensing revenue we expect to generate on their behalf. GoPro subscribers have contributed more than 270,000 hours of video content during the AI training program's invitation-only outreach period, which began in July 2025. We are in discussion with several AI data licensees to address their demand for authentic, real-world video content for AI model training. We believe this program represents a meaningful opportunity over time for both our subscribers and GoPro, and we look forward to sharing progress as the program continues to evolve. As Brian will detail, we've amended our second lien credit agreement to address volatility in tariff rates. Given our commitment and expectation to achieve the minimum $40 million in trailing 12-month adjusted EBITDA by year-end 2026, I'm personally backing our commitment with a $2 million equity infusion into the company. In summary, we're executing against our strategy and we're seeing the results. improved product diversification via the launch of industry-leading hardware and software products, and an expected return to unit revenue and profitability growth in Q4 2025. We expect to build on this momentum in 2026 with the launch of several new innovative and differentiated products and services that we believe will lead to consistent quarterly camera unit and revenue growth on a year-over-year basis and a swing from losses in recent years to solid adjusted EBITDA profitability in 2026. Many thanks to all of GoPro's incredibly talented, passionate, and committed employees. Your execution is enabling us to realize our vision to the benefit of our customers and investors alike. Now, I'll turn the call over to Brian to share some details on our financials and outlook.