GoPro, Inc.

Good afternoon. Thank you for attending the GoPro fourth quarter in fiscal year 2025 earnings call. My name is Cameron and I'll be your moderator for today. All lines will be muted during the presentation portion of the call with an opportunity for questions and answers at the end. If you would like to ask a question, please press star followed by one on your telephone keypad. I would now like to pass the conference over to your host, Robin Stecker, Director of Corporate Communications with GoPro. You may proceed.

Thank you, Cameron. Good afternoon and welcome to GoPro's fourth quarter and full year 2025 earnings conference call. With me today are GoPro 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 fourth quarter and full year 2025 performance, as well as outlook, please read our Q4 and full year 2025 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 31st, 2024, which is on file with the Securities and Exchange Commission, and other reports that we may file from time to time with EFDC. 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-gap. Now I'll turn the call over to GoPros founder and CEO, Nicholas Woodman.

Thanks, Robin. 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 website. I'd like to begin by congratulating Brian McGee, GoPro's current EDP CFO and COO, on his appointment to the role of president and COO. In his expanded role as president, Brian will further strengthen company-wide alignment and execution, enabling cross-functional teams to move faster and more cohesively towards our strategic goals. Brian is a very talented and passionate operator. with a collaborative approach to problem solving and strategy development. I'm very excited for what GoPro can accomplish with Brian in his new role. I'm also pleased to share that Brian Tratt, GoPro's current VP of Finance, will serve as our CFO. Brian Tratt has served as an integral part of GoPro's finance team for 13 years. and has earned the respect and trust of the entire GoPro organization. I'm excited for him to bring his deep understanding of our business and his fresh perspectives to the CFO role, leading our accounting and finance teams. These leadership changes will become effective on March 17. In 2025, we broadened our hardware and software offerings. delivering on the first stage of our mission to diversify our business and expand our TAM. During the year, we launched our new 360 camera, Max 2, delivering the only true 8K video resolution in the consumer 360 camera category, featuring durable twist-and-go replaceable lenses, trademark GoPro durability and versatility, and a new ecosystem of 16 360-centric accessories. We also launched our new lit hero camera, an ultra compact, lightweight, rugged action and lifestyle camera that has the widest field of view lens in its class and an integrated light enabling captivating photos and video in even no light pitch black scenarios. And we launched our new professional grade gimbal, Fluid Pro AI, a best in class multi-camera AI subject tracking gimbal that's compatible with GoPro cameras, smartphones, and point and shoot cameras weighing up to 400 grams. In addition, we launched a steady cadence of new software functionality, including new 360 content editing features, such as AI-powered subject tracking and cloud-based 360 editing via our Quick mobile app. Additionally, we launched a GoPro reframe plug-in for DaVinci Resolve, low-light denoise enhancements in the GoPro player desktop app, and Apple projected media profile support for the highest fidelity video playback in Apple Vision Pro. And in Q4, we made progress on several strategic initiatives, including GoPro's AI training program and development of our tech-enabled motorcycle helmet with our partner and leading Italian motorcycle helmet brand, AGD. We're pleased to share a meaningful update on our AI training program. We're now working with select AI partners, providing them access to authentic, high-quality GoPro content contributed by US subscribers who opted in to monetize their GoPro CloudBlaze content for AI model training. We plan to recognize revenue from the program in Q1. And later this year, we'll make our first monetary payouts to participating GoPro subscribers whose content was selected. The program creates value for all stakeholders. All partners gain real-world video to train their models. Participating GoPro subscribers earn money through a revenue share, and GoPro benefits from a new, scalable, high-margin revenue stream. Since launching the program in Q3 2025, we've seen strong subscriber enthusiasm. with more than 500,000 hours of diverse, high-quality video content submitted to date and steady growth as we continue expanding the program to more subscribers globally. We expect to close further agreements with additional third-party licensing partners throughout 2026. Shifting gears, we continue to advance on our tech-enabled motorcycle helmet program. developed jointly in partnership with AGV. Together, GoPro and AGV are leveraging each other's design, engineering, and brand strengths to deliver significant innovations that enhance safety, performance, and enjoyment for motorcyclists, all wrapped into a helmet design that is simply stunning in every regard. We look forward to providing investors with more substantial updates on this program later this year. and we plan to publicly share a few product teasers in the near future, so stay tuned for that. Turning to recent developments, on February 26th, the U.S. International Trade Commission reaffirmed our design patent rights by issuing exclusion and cease and desist orders against Insta360, blocking their infringing products from the U.S. market. This decision, combined with the Patent Trial and Appeal Board's rulings last year, Upholding multiple patents covering our hypersensitive technology validates what we've always known. GoPro is built on original innovation. Our patent portfolio now exceeds 1,500 US patents, and we will continue to defend against competitors who choose to copy rather than create. Our commitment to innovation has driven many advancements in digital imaging. from the world's far and away best in-camera video stabilization, HyperSmooth, to industry-leading image quality, resolutions, and frame rates, best-in-class wide-angle field of views, and more, all in rugged and versatile small form factor cameras. Our custom GP2 processor played an important role in many of these innovations and helped power our flagship cameras to market-leading positions. At the same time, GoPro imposed a few constraints that limited how far we could push our cameras in certain areas of performance, specifically power efficiency, thermal performance, and low-light use cases. Most notably, GP2's low-light constraint hampered GoPro's ability to compete in the fast-growing premium low-light capable camera category, a market segment we estimate to have been approximately two to two and a half million units annually in 2025. Enter GP3, GoPro's soon to be released next generation processor, which is designed to deliver industry leading power efficiency, run times, and thermal performance, along with best in class low light performance not yet seen in a small form factor camera. or even many professional cameras. As we announced earlier this week, our new exclusive GP3 processor represents the most significant advancement in processing power and image quality in GoPro's history. Whereas GP2 was a 12 nanometer SOC, GP3 is a 5 nanometer SOC that delivers more than two times the pixel processing power of GP2. resulting in industry-leading resolutions and frame rates that go far beyond what the competition is capable of. GP3 also features a dedicated AI MPU that enables significant gains in low-light image quality when combined with low-light image sensors and industry-leading power efficiency and thermal performance that significantly outperforms the competition. To quantify how efficient And far ahead, GP3 is, in our own internal testing, we are seeing camera runtimes ranging from 40 to 90% longer than the competition. And similarly impressive thermal performance advantages over the competition, in addition to demonstrably better image quality. To say that we're fired up about GP3 and the new GP3-based cameras we're launching in Q2 would be an understatement. We expect GP3 to serve as a pivotal growth catalyst for GoPro, setting new performance benchmarks for the digital imaging industry as a whole, enabling GoPro to lead in our existing core networks and gain meaningful share in new professional product categories including the quickly growing low-light camera equipment, beginning this Q2. I encourage you to visit the news section of gopro.com to check out several jaw-dropping images captured with one of our soon-to-be-released GP3 cameras. I think you'll agree with me that GoPro is about to enable a new dimension of performance and capability. Occasionally speaking, despite ongoing macroeconomic pressures facing the consumer electronics sector, including tariffs and rising memory costs and supply constraints, we are working towards strengthening our operating profile, as Brian will outline, while also advancing our next product cycle with meaningful technological enhancements. We believe we are at the start of a new era of technological and performance leadership for GoPro. with a clear opportunity to grow revenue and operating income, as Brian will share in his remarks. We are highly motivated by what's ahead for GoPro and want to thank our employees, suppliers, retail and distribution partners, and our shareholders for your support. We're very excited. Now, I'll turn the call over to Brian.