GoPro, Inc.

Hello, everyone. Thank you for joining us and welcome to the GoPro second quarter 2026 earnings call. After today's prepared remarks, we will host a question and answer session. If you would like to ask a question, please press star one to raise your hand. To withdraw your question, press star one again. I will now hand the conference over to Robin Stoecker, Director of Corporate Communications. Robin, please go ahead.

Thank you, Pascale. Good afternoon and welcome to GoPRO's second quarter 2026 earnings conference call. With me today are GoPRO's CEO, Nicholas Woodman, and CFO, Brian Tratt. Today's agenda will include brief commentary from Nick, followed by Q&A. For detailed information about our second quarter performance, please read our Q2 2026 earnings press release we've posted to the investor relations section of GoPRO's website. Before I pass the call to Nick, I'd like to remind everyone 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, 2025, 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 a 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 other than revenue or 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, for detailed information about our second quarter performance, please refer to our Q2 2026 earnings press release issued today and subsequent 10Q filing. Today, I will share brief remarks that are focused on our products and the strategic initiatives we're driving forward. In May, GoPRO's board of directors authorized a process to evaluate a potential sale of the company and other strategic alternatives aimed at maximizing shareholder value. The inquiries we've received span the defense, consumer, and financial sectors, and we're in the later stages of the process. As I've shared, this process has my full support. In Q2, we delivered the Mission 1 series to the world. After debuting the three-camera lineup at the National Association of Broadcasters trade show in April, we opened pre-orders and began shipping our new Mission 1 Pro and Mission 1 cameras in May at GoPro.com and through retail partners globally. These include Best Buy and Walmart and specialized imaging retailers B&H and Adorama. With pricing starting at $499 for existing GoPro subscribers, we've made the world's most capable compact cinema cameras financially within reach for even budget-constrained creators. The Mission 1 series has earned significant praise from consumers, critics, and the digital imaging industry at large. Multiple Editor's Choice Awards and strong recommendations from Tom's Guide, Gizmodo, PCMag, Mashable, Wired, Digital Camera World, and The Shortcut are just a few of the rave reviews our new cameras have received so far. And last week, we expanded our Mission 1 series lineup with new special editions and capability-expanding accessories. The new Mission 1 Pro Creator Edition is perfect for vloggers and creators who want an ultra-capable, complete professional camera system that's ready for any mission. The Mission 1 Pro Ultimate Creator Edition is for filmmakers looking for maximum flexibility and the best of everything. It features GoPro's Fluid Pro AI gimbal for advanced stabilization and AI-driven subject tracking plus the new suite of accessories we launched, including the Wireless Mic Complete Kit for professional audio, the Light Mod 2 for compact portable lighting, and the Mission 1 Series Media Mod for input-output port expansion. To share more on the new accessories, the Media Mod allows creators to plug in external monitors, microphones, and more to expand the professional capabilities of the Mission 1 line. and the Volta 2 battery grip provides up to nine hours of continual recording and convenient button controls and an ergonomic grip that also serves as a tripod. And then there's our wireless mic complete kit that frees creators from being tethered to the camera for professional grade audio. It opens up a lot of creative possibilities from run and gun vlogging to multi-camera shoots. The new Mission 1 Series Special Editions and the entire suite of accessories are available on GoPro.com and at retailers globally later this month. And for a limited time, customers can get $100 off Mission 1, Mission 1 Pro, and Mission 1 Pro Grip Edition at GoPro.com and retailers worldwide. and we're also excited to share an update on the upcoming launch of the third camera in our Mission One series lineup, Mission One Pro ILS, a specialized camera for inspired enthusiasts and demanding professionals who desire the versatility of an interchangeable lens system that can match the breadth of their creative vision. Mission One Pro ILS supports more than 300 readily available micro four-thirds lenses, along with GoPro's award-winning in-camera hypersmooth video stabilization. The combination of hypersmooth video stabilization with such a broad range of lens options in a small, durable 8K compact cinema camera has created enormous excitement and anticipation within the industry. And they'll only have to wait until next month to get their hands on it when Mission One Pro ILS launches in September. Mission One Pro ILS will offer several options for seeing a live preview from your camera, checking the focus of your shot, and previewing footage on a larger screen. One of those options is the new Mission Monitor app. It will deliver a live preview of your shot on your iPhone or iPad, plus professional monitoring tools including composition overlays and remote camera control to frame, expose, and capture your cinematic vision perfectly. The Mission Monitor app will be available from the Apple App Store in September. With the launch of our new Mission 1 series cameras, we've given creators more options and performance than ever before. From our tried-and-true cinematic and adventure lifestyle-driven Hero 13 cameras to the award-winning Max 2 360 camera to the all-new Mission 1 series built for professionals and prosumers. GoPro's camera offerings set the bar for adventure-fueled lifestyle and now cinema-grade capture. And to make all of this hardware capability incredibly convenient, there's the GoPro subscription. Being a GoPro subscriber means you get unlimited cloud storage of all your content, uploaded automatically from your camera while it's charging. You'll get the convenience of a powerful yet easy-to-use mobile editing app that you can edit your content directly in the cloud to avoid clogging up your phone with all those video files. And you get you break it, we replace it, no questions asked camera protection, plus up to 50% off discounts at GoPro.com. making being a GoPro owner a straightforward and rewarding experience. For our business, this results in a high margin recurring revenue subscription business that deepens our relationship with our customers and allows us to provide them increasing value as we continue to enhance the subscriber experience and benefits. And our subscribers appear to feel as positive about the GoPro subscription as we do. Thank you for joining us. To further expand GoPro's presence in the motorcycle and greater motorsports markets, there's the tech-enabled motorcycle helmet we're developing with AGV, the leading Italian helmet brand. I'm excited to report that the helmet's development remains on track, having recently achieved ECE 22.06 safety standard compliance, widely recognized as one of the most advanced and comprehensive street riding helmet safety standards. GoPro and AGV are each bringing something exciting to this joint development. AGV's legendary design and safety pedigree and GoPro's engineering and digital imaging expertise and, of course, the combined brand strength of the two companies. Together, we're building the future of motorcycle helmets, and I can tell you this. The helmet is absolutely stunning in every way, from its looks to its technical performance. Huge thanks to our friends at AGV and our GoPro employees who are making this brave new product possible. Your work is going to revolutionize the motorcycle helmet industry, and most importantly, excite and enable riders around the world. In June, we also released a major firmware update for MAX 2. are award-winning 360 camera, adding a suite of professional image quality improvements and expanded creative controls. These include professional 10-bit color with GP log, increased 200 megabits per second bit rate, recording, and enhanced low-light controls. MAX II has been recognized as a best-in-class 360 camera by outlets including Wired, Tom's Guide, CNET, and PCMAG, and its groundbreaking Technology One GoPro, its third Emmy Award for Technology and Engineering. As we shared in Q2, we expanded our camera lineup with the new Mission One series and continue to make progress on our key initiatives, including our strategic review process. I am excited about what's ahead for GoPro. Operator, we are now ready for questions.