Introduction & Market Context
GoPro (NASDAQ:GPRO) presented its Q1 2025 investor slides on May 23, highlighting the company’s strategic shift toward subscription services and premium products amid continued pressure on hardware sales. The action camera maker reported revenue of $134 million for the quarter, hitting the high end of its guidance, while reducing its adjusted EBITDA loss to $16 million from $29 million in the same period last year.
The presentation emphasized GoPro’s evolution from a pure hardware business to an integrated hardware, subscription, and service model, with particular focus on the company’s 2.47 million subscribers generating $27 million in revenue, up 4% year-over-year.
Financial Performance Highlights
GoPro’s financial metrics revealed mixed results, with revenue continuing its multi-year decline while efficiency metrics showed improvement. The company’s Q1 2025 revenue of $134 million represented a decrease from the $155 million reported in Q1 2024, continuing a downward trend from $892 million in 2020 to $801 million in 2024.
As shown in the following revenue and adjusted EBITDA chart:
Despite the revenue challenges, GoPro has made progress in reducing its losses, with Q1 2025 adjusted EBITDA loss of $16 million representing a significant improvement from the $29 million loss in Q1 2024. The company achieved this through substantial cost-cutting measures, reducing non-GAAP operating expenses by 26% year-over-year.
Gross margin for Q1 2025 reached 35.5%, an improvement from previous quarters, though the earnings call clarified that the actual figure was 32.3% when including a one-time inventory sale. The company maintains a strategic focus on premium products, with 71% of camera revenue coming from models with MSRPs at or above $400.
The following chart illustrates GoPro’s camera revenue mix by price point:
Subscription Business Growth
GoPro’s subscription and service business continues to be a bright spot, with revenue growing 4% year-over-year to $27 million in Q1 2025. The company now boasts 2.47 million subscribers with a gross margin exceeding 70% and aggregate retention of 70%, up 100 basis points year-over-year.
The company has been expanding its subscription offerings, introducing Premium+ in February 2024 at $99.99 per year to complement its existing Premium ($49.99/year) and Quik ($9.99/year) tiers. This tiered approach aims to increase average revenue per user, which grew 5% year-over-year in Q1 2025.
The following slide details GoPro’s subscription value proposition:
The Premium+ subscription offers enhanced features including 500GB cloud storage, HyperSmooth Pro video stabilization, and advanced mobile editing capabilities:
Product Strategy and Innovation
GoPro’s presentation highlighted upcoming product launches that could potentially drive future growth. The company teased the release of MAX2, a successor to its 360-degree camera, along with a new line of motorcycle helmets developed in partnership with Italian helmet manufacturer AGV.
The AGV partnership targets a $3 billion market opportunity, combining GoPro’s imaging technology with AGV’s helmet expertise. This represents a significant diversification from GoPro’s traditional action camera business.
The following slide outlines the AGV partnership details:
GoPro also emphasized its technological innovations, including HyperSmooth 6.0 stabilization technology, automated storytelling features, and AI-powered editing tools. The company noted that it received its second Emmy Award in Q1 2022 for its technical achievements.
Distribution and Marketing
GoPro maintains a multi-channel distribution strategy, with 30% of Q1 2025 revenue coming from direct sales through GoPro.com and 70% from retail partners. This represents a shift from previous quarters, where direct sales had reached as high as 38% of revenue in 2022.
The following chart shows GoPro’s global sales channels:
The company’s marketing strategy leverages its strong social media presence, with over 53 million followers across platforms, 4.6 billion lifetime YouTube views, and 24 million Instagram followers. GoPro combines consumer-focused channel marketing with lifestyle-focused efforts through influencers, athletes, and events.
Forward Outlook and Challenges
Looking ahead, GoPro provided Q2 2025 revenue guidance of $145 million (plus or minus $10 million) and expects to end the year with $75 million in cash and no debt. The company anticipates maintaining approximately 2.4 million subscribers by year-end.
Challenges remain, particularly in Asian markets where the earnings call noted significant revenue declines. Supply chain diversification away from China continues to be a priority, along with managing tariff impacts and competitive pressures in the action camera segment.
GoPro’s strategic focus on operational efficiency, subscription growth, and new product categories reflects its efforts to stabilize the business amid a challenging hardware market. The upcoming MAX2 camera launch and AGV helmet partnership represent potential growth catalysts as the company works to return to profitability.
Full presentation:
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