GoPro’s second quarter saw continued revenue contraction and a wider-than-expected adjusted loss, with management citing headwinds from higher tariffs, increased competition, and cautious consumer spending on discretionary electronics. CEO Nicholas Woodman noted that efficiency efforts, including a 32% reduction in operating expenses, helped deliver the company’s highest gross margin since 2022 despite these challenges. The quarter also featured new hardware and software launches, and a focus on cost control to stabilize profitability.

Is now the time to buy GPRO? Find out in our full research report (it’s free).

While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions From GoPro’s Q2 Earnings Call

• Erik William Richard Woodring (Morgan Stanley) asked about trends in consumer spending for discretionary products and differences by region. CEO Nicholas Woodman responded that demand remains stable but consumers are more selective, while CFO Brian McGee said sell-through is tracking internal projections.
• Woodring (Morgan Stanley) inquired about GoPro’s 360 camera market share loss and the outlook for the upcoming Max 2. McGee acknowledged GoPro’s past dominance and cited increased competition, but stressed the Max 2 refresh is crucial for regaining share in a now much larger market.
• Woodring (Morgan Stanley) asked management to detail the impact of tariffs on GoPro's profitability and how the company intends to mitigate these costs. CFO Brian McGee explained that GoPro is offsetting about half the tariff impact through modest price increases and supply chain diversification, but tariffs remain a significant challenge for margins.
• Woodring (Morgan Stanley) pressed for more detail on operating efficiency efforts and their effect on cost structure. Management highlighted a 32% year-over-year reduction in operating expenses, achieved through restructuring, reduced marketing, and lower headcount, supporting margin improvement despite revenue pressures.
• Woodring (Morgan Stanley) queried the product roadmap and upcoming launches. CEO Nicholas Woodman emphasized that new product launches, including the Max 2 and potential entry into the low-light market, are expected to return GoPro to revenue and profit growth, starting in Q4 2025 and into 2026.

Catalysts in Upcoming Quarters

In the coming quarters, the StockStory team will focus on (1) the launch and market reception of the Max 2 360 camera and other new hardware, (2) execution on supply chain diversification and the associated impact on margins and inventory, and (3) initial traction for the AI data licensing initiative as a test of GoPro’s ability to diversify its revenue base. Progress on debt repayment and operational discipline will also be important to watch.

GoPro currently trades at $1.35, up from $1.29 just before the earnings. In the wake of this quarter, is it a buy or sell? The answer lies in our full research report (it’s free).

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