GoPro, Inc. (GPRO) Earnings Call Transcript & Summary

Hello, everyone. Thank you for joining us, and welcome to the GoPro Second Quarter 2026 Earnings Call. [Operator Instructions] I will now hand the conference over to Robin Stoecker, Director of Corporate Communications. Robin, please go ahead.

Thank you, Pascal. 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 31, 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 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 other than revenue are non-GAAP. Now I'll turn the call over to GoPro's 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 10-Q 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 3-camera lineup at the National Association of Broadcasters Trade Show in April, we opened preorders 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 Editors' 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 bloggers 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 9 hours of continual recording and convenient button controls in 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 1 Series lineup, Mission 1 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 1 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 1 PRO ILS launches in September. Mission 1 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 proven HERO13 cameras to the award-winning MAX2 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. Our subscriber attach rate was a record 69% in Q2 compared to 54% in the same period last year, and retention was 67%, consistent with previous performance. It's hugely rewarding to see such strong subscriber metrics as it means subscribers value the passion, execution and work our teams are putting into the service. Shifting gears to further expand GoPro's presence in the motorcycle and greater motorsports market, 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 2 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 our riders around the world. In June, we also released a major firmware update for MAX2, our 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 in recording and enhanced low-light controls. MAX2 has been recognized as a best-in-class 360 camera by outlets, including Wired, Tom's Guide, CNET and PCMag and its groundbreaking technology won GoPro its third Emmy Award for technology and engineering. As we shared, in Q2, we expanded our camera lineup with the new Mission 1 Series and continued 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.

[Operator Instructions] Your first question comes from the line of Erik Woodring with Morgan Stanley.

Congrats on the Mission 1 launch. I know for a few quarters, you've been teasing the new camera launches. Obviously, big to get those out. I was just wondering like if we take a step back, I think you probably have the broadest lineup of cameras in GoPro history, ranging not just within the action camera market, ranging from HERO all the way up to the Mission 1 PRO and soon the Mission 1 PRO ILS. Just what do you think it takes to get sell-through back into positive territory now that you have all these product launches? And what would you say is kind of the biggest impediment to that at the moment? And then a quick follow-up, please.

Thanks, Erik. I think awareness driving is critical. We do have the most compelling products that we've had in the history of the company. And after developing and launching those comes the job of driving awareness. So we're in the process of doing that. And of course, the rave reviews help a ton. And most importantly is the success that our customers are having with our products and their endorsement through their own socially shared content. And there's a very positive swell of support for GoPro and our products, thanks to these new launches. There's a lot of love out there, and you need only go and read what owners are saying about their Mission cameras to see how excited they are about them. And of course, that's inspiring others to go out and buy them as well. And there's a lot of anticipation for our interchangeable lens Mission 1 camera, the Mission 1 PRO ILS that's coming out in September. That actually garnered as much, if not more enthusiasm from everyone when we debuted the cameras as the Mission 1 and Mission 1 PRO camera did. The idea of having an interchangeable lens GoPro has really sparked the imagination of creators and really hits a nerve with the more -- or I should say, hits the mark with the more pro-minded users in our community and, importantly, has the potential to expand GoPro's share in the prosumer and pro market, attracting creators who maybe haven't considered using a GoPro before because we just didn't have the right camera for them. But now with an interchangeable lens system, we know that there's an enormous amount of enthusiasm amongst professional creators because of the added creative versatility and potential that an interchangeable lens camera provides. And then in addition to all that, it's continuing to roll the products out globally. We still don't have full distribution. We still are getting our new cameras into retailers around the world. We have pretty good distribution, but not full representation. So that's also going to help as well. But things are looking good in terms of people's regard for the new line of GoPros and continued launches later this year.