GPRO

I will now hand the conference over to Robin Stoecker, Director of Corporate Communications. Please go ahead.

Thank you, Rebecca. Good afternoon, and welcome to GoPro's first quarter 2026 earnings conference call. With me today are GoPro's CEO, Nicholas Woodman, CFO, Brian Tratt, and President and COO, Brian McGee. Today's agenda will include brief commentary from Nick and Brian, followed by Q&A. For detailed information about our first quarter performance, please read our Q1 2026 earnings press release and management commentary we 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 margins, 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 disclosed in the management commentary, other than revenue, are non-GAAP. Now I'll turn the call over to GoPro Founder and CEO, Nicholas Woodman.

Thanks, Robin, and 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. In April, we announced that GoPro is formally exploring opportunities in the defense and aerospace sector, having engaged Oliver Wyman, a global leader in defense sector consulting, to assess addressable market segments, product synergies, and go-to-market strategies. GoPro cameras have long been used in demanding defense, government, and aerospace applications where versatility, durability, industry-leading video stabilization, and image quality are mission-critical, and we believe there is a meaningful, scalable opportunity to formalize and grow our presence in these sectors. Following the April announcement of our work with Oliver Wyman, we received several inbound inquiries related to M&A.

To capitalize on this interest, GoPro's board of directors has authorized the company to engage in a strategic process and to engage a financial advisor to assist with that process and evaluate strategic alternatives in order to maximize shareholder value. We believe there is unrealized value in GoPro's technology, IP, brand, product development, and scaled manufacturing capabilities, and we look forward to exploring how M&A could unlock that value to the benefit of our shareholders. Testament to GoPro's credibility as a mission-proven tool for defense and aerospace application is NASA's use of GoPro cameras on the Artemis II mission. On April 1st, the Orion spacecraft launched with modified GoPro cameras mounted externally on its solar array wings, and off-the-shelf GoPro cameras were used inside the ship to capture content for a National Geographic documentary about the mission.

Everyone at GoPro is deeply honored that our cameras played even a small role in the historic Artemis II mission. It's incredibly meaningful to all of us. Turning to Q1, we advanced several partnership initiatives designed to broaden GoPro's reach and appeal. In January, we announced an exciting partnership with ASUS, a leading Taiwanese multinational technology company, and launched a co-branded ASUS ProArt GoPro Edition laptop. The laptop was purpose-built by ASUS to support GoPro content creator workflows. ASUS has shared that early traction has far exceeded their expectations for the ProArt line, reinforcing the strength of GoPro's brand in technology collaborations. In March, we announced our partnership with DICK's Sporting Goods and integration with their GameChanger app, the number one-rated youth sports app for scorekeeping and live streaming, which has more than 9,000,000 active users.

This partnership combines GoPro's industry-leading video quality with GameChanger's live streaming service, making it easy for families to capture and share game day live. The GameChanger GoPro product bundle, available online at Dick's Sporting Goods, brings together everything families need for seamless, high-quality live streaming of the game. Millions of existing GoPro HERO13 Black through HERO7 Black and MAX owners can now pair the GoPro they already own with the GameChanger app to start streaming live sporting events. Just last month, we debuted our new MISSION 1 Series of professional 8K and 4K open-gate compact cinema cameras at the National Association of Broadcasters trade show, the largest television industry trade show in the U.S. The launch of the MISSION 1 Series marks GoPro's most significant push into the professional and prosumer creator markets.

Featuring a new 50 MP 1 in sensor and GoPro's new ultra-efficient next generation GP3 processor, the MISSION 1 Series cameras deliver category-leading resolutions, frame rates, runtimes, and thermal performance for mission-critical reliability in extreme use cases. The new lineup includes three camera models: MISSION 1 PRO, MISSION 1 PRO ILS, and MISSION 1. The response to our MISSION 1 series of products has been overwhelmingly positive. Recent press coverage has consistently highlighted the camera's industry-leading specs, image quality, compact and durable design, plus the outright performance and value the cameras deliver relative to dramatically more expensive cinema cameras. At the NAB Show, our new cameras earned three prestigious awards from leading industry outlets.

One of six RedShark Best in Show Awards, one of 10 ProductionHUB Awards of Excellence, and the MISSION 1 PRO ILS was the sole winner of the CineD Best-of-Show Award in the camera category. These awards go to all of GoPro's employees whose dedication and passion made the MISSION 1 Series cameras possible. Thank you, team, and congratulations. We expect the MISSION 1 Series products to enable GoPro to gain meaningful share in our core markets, as well as in new professional and prosumer markets. The MISSION 1 Series products will be available May 28 at gopro.com and select authorized retail partners globally, including Best Buy and Walmart, and high-end imaging retailers B&H and Adorama.

As we shared, Q1 and the past few weeks marked an exciting array of new partnerships, business opportunity explorations, and product launches that we believe can help diversify and grow our business. We've just entered a new era of professional performance capability with the launch of our new MISSION 1 series of cameras, and we're excited for the impact they can have on our business. Now, I'll turn the call over to Brian Tratt to walk you through details of our Q1 financial results.

Thanks, Nick. Turning to our financial results, revenue in Q1 2026 was $99 million, within our guidance range and compared to $134 million in the prior year period. Macro challenges in the consumer electronics sector, including rising memory costs, supply chain constraints, and fluctuating tariffs, prompted us to take some discrete actions in the quarter that impacted gross margins and earnings per share. Despite these pressures, some of which materialized in the last week of the quarter, we made meaningful progress on the metrics within our control. Cash used in operations improved $21 million year-over-year to $37 million. Operating expenses declined year-over-year, and we continued to reduce both owned and channel inventory sequentially and year-over-year.

Additional first quarter performance highlights include revenue from our retail channel was $61 million or 61% of revenue, compared to 70% of Q1 2025 revenue. Revenue from our gopro.com channel, which includes subscription and service revenue, was $38 million or 39% of revenue, compared to 30% of Q1 2025 revenue. Subscription and services revenue was flat year-over-year at $27 million or 27% of revenue. Subscription attach rate from cameras sold across all channels was 51%, compared to 49% in Q1 2025. Street ASP was $371, a 6% improvement year over year. Operating expenses were $59 million compared to $62 million in the prior year period, a 6% decrease year-over-year. The following results reflect the discrete actions mentioned previously.

Gross margin was 4.5% compared to 32.3% in Q1 2025. Excluding the discrete actions, gross margin would have been approximately 31%. Net loss was $58 million compared to prior year net loss of $19 million. GAAP and non-GAAP loss per share were $0.50 and $0.35, respectively, compared to a prior year loss per share of $0.30 and $0.12, respectively. Excluding the discrete actions, non-GAAP loss per share would have been $0.20. Adjusted EBITDA was -$50 million, compared to -$16 million in the prior year period. Excluding the discrete actions, adjusted EBITDA would have been -$25 million. We ended the quarter with inventory of $72 million, a 25% decrease year-over-year, and an 8% decrease from Q4 2025.

Channel inventory declined 20% from the prior year quarter and 6% sequentially. Given the macro challenges in the consumer electronic sector and the strategic process we've initiated to evaluate opportunities for the sale of the company, we will no longer be providing forward-looking guidance and are withdrawing our full-year guidance at this time. In summary, we're encouraged by the early positive response to our MISSION 1 line of cameras. As Nick mentioned, we're excited about the strategic momentum building around our defense and aerospace exploration with Oliver Wyman and the plan to engage a strategic advisor to evaluate strategic alternatives, both of which we believe can unlock unrealized value in GoPro's technology, IP, and brand. Operator, we're now ready to take questions

We will now begin the question-and-answer session. We ask that you pick up your handset when asking a question to allow for optimum sound quality. If you are muted locally, please remember to unmute your device. Please stand by while we compile the Q&A roster. Your first question comes from Erik Woodring with Morgan Stanley. Please go ahead.

Hey, everyone. It's Dylan Liu on for Erik, and thanks for taking my questions. I have a couple if I may. Today you just announced a strategic alternative process, which includes the sale of the company or merger to maximize the value for shareholders. Nick, I think your Class B shares give you about like 63% of the outstanding voting power of GoPro, meaning any sale or merger ultimately requires your personal approval. Can you clarify whether you are personally supportive of a full sale of the company? If so, what price or strategic outcome would you need to see to vote in favor of such a transaction?

Thanks for the question. Yeah, I am fully supportive of evaluating strategic opportunities for the company to unlock value for shareholders. This effort has my full and complete support.

Got it. In the press release, you mentioned the strategic review was triggered by, you know, several unsolicited inbound strategic inquiries received after the, you know, defense and aerospace announcement in early, or, you know, mid-April. Can you describe the nature of these inquiries? Are they primarily from defense/, you know, aerospace acquirers interested in GoPro's technology or from, you know, financial or strategic buyers in your core consumer imaging market? Does the board or you have a preference for one type of buyer over the other, another?

Well, without sharing too much detail, I can share that there's been interest from various sectors, various types of interested parties. It's not just, you know, defense or not just financial. The range of interest led us to make the decision that we should run a process to evaluate what kind of value we could unlock on behalf of shareholders.

Got it. That's clear to me. Thank you. Just one follow-up, if I may. GoPro, you just announced the MISSION 1 Series, and this is a brand-new product line. Would you mind giving us the sense of the sell-in potential of this product? I think you sized that low-light capable camera segment as a TAM. It's about like 2 million-2.5 million units annually. Can you describe the specific customer segments that you're targeting with MISSION 1 Series? Who are the major competitors that we're taking shares of? How should we think about the pricing, the $600-$700 selling price relative incumbent solutions?

Sure. The MISSION 1 line is very interesting because it plays in several different categories. First and foremost, we're marketing it and to its strength as the world's most compact cinema camera line, whether it's the entry-level MISSION 1 camera for $599 or the MISSION 1 PRO for $699 or the PRO ILS with an interchangeable lens system also for $699. The resolutions, the frame rates, the image quality is all at the professional level. They truly are compact cinema cameras that we think are gonna unlock exciting new perspectives for professional filmmakers, television series producers, commercial producers, as well as, you know, influencers and tip-of-spear professional-level content creators.

At the same time, the price points, the convenience, the versatility, the durability make them ideal as very high-end alternatives for people that are currently using action cameras for creating whatever content they're creating, but want to do so at a much higher end with a much more professional output. For aspiring consumers that want the most capable action cameras in the world, the MISSION Series line definitely can be used for that purpose. A portion of that market we think will gravitate up towards the MISSION Series because of how well they work just as an everyday camera. The cameras are definitely targeting a higher end professional user.

We think that the price points relative to cameras that are far more expensive but don't match the resolution and frame rates of the MISSION 1 line, we think the cameras are a relative bargain. Especially when you look at the capabilities of the ILS model, which enables people to use a vast array of commercially available Micro Four Thirds lenses or lenses that they might already own, and truly get just an incredible range of, you know, different looks that you can create, whether it's macro to telephoto to full cinema lenses. I think we're gonna see a lot of staggeringly impressive content being created with the new MISSION 1 Series line. It's a step up for us across the board in performance and pricing.

Yet at the same time, it's not a complete departure from our existing markets because at the end of the day, they're very relatable as GoPros to the average consumer.

Got it. Thank you. That's it from me.

Thank you very much.

We have reached the end of the Q&A session. I will now turn the call back to management for closing remarks.

Thank you, operator, and thank you everyone for joining today's call. To close, Q1 and the last few weeks have been a period of meaningful momentum, marked by new partnerships, expanding business opportunities, and significant product launches that we believe can both diversify and grow our business. Importantly, we believe there's unrealized value in GoPro's technology, IP, brand, product development, and scaled manufacturing capabilities, and we look forward to exploring how a potential sale of the company could unlock that value to the benefit of our shareholders. Thank you, everyone. This is Team GoPro signing off.

This concludes today's call. Thank you for attending. You may now disconnect.

Good afternoon. Thank you for attending the GoPro Fourth Quarter and Fiscal Year 2025 Earnings Call. My name is Cameron, and I'll be your moderator for today. [Operator Instructions]. I would now like to pass the conference over to your host, Robin Stoecker, 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's 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 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 31, 2024, 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 and remarks made today other than revenue are non-GAAP. Now I'll turn the call over to GoPro's Founder and CEO, Nicholas Woodman.

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 EVP, 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, MAX2, 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 the new ecosystem of sixteen 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 Quik mobile app. Additionally, we launched a GoPro Reframe plug-in for da Vinci 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, AGV. 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 U.S. subscribers who opted in to monetize their GoPro cloud-based 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 26, 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 HyperSmooth technology, validates what we've always known. GoPro is built on original innovation. Our patent portfolio now exceeds 1,500 U.S. 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 2 million to 2.5 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 cameras 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 2x 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 NPU 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 run times 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 markets and gain meaningful share in new, professional product categories, including the quickly growing low-light camera segment, 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. Operationally 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 for what's to come. Now I'll turn the call over to Brian.

Thanks, Nick. Fiscal 2025 improved substantially over 2024 in a number of key areas, including operating expense reductions of $93 million, flat gross margins of 34%, despite a $20 million impact due to IEEPA tariffs, inventory reduction of 35% all culminating in an improvement in cash flow from operations of $104 million. In the fourth quarter of 2025, revenue was $202 million versus our guidance of $220 million, plus or minus $5 million, and we generated positive adjusted EBITDA of $1 million. Cash flow from operations was positive, again, for the third quarter in a row at $16 million, a $41 million improvement year-over-year. Sell-through was at the midpoint of guidance at 625,000 camera units, which resulted in a 30,000 unit decrease in channel inventory. Looking back on the year, notable financial performance highlights include revenue from our retail channel was $482 million or 74% of revenue compared to 75% of 2024 revenue. Revenue from GoPro.com channel, which includes subscription and service revenue was $170 million or 26% of revenue compared to 25% of 2024 revenue. Subscription and service revenue was flat year-over-year at $106 million or 16% of revenue. 2025 street ASP was $357, an 8% improvement year-over-year. Gross margin was 33.8% compared to 34.1% in the prior year despite negative impacts related to IEEPA tariffs of approximately $20 million incurred in 2025. Operating expenses reduced $93 million from $354 million to $261 million, a 26% decrease year-over-year. GAAP and non-GAAP loss per share was $0.59 and $0.30, respectively, compared to prior year loss per share of $2.82 and $2.42, respectively. 2024 GAAP and non-GAAP loss per share were impacted by $1.93 per share due to the establishment of a $295 million tax valuation allowance that was recorded in 2024. Adjusted EBITDA was $29 million -- negative $29 million, compared to negative $72 million in the prior year. Cash flow used in operations was $21 million compared to cash used in operations of $125 million in 2024, a $104 million improvement. Turning to 2026. Our outlook is prefaced by highlighted uncertainty that exists due to volatility in tariff rates, memory pricing, memory availability, consumer confidence, competition, component supply chain and global economic uncertainty. To provide color on our expectations and priorities for the year, we expect revenue to grow in 2026 to a range of $750 million to $800 million or nearly 20%, growth at the midpoint based on our existing lineup of products, the introduction of several new products starting in Q2 and additional AI content licensing this year. We expect subscription and service revenue to grow approximately 10% due to improvements in ARPU growth of 10% and improvements in attach rates and retention rates, which is slightly offset by subscribers projected to be down 7% year-over-year to $2.2 million. We expect operating expenses to be in the range of $220 million to $230 million, down from $261 million in 2025 or a 14% reduction. The anticipated decrease is primarily due to a reduction in litigation expenses, our prior restructuring actions, which resulted in reduced employee-related costs in 2025 and a continued strong focus on expense management. The cumulative effect of our planned actions is expected to result in a reduced operating expense range in 2027 of between $200 million and $210 million. We expect memory price increases, both DRAM and NAND, to impact margin by approximately 500 basis points year-over-year. We expect to have enough memory to meet our unit and revenue goals for 2026. Today, we announced a $50 million financing, of which we closed $25 million. In addition, we amended loan covenants for ABL and debt agreements, the details of which can be found in the 8-K we filed concurrent with today's earnings. We expect our liquidity position to be adequate and we expect to end 2026 with approximately $50 million, plus or minus $5 million in cash, along with an additional $35 million available under our ABL facility and $25 million available under our recent financing agreement. We expect adjusted EBITDA to be in the range of $10 million to $20 million in 2026, an improvement from losses of $29 million in 2025 and $72 million in 2024. Relative to our prior outlook of trailing 12-month adjusted EBITDA of $40 million for 2026, it's worth noting that memory pricing impacted the trailing $40 million EBITDA by $40 million for a total impact of nearly $60 million in 2026. In closing, we believe our strategy is working. We are in the midst of an exciting innovation cycle with the launch of leading products, continued AI content licensing and other services expected over the next several years that we believe will bolster our market position while expanding our TAM. We expect to continue operating expense reduction initiatives in 2026 that we initiated in 2024 to mitigate memory cost increases. We believe we will restore revenue growth and deliver adjusted EBITDA in the range of $10 million to $20 million in 2026. Operator, we're now ready to take questions.

[Operator Instructions]. The first question comes from the line of Erik Woodring with Morgan Stanley. Well, there are currently no questions registered at this time. [Operator Instructions]. Once again, there are currently no questions registered so as a brief reminder. [Operator Instructions]. There are no questions waiting at this time. I would now like to pass the conference back to the management team for any closing remarks.

Thank you, operator, and thanks, everybody, for joining today's call. As we shared, we are excited for the year ahead and particularly for this Q2 and the launch of our new GP3-based cameras that we believe will mark a new era of technical and performance leadership for GoPro, which we believe will ultimately result in revenue and profit growth for the company. Be sure to stay tuned to our social channels for product teases and more as we approach the launch of our new products. Thanks again, everyone. This is Team GoPro signing off.

That concludes today's call, and thank you for your participation, and enjoy the rest of your day.