Risk Factors Update Summary

• An economic downturn or uncertainty, inflation, market volatility, interest rate fluctuations, or currency exchange rate changes may impact consumer spending and demand, affecting operating results or financial position.
• The company may face exclusion from certain indexes due to dual-class structure, impacting market price.
• Manufacturers may face disruptions due to equipment breakdowns, labor shortages, and shipping delays.
• Failure to comply with new state privacy laws could result in fines up to 4% of worldwide revenue.
• Introduction of new flagship waterproof camera HERO12 Black with advanced features like GP2 processor, HyperSmooth 6.0 stabilization, and wireless audio support.
• Premium + subscription launched with enhanced features like HyperSmooth Pro stabilization, lens correction, and batch export in Quik desktop app.
• Adverse global economic or geopolitical conditions could materially affect revenue and operations.
• Revenue from outside the United States decreased from 61% in 2023 to 55% in 2021.
• Increased focus on ESG matters may impact investor decisions and lead to costly initiatives.
• Repurchased $50.0 million of 2025 Notes for $46.3 million, reducing aggregate principal indebtedness.
• Launch of HERO12 Black Creator Edition, an all-in-one content capturing bundle for vlogging, filmmaking, and live streaming.
• Remaining 2025 Notes holders can require repayment before maturity, affecting capital allocation flexibility.
• Dependence on key personnel and acquisitions, joint ventures, investments, or partnerships may disrupt business and affect operating results.
• Operating income was positive in 2022 and 2021 but incurred significant losses in 2020.
• International revenue is expected to continue to grow despite geopolitical turmoil and civil unrest.
• Increased focus on Corporate Social Responsibility (CSR) matters may result in additional costs or risks affecting business, financial condition, and operations.
• Accumulated deficit increased from $196 million to $249 million as of December 31, 2023.