GoPro (GPRO) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue was $99–99.1 million, down 26% year-over-year, with hardware sales declining 32.8–33% and subscription/services revenue flat at $26.9–27 million.

• Gross margin dropped sharply to 4.3–4.5% from over 32% due to a $24.5 million charge for underutilized component purchase commitments and higher supply chain costs.

• Net loss widened to $80.8–81 million, with adjusted EBITDA at -$49.8 to -$50 million; cash used in operations improved by $21 million to $36.2–37 million.

• The Board authorized a strategic review, engaging financial advisors to explore alternatives including a potential sale or merger, following new sector opportunities and product launches.

• Launched the MISSION 1 Series targeting high-end/professional markets, and announced new partnerships with ASUS and DICK's Sporting Goods/GameChanger.

Financial highlights

• Hardware revenue fell 32.8%, driven by a 30.6% drop in camera units shipped (267k vs. 385k), partially offset by a 6% increase in ASP to $371.

• Subscription and services revenue was flat at $26.9–27 million, with an 8.4% decline in subscribers to 2.26 million.

• Operating expenses decreased 6–30% year-over-year, reflecting cost controls and restructuring.

• Inventory ended at $72–72.2 million, a 25% year-over-year and 8% sequential decrease.

• Cash and cash equivalents at quarter-end were $40.7 million, down from $49.7 million at year-end.

Outlook and guidance

• Withdrew full-year guidance due to macro challenges and the ongoing strategic review process.

• Management expects continued operating losses, negative cash flows, and is focused on inventory reduction, cost controls, and exploring new market opportunities.

• A restructuring plan to reduce global workforce by 23% is underway, with expected severance charges of $11.5–$15 million.