GoPro Q1 Earnings Call Highlights

Key Points

• GoPro has launched a strategic review after receiving inbound M&A interest, with its board authorizing management to hire a financial advisor and evaluate alternatives to maximize shareholder value. CEO Nicholas Woodman said the process has his full support and interest has come from multiple sectors, not just defense or financial buyers.
• First-quarter results were weaker, with revenue falling to $99 million from $134 million a year ago and net loss widening to $58 million. GoPro also withdrew full-year guidance, citing consumer electronics headwinds such as higher memory costs, supply chain issues, and tariff uncertainty.
• GoPro is trying to diversify beyond core action cameras through defense/aerospace opportunities, new partnerships, and the launch of its MISSION 1 professional cinema camera lineup. The company highlighted NASA/Artemis II usage, partnerships with ASUS and DICK’s/GameChanger, and said MISSION 1 will hit stores on May 28.

GoPro NASDAQ: GPRO said it has begun a strategic review after receiving inbound merger-and-acquisition interest tied to its exploration of defense and aerospace opportunities, while reporting lower first-quarter revenue and a wider loss.

Founder and CEO Nicholas Woodman said on the company’s first-quarter 2026 earnings call that GoPro’s board authorized management to engage in a strategic process and hire a financial advisor to evaluate alternatives “in order to maximize shareholder value.” The move follows GoPro’s April announcement that it had engaged Oliver Wyman to assess market segments, product synergies and go-to-market strategies in defense and aerospace.

“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,” Woodman said.

Strategic review follows defense and aerospace push

Woodman said GoPro cameras have long been used in defense, government and aerospace settings where durability, stabilization and image quality are important. He cited NASA’s use of GoPro cameras on the Artemis II mission, saying modified cameras were mounted externally on the Orion spacecraft’s solar array wings, while off-the-shelf GoPro cameras were used inside the spacecraft for a National Geographic documentary.

During the question-and-answer portion of the call, Morgan Stanley analyst Dylan Liu asked whether Woodman personally supported a full sale of the company, noting his voting power through Class B shares. Woodman responded that he is “fully supportive of evaluating strategic opportunities for the company to unlock value for shareholders,” adding that the effort has his “full and complete support.”

Asked about the nature of the inbound inquiries, Woodman said interest had come from “various sectors” and “various types of interested parties,” and was not limited to defense or financial buyers. He said the range of interest led the company to run a process to evaluate potential value for shareholders.

Revenue declines; company withdraws guidance

GoPro reported first-quarter revenue of $99 million, down from $134 million in the prior-year period and within its guidance range. The company cited macro challenges in consumer electronics, including rising memory costs, supply chain constraints and fluctuating tariffs, and said discrete actions during the quarter affected gross margin and earnings per share.

First-quarter gross margin was 4.5%, compared with 32.3% in the first quarter of 2025. The company said that excluding the discrete actions, gross margin would have been approximately 31%.

GoPro posted a net loss of $58 million, compared with a net loss of $19 million a year earlier. GAAP loss per share was $0.50, while non-GAAP loss per share was $0.35, compared with GAAP and non-GAAP losses per share of $0.30 and $0.12, respectively, in the prior-year quarter. Excluding the discrete actions, non-GAAP loss per share would have been $0.20.

Adjusted EBITDA was negative $50 million, compared with negative $16 million a year earlier. Excluding the discrete actions, adjusted EBITDA would have been negative $25 million.

The company said it will no longer provide forward-looking guidance and is withdrawing its full-year guidance, citing the macro challenges in consumer electronics and the strategic process to evaluate opportunities for a sale of the company.

Channel mix shifts toward GoPro.com

GoPro said revenue from its retail channel was $61 million, or 61% of total revenue, compared with 70% of revenue in the first quarter of 2025. Revenue from gopro.com, including subscription and service revenue, was $38 million, or 39% of revenue, compared with 30% a year earlier.

Subscription and services revenue was flat year over year at $27 million, representing 27% of revenue. The subscription attach rate from cameras sold across all channels was 51%, compared with 49% in the prior-year period.

The company said street average selling price was $371, up 6% year over year. Operating expenses declined 6% to $59 million, compared with $62 million in the prior-year quarter.

GoPro ended the quarter with inventory of $72 million, down 25% from a year earlier and 8% from the fourth quarter of 2025. Channel inventory declined 20% year over year and 6% sequentially. Cash used in operations improved by $21 million year over year to $37 million.

Partnerships and MISSION 1 launch

Woodman highlighted several partnerships and product launches aimed at broadening GoPro’s reach. In January, the company announced a partnership with ASUS and launched a co-branded ASUS ProArt GoPro Edition laptop designed for GoPro content creator workflows. Woodman said ASUS reported early traction had “far exceeded their expectations” for the ProArt line.

In March, GoPro announced a partnership with DICK’s Sporting Goods and integration with the GameChanger app, which Woodman described as the top-rated youth sports app for scorekeeping and live streaming, with more than 9 million active users. The company said the partnership allows owners of GoPro HERO13 Black through HERO7 Black and MAX cameras to pair their devices with the GameChanger app for live streaming youth sports.

Woodman also discussed the debut of GoPro’s MISSION 1 Series of professional 8K and 4K open-gate compact cinema cameras at the National Association of Broadcasters trade show. The lineup includes the MISSION 1 PRO, MISSION 1 PRO ILS and MISSION 1. The cameras feature a 50-megapixel 1-inch sensor and GoPro’s GP3 processor.

Woodman said the MISSION 1 Series is aimed at professional filmmakers, television series producers, commercial producers, influencers and high-end content creators, while also appealing to users seeking a more capable alternative to action cameras. He said pricing starts at $599 for MISSION 1 and $699 for both MISSION 1 PRO and MISSION 1 PRO ILS.

The company said the MISSION 1 Series will be available May 28 at gopro.com and select retail partners globally, including Best Buy, Walmart, B&H and Adorama.

“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,” Woodman said in closing remarks.

About GoPro NASDAQ: GPRO

GoPro, Inc NASDAQ: GPRO is an American technology company specializing in the design and manufacture of compact, high-definition cameras and related accessories. Headquartered in San Mateo, California, GoPro's product lineup is centered on its flagship HERO series of action cameras, which combine rugged construction, waterproof housings and advanced imaging capabilities. In addition to the HERO line, the company offers the MAX camera for 360-degree video capture, along with an array of mounts, grips and protective cases to support use in extreme sports, travel and professional video production.

Since its founding in 2002 by Nicholas Woodman, who continues to serve as chief executive officer, GoPro has expanded beyond hardware into software and cloud-based services.

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