GoPro Posts Steep Quarterly Loss as Sales Plunge
The action-camera maker swung to a $81 million net loss in the period.
The action-camera maker GoPro (GPRO) reported a sharp deterioration in its first-quarter results, as revenue and margins collapsed under pressure from declining camera sales and inventory charges. The company posted a net loss of $81 million, or $0.50 a share, compared with a $9 million loss in the prior quarter, marking its worst quarterly performance in two years.
The quarter stood out for its abrupt reversal in profitability, driven by a $24.5 million charge for component purchase commitments and $4.5 million for slow-moving inventory sales. Those discrete items crushed gross margin to 4.3%, down from 31.8% in the prior quarter, and pushed adjusted EBITDA to negative $50 million, a $51 million sequential swing.
Revenue fell 26% year-over-year to $99 million, accelerating from flat sales in the fourth quarter. Sell-through camera units dropped 29% to approximately 313,000, deepening from a 19% decline in the prior period. Retail channel revenue, which accounted for 61% of total sales, plunged 35% to $61 million, while GoPro.com revenue, including subscriptions, declined 6% to $38 million.
Subscription metrics offered a rare bright spot, with service revenue holding flat at $27 million. However, the company’s subscriber base shrank 8% year-over-year to 2.26 million, worsening from a 7% decline in the prior quarter.
In response to the downturn, GoPro announced a $20 million financing from founder and CEO Nicholas Woodman via senior secured notes and warrants, a move not disclosed in prior quarters. The company also initiated a strategic review in May, retaining Houlihan Lokey as financial advisor, and disclosed efforts to explore defense and aerospace market opportunities with Oliver Wyman.
Cash used in operating activities improved year-over-year to $37 million but worsened sequentially from $15.6 million in the fourth quarter. Inventory declined to $72.2 million from $78.4 million in the prior quarter, continuing a downward trend.
GoPro launched its MISSION 1 Series cameras in the quarter, marking its entry into the high-end digital imaging market. Separately, the U.S. International Trade Commission issued an initial determination in July 2025 finding infringement of GoPro’s HERO camera design patent by Insta360, though the company did not disclose further legal developments.