GoPro revenue falls 31% as hardware slump deepens losses

GoPro reported Q2 revenue of $104.9 million, down 31% from a year earlier and far below the $151.48 million analysts had forecast, as a 40% slide in hardware sales outweighed record subscription growth.

"In Q2, we expanded the performance and creative potential of our camera lineup with the launch of the MISSION 1 Series of cameras and continued to advance our strategic review process to maximize shareholder value," founder and CEO Nicholas Woodman said.

Hardware revenue fell 39.9% to $76.0 million, with camera sell-through down 38% to about 291,000 units. Subscription and services revenue rose 10.6% to $29.0 million, or 28% of total revenue, up from 17% a year earlier, including $2 million from GoPro's AI content-licensing program. The subscriber attach rate hit a record 69%, compared with 54% in the prior-year quarter, while subscription average revenue per user rose 9% year over year.

GAAP net loss widened to $51.0 million, or 30 cents a share, from $16.4 million, or 10 cents, a year earlier. Non-GAAP net loss was $36 million, or 21 cents a share, versus analyst expectations for a 2-cent profit. GAAP gross margin contracted 560 basis points to 30.2%, including a $19 million benefit from tariff refunds partially offset by a $15 million charge tied to component-purchase commitments. Adjusted EBITDA was negative $29 million, compared with negative $6 million in the prior-year quarter.

Retail-channel revenue dropped 48% to $58 million, or 56% of total revenue, while GoPro.com revenue rose 13% to $47 million. Cash and cash equivalents fell to $27.3 million from $49.7 million at the end of 2025, and stockholders' equity swung to a $32.7 million deficit from a positive $76.6 million.

Shares closed at 70 cents, down 3.5%, and slipped further to 68.5 cents after hours, near the low end of their 52-week range of 59 cents to $3.05. The board-authorized review of a potential sale and other strategic alternatives is in its later stages, with inquiries spanning the defense, consumer, and financial sectors, Woodman said. The company withdrew forward guidance because of the process.

GoPro began shipping its MISSION 1 PRO and MISSION 1 compact cinema cameras in May through its website and retail partners including Best Buy, Walmart, B&H, and Adorama, with pricing starting at $499 for existing subscribers. The interchangeable-lens MISSION 1 PRO ILS, which supports more than 300 Micro Four Thirds lenses, is scheduled for September, alongside the Mission Monitor app for iPhone and iPad. The tech-enabled motorcycle helmet developed with AGV recently achieved ECE 22.06 safety-standard compliance.

The results leave GoPro dependent on converting product buzz into sell-through while cash preservation and the strategic review determine its path. Investors will watch the September MISSION 1 PRO ILS launch and any update on a potential transaction for signs of a turnaround.

This article is for informational purposes only and does not constitute investment advice.