GoPro Q1 Revenue Drops 26% to $99M, Gross Margin Falls to 4.3%, Board Launches Strategic Review
GoPro posted Q1 revenue of $99M, down 26% year-over-year, with GAAP gross margin collapsing to 4.3% and a net loss of $81M, though cash use improved by $21M to $37M. The Board authorized a strategic review and hired a financial advisor to assess sale, merger or defense and aerospace opportunities.
1. Q1 Financial Performance
For the quarter ended March 31, 2026, GoPro reported revenue of $99.1 million, down 26.2% from $134.3 million a year earlier. Camera sell-through declined 29% to approximately 313,000 units, while subscription and service revenue held flat at $27 million and subscriber count fell 8% to 2.26 million. GAAP gross margin slumped to 4.3% from 32.1%, reflecting a $24.5 million charge for component purchase commitments and $4.5 million of slow-moving inventory write-downs. GAAP net loss widened to $80.8 million (-$0.50 per share) versus $46.7 million (-$0.30) year-ago, and adjusted EBITDA was negative $49.8 million compared to negative $15.7 million.
2. Board Initiates Strategic Review
GoPro’s Board has authorized management to engage a financial advisor and evaluate strategic alternatives aimed at maximizing shareholder value. Options under consideration include a sale or merger, as well as expansion into defense and aerospace markets, following several unsolicited inquiries received since engaging defense-sector consultant Oliver Wyman in April.