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The call highlighted meaningful strategic initiatives — defense & aerospace exploration, a Board-authorized strategic review/M&A process, high-profile product validation (NASA), new partnerships (ASUS, DICK'S/GameChanger), and a major product launch (MISSION 1 Series) with strong early reception. Operational execution progress was also noted (higher direct-channel mix, subscription attach improvement, reduced inventory, and lower operating expenses). However, the quarter was dominated by material financial deterioration: revenue fell ~26% YoY to $99M, gross margin collapsed to 4.5% (driven by discrete cost actions), net loss widened to $58M, adjusted EBITDA was deeply negative, and guidance was withdrawn amid macro headwinds (memory costs, supply chain, tariffs). The strategic review creates potential upside but near-term financial performance and uncertainty are significant negatives.
GoPro said it is withdrawing its forward-looking and full‑year guidance as it pursues a strategic process, citing macro pressures and discrete actions that materially impacted Q1; revenue was $99M (vs. $134M a year ago), gross margin was 4.5% (approximately 31% excluding the discrete actions), operating expenses were $59M (down 6% from $62M), net loss was $58M (vs. $19M), GAAP and non‑GAAP loss per share were $0.50 and $0.35 (vs. $0.30 and $0.12), and non‑GAAP EPS would have been $0.20 excluding the discrete items; adjusted EBITDA was negative $50M (vs. negative $16M; would have been negative $25M excl. discrete items); cash used in operations improved $21M to $37M; inventory finished at $72M (down 25% year‑over‑year and 8% sequentially) with channel inventory down 20% YoY and 6% sequentially; channel revenue split was $61M retail (61% of revenue) and $38M GoPro.com (39% of revenue), subscription and services revenue was $27M (27% of revenue, flat YoY), subscription attach rate was 51% (vs. 49%), and Street ASP rose to $371 (+6% YoY).
Board authorized a strategic process after inbound inquiries following the defense & aerospace initiative; company engaged Oliver Wyman for defense exploration and will engage a financial adviser to evaluate strategic alternatives to unlock shareholder value.
GoPro cameras were used externally and internally on NASA's Artemis II Orion spacecraft, underscoring product durability and credibility in demanding, mission-critical environments.
Debuted MISSION 1 Series (50MP 1-inch sensor, new GP3 processor) targeting prosumer and professional cinema markets; 3 models priced $599–$699; products received 3 industry awards and strong press coverage; availability from May 28 at GoPro.com and select retailers.
New partnerships include ASUS ProArt GoPro Edition laptop (early traction exceeded expectations) and DICK'S Sporting Goods/GameChanger integration (GameChanger has >9M active users) to broaden reach and streaming use cases.
GoPro.com channel revenue rose to $38M (39% of revenue) vs 30% in Q1 2025; subscription & services revenue flat at $27M (27% of revenue); subscription attach rate increased to 51% from 49% YoY.
Operating expenses decreased 6% YoY to $59M (from $62M); cash used in operations improved by $21M YoY to $37M used; street ASP improved 6% YoY to $371.
Total inventory $72M, down 25% YoY and 8% sequentially; channel inventory down 20% YoY and 6% sequentially, indicating progress in inventory management.
Hello, everyone. Thank you for joining us, and welcome to the GoPro First Quarter 2026 Earnings Conference Call. [Operator Instructions] I will now hand the conference over to Robin Stoecker, Director of Corporate Communications. Please go ahead.
Thank you, Rebecca. Good afternoon, and welcome to GoPro's First Quarter 2026 Earnings Conference Call. With me today are GoPro's CEO, Nicholas Woodman; CFO, Brian Tratt; and President and COO, Brian McGee. Today's agenda will include brief commentary from Nick and Brian, followed by Q&A. For detailed information about our first quarter performance, please read our Q1 2026 earnings press release and management commentary we posted to the Investor Relations section of GoPro's website. Before I pass the call to Nick, I'd like to remind everyone that our remarks today may include forward-looking statements. Forward-looking statements and all other statements that are not historical facts are not guarantees of future performance and are subject to a number of risks and uncertainties, which may cause actual results to differ materially. Additionally, any forward-looking statements made today are based on assumptions as of today.
This means that results could change at any time, and we do not undertake any obligation to update these statements as a result of new information or future events. To better understand the risks and uncertainties that could cause actual results to differ from our commentary, we refer you to our most recent annual report on Form 10-K for the year ended December 31, 2025, which is on file with the Securities and ...
