GoPro (GPRO) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue declined 26% year-over-year to $99 million, with hardware sales down over 30% and subscription/services revenue flat at $27 million.

• Launched the MISSION 1 Series, entering the high-end digital imaging market targeting professional filmmakers and content creators.

• Announced partnerships with ASUS (ProArt GoPro Edition laptop) and DICK'S Sporting Goods/GameChanger app to expand product integration and reach.

• Board authorized a strategic review, engaging financial advisors to explore alternatives including a potential sale or merger, following unsolicited inquiries after the defense and aerospace announcement.

• Formally exploring defense and aerospace sector opportunities with Oliver Wyman for market assessment and strategy development.

Financial highlights

• Q1 2026 revenue was $99 million, down from $134 million in Q1 2025.

• Gross margin dropped to 4.3% from 32.1% year-over-year, mainly due to a $24.5 million charge for underutilized component purchase commitments and higher supply chain costs; excluding discrete actions, gross margin would have been ~31%.

• Net loss widened to $80.8 million (GAAP), compared to $47 million last year; non-GAAP net loss was $57.7 million.

• Adjusted EBITDA was negative $49.8 million, compared to negative $16 million in Q1 2025; excluding discrete actions, adjusted EBITDA would have been negative $25 million.

• Cash used in operations improved by $21 million year-over-year to $37 million.

Outlook and guidance

• Withdrew full-year guidance due to macroeconomic challenges and the ongoing strategic review process.

• Management expects continued operating losses and negative cash flows, with a focus on inventory reduction, cost controls, and exploring new market opportunities.

• A restructuring plan to reduce global workforce by 23% is underway, with expected severance charges of $11.5–$15 million.