GoPro GPRO Q1 2026 Earnings Call Transcript | The Motley Fool

"Revenue was $99 million, down from $134 million, reflecting a decline attributed to macro consumer electronics headwinds. Gross margin was 4.5% compared to 32.3%; excluding discrete actions, gross margin would have been approximately 31%. Net loss was $58 million, increasing from a net loss of $19 million. GAAP and non-GAAP loss per share were $0.50 and $0.35, compared to $0.30 and $0.12 in the prior year; excluding discrete actions, non-GAAP loss per share would have been $0.20."

"Adjusted EBITDA was negative $50 million, worsening from negative $16 million; it would have been negative $25 million excluding discrete actions. Inventory was $72 million, a 25% year-over-year decline and down 8% sequentially. Channel inventory was down 20% year over year and 6% sequentially. Subscription and services revenue was $27 million, flat year over year and accounting for 27% of revenue. Subscription attach rate was 51%, rising from 49%. Average selling price was $371, an increase of 6%."

"Operating expenses were $59 million, a 6% reduction. The board authorized evaluation of strategic alternatives, including potential sale of the company, and will engage a financial adviser. CEO Woodman said, "I am fully supportive of evaluating strategic opportunities for the company to unlock value for shareholders." GoPro formally exploring markets with Oliver Wyman; received multiple inbound M&A inquiries since announcement. Management is withdrawing all forward-looking guidance, citing macro challenges and the strategic review process."

Revenue declined to $99 million from $134 million due to macro consumer electronics headwinds. Gross margin fell to 4.5% from 32.3%, while excluding discrete actions gross margin would have been about 31%. Net loss increased to $58 million from a $19 million net loss. GAAP loss per share was $0.50 and non-GAAP loss per share was $0.35, with prior-year figures of $0.30 and $0.12. Adjusted EBITDA was negative $50 million, worsening from negative $16 million. Inventory totaled $72 million, down 25% year over year and 8% sequentially. Subscription and services revenue was $27 million, flat year over year, with a 51% subscription attach rate. The board authorized evaluation of strategic alternatives, including a potential sale, and management withdrew all forward-looking guidance.

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