GoPro Reports 26.2% Revenue Decline and Widened Losses in Q1 2026

GoPro, Inc. reported a significant decline in financial performance for the first quarter of 2026, with total revenue of $99.1 million, down 26.2% from $134.3 million in the same period last year. The decrease was primarily driven by a 32.8% drop in hardware revenue, which totaled $72.2 million, attributed to a 30.6% reduction in camera units shipped. The company faced challenges from rising memory costs, a competitive market, and macroeconomic pressures affecting consumer spending. Subscription and services revenue remained relatively stable at $26.9 million, reflecting a slight increase in average revenue per user despite an 8.4% decline in subscribers.

The company's operating loss widened to $57.2 million compared to a loss of $45.2 million in the prior year, with a net loss of $80.8 million, up from $46.7 million. This resulted in a diluted net loss per share of $0.50, compared to $0.30 in the previous year. GoPro's gross margin also suffered, falling to 4.3% from 32.1% a year earlier, primarily due to a $24.5 million charge related to component purchase commitments and increased costs associated with hardware production.

In terms of operational metrics, GoPro shipped 267,574 camera units during the quarter, a 31% decrease from the previous year. The company’s retail revenue accounted for 61.5% of total revenue, while GoPro.com revenue represented 38.5%, indicating a shift in sales channels. The overall subscription attach rate improved to 51%, up from 49% in the prior year, and the aggregate retention rate for annual subscribers increased to 71%.

Strategically, GoPro is navigating a challenging landscape by implementing a restructuring plan aimed at reducing its global workforce by approximately 23% to enhance operational efficiency. The company is also exploring strategic alternatives, including potential mergers or sales, and has engaged advisors to assist in these efforts. As of March 31, 2026, GoPro had cash and cash equivalents of $40.7 million, down from $49.7 million at the end of 2025, and an accumulated deficit of $855.9 million. The company is currently not in compliance with certain financial covenants under its credit agreements but received a waiver from its lender in May 2026. Looking ahead, GoPro anticipates continued operating losses and cash outflows, raising concerns about its ability to sustain operations without additional financing or strategic transactions.