GoPro Reports $134.3 Million Revenue in Q1 2025, Net Loss Improves to $46.7 Million

GoPro, Inc. reported a revenue of $134.3 million for the first quarter of 2025, marking a 13.6% decline from $155.5 million in the same period of 2024. The decrease was attributed to lower accessory sales and increased price promotions, although subscription and service revenue rose by 3.9% to $26.9 million. The company shipped 385,581 camera units, a slight decrease of 2% year-over-year, reflecting challenges in the global consumer market and heightened competition. The average selling price of cameras fell by 11.8% to $349, while retail revenue constituted 69.9% of total revenue, up from 68.4% in the previous year.

In terms of profitability, GoPro recorded a net loss of $46.7 million, a significant improvement compared to a net loss of $339.1 million in the first quarter of 2024. This quarter's loss included an $18.6 million goodwill impairment charge, while the previous year's loss was heavily influenced by a $294.9 million valuation allowance on deferred tax assets. Operating expenses decreased to $88.4 million from $94.5 million, driven by reductions in research and development and sales and marketing costs, which fell by 34% and 34%, respectively.

Strategically, GoPro has focused on enhancing its product offerings and customer experience. The company launched the HERO13 Black camera in September 2024, featuring advanced image stabilization and improved battery life. Additionally, the reintroduction of the MAX waterproof 360-camera in February 2025 aims to bolster its competitive edge. GoPro's subscription services, including the Premium and Premium+ offerings, continue to play a crucial role in revenue generation, with a subscription attach rate of 49% for the quarter.

Operationally, GoPro's cash and cash equivalents stood at $69.6 million as of March 31, 2025, down from $102.8 million at the end of 2024. The company experienced cash outflows of $57.2 million during the quarter, primarily due to the net loss and changes in working capital. GoPro has drawn $25 million from its 2021 Credit Agreement to bolster liquidity, with an additional $19.8 million available for future needs. The company is actively managing its operating expenses and inventory levels to align with current market conditions.

Looking ahead, GoPro anticipates continued challenges from macroeconomic factors, including inflation and competition, which may impact consumer demand. The company is committed to maintaining liquidity and operational efficiency while focusing on product innovation and subscriber growth to drive future profitability. GoPro's management remains cautious but optimistic about navigating the evolving market landscape and achieving its strategic objectives.