GoPro, Inc.

What they do

GoPro designs and sells action cameras, mounts, accessories, and a subscription service. Its product lineup includes the HERO and MAX series, along with new MISSION 1 cameras, and it generates revenue through retail channels and direct-to-consumer sales on GoPro.com. The company also earns subscription and service revenue from its Quik app and cloud-based offerings.

Revenue drivers

• Hardware revenue — Sales of cameras and accessories; in Q2 2026, hardware revenue was $75.95 million, down 39.9% year-over-year, representing roughly 72% of total revenue.
• Subscription and service revenue — Includes subscription fees and AI content licensing; Q2 2026 revenue was $28.98 million, up 10.6% year-over-year, with a record 69% attach rate and a $2 million contribution from AI licensing.
• Retail channel — Sales through retailers like Best Buy and Walmart; Q2 2026 retail revenue was $58 million, down 48% year-over-year, accounting for 56% of total revenue.
• GoPro.com direct sales — Direct-to-consumer and subscription revenue through GoPro.com; Q2 2026 revenue was $47 million, up 13% year-over-year, representing 44% of total revenue.

Recent performance

For Q2 2026, total revenue was $104.9 million, down 31.3% year-over-year. GAAP net loss widened to $51.0 million from $16.4 million, with GAAP diluted loss per share of $(0.30). Gross margin fell to 30.2% GAAP, including a $19 million tariff refund benefit partially offset by a $15 million component commitment charge. Camera sell-through was approximately 291,000 units, down 38% year-over-year. On a trailing basis, annual revenue declined from $801.5 million in 2024 to $651.5 million in 2025, and the company reported a net loss of $93.5 million in 2025.

Strategy

GoPro is investing in its next-generation GP3 system-on-chip, which powers the new MISSION 1 camera series. The company is expanding its subscription base, with a focus on attach rate and ARPU growth, and launched an AI content licensing program in 2025. It is also diversifying into adjacent categories like a tech-enabled motorcycle helmet developed with AGV. In May 2026, the board authorized a process to evaluate a potential sale and other strategic alternatives.

Risks

• Revenue decline and unprofitability — Annual revenue fell for four consecutive years, and the company has incurred operating losses in 2023, 2024, and 2025.
• Competition and market share loss — The 10-K cites increased competition leading to market share loss, and Q2 2026 sell-through dropped 38% year-over-year.
• Tariff and supply chain volatility — The 10-K notes tariff volatility and macroeconomic conditions adversely affected 2025 results, and Q2 2026 included both a tariff refund and a component commitment charge.
• Liquidity and solvency risk — As of June 30, 2026, shareholder equity was negative $32.7 million, with total liabilities exceeding total assets and only $27.3 million in cash.

Outlook

Management is focused on the strategic review process to maximize shareholder value, with a potential sale under evaluation. They expect new product launches, including the MISSION 1 Series and future cameras, to drive growth. The company also highlights the AI content licensing program as a new revenue stream and continues to develop the helmet initiative with AGV.