GoPro Posts Q4 Loss, Revenues Miss Estimates, Stock Down

GoPro, Inc. GPRO reported fourth-quarter 2025 non-GAAP loss per share of 2 cents, missing the Zacks Consensus Estimate of earnings of 4 cents.  The company forecasted non-GAAP earnings per share of 3 cents (+/- 2 cents) for the fourth quarter. The firm reported a loss per share of 9 cents in the year-ago quarter.

GPRO generated revenues of $201.7 million, up 0.4% year over year. The figure missed the company’s expectation of $220 million (+/- $5 million). The top line missed the consensus mark by 10.4%.

In 2025, the company sustained subscription and service revenue at $106 million by improving attach rates and retention while driving higher ARPU. GAAP gross margin remained flat even after absorbing $20 million in tariff-related expenses. During the year, the company also reduced operating expenses by $93 million, or 26% year over year, and improved cash flow from operations by $104 million.

In the second quarter of 2026, the company intends to introduce GP3, its next-generation AI-enabled image processor that will power several new GoPro cameras launching in 2026. GP3 enables a more premium camera lineup with category-leading image quality and processing capabilities, positioning GoPro to compete in higher tiers of the digital imaging market while strengthening its leadership in existing categories. With the first GP3-powered cameras set to debut in the second quarter of 2026, the company believes GoPro is entering a new phase of performance and innovation that will expand its total addressable market and support stronger financial results.

Following the announcement, GPRO's shares were down around 10.4% in the after-market session yesterday. In the past year, shares have surged 43% against the Audio-Video Production industry’s decline of 11.7%.

GPRO’s Q4 Results in Details

GPRO sold 625,000 camera units in the fourth quarter, down 19% year over year.

Based on channels, revenues from the GoPro.com channel, which includes subscription and service revenue, were $48 million (24% total revenues), down 6% year over year. GoPro’s subscriber base was 2.36 million at the end of the fourth quarter, representing a 7% year-over-year decline.  Subscription and service revenue amounted to $27 million.

Retail channel registered revenues of $154 million (76%), which increased 3% year over year.

Region-wise, revenues from the Americas were up 6% from the prior-year level. Revenues from Europe, the Middle East and Africa were up 15% year over year. The Asia Pacific region was down 37%. U.S. revenues reached $91 million in the fourth quarter of 2025, marking a 5% increase from the same period last year.

GPRO’s Margin Performance

Non-GAAP gross margin was 31.9% compared with 35.1% in the year-ago quarter. Non-GAAP operating loss totaled $2.5 million compared with an operating loss of $16 million in the prior-year quarter. Non-GAAP operating expenses were $72.4 million compared with $108.8 million in the prior-year quarter.

Adjusted EBITDA was $0.8 million against an adjusted EBITDA loss of $14.4 million a year ago.

The subscription attach rate for cameras sold across all channels was 43% in the fourth quarter of 2025 compared with 34% in the fourth quarter of 2024, and up 29% from the fourth quarter 2023. Street ASP was $351, up 2% year over year.

GPRO’s Cash Flow & Liquidity

In the quarter under review, GoPro generated $15.6 million of net cash from operating activities against net cash used in operating activities of $25.1 million in the year-earlier quarter.

As of Dec. 31, 2025, the company had $49.7 million of cash and cash equivalents.

GPRO’s Guidance

For the first quarter of 2026, the company expects revenue of $100 million, plus or minus $5 million, representing an 18% year-over-year decline at the midpoint of the guidance compared with $134 million in the prior-year quarter.

Unit sell-through is projected to be between 300,000 and 350,000 units, with a midpoint estimate of approximately 325,000 units, down 26% from about 440,000 units in the first quarter of 2025. Street ASP is expected to be around $420, indicating a 20% year-over-year increase from $349 in the prior-year period.

Non-GAAP gross margin for the quarter is expected to be approximately 33.0% at the midpoint of guidance, up from 32.3% in the first quarter of 2025.

Operating expenses are projected to total about $62 million at the midpoint, remaining flat year over year.

The company expects non-GAAP net loss per share for the first quarter of 2026 to be approximately 20 cents at the midpoint of guidance.

GoPro, Inc. Price and Consensus

GoPro, Inc. price-consensus-chart | GoPro, Inc. Quote

For 2026, the company’s outlook reflects the heightened uncertainty stemming from volatility in tariff rates, memory pricing and availability, consumer confidence, competition, component supply chains and broader global economic conditions. Despite these challenges, the company expects revenue to reach between $750 million and $800 million in 2026, representing nearly 20% growth at the midpoint. Subscription and service revenue is projected to grow approximately 10%, driven by around 10% growth in ARPU as well as improvements in attach rates and retention.

GoPro expects operating expenses to range between $220 million and $230 million, down from $261 million in 2025, implying a 14% reduction. The company anticipates operating expenses to decline further in 2027 to a range of $200 million to $210 million.

The company also expects increases in both DRAM and NAND memory prices to reduce margins by approximately 500 basis points year over year. However, the company believes that it will have sufficient memory supply to meet its unit and revenue targets for 2026.

The company expects adjusted EBITDA to range between $10 million and $20 million for 2026, marking a significant improvement from adjusted EBITDA losses of $29 million in 2025 and $72 million in 2024.

GPRO’s Zacks Rank

GoPro currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Recent Performance of Other Companies

Sonos, Inc. SONO reported first-quarter fiscal 2026 non-GAAP earnings per share of 93 cents, topping the Zacks Consensus Estimate of 81 cents. The company reported 68 cents in the prior-year quarter.

Quarterly revenues decreased marginally by 0.9% year over year to $545.7 million. However, the figure came near the high end of the company’s guidance of $510 million to $560 million. The Zacks Consensus Estimate for the top line was pegged at $538.7 million.

Dolby Laboratories, Inc. DLB reported first-quarter fiscal 2026 non-GAAP earnings per share (EPS) of $1.06, surpassing the Zacks Consensus Estimate of 90 cents. It reported $1.14 in the prior-year quarter.

Total revenues were $346.7 million, down from $357 million in the year-ago quarter but surpassed the Zacks Consensus Estimate by 4.2%. The decrease was due to lower revenues in the Licensing segment. However, the revenues came in above the high end of the previous guidance of $315 million to $345 million, primarily due to deal closures occurring earlier than expected and a favorable $7 million true-up related to fourth-quarter shipments.

Sony Group Corporation SONY reported third-quarter fiscal 2025 net income per share (on a GAAP basis) of ¥62.82, up from ¥56.42 in the year-ago quarter. Adjusted net income came in at ¥377.3 billion compared with ¥341.1 billion in the prior-year quarter.

Quarterly total revenues inched up 1% year over year to ¥3,713.7 billion. Weak sales in the Game & Network Services (G&NS), Pictures and Entertainment, and Technology & Services (ET&S) segments slowed growth, offset by expanding customer traction in the Imaging & Sensing Solutions (I&SS) and Music segments.

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