GoPro's Q1 Loss Narrower Than Expected, Revenues Down, Stock Slips

GoPro, Inc. GPRO reported first-quarter 2025 non-GAAP loss per share of 12 cents, narrower than the Zacks Consensus Estimate of a loss of 13 cents.  This came within the company’s forecast of non-GAAP adjusted loss of 13 cents per share (+/- 3 cents). The firm reported a loss of $2.11 per share in the year-ago quarter.

GPRO generated revenues of $134.3 million, down 13.6% year over year due to lower accessory sales and a rise in price promotions. However, this was partially offset by growth in subscription and service revenues. The figure was within the company’s expectation of $125 million (+/- $10 million). The top line beat the consensus mark by 7.5%. 

GoPro’s first-quarter results highlight its strategic focus on operational efficiency and long-term growth. Operating expenses fell year over year, while subscription ARPU increased, reflecting improvements in revenue quality. The company continued to diversify its supply chain to better adapt to changing market conditions.

Management stated that the organization is performing more efficiently, and expressed confidence that the product launches in the latter half of 2025 and in 2026 will support a return to growth in both revenues and profitability.

Following the announcement, GPRO's shares were down 1% in the pre-market session today. In the past year, shares have lost 65.2% against the Audio-Video Production industry’s growth of 45.7%. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

GPRO’s Q1 Results in Details

GPRO sold 440,000 camera units in the first quarter, down 18% year over year.

Based on channels, revenues from GoPro.com of $40 million (30% of total revenues) plunged 18% year over year. Our estimate was pegged at $37.8 million.

Subscription revenues amounted to $27 million, up 4% year over year. This uptick was driven by improving retention rates, which led to a 5% increase in average revenue per user (ARPU).  Aggregate retention rates reached 70% in the first quarter, up from 69% reported both in the previous-year quarter and a quarter ago.

GPRO recorded 2.47 million subscribers, down 1% year over year at the end of the quarter under discussion.

Retail channel registered revenues of $94 million (70%), which fell 12% year over year. We estimated the metric to be $86.6 million.

Region-wise, revenues from the Americas were up 7% from the prior-year levels. Revenues from Europe, the Middle East and Africa were down 23% year over year. Asia Pacific region was down 54%. U.S. revenues reached $63 million in the first quarter of 2025, marking a 12% increase from the same period last year.

GPRO’s Margin Performance

Non-GAAP gross margin was 32.3% compared with 34.4% in the year-ago quarter. Non-GAAP operating loss totaled $18.7 million compared with an operating loss of $29.9 million in the prior-year quarter. Non-GAAP operating expenses were $62 million compared with $83.3 million in the prior-year quarter.

Adjusted EBITDA loss was $15.7 million against adjusted EBITDA of $29.3 million a year ago.

Cameras with suggested retail prices at or above $400 contributed 71% to revenues in the reported quarter compared with 70% in the prior-year quarter. Street ASP was $349 compared with $395 in the prior year quarter.

GPRO’s Cash Flow & Liquidity

In the quarter under review, GoPro used $57.2 million of net cash from operating activities compared with $98.4 million of cash used in the year-earlier quarter.
As of March 31, 2025, the company had $69.6 million of cash and cash equivalents.

GPRO’s Guidance

For the second quarter of 2025, revenues are estimated to be $145 million (+/- $10 million). Non-GAAP adjusted loss is forecasted to be 7 cents per share (+/- 4 cents).

Gross margin is anticipated to be 35.5% (+/- 50 basis points). Street ASP is expected to be nearly $370, up 15% from the prior-year period.

Operating expenses for the second quarter are forecasted to be $60 million (+/- $1 million), a 36% reduction year over year, due to lower spending on wages, reduced marketing spend and lower non-recurring engineering expenses related to the completion of GP3.

Operating expenses for 2025 are expected to be $240 million to $250 million, down $100 million from 2024. This is likely to boost profitability.

GoPro anticipates that both unit sales and revenues for 2025 will be lower than in 2024, largely due to macroeconomic uncertainty, increased competition and the delayed launch of its new 360-camera. These headwinds are expected to be partially offset by favorable foreign exchange effects stemming from a weaker U.S. dollar. Later in 2025, the company plans to launch its MAX2 360-camera.

To mitigate the impact of tariffs, the company intends to implement modest price increases, further diversify its supply chain beyond China and explore the possibility of shifting production of select products to the United States.

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.

Performance of Other Companies in Broader Space

Dolby Laboratories, Inc DLB reported second-quarter fiscal 2025 results, with non-GAAP earnings per share (EPS) of $1.34, surpassing the Zacks Consensus Estimate by 3.9%. It reported $1.27 in the prior-year quarter. Total revenues were $369.6 million, up from $364.5 million in the year-ago quarter but missed the Zacks Consensus Estimate by 2.4%.

Shares of DLB gained 6.2% in the past six months.

Sonos, Inc. SONO reported second-quarter fiscal 2025 non-GAAP loss per share of 18 cents, meeting the Zacks Consensus Estimate. It incurred a loss of 18 cents in the prior-year quarter as well. On a GAAP basis, the company reported a loss of 58 cents compared with a loss of 56 cents in the year-ago quarter. Quarterly revenues rose 3% year over year to $259.8 million. The figure came towards the high end of the company’s guidance of $240 million to $265 million. The Zacks Consensus Estimate for the top line was pegged at $255.9 million.

Shares of SONO decreased 18.2% in the past six months.

Skechers U.S.A., Inc. SKX reported first-quarter 2025 earnings of $1.34 per share, surpassing the Zacks Consensus Estimate of $1.17. Also, the bottom line increased 0.8% from the year-earlier quarter. The quarterly results benefited from a gain of 17 cents per share due to favorable foreign exchange rates. SKX generated sales of $2.41 billion, which missed the consensus estimate of $2.44 billion. However, the top line grew 7.1% year over year, driven by the rise of 6.9% and 7.2% in domestic and international sales, respectively.

Shares of SKX grew 1.5% in the past six months.

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