GoPro 2025 Q1 Earnings Mixed Results with Net Loss Improvement

GoPro (GPRO) reported its fiscal 2025 Q1 earnings on May 12th, 2025. The company's revenue of $134.31 million fell short of the previous year, down 13.6% from 2024 Q1. However, GoPro's earnings per share showed significant improvement, narrowing from a loss of $2.24 to $0.30 per share. Despite a challenging revenue environment, the company maintained its guidance for Q2 2025, anticipating $145 million in revenue at the mid-point. The forward-looking guidance was in-line with expectations, signaling cautious optimism amid market uncertainty.

Revenue

GoPro's total revenue decreased by 13.6% to $134.31 million in Q1 2025, compared to $155.47 million in Q1 2024.

Earnings/Net Income

GoPro narrowed its losses, reporting a loss of $0.30 per share in Q1 2025, compared to a loss of $2.24 per share in Q1 2024. This represents an 86.6% improvement, indicating efforts to improve financial performance are gaining traction.

Price Action

The stock price of GoPro has dropped 5.25% during the latest trading day, climbed 4.98% during the most recent full trading week, and surged 25.75% month-to-date.

Post-Earnings Price Action Review

The strategy of purchasing GPRO stock when revenues miss expectations and holding for 30 days is currently showing a bearish outlook. This aligns with the recent decline in GoPro's stock price, reflecting negative market sentiment due to the earnings miss. The strategy captures the market's disappointment in GoPro's financial performance, which is evident in the subsequent price drop. Although the stock experienced a notable monthly surge, the recent daily decline suggests ongoing investor caution. Overall, the price movement highlights the market's mixed reaction to GoPro's financial results and suggests that investors remain skeptical about the company's near-term recovery prospects.

CEO Commentary

In the first quarter, we hit our marks for revenue, launched new products, and are on track for more innovation later this year. Our focus for 2025 and 2026 is on strategic investments in product innovation to return GoPro to growth, protecting our IP, and diversifying our supply chain. We successfully launched several new hardware and software products, including the updated 360-degree camera app and a refreshed MAX camera. The GoPro subscription service continues to thrive with retention rates above 67%. Overall, our performance in Q1 demonstrates our progress in operating as a leaner organization, and we believe consumers will be excited about our upcoming innovations.

Guidance

For Q2 2025, we expect revenue of $145 million at the mid-point of guidance, with a non-GAAP loss per share of $0.07. We anticipate a nearly $30 million year-over-year improvement in adjusted EBITDA. For full-year 2025, we expect units and revenue to be lower than 2024 due to macroeconomic uncertainty and competition, while operating expenses are projected to decline to a range of $240 million to $250 million. We aim to end 2025 with $75 million in cash, no debt, and a $50 million available ABL facility.

Additional News

In recent developments, GoPro has focused on enhancing its product lineup and expanding its market presence. The company launched a Limited Edition Polar White colorway for its HERO13 Black camera, further diversifying its product offerings. Additionally, GoPro introduced the Anamorphic Lens Mod for HERO13 Black, catering to creators and filmmakers seeking a compact, affordable camera system for cinematic video capture. These strategic moves reflect GoPro's commitment to innovation and expanding its market reach, aiming to strengthen its competitive position in the consumer electronics industry.