Key Highlights

  • Revenue fell 31% YoY to $105 million in Q2 2026.
  • Net loss was $51 million, or $0.30 per share.
  • Subscription and service Revenue rose 11% to $29 million.
  • Shares closed at $1.18, down $0.01, or 1%, at Tuesday's close.

GoPro, Inc. (NASDAQ:GPRO)'s second quarter combined a steep decline in hardware revenue with growth in subscription and service revenue, as camera unit shipments fell sharply from a year earlier. Management said the company's board authorized a process in May 2026 to evaluate strategic alternatives, including a potential sale or merger, and that outside advisors have also been engaged to explore opportunities in the defense and aerospace sector.

GPRO designs and sells wearable and mountable cameras along with a subscription service that includes cloud storage, editing tools and other features. Retail channel sales represented 55.7% of total revenue in the quarter, while GoPro.com sales, which include subscription revenue, represented 44.3%, up from 27.0% a year earlier.

The company said its subscription attach rate, combining GoPro.com sales and post-camera purchases at retail, was 69% in the quarter, a record, and up from 54% a year earlier. GoPro's 10-Q disclosed that the company did not meet certain financial covenants under its Credit Facility as of June 30, 2026, and received a related Waiver dated July 9, 2026.

Second quarter 2026 compared with the prior-year quarter

Hardware revenue fell to $76.0 million from $126.4 million, a decrease the company attributed primarily to a decline in camera units shipped. Subscription and services revenue rose to $29.0 million from $26.2 million, which the company attributed to an increase in average revenue per user following a Premium subscription price increase in December 2025, partly offset by fewer subscribers.

Non-GAAP gross Margin was 30.4%, against 36.0% a year earlier. GAAP net loss was $51 million, or $0.30 per share, against a net loss of $16 million, or $0.10 per share, a year earlier. Adjusted EBITDA was negative $29 million, against negative $6 million.

The company's 10-Q stated that, in light of its financial condition, it has engaged outside advisors to evaluate strategic alternatives including a potential sale or merger, is exploring opportunities to sell certain non-critical assets, and is evaluating additional financing through Debt or Equity securities.

Management outlook and stated risks

The company's 10-Q stated that without additional financing or a strategic transaction, its ability to continue as a Going Concern would be materially and adversely affected, and that it may be required to reduce, restructure, or cease operations, or seek Bankruptcy protection, though it said no specific plans to do so have been initiated. Management said it has not set a timetable for concluding its strategic review and has not made decisions on any potential transaction.

On the earnings call, founder and Chief Executive Nicholas Woodman said the process authorized by the board in May is in its later stages. Chief Financial Officer Brian Tratt said the company's guidance remains withdrawn while the strategic process continues.

Final Analysis

Management tied its near-term plans to the rollout of its new MISSION 1 camera series, available online and through retailers globally, and to the continuation of its strategic review process. In July 2026, the company said founder and Chief Executive Nicholas Woodman agreed to provide $20 million in financing to the company, subject to closing conditions.