The GoPro, Inc. Board of Directors has authorized the company to engage in a process to review strategic alternatives, and to engage a financial advisor to assist with that process.
The company said the Board expects to evaluate a range of strategic alternatives during the review process. Those options could include a sale of the company or merger, aimed at maximizing value for stockholders. In authorizing this process, the Board reportedly plans to work with independent financial and legal advisors.
“The Board and management team remain fully committed to acting in the best interests of the company and its stakeholders throughout this evaluation,” the company said in a statement on Monday, May 11.
The review announced Monday follows GoPro’s recent engagement of Oliver Wyman, a global leader in defense‑sector consulting, to support the company’s expansion into the defense and aerospace markets. Since announcing this initiative on April 13, GoPro said it has received several unsolicited inbound strategic inquiries. To support a review of these inquiries and other potential strategic alternatives, the Board has authorized the company to engage a financial advisor.
“Over the past 24 years, GoPro has developed significant technology, IP, and brand assets along with world class product development and scaled manufacturing capabilities,” said GoPro Founder and CEO Nicholas Woodman. “We are excited to work with our advisors to evaluate potential opportunities in various sectors to maximize shareholder value.”
GoPro and its Board of Directors has not set a timetable for the conclusion of its evaluation, nor has it made any decisions related to its review of any potential transactions at this time. GoPro does not intend to comment on its strategic review until it deems further disclosure is appropriate or necessary. There can be no assurances as to the outcome of timing of such review, or whether any particular transaction may be pursued or consummated.
The company also reported its 2026 first quarter results on May 11, indicating that total revenue fell 26 percent year-over-year (y/y) to $99 million.
Sell-through was approximately 313,000 camera units, down 29 percent y/y.
Subscription and service revenue was flat year-over-year at $27 million. GoPro subscriber count ended Q1 at 2.26 million, down 8 percent y/y.
Revenue from the retail channel was $61 million, or 61 percent of total revenue and down 35 percent y/y.
GoPro.com revenue, including subscription and service revenue, was $38 million, or 39 percent of total revenue and down 6 percent y/y.
“In Q1, revenue of $99 million was within guidance,” offered Brian Tratt, CFO, GoPro. “We made meaningful progress on key metrics—cash used in operations improved $21 million year-over-year to $37 million, operating expenses declined year-over-year, and we continued to reduce both owned and channel inventory sequentially and year-over-year.”
Profitability & Expenses
GAAP gross margin was 4.3 percent of revenue, compared to 32.1 percent in the prior-year quarter. Non-GAAP gross margin was 4.5 percent compared to 32.3 percent in the prior-year quarter.
GAAP and non-GAAP gross margin for Q1 2026 included a discrete $24.5 million charge related to certain component purchase commitments and $4.5 million sale of slow-moving inventory.
GAAP net loss was $81 million, or a loss of 50 cents per share, compared to a net loss of $47 million, or a loss of 30 cents per share, in the prior-year first quarter.
Non-GAAP net loss was $58 million, or a loss of 35 cents per share, compared to a net loss of $19 million or a loss of 12 cents per share, in the prior-year first quarter.
GAAP and non-GAAP net loss for Q1 2026 reportedly included a discrete $24.5 million charge related to certain component purchase commitments and $4.5 million sale of slow-moving inventory.
Adjusted EBITDA was negative $50 million compared to negative $16 million in the prior-year Q1 period.
“Q1 and the weeks since have been a pivotal period for GoPro. The critically acclaimed launch of our MISSION 1 Series cameras represents our boldest step yet into professional imaging, and our exploration of defense, aerospace and strategic M&A opportunities reflects our belief that there is significant unrealized value in GoPro’s technology, IP and brand—value we are committed to realizing on behalf of our shareholders,” added Woodman.
Image courtesy GoPro, Inc.
