Facing revenue declines and delayed product launches, GoPro slashes costs and refocuses on growth to regain profitability by 2026.
GoPro, the action camera maker and subscription service continues making changes as it aims for a return to growth and profitability in 2026. GoPro, whose 2024 year-end staff count was down 25 percent year-over-year to 696, will reduce its FY25 operating costs by nearly 30 percent. It will do so as it braces for a year of lower unit sales and revenues due to macroeconomic headwinds, competition, and a delay in launching its new Max2 360 camera until later this year.
“To be clear, we are focused on returning GoPro to unit and revenue growth, along with improved profitability,” commented CFO Brian McGee. “We plan to do this through a broader, more diversified and innovative roadmap […].”
Period revenues contracted by 32 percent
In Q4, the group reported an operating loss of $39.1 million against a loss of $9.37 million. The net loss was $37.2 million for the period ended Dec. 31. Period revenues contracted by 32 percent to $200.9 million from $295.4 million, but gross margin improved by 50 basis points to 34.7 percent. The results were in line with or slightly better than the company’s guidance, with the number of subscribers rising slightly to 2.52 million and the unit sell-through total at 775,000.
For the full year, GoPro reported an operating loss of $135.0 million against a loss of $75.5 million. The net loss was $432.3 million versus $53.2 million. Annual revenues tumbled by 20 percent to $801.5 million from $1.0 billion. Retail sales were $601 million as year-over-year unit sell-throughs declined by 13 percent to 2.5 million units. FY24 gross margin increased by 160 basis points to 33.8 percent from 32.2 percent.
