GoPro saw operating loss widen by 9% to $45.2m in Q1

GoPro remains confident in its leaner business model and new product roadmap, projecting operational improvements and new market opportunities into 2026. Nonetheless, the group is battling challenges in the Asia-Pacific region, particularly in China, Japan and South Korea, where Q1 sales tumbled by 54 percent amid a nationalistic trend to buy local, according to CEO Brian McGee.

In Q1, the action camera and subscription service company saw its operating loss widen by 9 percent to $45.2 million, from a loss of $41.4 million in the year-ago period. The net loss improved to $46.7 million from a loss of $339.1 million. Gross margin, impacted by a one-time, $5 million sale of slower-moving products, declined to 32.3 percent. Sales declined by 13.6 percent to $134.3 million, down from $155.5 million. Retail revenues equaled $94 million, down 12 percent, and GoPro.com sales tumbled by 18 percent to $40 million.

McGee said the group exceeded its Q1 expectations on several fronts, including sales, sell-through, operating expenses and inventories. Operating expenses were down by 26 percent year-over-year, and inventory, at $96 million, was 27 percent lower than it was in the year-ago period.

GoPro senior management continues to be concerned about the impact of potential tariffs on its go-forward business, but is diversifying its supply chain and making modest price adjustments worldwide. There are currently no cameras in the US market that were manufactured in China, it has pointed out.

With the group slated to introduce the Max2 360-degree camera later this year, along with the limited-edition Hero13 Black, it has struck a joint development deal with Italian motorcycle brand AGV to introduce tech-enabled helmets. But the uncertain macro environment, competition and currency impacts caused by a weaker US dollar have GoPro reiterating an FY outlook that calls for lower, year-over-year revenues and units.