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GoPro's Q3 Loss Wider Than Expected, Revenues Fall Y/Y, Stock Down
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Key Takeaways
GoPro posted a Q3 non-GAAP loss of $0.09 per share on $162.9M revenue, down 37% year over year.
The company launched MAX2 360, LIT HERO and Fluid Pro AI to expand its hardware portfolio.
GoPro projects a return to growth and profitability starting Q4 2025 and continuing through 2026.
GoPro, Inc. (GPRO - Free Report) reported third-quarter 2025 non-GAAP loss per share of 9 cents, wider than the Zacks Consensus Estimate of a loss of 3 cents. The company forecasted non-GAAP adjusted loss of 4 cents per share (+/- 2 cents). The firm reported break-even earnings in the year-ago quarter.
GPRO generated revenues of $162.9 million, down 37.1% year over year. The figure was within the company’s expectation of $160 million (+/- $10 million). The top line beat the consensus mark by 0.5%.
Management stated that during the third quarter, the company introduced three new hardware products that expand its total addressable market: the MAX2 360 camera, LIT HERO camera and Fluid Pro AI gimbal, along with several new software solutions. GoPro anticipates returning to revenue growth and profitability starting in the fourth quarter of 2025 and continuing through 2026.
Following the announcement, GPRO's shares were down around 2% in the after-market session yesterday. In the past six months, shares have surged 158.3% compared with the Audio-Video Production industry’s growth of 14.9%.
Image Source: Zacks Investment Research
GPRO’s Q3 Results in Details
GPRO sold 500,000 camera units in the third quarter, down 18% year over year.
Based on channels, revenues from GoPro.com of $40 million (25% of total revenues) plunged 22% year over year. Our estimate was pegged at $41.1 million. Subscription and service revenue amounted to $27 million, down 3% year over year, while GoPro’s subscriber base recorded 2.42 million at the end of the third quarter, marking a 5% decline.
Retail channel registered revenues of $123 million (75%), which fell 41% year over year. We estimated the metric to be $121 million.
Region-wise, revenues from the Americas were down 16% from the prior-year level. Revenues from Europe, the Middle East and Africa were down 42% year over year. The Asia Pacific region was down 66%. U.S. revenues reached $75 million in the third quarter of 2025, marking a 6% decline from the same period last year.
GPRO’s Margin Performance
Non-GAAP gross margin was 35.2% compared with 35.6% in the year-ago quarter. Non-GAAP operating loss totaled $11 million against an operating income of $1 million in the prior-year quarter. Non-GAAP operating expenses were $68.4 million compared with $91.3 million in the prior-year quarter.
Adjusted EBITDA loss was $7.9 million against adjusted EBITDA of $5.5 million a year ago.
The subscription attach rate for cameras sold through all channels reached 57%, the highest since GoPro returned to its retail-focused strategy in May 2023. This compares with 45% in the same period of 2024 and 40% in the third quarter of 2023, reflecting a 45% increase over the past two years. Street ASP was $355, up 21% year over year.
GPRO’s Cash Flow & Liquidity
In the quarter under review, GoPro generated $12.2 million of net cash from operating activities against net cash used in operating activities $2.2 million in the year-earlier quarter.
As of Sept. 30, 2025, the company had $58.4 million of cash and cash equivalents.
GPRO’s Guidance
For the fourth quarter of 2025, the company projects revenues of $220 million (+/- $5 million), implying 10% year-over-year growth at the midpoint of guidance.
Non-GAAP gross margin is expected at 32% at the midpoint of guidance (+/- 50 bps), down from 35.1% from last year, mainly due to tariff impact. Street ASP is expected to be around $350, up marginally year over year, while unit sell-through is projected to decline 18% at the midpoint of guidance to about 625,000 units, with channel inventory to increase sequentially.
Operating expenses are projected at $63 million at the midpoint of guidance, down 25% from the prior year due to lower wage costs from reduced headcount, along with decreased marketing and engineering expenses.
The company projects non-GAAP earnings per share of 3 cents (+/- 2 cents) for the fourth quarter.
For 2026, the company expects to achieve year-over-year growth in both units and revenue each quarter, supported by its current product lineup and upcoming launches. Subscription ARPU is expected to grow 5%, ending 2026 with 2–2.4 million subscribers. Adjusted EBITDA is projected to exceed $40 million in 2026, improving from losses in 2024 and 2025.
Full-year operating expenses are projected at around $250 million, slightly lower than in 2025. GoPro anticipates offsetting about half of its estimated $45 million tariff costs through modest price increases and supply chain diversification. The company foresees some margin pressure from tariffs and higher component costs but plans to mitigate this through supply chain improvements.
Recent Business Highlights
GoPro achieved several key milestones in the recent quarter. The company launched the MAX2 360 camera, featuring industry-leading 360 technology with True 8K video resolution, offering up to 21% higher resolution than competitors and durable twist-and-go replaceable lenses for easy swaps in the field. Expanding its hardware lineup, GoPro introduced LIT HERO, an ultra-compact, waterproof lifestyle camera with a built-in light and a fun, retro-inspired design and Fluid Pro AI, a multi-camera AI-powered gimbal compatible with GoPro cameras, smartphones and compact cameras, signifying the company’s entry into the global gimbal market.
On the software front, GoPro rolled out powerful 360 editing tools, including the new GoPro ReFrame plugin for DaVinci Resolve, to make immersive content creation easier. The GoPro Player app for macOS gained new features, such as Apple Projected Media Profile support for Vision Pro and advanced denoise capabilities for cleaner low-light videos. The Quik mobile app was also enhanced with AI-powered subject tracking, POV and selfie modes, and cloud-based 360 editing.
Sonos, Inc. (SONO - Free Report) reported fourth-quarter fiscal 2025 non-GAAP loss per share of 6 cents. The Zacks Consensus Estimate was pegged at earnings of 5 cents. The company incurred a loss of 18 cents in the prior-year quarter. On a GAAP basis, the company reported a loss of 31 cents compared with a loss of 44 cents in the year-ago quarter.
Quarterly revenues increased 12.7% year over year to $287.9 million. Moreover, the figure came near the high end of the company’s guidance of $260 million to $290 million. The Zacks Consensus Estimate for the top line was pegged at $283.1 million.
Shares of SONO have surged 20.5% in the past year.
Interparfums (IPAR - Free Report) came out with quarterly earnings of $2.05 per share, beating the Zacks Consensus Estimate of $1.85. This compares to earnings of $1.93 per share a year ago. Interparfums posted revenues of $429.58 million for the quarter ended September 2025, missing the Zacks Consensus Estimate by 0.1%. This compares to year-ago revenues of $424.63 million.
Shares of IPAR have plunged 30.4% in the past year.
Alto Ingredients (ALTO - Free Report) came out with quarterly earnings of 19 cents per share, beating the Zacks Consensus Estimate of a loss of 6 cents per share. This compares to a loss of 4 cents per share a year ago. Alto Ingredients posted revenues of $240.99 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 2.91%. This compares to year-ago revenues of $251.81 million.
Shares of ALTO have soared 17.4% in the past year.
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GoPro's Q3 Loss Wider Than Expected, Revenues Fall Y/Y, Stock Down
Key Takeaways
GoPro, Inc. (GPRO - Free Report) reported third-quarter 2025 non-GAAP loss per share of 9 cents, wider than the Zacks Consensus Estimate of a loss of 3 cents. The company forecasted non-GAAP adjusted loss of 4 cents per share (+/- 2 cents). The firm reported break-even earnings in the year-ago quarter.
GPRO generated revenues of $162.9 million, down 37.1% year over year. The figure was within the company’s expectation of $160 million (+/- $10 million). The top line beat the consensus mark by 0.5%.
Management stated that during the third quarter, the company introduced three new hardware products that expand its total addressable market: the MAX2 360 camera, LIT HERO camera and Fluid Pro AI gimbal, along with several new software solutions. GoPro anticipates returning to revenue growth and profitability starting in the fourth quarter of 2025 and continuing through 2026.
Following the announcement, GPRO's shares were down around 2% in the after-market session yesterday. In the past six months, shares have surged 158.3% compared with the Audio-Video Production industry’s growth of 14.9%.
Image Source: Zacks Investment Research
GPRO’s Q3 Results in Details
GPRO sold 500,000 camera units in the third quarter, down 18% year over year.
Based on channels, revenues from GoPro.com of $40 million (25% of total revenues) plunged 22% year over year. Our estimate was pegged at $41.1 million.
Subscription and service revenue amounted to $27 million, down 3% year over year, while GoPro’s subscriber base recorded 2.42 million at the end of the third quarter, marking a 5% decline.
Retail channel registered revenues of $123 million (75%), which fell 41% year over year. We estimated the metric to be $121 million.
GoPro, Inc. Price, Consensus and EPS Surprise
GoPro, Inc. price-consensus-eps-surprise-chart | GoPro, Inc. Quote
Region-wise, revenues from the Americas were down 16% from the prior-year level. Revenues from Europe, the Middle East and Africa were down 42% year over year. The Asia Pacific region was down 66%. U.S. revenues reached $75 million in the third quarter of 2025, marking a 6% decline from the same period last year.
GPRO’s Margin Performance
Non-GAAP gross margin was 35.2% compared with 35.6% in the year-ago quarter. Non-GAAP operating loss totaled $11 million against an operating income of $1 million in the prior-year quarter. Non-GAAP operating expenses were $68.4 million compared with $91.3 million in the prior-year quarter.
Adjusted EBITDA loss was $7.9 million against adjusted EBITDA of $5.5 million a year ago.
The subscription attach rate for cameras sold through all channels reached 57%, the highest since GoPro returned to its retail-focused strategy in May 2023. This compares with 45% in the same period of 2024 and 40% in the third quarter of 2023, reflecting a 45% increase over the past two years. Street ASP was $355, up 21% year over year.
GPRO’s Cash Flow & Liquidity
In the quarter under review, GoPro generated $12.2 million of net cash from operating activities against net cash used in operating activities $2.2 million in the year-earlier quarter.
As of Sept. 30, 2025, the company had $58.4 million of cash and cash equivalents.
GPRO’s Guidance
For the fourth quarter of 2025, the company projects revenues of $220 million (+/- $5 million), implying 10% year-over-year growth at the midpoint of guidance.
Non-GAAP gross margin is expected at 32% at the midpoint of guidance (+/- 50 bps), down from 35.1% from last year, mainly due to tariff impact. Street ASP is expected to be around $350, up marginally year over year, while unit sell-through is projected to decline 18% at the midpoint of guidance to about 625,000 units, with channel inventory to increase sequentially.
Operating expenses are projected at $63 million at the midpoint of guidance, down 25% from the prior year due to lower wage costs from reduced headcount, along with decreased marketing and engineering expenses.
The company projects non-GAAP earnings per share of 3 cents (+/- 2 cents) for the fourth quarter.
For 2026, the company expects to achieve year-over-year growth in both units and revenue each quarter, supported by its current product lineup and upcoming launches. Subscription ARPU is expected to grow 5%, ending 2026 with 2–2.4 million subscribers. Adjusted EBITDA is projected to exceed $40 million in 2026, improving from losses in 2024 and 2025.
Full-year operating expenses are projected at around $250 million, slightly lower than in 2025. GoPro anticipates offsetting about half of its estimated $45 million tariff costs through modest price increases and supply chain diversification. The company foresees some margin pressure from tariffs and higher component costs but plans to mitigate this through supply chain improvements.
Recent Business Highlights
GoPro achieved several key milestones in the recent quarter. The company launched the MAX2 360 camera, featuring industry-leading 360 technology with True 8K video resolution, offering up to 21% higher resolution than competitors and durable twist-and-go replaceable lenses for easy swaps in the field. Expanding its hardware lineup, GoPro introduced LIT HERO, an ultra-compact, waterproof lifestyle camera with a built-in light and a fun, retro-inspired design and Fluid Pro AI, a multi-camera AI-powered gimbal compatible with GoPro cameras, smartphones and compact cameras, signifying the company’s entry into the global gimbal market.
On the software front, GoPro rolled out powerful 360 editing tools, including the new GoPro ReFrame plugin for DaVinci Resolve, to make immersive content creation easier. The GoPro Player app for macOS gained new features, such as Apple Projected Media Profile support for Vision Pro and advanced denoise capabilities for cleaner low-light videos. The Quik mobile app was also enhanced with AI-powered subject tracking, POV and selfie modes, and cloud-based 360 editing.
GPRO’s Zacks Rank
GoPro currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Performance of Other Companies
Sonos, Inc. (SONO - Free Report) reported fourth-quarter fiscal 2025 non-GAAP loss per share of 6 cents. The Zacks Consensus Estimate was pegged at earnings of 5 cents. The company incurred a loss of 18 cents in the prior-year quarter. On a GAAP basis, the company reported a loss of 31 cents compared with a loss of 44 cents in the year-ago quarter.
Quarterly revenues increased 12.7% year over year to $287.9 million. Moreover, the figure came near the high end of the company’s guidance of $260 million to $290 million. The Zacks Consensus Estimate for the top line was pegged at $283.1 million.
Shares of SONO have surged 20.5% in the past year.
Interparfums (IPAR - Free Report) came out with quarterly earnings of $2.05 per share, beating the Zacks Consensus Estimate of $1.85. This compares to earnings of $1.93 per share a year ago. Interparfums posted revenues of $429.58 million for the quarter ended September 2025, missing the Zacks Consensus Estimate by 0.1%. This compares to year-ago revenues of $424.63 million.
Shares of IPAR have plunged 30.4% in the past year.
Alto Ingredients (ALTO - Free Report) came out with quarterly earnings of 19 cents per share, beating the Zacks Consensus Estimate of a loss of 6 cents per share. This compares to a loss of 4 cents per share a year ago. Alto Ingredients posted revenues of $240.99 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 2.91%. This compares to year-ago revenues of $251.81 million.
Shares of ALTO have soared 17.4% in the past year.