0001500435-26-000006
SEC filingGoPro, Inc. reported total revenue of $651.5 million for FY 2025, a 19% decline from $801.5 million in FY 2024. The company incurred a net loss of $93.5 million, significantly improved from a net loss of $432.3 million in the prior year, which included a $294.9 million valuation allowance on deferred tax assets. Hardware revenue decreased 21.5% to $545.3 million, while subscription and services revenue remained flat at $106.3 million. Gross margin was 33.6%, down 20 basis points from 33.8% in FY 2024. The company used $20.7 million in operating cash flow and ended the year with $49.7 million in cash and cash equivalents. Key challenges included a softer global consumer market, increased competition, and market share loss, partially offset by an 8.2% increase in average selling price to $357.
GoPro reported FY 2025 total revenue of $651.5 million, representing a 19% decline from $801.5 million in FY 2024. The company's net loss improved significantly to $93.5 million from $432.3 million in the prior year, which included a $294.9 million valuation allowance on United States federal and state deferred tax assets. Operating loss was $83.3 million compared to $135.0 million in FY 2024. Camera units shipped decreased 24.9% year-over-year to 1.8 million units, while average selling price increased 8.2% to $357. The company's adjusted EBITDA was negative $28.5 million, improved from negative $71.6 million in FY 2024.
Revenue breakdown shows hardware contributed $545.3 million (84% of total revenue), down 21.5% from $694.5 million in FY 2024. Subscription and services revenue was $106.3 million (16% of total revenue), flat year-over-year. By channel, retail revenue was $481.9 million (74% of total), while GoPro.com revenue was $169.6 million (26% of total). Geographically, Americas contributed $383.5 million (58.9% of total), EMEA $190.8 million (29.3%), and APAC $77.3 million (11.8%). The revenue decline was attributed to timing and mix of product launches, consumer-related macroeconomic issues resulting in a softer global consumer market, and an increasingly competitive landscape leading to market share loss.
Gross margin was 33.6% in FY 2025, down 20 basis points from 33.8% in FY 2024. The decrease was primarily driven by higher product costs related to product mix (260 bps) and higher operational and tariff costs (240 bps), partially offset by a higher average selling price (350 bps) and subscription and service revenue (130 bps). Operating expenses totaled $302.5 million, down 26% from $406.3 million in FY 2024, with reductions across research and development (down 32% to $126.8 million), sales and marketing (down 37% to $100.8 million), and general and administrative (down 6% to $56.4 million). The company recorded an $18.6 million goodwill impairment charge in Q1 2025.
Cash used in operating activities was $20.7 million for FY 2025, improved from $125.1 million used in FY 2024. The company ended the year with $49.7 million in cash and cash equivalents, down from $102.8 million at the end of FY 2024. Total assets were $428.0 million, with current assets of $252.6 million including inventory of $78.4 million. Total liabilities were $351.4 million, including total current liabilities of $277.2 million and long-term debt of $44.3 million. Stockholders' equity was $76.5 million. The company repaid $93.8 million in aggregate principal of convertible notes at maturity in November 2025 and had outstanding borrowings of $49.8 million under the 2025 Term Loan as of December 31, 2025.
Management's 2026 operational plan focuses on realizing cost savings, increasing revenue from new product launches beginning in Q2 2026, and ensuring effective production planning and inventory management. The company expects to launch new system-on-chip GP3-based cameras and continues to monitor evolving macroeconomic conditions including inflation, fluctuating interest rates, tariffs, and recession concerns. Management believes revenue growth may be driven by introduction of new cameras, accessories, lifestyle gear, and software and subscription offerings. The company has taken steps to address covenant compliance issues through amendments to credit agreements and entered into a securities purchase agreement for up to $50 million in convertible debentures to support liquidity.