GoPro (NASDAQ:GPRO) Posts Quarterly Earnings Results, Misses Estimates By $0.09 EPS

GoPro (NASDAQ:GPRO) posted its quarterly earnings results on Thursday. The company reported ($0.05) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.04 by ($0.09), Zacks reports. GoPro had a negative net margin of 18.68% and a negative return on equity of 71.67%. The company had revenue of $201.67 million during the quarter, compared to analysts’ expectations of $244.69 million. GoPro updated its Q1 2026 guidance to -0.230–0.170 EPS.

Here are the key takeaways from GoPro’s conference call:

• GP3 processor announced — a 5nm SoC with a dedicated NPU and >2x pixel processing power that the company says will enable GP3‑based cameras (launching in Q2) to deliver materially better low‑light performance, battery life (40–90% longer in internal tests) and thermal characteristics, which management views as a pivotal growth catalyst.
• GoPro expanded into AI content licensing with >500,000 hours of opt‑in subscriber video submitted to date, expects to recognize program revenue in Q1 and to make subscriber payouts later in 2026, positioning a new scalable, high‑margin revenue stream.
• Fiscal 2025 operational improvements included a $93M reduction in operating expenses, a 35% inventory reduction, positive Q4 adjusted EBITDA ($1M), and a $104M year‑over‑year improvement in cash flow from operations.
• Q4 revenue missed guidance ($202M actual vs. $220M ±$5M guidance) and management flagged near‑term risks — about $20M of tariff headwinds in 2025, expected memory cost increases that could subtract ~500 bps from margin in 2026, and limited projected year‑end cash (~$50M ±$5M) despite access to credit.
• Leadership changes effective March 17 — CFO Brian McGee is promoted to President & COO and long‑time VP of Finance Brian Tratt becomes CFO, intended to improve cross‑functional alignment and execution.

GoPro Trading Down 18.0%

NASDAQ:GPRO traded down $0.18 during trading hours on Friday, reaching $0.82. 5,910,028 shares of the stock were exchanged, compared to its average volume of 3,212,280. GoPro has a twelve month low of $0.40 and a twelve month high of $3.05. The business has a 50-day moving average of $1.16 and a two-hundred day moving average of $1.61. The company has a market capitalization of $130.98 million, a price-to-earnings ratio of -1.06 and a beta of 1.76. The company has a quick ratio of 0.72, a current ratio of 0.95 and a debt-to-equity ratio of 0.55.

GoPro News Summary

Here are the key news stories impacting GoPro this week:

• Positive Sentiment: Management set Q1 2026 revenue guidance well above Street expectations ($95M–$105M vs. consensus ~$69.9M), suggesting sales recovery momentum into the quarter. GoPro Announces Fourth Quarter and 2025 Results
• Positive Sentiment: GoPro secured new financing (Yorkville securities purchase agreement) to bolster liquidity, reducing short-term funding risk. GoPro Secures New Financing to Strengthen Liquidity Position
• Neutral Sentiment: Company released full Q4 and FY‑2025 results: 2025 revenue $652M and Q4 revenue $202M; management highlighted GP3 (next‑gen AI-enabled processor) as the platform for new cameras starting Q2 2026 — a positive strategic item but with execution risk/timing. GoPro Announces Fourth Quarter and 2025 Results
• Neutral Sentiment: Full earnings call/transcripts are available for investors who want management detail and tone (Seeking Alpha, The Motley Fool transcripts). GoPro Q4 2025 Earnings Call Transcript (Seeking Alpha)
• Neutral Sentiment: Short‑interest data in these reports appears inconsistent/insufficient to indicate meaningful positioning changes (reported 0 shares, days-to-cover 0.0 based on high average volume). MarketBeat GPRO Overview
• Negative Sentiment: Q4 EPS missed expectations: reported ($0.05) vs. consensus $0.04 — a material miss that pressured the stock. GoPro continues to show negative net margin (~‑18.7%) and deeply negative ROE (~‑71.7%). Q4 2025 Press Release / Earnings PDF
• Negative Sentiment: Q1 2026 EPS guidance was significantly weaker than consensus (‑$0.230 to ‑$0.170 vs. consensus ~‑$0.06), signaling continued near-term profitability pressure. GoPro Announces Fourth Quarter and 2025 Results
• Negative Sentiment: Revenue trends remain mixed: reports note Q4 revenue was flat sequentially but down ~19% year-over-year, underscoring ongoing top-line pressure. GoPro Q4 revenue flat, down 19% for the year

Analysts Set New Price Targets

A number of equities analysts have weighed in on the company. Wall Street Zen lowered GoPro from a “hold” rating to a “sell” rating in a research note on Saturday, November 15th. Weiss Ratings reiterated a “sell (d-)” rating on shares of GoPro in a report on Thursday, January 22nd. One equities research analyst has rated the stock with a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat, the company has a consensus rating of “Sell” and an average target price of $0.75.

Hedge Funds Weigh In On GoPro

Hedge funds have recently bought and sold shares of the company. Charles Schwab Investment Management Inc. grew its position in GoPro by 16.2% in the 4th quarter. Charles Schwab Investment Management Inc. now owns 7,278,484 shares of the company’s stock valued at $10,263,000 after acquiring an additional 1,013,494 shares in the last quarter. AQR Capital Management LLC lifted its holdings in GoPro by 957.3% during the 1st quarter. AQR Capital Management LLC now owns 3,687,711 shares of the company’s stock worth $2,445,000 after buying an additional 3,338,941 shares in the last quarter. Millennium Management LLC boosted its position in GoPro by 111.9% in the 4th quarter. Millennium Management LLC now owns 3,438,671 shares of the company’s stock valued at $4,849,000 after buying an additional 1,815,637 shares during the period. Jacobs Levy Equity Management Inc. boosted its position in GoPro by 59.2% in the 3rd quarter. Jacobs Levy Equity Management Inc. now owns 2,101,691 shares of the company’s stock valued at $4,456,000 after buying an additional 781,426 shares during the period. Finally, Prentice Capital Management LP grew its stake in shares of GoPro by 66.9% in the fourth quarter. Prentice Capital Management LP now owns 1,897,870 shares of the company’s stock worth $2,676,000 after acquiring an additional 760,756 shares in the last quarter. Institutional investors and hedge funds own 70.09% of the company’s stock.

About GoPro

GoPro, Inc (NASDAQ: GPRO) is an American technology company specializing in the design and manufacture of compact, high-definition cameras and related accessories. Headquartered in San Mateo, California, GoPro’s product lineup is centered on its flagship HERO series of action cameras, which combine rugged construction, waterproof housings and advanced imaging capabilities. In addition to the HERO line, the company offers the MAX camera for 360-degree video capture, along with an array of mounts, grips and protective cases to support use in extreme sports, travel and professional video production.

Since its founding in 2002 by Nicholas Woodman, who continues to serve as chief executive officer, GoPro has expanded beyond hardware into software and cloud-based services.