GPRO earnings analysis
What we found in GPRO's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
GoPro's Q2 2026 filing shows substantial deterioration: revenue declined approximately 31% year over year to $104.9 million and the operating loss widened to $39.0 million from $14.0 million. Subscriber count fell 11% to 2.18 million, while memory costs rose 80% to 115% and are expected to remain elevated. Liquidity and financial flexibility are major concerns given covenant breaches, $87.2 million of disclosed debt and convertible-debt principal outstanding as of June 30, 2026, anticipated future covenant non-compliance, and a Nasdaq bid-price deficiency.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue declined 31% year over year
- Second-quarter revenue was $104.9 million, down from $152.6 million in Q2 2025, a decline of approximately 31%.
- Operating loss more than doubled
- The operating loss widened to $39.0 million in Q2 2026 from $14.0 million in Q2 2025, reflecting tariffs, lower promotional activity, a softer consumer market, and higher memory and semiconductor costs.
- Subscribers fell to 2.18 million
- The subscriber base declined 11% year over year to 2.18 million in Q2 2026. Management identifies subscriptions as its highest-gross-margin product, making the subscriber decline a profitability headwind.
- Lenders waived Q2 covenant breaches
- The company obtained waivers on July 9, 2026 for Q2 non-compliance with the 2025 Credit Agreement's EBITDA and 1.15x asset-coverage-ratio requirements, as well as certain covenant defaults under the 2021 Credit Agreement.
- Disclosure controls remained effective
- Management concluded that disclosure controls were effective as of June 30, 2026, and reported no material change in internal control over financial reporting during the quarter.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Memory costs threaten gross margin
- Memory component prices increased unexpectedly by 80% to 115% in the last week of March 2026, and management expects the upward trend to persist. The company also cites limited or single-source suppliers for critical components, increasing supply and margin risk.
- Liquidity and covenant risk intensified
- As of June 30, 2026, GoPro had $49.0 million outstanding under the 2025 Term Loan, $24.4 million under the 2021 Credit Facility, and $13.8 million of Convertible Debentures. Management anticipates future covenant non-compliance and says additional waivers or amendments may be required.
- Nasdaq delisting risk emerged
- The Class A shares closed below Nasdaq's $1.00 minimum bid-price requirement on June 5, 2026. GoPro received an initial 180-day compliance period on July 21, 2026, but failure to regain compliance could result in delisting and an event of default under multiple debt instruments.
- Subscription attrition threatens profitability
- Subscriber count decreased 11% year over year to 2.18 million in Q2 2026. Because subscriptions are described as the company's highest-gross-margin product, continued subscriber attrition could weaken revenue quality and profitability.
- Return to profitability remains uncertain
- GoPro incurred a $39.0 million operating loss in Q2 2026 versus $14.0 million in Q2 2025, while revenue fell from $152.6 million to $104.9 million. Management says it cannot guarantee a return to profitability through revenue growth, margin improvement, or expense reductions.
What they said about what is next.
No quantitative revenue or EPS guidance was provided in the supplied 10-Q text. Management did state that it anticipates non-compliance with restrictive covenants in future quarters and may seek additional waivers or amendments.
The filing reads worse than the one before it.
What came before.
- 10-Q · May 11, 2026
- GoPro reported a significant decline in both revenue and EPS in Q1 2026, with total revenue at $99.1 million, a decrease of 26% year-over-year, and an EPS loss of $0.50 compared to a loss of $0.30 in Q1 2025. Despite…
- 10-K · March 12, 2026
- GoPro reported a full-year revenue run-rate of $652.0M in 2025 (sum of quarterly revenues: $134M, $153M, $163M, $202M) down from $801.0M in 2024, while operating performance improved through the year (operating margin…
- 10-Q · November 6, 2025
- GoPro reported Q3 2025 revenue of $162.918M (up vs Q2 2025) but down sharply year-over-year from $258.898M. Gross margin held near 35.1% and operating loss widened to $15.885M for the quarter; GAAP diluted loss per…
- 10-Q · May 12, 2025
- GoPro reported Q1 revenue of $134.3M, down 13.6% year‑over‑year, with gross margin of 32.1% and an operating loss of $45.2M (operating margin -33.7%). Management continues cost reductions (R&D and S&M down materially)…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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