GoPro (GPRO) AI Stock Analysis

• Market Cap: $83.04M
• Dividend Yield: N/A
• Average Volume (3M): 5.06M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.12
• Revenue Growth: -20.29%
• EPS Growth: -729.53%
• Country: US
• Employees: 696
• Sector: Technology
• Sector Strength: 40
• Industry: Consumer Electronics
• EPS (TTM): -2.85
• Shares Outstanding: 131,169,170
• 10 Day Avg. Volume: 4,336,761
• 30 Day Avg. Volume: 5,056,693
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.17
• Price to Cash Flow (P/CF): -1.30
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $0.30
• Price Target Upside: -38.78% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 1

GoPro's overall stock score reflects the company's financial struggles, with declining revenue and profitability posing significant risks. While technical analysis offers a slightly more positive view, the negative P/E ratio and lack of dividend yield weigh heavily on valuation. The earnings call highlights both potential in cost savings and growth in subscriptions, but also significant challenges in unit sales and product delays. These factors combined result in a moderately low score, suggesting caution for potential investors.

Positive Factors

Product Launch

GoPro launched its higher-margin entry-level product in September along with its new HERO Black iteration.

Profitability Focus

GoPro shifts its focus back to profitability, with an aim to return to profitability in 2025.

Subscription Revenue

Subscription revenue grew 11% YoY to $28 million, despite a deceleration in net subscription additions as more subscribers signed on a second or third year at a higher price.

Negative Factors

Product Launch Timing

GoPro made some missteps with product launch timing, extending releases as it innovated new product features.

Revenue Decline

GoPro is signaling 2025 revenue will decline as well, though they see an opportunity to cut costs to get leaner and get the company back on track.

Revenue Guidance

Initial Q4:24 guidance is for revenue of $190 - 210 million, sell-through of 775,000, street ASP of $330, gross margin of 36 – 37%, and non-GAAP EPS of $(0.13) – (0.09), which came in well below Street expectations.

GoPro Business Overview & Revenue Model

Company Description

GoPro, Inc. develops and sells cameras, mountable and wearable accessories, and subscription services and software in the United States and internationally. The company offers cloud connected HERO10 Black, HERO9 Black, and HERO8 Black waterproof cameras; MAX, a 360-degree waterproof camera; GoPro, a subscription service that includes full access to the Quik app, cloud storage supporting source video and photo quality, camera replacement, and damage protection; Quik subscription provides access to editing tools, which allows users to edit photos, videos, and create cinematic stories; and Quik app, a mobile app that enable users to get their favorite photos and videos with footage from any phone or camera. It also offers mounts and accessories comprising equipment-based mounts consisting of helmet, handlebar, roll bar, and tripod mounts that enable consumers to wear the mount on their bodies, such as wrist housings, magnetic swivel clips, chest harnesses, and head straps; media, display, and light mods; spare batteries, dive filters, and charging accessories and cables; and lifestyle gears. In addition, the company provides mobile and web applications that provides media workflow for archiving, editing, multi-clip story creation, and sharing content on the fly. GoPro, Inc. markets and sells its products through retailers and distributors, as well as through its GoPro.com website. The company was formerly known as Woodman Labs, Inc. and changed its name to GoPro, Inc. in February 2014. GoPro, Inc. was founded in 2002 and is headquartered in San Mateo, California.

How the Company Makes Money

GoPro generates revenue primarily through the sale of its cameras and accessories. The HERO line of action cameras is the main contributor to its revenue, with various models appealing to different customer segments. Beyond hardware sales, GoPro also earns income from its subscription services, which offer cloud storage, camera replacement, and discount benefits to users. These subscriptions provide a recurring revenue stream that complements its hardware sales. The company also explores partnerships and licensing agreements, which help to diversify its income sources. Additionally, GoPro leverages its brand for merchandising opportunities, further contributing to its revenue.

GoPro Financial Statement Overview

Summary

GoPro is facing significant financial challenges, with declining revenue and profitability impacting its income and cash flow statements. The balance sheet is moderate, but the company needs to improve operational efficiency and cash flow management to regain stability and growth potential.

Income Statement

GoPro's income statement shows a challenging financial year, with significant declines in revenue and profitability. The TTM results indicate a gross profit margin of 34.1%, but a concerning net profit margin of -53.9%. Revenue has decreased significantly from the previous annual period, indicating a decline in demand or competitive pressures. EBIT and EBITDA margins are also negative, suggesting operational inefficiencies or cost pressures. Growth trajectory is negative, posing potential risks.

Balance Sheet

The balance sheet indicates a moderate financial position with a debt-to-equity ratio of 0.81, reflecting a balanced leverage situation. However, the equity ratio is only 27.9%, suggesting potential risks if liabilities grow. Return on Equity is negative, indicating profitability challenges. Overall, the company maintains a level of financial stability but faces risks if profitability does not improve.

Cash Flow

GoPro's cash flow statement reveals negative operating cash flow, highlighting liquidity challenges. The free cash flow growth rate is negative, and both the operating cash flow to net income and free cash flow to net income ratios are unfavorable, indicating struggles in converting revenue into cash. The company needs to address its cash flow issues to sustain operations and growth.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
801.47M	1.01B	1.09B	1.16B	891.92M
	Gross Profit
271.30M	323.57M	406.83M	477.11M	314.51M
	EBIT
-135.03M	-75.46M	38.95M	113.22M	-36.82M
	EBITDA
-123.27M	-56.73M	54.77M	128.24M	-16.07M
	Net Income Common Stockholders
-432.31M	-53.18M	28.85M	371.17M	-66.78M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
102.81M	246.57M	367.34M	538.92M	325.65M
	Total Assets
543.68M	967.95M	1.08B	1.26B	771.40M
	Total Debt
122.21M	128.66M	184.02M	286.52M	279.53M
	Net Debt
19.40M	-94.05M	-39.72M	-114.56M	-46.13M
	Total Liabilities
391.99M	412.11M	465.37M	643.97M	555.38M
	Stockholders Equity
151.69M	555.85M	611.56M	615.91M	216.02M
Cash Flow		Free Cash Flow
-129.18M	-34.38M	2.30M	223.61M	88.90M
	Operating Cash Flow
-125.14M	-32.86M	5.75M	229.15M	93.78M
	Investing Cash Flow
7.65M	121.90M	-8.39M	-143.72M	9.51M
	Financing Cash Flow
-929.00K	-90.38M	-173.27M	-9.89M	71.98M

GoPro Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.49
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GPRO, the sentiment is Negative. The current price of 0.49 is below the 20-day moving average (MA) of 0.69, below the 50-day MA of 0.78, and below the 200-day MA of 1.17, indicating a bearish trend. The MACD of -0.04 indicates Positive momentum. The RSI at 34.93 is Neutral, neither overbought nor oversold. The STOCH value of 2.46 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GPRO.

GoPro Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GRMN	81 Outperform	$34.34B	24.44	19.00%	1.66%	20.44%	9.05%
Sector *	57 Neutral	$18.45B	9.41	-13.97%	2.74%	5.04%	-23.56%
SONO	51 Neutral	$1.02B	―	-12.95%	―	-8.74%	-2452.05%
VREX	49 Neutral	$309.82M	―	-8.57%	―	-6.49%	-205.13%
AMBA	46 Neutral	$1.77B	―	-20.89%	―	25.78%	32.95%
GPRO	44 Neutral	$83.04M	―	-122.20%	―	-20.29%	-729.53%

GoPro Corporate Events

GoPro Appoints Mick Lopez to Board of Directors

On April 4, 2025, GoPro announced the appointment of Mick Lopez to its Board of Directors, effective immediately. Lopez, a seasoned financial expert with extensive executive experience, is expected to bring strategic and financial governance expertise to the company. Additionally, GoPro nominated Mike Dennison and Emily Culp for election to the Board at the upcoming annual stockholder meeting, highlighting their significant experience in technology, manufacturing, product, marketing, and global supply chain. This strategic move is aimed at strengthening GoPro’s board with diverse expertise, potentially enhancing its market positioning and operational effectiveness.

Spark’s Take on GPRO Stock

According to Spark, TipRanks’ AI Analyst, GPRO is a Neutral.

GoPro’s overall stock score reflects the company’s financial struggles, with declining revenue and profitability posing significant risks. While technical analysis offers a slightly more positive view, the negative P/E ratio and lack of dividend yield weigh heavily on valuation. The earnings call highlights both potential in cost savings and growth in subscriptions, but also significant challenges in unit sales and product delays. These factors combined result in a moderately low score, suggesting caution for potential investors.

To see Spark’s full report on GPRO stock, click here.