tiprankstipranks
Trending News
More News >
GoPro Inc (GPRO)
NASDAQ:GPRO

GoPro (GPRO) AI Stock Analysis

Compare
3,215 Followers

Top Page

GP

GoPro

(NASDAQ:GPRO)

Rating:56Neutral
Price Target:
$1.00
▲(26.58%Upside)
GoPro's overall score is driven by its financial challenges, despite some operational improvements and strategic board appointments. While technical indicators are currently positive, overbought signals suggest caution. The valuation remains a concern due to ongoing losses, but recent corporate developments offer some optimism for future strategic direction.
Positive Factors
Financial performance
GoPro has shifted its focus back to profitability, with an aim to return to profitability in 2025.
Product launches
GoPro launched its higher-margin entry-level product in September along with its new HERO Black iteration.
Subscription growth
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
Consistent execution
Consistent execution remains a significant risk for GoPro, as does cutting heads and reducing spend on areas that could help to reinvigorate growth.
Product launch timing
GoPro made some missteps with product launch timing, extending releases as it innovated new product features.
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 (GPRO) vs. SPDR S&P 500 ETF (SPY)

GoPro Business Overview & Revenue Model

Company DescriptionGoPro, 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 MoneyGoPro generates revenue primarily through the sale of its action cameras and accessories, which are its main products. The company also makes money from its subscription services, known as GoPro Subscription, which offers cloud storage, camera replacement, and discount benefits to users. Additionally, GoPro earns revenue from its software offerings, including mobile and desktop applications that provide editing and sharing capabilities. The company has also expanded its monetization strategy with the introduction of content licensing opportunities, where user-generated content captured on GoPro devices can be licensed to media and advertising companies. Significant partnerships with retailers and distributors globally help to bolster sales and expand the brand's reach.

GoPro Earnings Call Summary

Earnings Call Date:May 12, 2025
(Q1-2025)
|
% Change Since: 27.42%|
Next Earnings Date:Jul 31, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted GoPro's operational improvements and successful product launches, along with challenges in specific markets and inventory management. Despite a decline in Asia-Pacific sales, the company demonstrated strong subscription growth and cost management, setting a positive outlook for future quarters.
Q1-2025 Updates
Positive Updates
Revenue and Earnings Exceed Expectations
First quarter revenue was $134 million, exceeding guidance of $125 million due to stronger sell-through. Non-GAAP operating expenses were $62 million, a 26% year-over-year decrease.
Strong Subscription Growth and Retention
Subscription and service revenue grew 4% year-over-year, primarily from a 5% ARPU growth. Aggregate retention reached a record 70%.
Operational Efficiency and Cost Reductions
Operating expenses reduced by 26% to $62 million. Headcount decreased by 30% year-over-year, contributing to a more efficient operating model.
Innovative Product Launches
Launched new hardware and software products, including an updated 360-degree camera app experience and a refreshed MAX camera. Introduced a Limited Edition Polar White colorway of HERO13 Black and released an Anamorphic Lens Mod.
Strategic Partnerships and New Initiatives
Announced a partnership with AGV for tech-enabled motorcycle helmets, aiming to tap into a $3 billion SAM market.
Negative Updates
Sales Decline in Asia-Pacific
Sell-through decreased by 54% in Asia-Pacific due to macroeconomic issues and increased competition, especially in China, Japan, and South Korea.
Inventory and Gross Margin Challenges
Reported gross margin was 32.3%, below guidance due to a $5 million one-time sale of slower-moving products.
Overall Revenue and Unit Decline Expected
Revenue and units for 2025 are expected to be lower than 2024, driven by uncertain macro environment and competition.
Company Guidance
During GoPro's first quarter 2025 earnings call, the company reported a revenue of $134 million, surpassing their guidance of $125 million. Key metrics highlighted included a 4% year-over-year growth in subscription and service revenue, driven by a 5% improvement in average revenue per user (ARPU) and a record aggregate subscription retention rate of 70%. Non-GAAP operating expenses were reduced by 26% to $62 million, contributing to a decrease in the adjusted EBITDA loss by nearly 50% to negative $16 million. The company also focused on inventory management, with a 27% year-over-year decrease to $96 million, and a strong retail channel performance contributing to 70% of the revenue. Looking ahead, GoPro anticipates second-quarter revenue of $145 million and expects to improve cash net of debt by $25 million, while also managing tariff impacts with modest price increases and supply chain diversification.

GoPro Financial Statement Overview

Summary
GoPro is experiencing financial difficulties with declining revenues and persistent losses impacting profitability. The balance sheet shows increased leverage, and cash flow issues persist. While there are signs of strategic adjustments, the company faces significant challenges in reversing its financial trajectory.
Income Statement
40
Negative
GoPro's revenue shows a declining trend with a notable decrease from 2021 to 2024. The company faces challenges in maintaining profitability, as evidenced by negative EBIT and net income margins. The gross profit margin has also decreased, indicating potential issues in cost management or pricing strategy.
Balance Sheet
50
Neutral
The balance sheet shows a moderate level of debt with a debt-to-equity ratio rising over time, indicating increased leverage. Stockholders' equity has significantly decreased, impacting the company's equity ratio. Return on equity is negative, reflecting losses but there is still a fair amount of equity relative to total assets.
Cash Flow
45
Neutral
Operating and free cash flows are negative, indicating cash flow challenges. The operating cash flow to net income ratio is unfavorable, and free cash flow has been declining. However, there is some improvement in cash management as seen by reduced capital expenditure and strategic financing activities.
Breakdown
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
780.31M801.47M1.01B1.09B1.16B891.92M
Gross Profit
261.56M271.30M323.57M406.83M477.11M314.51M
EBIT
-135.21M-135.03M-75.46M38.95M113.22M-36.82M
EBITDA
-126.93M-123.27M-56.73M54.77M128.24M-16.07M
Net Income Common Stockholders
-139.93M-432.31M-53.18M28.85M371.17M-66.78M
Balance SheetCash, Cash Equivalents and Short-Term Investments
69.63M102.81M246.57M367.34M538.92M325.65M
Total Assets
462.51M543.68M967.95M1.08B1.26B771.40M
Total Debt
146.22M122.21M128.66M184.02M286.52M279.53M
Net Debt
76.58M19.40M-94.05M-39.72M-114.56M-46.13M
Total Liabilities
352.53M391.99M412.11M465.37M643.97M555.38M
Stockholders Equity
109.98M151.69M555.85M611.56M615.91M216.02M
Cash FlowFree Cash Flow
-88.30M-129.18M-34.38M2.30M223.61M88.90M
Operating Cash Flow
-83.92M-125.14M-32.86M5.75M229.15M93.78M
Investing Cash Flow
-4.38M7.65M121.90M-8.39M-143.72M9.51M
Financing Cash Flow
24.54M-929.00K-90.38M-173.27M-9.89M71.98M

GoPro Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.79
Price Trends
50DMA
0.59
Positive
100DMA
0.73
Positive
200DMA
1.00
Negative
Market Momentum
MACD
0.03
Negative
RSI
73.31
Negative
STOCH
84.43
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GPRO, the sentiment is Positive. The current price of 0.79 is above the 20-day moving average (MA) of 0.63, above the 50-day MA of 0.59, and below the 200-day MA of 1.00, indicating a neutral trend. The MACD of 0.03 indicates Negative momentum. The RSI at 73.31 is Negative, neither overbought nor oversold. The STOCH value of 84.43 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GPRO.

GoPro Risk Analysis

GoPro disclosed 39 risk factors in its most recent earnings report. GoPro reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 3 New Risks
1.
Our Class A common stock may cease to be listed on The Nasdaq Global Select Market. Q4, 2024
2.
Our ability to be profitable relies, in part, on development of effective sales channels and marketing efforts. We depend upon maintaining and developing effective sales channels between our retailers and distributors, as well as direct-to-consumer via GoPro.com, and to develop and implement effective marketing strategies. Q4, 2024
3.
We are taking a multi-pronged approach to regaining profitability with a focus on continued innovation and new product introductions while effectively managing and implementing cost-saving measures where appropriate, which may not be effective to restore profitability in our business. Q4, 2024

GoPro Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
68
Neutral
$265.73M18.1912.49%44.41%
62
Neutral
$11.80B10.37-7.29%2.91%7.39%-7.96%
58
Neutral
$1.21B-15.80%-5.24%-67.92%
56
Neutral
$109.90M-83.57%-20.88%62.21%
55
Neutral
$215.00M-136.11%-46.37%-34.50%
54
Neutral
$89.03M-13.55%-2.15%52.80%
48
Neutral
$35.63M-28.57%-39.27%-211.36%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GPRO
GoPro
0.79
-0.73
-48.03%
TBCH
Turtle Beach
13.19
-2.21
-14.35%
UEIC
Universal Electronics
6.76
-5.23
-43.62%
VUZI
Vuzix
2.97
1.55
109.15%
ZEPP
Zepp Health
2.37
-0.39
-14.13%
SONO
Sonos
10.04
-5.42
-35.06%

GoPro Corporate Events

Executive/Board ChangesShareholder Meetings
GoPro Elects New Directors at Annual Meeting
Neutral
Jun 5, 2025

On June 3, 2025, GoPro held its Annual Meeting of Stockholders, where 84.03% of eligible votes were present, either in person or by proxy. During the meeting, stockholders elected seven directors, including two new nominees, ratified the appointment of PricewaterhouseCoopers LLP as the independent registered public accounting firm for 2025, and approved an advisory resolution on executive compensation.

The most recent analyst rating on (GPRO) stock is a Sell with a $1.20 price target. To see the full list of analyst forecasts on GoPro stock, see the GPRO Stock Forecast page.

Executive/Board ChangesShareholder MeetingsBusiness Operations and Strategy
GoPro Appoints Mick Lopez to Board of Directors
Positive
Apr 8, 2025

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.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.