Overview
GoPro Inc. (NASDAQ: GPRO) shares rose 20% in after-hours trading Monday after the company's Board of Directors approved a formal strategic review. The Board said the process could encompass a potential sale or merger and that it will retain a financial adviser to evaluate strategic alternatives intended to maximize shareholder value.
Advisors and process
The company indicated the Board will work with independent financial and legal advisors during the review. Company filings make clear no timetable has been set for the completion of the review and no decisions have been reached regarding any potential transactions.
Trigger for the review
The Board's decision follows GoPro's recent engagement of Oliver Wyman to support efforts to expand into defense and aerospace markets. Since the April 13 announcement of that initiative, the company said it received several unsolicited strategic inquiries, which prompted the Board to authorize a formal review process.
Executive comment
"Over the past 24 years, GoPro has developed significant technology, IP, and brand assets along with world class product development and scaled manufacturing capabilities," said Nicholas Woodman, GoPro's founder and CEO.
Financial results accompanying the announcement
GoPro reported first-quarter revenue of $99 million, down 26% year-over-year from $134 million in the prior year quarter. Subscription and service revenue held steady at $27 million. The company reported camera sell-through of approximately 313,000 units, a decline of 29% year-over-year.
GAAP gross margin contracted to 4.3% from 32.1% in the prior year quarter. Management attributed the margin decline in part to a $24.5 million charge tied to component purchase commitments and a $4.5 million charge related to the sale of slow-moving inventory. GoPro posted a GAAP net loss of $81 million, or $(0.50) per share, compared with a net loss of $47 million, or $(0.30) per share, in the first quarter of 2025.
Product update
In May, the company introduced its MISSION 1 Series cameras, positioning the product line in the high-end digital imaging space with 8K and 4K compact cinema cameras aimed at filmmakers and creators.
What the announcement means
The Board's authorization of a strategic review formalizes work to assess alternatives that could unlock shareholder value, while the company continues to report near-term operational headwinds reflected in lower revenue, reduced unit sell-through and a sharply lower GAAP gross margin for the quarter. The company has identified specific charges that materially affected reported GAAP results.
Note: This article focuses on the company's public statements and reported quarterly results. It does not introduce information beyond those disclosures.