The core hardware business keeps shrinking

In the second quarter of 2026, GoPro generated $105 million in revenue, down 31% year over year. Camera sales fell 38%, while hardware revenue declined almost 40%. Subscription and services revenue rose 11% to $29 million, and the subscription attach rate reached a record 69%, but this was insufficient to offset falling device sales. [2 · GoPro]

The US GAAP net loss was $51 million, and adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) were negative $29 million. The results show the limits of a service business dependent on a shrinking installed base: a high subscription attach rate does not help if the absolute flow of new devices and users falls faster. [2 · GoPro]

The new thesis after the merger

On September 1, GoPro signed a merger agreement with Starman Optical. GoPro shareholders are expected to receive a combined $285 million in cash and about 10% of the merged company, with $92 million of debt to be repaid. The strategy centers on US-made optical transceivers and the AI infrastructure, defense, robotics, aviation and space markets. [1 · GoPro]

The deal is officially confirmed, but Starman’s financial results and evidence of product or commercial synergies have not yet been disclosed. The move into a new market therefore cannot be treated as a proven business recovery. Investors will need to assess manufacturing capabilities, sales, financing and actual demand for joint products. [1 · GoPro]

Why subscriptions did not stop the decline

Services revenue growth looks positive, but GoPro subscriptions depend on the active device base. If camera sales and the inflow of new owners shrink, a high attach rate applies to a smaller base and does not guarantee growth in absolute profit. [2 · GoPro]

Consumer hardware is best assessed through sell-through, activated devices, subscription attach rate, subscriber churn, gross profit by customer cohort and camera replacement frequency together. The merger changes the company’s industry thesis but does not remove the need to demonstrate the new product’s economics or the brand’s ability to reach a completely different customer category. [1 · GoPro] [2 · GoPro]

Sources

  1. GoPro — merger with Starman Optical — September 1, 2026
  2. GoPro — second-quarter 2026 results — August 10, 2026