GoPro (GPRO) is positioning itself to return to profit in 2025 amid tough market conditions, Wedbush Securities said Tuesday in a research note.
With broader retail distribution, higher-margin stock-keeping units, and significantly reduced expenses, the company has shifted its focus back to profitability, the brokerage said.
Tariffs are unlikely to be a headwind as GoPro has already moved its US-bound camera production out of China, Wedbush said. However, it added that the company "is not insulated against currency," and some margin pressure is expected to persist through 2025.
Wedbush said GoPro could reach profitability in 2025, supported by its product lineup for late 2025 and steady domestic demand across retail and its subscription service.
Late Monday, GoPro reported a Q1 non-GAAP net loss of $0.12 per share, narrower than the year-earlier loss of $2.11.
Wedbush is modeling full-year 2025 earnings of $0.05 per share, assuming the company maintains subscription retention and keeps unit sales from falling more than double digits.
While GoPro "remains in a precarious position," the firm said it could meet expectations with help from its upcoming product launches, including a delayed 360 camera.
The brokerage maintained a neutral rating on the company and lowered the price target to $0.75 from $1.00.
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