Insta360, the well-known action camera maker, released its semi-annual report for 2026 on September 2, revealing a dramatic downturn in its financial performance. According to a report from Sina Tech’s “BUG” column, the company’s net profit attributable to shareholders for the first half of the year stood at just 30.4073 million yuan, a staggering 94.15% year-on-year decline. Even more concerning, its non-GAAP net profit fell to -15.3392 million yuan, marking a sharp swing from profitability to losses.
The company’s expenditure landscape paints a troubling picture. Sales expenses ballooned to 1.017 billion yuan, up 61.96% year-on-year, while administrative costs reached 249 million yuan, an 86.74% increase. Research and development spending also surged to 1.007 billion yuan, climbing 79.26% from the previous year. The most alarming figure, however, was the financial expenses, which skyrocketed from 2.36 million yuan in the same period last year to 77.44 million yuan—a 31-fold increase.
Meanwhile, the X6 camera, which CEO Liu Jingkang proudly dubbed the “product of the decade,” has already faced a barrage of criticism less than three weeks after its launch. Users have reported that its flagship AI Director feature, a key selling point, falls short of expectations in real-world testing. “It’s not smart at all,” one user complained. Others have voiced frustration over difficulties claiming the promised 500GB of free cloud storage for early buyers, with some alleging discriminatory treatment toward existing customers. Complaints about overheating, insufficient memory, and poor battery life have also persisted.
Ms. Bai, who purchased the X6, expressed her disappointment: “The AI editing effect is not as good as advertised—it’s hardly different from the one-tap editing on a smartphone.” She had bought the device primarily for its automatic editing capability but found the feature unable to meet her needs. The AI editing only activates during charging standby, requiring the battery level to reach above 80%. In her experience, the function often captured irrelevant shots and empty frames, noting that “highlight detection depends on luck and individual shooting techniques.”
Moreover, the AI editing service that some users actually find useful is not included in the 3,999 yuan purchase price. At a ten-year anniversary user meeting, Liu Jingkang revealed that the company charges 6 yuan per edit for its “Moments Pro” cloud-based AI editing service. Additionally, the Insta360+ cloud service offers only one year of free subscription, after which users must pay an annual fee of 399 yuan. To fully experience the “zero-editing” promise, customers need to pay recurring fees beyond the initial purchase.
The promotional tactics for the X6’s early-bird benefits have also drawn criticism. While Insta360’s official mini-program advertises a year of 500GB free cloud storage for first-time buyers, some users on social media platforms claim they were unable to redeem this offer. “It’s always the loyal customers who get shortchanged,” one user reported. Upon contacting customer service, they discovered that the free storage requires a new user account and is only available for purchases made through the official online store. Those who bought the camera through offline channels were told they needed to register separately and even argue with customer service representatives to receive the benefit.
The BUG column found nearly 1,700 complaints about Insta360 on the Heimao complaint platform, with issues ranging from product quality defects to poor after-sales service and malfunctioning devices.
Perhaps most pressing is the company’s equity incentive plan. On October 20 of last year, Insta360 granted 951,500 restricted shares to 676 key employees at a price of 148.92 yuan per share. These employees are scheduled to pay for and register their shares on October 20 of this year. However, the current stock price has fallen to 113.28 yuan per share, making the incentive plan effectively worthless. “It’s highly unlikely the stock will rise to 148 yuan within a month,” employees said, with some dismissing the incentive as a mockery. One employee questioned, “Why would we pay more than regular investors for the shares?” Another expressed bewilderment: “Profits are nearly gone, yet the boss is still talking about visions on stage?”
