Can GoPro survive? The company says it has “substantial doubt” about its future
Due to factors beyond the company’s control, GoPro faces serious liquidity issues. Therefore, the camera manufacturer is even considering a potential sale or merger of the business.
A helmet and GoPro camera. Oleksii Samsonov/Global Images Ukraine via Getty Images.
Due to factors beyond the company’s control, GoPro faces serious liquidity issues. Therefore, the camera manufacturer is even considering a potential sale or merger of the business.
- GoPro warns of survival risk after stating there is “substantial doubt” about its ability to continue operating over the next year.
- Revenue and cash reserves have plunged, with sales falling from $1.01B to $652M and cash dropping from $223M to under $50M since 2023.
- Supply chain pressures are worsening, as memory prices have surged up to 115% and suppliers plan to cut component volumes.
- Company explores drastic measures, including a sale or merger, expansion into defense and aerospace, new financing, and a 23% workforce reduction.
Key Takeaways by nexos.ai, reviewed by Cybernews staff.
In an 8-K filing with the Securities and Exchange Commission (SEC), Brian Tratt, GoPro's Chief Financial Officer (CFO), reveals that the company isn’t doing well.
Between 2023 and 2025, revenue has fallen dramatically from $1.01 billion to $652 million. In the same period, hardware revenue declined from roughly $908 million to $545 million. Because of these conditions, cash reserves dropped significantly from $222.7 million to $49.7 million.
The outlook isn’t looking particularly promising for a number of reasons. For starters, memory component prices have increased significantly and remain extremely volatile. Tratt mentions that memory prices increased 80% to 115% in the last week of March, 2026.
Furthermore, suppliers have told GoPro they will reduce the volume of memory components to the company, meaning that the action camera manufacturer will sell fewer GoPro cameras. Unfortunately, GoPro had already placed a $24.5 million materials order, which cannot be canceled or refunded.
Inevitably, the company was forced to revise sales forecasts downward.
“These conditions, considered in the aggregate, raise substantial doubt about the company’s ability to continue as a going concern within one year after the date that these consolidated financial statements are issued,” the filing says.
GoPro has outlined several survival strategies. First, the company has evaluated multiple “strategic alternatives,” including a potential sale or merger of the business.
Additionally, external advisors have recommended “to explore opportunities within the defense and aerospace sector” to expand the company’s existing technology in new markets and product categories.
Raising additional money is a third option. This could be accomplished by selling certain non-critical assets and securing additional financing through debt or equity securities.
Lastly, GoPro is evaluating its pricing strategies and ways to reduce operating expenses. In April 2026, the manufacturer announced plans to reduce its workforce by approximately 23%, which is expected to be completed at the end of 2026 and will cost the company between $11.5 and $15 million.
Nevertheless, GoPro won’t guarantee that these survival strategies will succeed.
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“There can be no assurance that the company will be able to generate the level of operating revenue or reduce operating expenses to levels that achieve profitability and generate cash. Without obtaining additional sources of financing or consummating a strategic transaction, the company’s ability to continue as a going concern would be materially and adversely impacted, and the company may be required to significantly reduce, restructure, cease operations, or seek protection under the Federal bankruptcy laws, although no specific plans to file for bankruptcy protection have been initiated or considered,” the filing concludes.
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