Overview
- PricewaterhouseCoopers told investors in an amended 8‑K that it has substantial doubt about GoPro’s ability to continue because the company has incurred operating losses and negative cash flow.
- GoPro said in the filing that it must obtain additional financing or complete a strategic transaction to avoid materially adverse outcomes and that no specific bankruptcy filing has been initiated.
- The company reported a sharp supply shock from rising memory and RAM prices, citing increases between 80 percent and 115 percent in late March that have pushed component costs and cut gross margins.
- GoPro’s finances have weakened over several years with revenue down to $651.5 million in 2025, a $93.5 million loss last year, roughly $49.7 million in cash at year‑end, and a steep share‑price drop to about $1.10.
- Credit covenant risks have put near‑term repayment or acceleration on the table and management has approved a strategic review and layoffs as it pursues potential sales, debt waivers, or fresh capital.