Overview
- In a mandatory SEC filing Tuesday, GoPro said it has substantial doubt about its ability to continue after reporting first-quarter revenue of $99 million, a 26% decline, and a roughly $81 million net loss.
- The company says prices for the memory components it uses spiked about 80–115% in late Q1, suppliers announced production cuts, and the shortage produced a one-time hit to margins and forecasts.
- Liquidity is strained with cash reserves reported near $50 million and management warning it may breach loan covenants as it negotiates with lenders and seeks new financing or covenant waivers.
- To conserve cash GoPro has cut roughly a quarter of its workforce since April, sold assets, and is formally exploring strategic alternatives that include asset sales, a sale or merger, and pursuing new customers such as government and aviation buyers.
- Industry experts say AI and cloud customers are prioritizing advanced memory (like HBM), which leaves smaller consumer makers with little bargaining power and a supply squeeze that some executives expect could last years.