GoPro warns of insolvency risk as auditor questions going concern

GoPro has filed an 8-K with the US Securities and Exchange Commission, disclosing that its auditor, PricewaterhouseCoopers, has expressed substantial doubt about the company’s ability to continue as a going concern for the next 12 months. The warning, included in the company’s refiled 2025 financial statements, cites operating losses, negative operating cash flows and financing obligations that may become due if certain covenants are not met.

For the 2025 financial year, GoPro reported a net loss of $93.5 million on revenue of $651.5 million, a decline from $801.5 million in 2024. Hardware revenue alone collapsed from $908 million in 2023 to $545 million last year. The company ended December with just $49.7 million in cash, down from $222.7 million two years earlier.

The company is in active discussions with lenders Farallon Capital Management, Wells Fargo and Yorkville to address its financial position. GoPro has engaged investment bank Houlihan Lokey to explore a potential sale or strategic alternatives. The loans carry covenants including a minimum-liquidity requirement that rises to $40 million by September 2026 and escalating EBITDA targets, alongside cross-default provisions that could trigger immediate repayment demands.

GoPro’s filing also flagged an 80% to 115% spike in memory chip prices in the last week of March, driven by AI data centre demand. The company is sitting on a non-cancelable purchase commitment for memory components to the tune of $24.5 million, a painful obligation for a company starving for cash.

Following the announcement, GoPro shares fell from $1.26 on Friday to approximately $1.10 on Monday, trading around $1.11 on Tuesday morning. Without new financing or a strategic deal, the company stated it may be required to significantly reduce, restructure, cease operations or seek protection under Federal bankruptcy laws.