GoPro may go out of business in 12 months; in SEC filing company says: 'Our credit agreements impose…'

GoPro has warned that there is "substantial doubt" about its ability to continue operating over the next 12 months. This US-based action camera maker said it may have to file for bankruptcy within a year as it faces rising component costs, weaker sales, and mounting pressure from its debt obligations. In a filing with the US Securities and Exchange Commission (SEC), the company said its financial condition could be materially affected if it fails to secure additional financing or complete a strategic transaction. GoPro wrote, “Our credit agreements impose restrictions on us that may adversely affect our ability to operate our business.”

In the filing, GoPro said, “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 warning comes after GoPro reported a net loss of $93.5 million for 2025, following a $432.3 million loss in 2024. Revenue declined to $651.5 million in 2025 from $801.5 million a year earlier, while cash and cash equivalents fell to $49.7 million at the end of 2025 from $102.8 million in 2024.


How rising memory costs and debt concerns are affecting GoPro


GoPro filed its annual report in March, which outlined a number of troubling developments for its financial outlook. The company said “unprecedented increases and volatility in memory costs,” including price increases of 80% to 115% in late March 2026, were a major factor in its current financial condition.

It also said memory suppliers had informed the company of planned production reductions, which would affect the availability of components used in its products and reduce expected sales volumes.

GoPro also noted signs of "further softness in the sales channel" during April and May 2026, adding pressure to its liquidity position. According to the filing, the company expects to continue posting operating losses and negative cash flows, increasing its reliance on external funding.

The company also warned that its borrowing agreements could create additional challenges. GoPro said it anticipates future non-compliance with financial covenants tied to its credit facilities and may need to seek further waivers or amendments from lenders.

Failure to comply with these covenants could trigger defaults and cross-default provisions across multiple financing agreements, allowing lenders to demand immediate repayment.

"If our lenders accelerate the repayment of borrowings, we cannot assure you that we will have sufficient assets to repay those borrowings," the company stated.

To address the situation, GoPro said it has engaged external advisors to evaluate strategic options, including a potential sale or merger of the business. The company is also exploring opportunities in the defence and aerospace sectors, considering asset sales, seeking additional debt or equity financing, and implementing cost-cutting measures.

As part of those efforts, GoPro announced a restructuring plan in April 2026 that will reduce its global workforce by approximately 23% compared with its headcount at the end of the first quarter. The restructuring is expected to be substantially completed by the end of the year.

Despite these initiatives, GoPro said many of its recovery plans remain dependent on factors outside its control, including securing lender waivers and obtaining additional financing. As a result, the company concluded that the substantial doubt surrounding its ability to continue as a going concern "has not been alleviated."