GoPro refiled its 2025 financial statements with a going-concern warning, reporting a $93.5 million net loss and negative operating cash flow. The company faces covenant pressures on its credit facilities and has engaged Houlihan Lokey for strategic alternatives. Shares fell more than 8% on the disclosure.
GoPro Inc. refiled its 2025 financial statements with a going-concern warning, disclosing substantial doubt about its ability to continue operating within the next 12 months.
The action camera maker posted a net loss of $93.5 million on revenue of $651.5 million for 2025, with cash and cash equivalents of $49.7 million at year-end, according to the refiled 8-K filing. Operating cash flow was negative $20.7 million. The company holds $63.9 million in total debt, including a $49.8 million second-lien term loan.
GoPro said it does not expect to meet future minimum liquidity, EBITDA, and asset coverage covenants under its 2021 revolving credit facility and 2025 term loan. Cross-default provisions could make all borrowings immediately due, which the company said it cannot repay from existing liquidity. The company also recorded an $18.6 million goodwill impairment charge in 2025.
The stock fell more than 8% in early trading Monday after the disclosure, extending a decline that has erased more than half the company's market value over the past year. GoPro's market capitalization stood at about $209 million as of Friday's close.
Management has engaged Houlihan Lokey to evaluate strategic alternatives, including a potential sale or merger, and is pursuing additional financing, asset sales, and waivers or amendments to its credit agreements. The company also announced a workforce reduction of about 23%, with expected severance costs of $11.5 million to $15 million during 2026.
GoPro faces headwinds from a sharp rise in memory component costs, with supplier price increases of 80% to 115% in late March and planned supply reductions pressuring margins. The company has a $24.5 million non-cancelable purchase commitment for components.
The going-concern warning signals that GoPro's turnaround efforts face significant execution risk. Investors will watch for progress on covenant waivers and any strategic transaction as the company works through its restructuring plan.
This article is for informational purposes only and does not constitute investment advice.
