GoPro built its name on one simple idea: a rugged little camera that could go anywhere you could.Surfers strapped them to their boards. Skydivers mounted them on their helmets. Parents clipped them to youth soccer goals. For years, that was more than enough to sustain a business.But on June 1, 2026, the company filed an updated Form 8-K that laid bare just how dire its financial situation has become. GoPro’s (GPRO) auditors are now questioning whether the company can survive.It is one of the most serious flags a public company can raise. Valued at a market cap of $217 million, GoPro stock has lost more than 98% in value since touching a record high in 2014. GoPro’s finances have been deteriorating for yearsHere’s why investors should be worried about GoPro stock. It posted a staggering net loss of $432.3 million in 2024. Things improved slightly in 2025, but the company still lost $93.5 million for the year. Revenue has been falling fast, too, dropping 19% year over year from $801.5 million in 2024 to $651.5 million in 2025.Hardware sales, the core of the business, have declined sharply. Subscription revenue, which the company had hoped would become a reliable income stream, has flatlined at around $106.3 million.By the end of 2025, GoPro had just $49.7 million in cash left. For a company carrying significant debt obligations, that is an uncomfortably thin cushion.
Source: GoPro Inc. 8-K filing with U.S. Securities and Exchange Commission
Then 2026 arrived and made everything worse.In late March, flash memory prices unexpectedly spiked by 80% to 115%. Suppliers cut production allocations the following month, squeezing GoPro’s ability to manufacture and sell hardware. The camera maker also disclosed a $24.5 million non-cancelable purchase commitment penalty tied to those supply chain disruptions.The result: Gross margin in the first quarter of 2026 collapsed to just 4.5%, compared to 32.3% in the same period a year earlier.GoPro’s debt default risks are now front and centerHere is where things get especially precarious for investors.GoPro has openly stated it expects to fall out of compliance with financial covenants tied to two major credit facilities, one with Wells Fargo and another with Farallon Capital. These covenants set minimum thresholds for factors such as liquidity, earnings before interest, taxes, depreciation and amortization (EBITDA), and asset coverage.Related: Another popular brewery files for Chapter 11 bankruptcyMissing those thresholds can give lenders the right to demand immediate repayment. And because the company also has convertible debt through Yorkville, cross-default provisions mean a violation of one agreement could trigger acceleration across all of them at once.GoPro has made clear it does not have the cash to meet those obligations if they are called.PricewaterhouseCoopers, GoPro’s independent accounting firm, attached a going concern explanatory paragraph to its audit report. That is the accounting world’s way of saying it is not sure whether this company will still be operating a year from now.
GoPro could soon file for bankruptcy if it can’t raise capital.Ilja Enger-Tsizikov
Can a Hail Mary save GoPro from bankruptcy?Management is not sitting still. GoPro’s board has approved a restructuring plan that includes laying off approximately 23% of its global workforce, with the cuts expected to wrap up by the end of 2026.Severance charges are expected to range from $11.5 million to $15 million.The company is also pursuing a full strategic review, including a possible sale. GoPro CEO Nicholas Woodman confirmed on the company’s first-quarter earnings call that he personally supports exploring a sale and that interest has come from multiple sectors, not just defense or financial buyers.More Bankruptcy:Classic comfort food chain forced into Chapter 11 bankruptcyAnother award-winning beer brand files for Chapter 11 bankruptcyAfter bankruptcy, Hooters closes restaurants, fights for survival“Given the macro challenges in the consumer electronics sector and the strategic process we’ve initiated to evaluate opportunities for the sale of the company, we will no longer be providing forward-looking guidance and withdrawing our full year guidance at this time,” GoPro CFO Brian Tratt stated.GoPro has also been actively courting the defense and aerospace market, citing NASA’s use of modified GoPro cameras on the Artemis II mission as evidence of its credibility beyond consumer electronics. The company even debuted a new professional cinema camera line called MISSION 1, targeting filmmakers and prosumer creators.But management itself has acknowledged that these plans depend heavily on outside financing and third-party waivers.That means the going concern doubt has not been lifted. Without a sale, a debt waiver, or a significant cash infusion, GoPro faces a very real possibility of filing for bankruptcy protection. The company that once defined the action camera category is now fighting for its survival.Related: Another plane company files for bankruptcy