The restatement itself is non-cash and does not change operating performance, but the going concern warning, covenant non-compliance, and rapid cash burn are critical. The pending merger (0.1 shares + $1.14 cash per share) is the primary catalyst; monitor stockholder vote and closing conditions before the Dec 31, 2026 end date.
Price Chart
Executive Summary
GoPro filed this 10-Q/A to restate its Q2 2026 financial statements due to errors in accounting for warrants issued to Mateo Financing, LLC and the embedded conversion derivative on Convertible Debentures issued to YA II PN, Ltd. The restatement is non-cash and does not affect revenue, gross margin, operating loss, or cash flows, but it corrects net loss, debt balances, and equity. The filing also discloses a material weakness in internal controls and confirms that substantial doubt about going concern persists, with the company not expecting sufficient liquidity to meet near-term debt obligations.
Key Facts
- Revenue for Q2 2026 was $104.9M, down 31.3% YoY from $152.6M; hardware revenue fell 39.9% on 51.7% fewer camera units shipped.
- Net loss for Q2 2026 was $51.2M, compared to a $16.4M loss in Q2 2025; six-month net loss was $127.5M vs $63.1M.
- Cash and cash equivalents fell to $27.3M as of June 30, 2026, from $49.7M at Dec 31, 2025.
- Aggregate principal debt outstanding was $87.2M; the company was not in compliance with EBITDA and asset coverage ratio covenants under the 2025 Credit Agreement.
- Substantial doubt about going concern is not alleviated; the company expects to continue incurring operating losses and negative cash flows.
- A material weakness in internal control over financial reporting was identified and not remediated as of June 30, 2026.
- The restatement corrected warrant liability, derivative liability, debt discount, interest expense, and net loss; no impact on revenue, gross margin, operating loss, or cash flows.
- On September 1, 2026, GoPro entered into a merger agreement under which existing stockholders would receive 0.1 shares of the surviving corporation and $1.14 in cash per share.
Financial Impact
Restatement adjustments increased net loss by $4.3M for H1 2026; cumulative deficit reached $901.7M. Cash burn of $47.4M in H1 2026; liquidity insufficient to meet debt obligations within 12 months.
Risk Factors
- Liquidity crisis: only $27.3M cash vs $87.2M debt; mandatory repayment of 2021 Credit Agreement within 180 days of July 9, 2026.
- Covenant non-compliance could trigger acceleration of all debt under cross-default provisions.
- Merger may not close by Dec 31, 2026; termination would require a $10M fee and leave GoPro without a liquidity solution.
- Nasdaq delisting risk if bid price remains below $1.00; regained compliance on Sep 16, 2026 but risk persists.
Investment Themes
Documents Analyzed
This report is based on 8 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 10-Q/A Filing (Primary) | 0001500435-26-000070 |
| Document: gpro2026-6x30ex1032024equi.htm | 0001500435-26-000070 |
| Document: gpro2026-6x30exhibit311a.htm | 0001500435-26-000070 |
| Document: gpro2026-6x30exhibit312a.htm | 0001500435-26-000070 |
| Document: gpro2026-6x30exhibit321a.htm | 0001500435-26-000070 |
| Document: 0001500435-26-000070-index-headers.html | 0001500435-26-000070 |
| Document: 0001500435-26-000070-index.html | 0001500435-26-000070 |
| Document: 0001500435-26-000070.txt | 0001500435-26-000070 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 20, 2026 5d ago | DEFA14A | $1.07 | awaiting T+5 | — | $0.9975 (−6.34%) |
Oct 19, 2026 7d ago | DEFA14A | $1.04 | awaiting T+5 | — | $0.9975 (−4.09%) |
Oct 19, 2026 7d ago | Press Release | $1.04 | awaiting T+5 | — | $0.9975 (+4.09%) |
Oct 19, 2026 7d ago | PREM14A | $1.04 | awaiting T+5 | — | $0.9975 (−4.09%) |
Oct 19, 2026 7d ago | 10-Q/A | $1.04 | awaiting T+5 | — | $0.9975 (+4.09%) |
Oct 19, 2026 7d ago | 10-Q/A | $1.04 | awaiting T+5 | — | $0.9975 (+4.09%) |
Oct 19, 2026 7d ago | 10-K/A | $1.04 | awaiting T+5 | — | $0.9975 (+4.09%) |
Oct 16, 2026 9d ago | 8-K | $1.04 | awaiting T+5 | — | $0.9975 (+4.09%) |
Sep 22, 2026 4w ago | Institutional Cluster | $1.27 $1.33 | ▲ +4.33% | ▲ +5.52% | $0.9975 (−21.46%) |
Sep 2, 2026 7w ago | 8-K | $1.39 $1.38 | ▼ −0.72% | ▲ +0.43% | $0.9975 (−28.24%) |
US Market Status
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