The going concern disclosure and covenant defaults signal high risk of restructuring, bankruptcy, or distressed M&A. Monitor the December 31, 2026 Merger deadline and any further covenant waivers or amendments. The $10M termination fee and restrictions on new debt under the Merger Agreement limit strategic flexibility.
Price Chart
Executive Summary
GoPro filed an amended 10-Q (10-Q/A) restating Q1 2026 financials due to errors in accounting for warrants and convertible debentures. The restatement increased net loss by $4.5M to $76.3M and reduced stockholders' equity to $3.5M. The company disclosed substantial doubt about its ability to continue as a going concern, citing a 26.2% YoY revenue decline, covenant defaults, and insufficient liquidity to meet debt obligations within 12 months.
Key Facts
- Revenue fell 26.2% YoY to $99.1M in Q1 2026 from $134.3M in Q1 2025.
- Net loss restated to $76.3M for Q1 2026 vs. $46.7M in Q1 2025.
- Gross margin collapsed to 4.3% from 32.1% YoY, driven by a $24.5M charge for component purchase commitments.
- Cash and cash equivalents dropped to $40.7M as of March 31, 2026, from $49.7M at year-end 2025.
- Aggregate principal debt outstanding was $99.9M vs. $69.3M at year-end 2025.
- Company was not in compliance with the 1.05x asset coverage ratio under the 2025 Credit Agreement as of March 31, 2026 (waiver obtained May 8, 2026).
- Substantial doubt about going concern raised; company expects to continue incurring operating losses and negative cash flows.
- Memory component prices surged 80%-115% in the last week of March 2026, and memory suppliers plan production cuts.
- A $10.0M termination fee is payable to Parent if the Merger Agreement is terminated in specified circumstances.
- Restatement errors were non-cash and did not affect revenue, gross margin, operating cash flows, or EBITDA.
Financial Impact
Net loss increased by $4.5M to $76.3M; accumulated deficit rose to $850.6M; stockholders' equity reduced to $3.5M from $77.4M.
Risk Factors
- Inability to repay 2021 Credit Agreement within 180 days (by January 5, 2027) under Amendment No. 4.
- Expected non-compliance with future financial covenants under both credit agreements.
- Merger may not close by December 31, 2026, triggering a $10.0M termination fee.
- Continued memory cost inflation and supply constraints could further erode margins.
- Potential Nasdaq delisting if minimum bid price falls below $1.00 again.
Investment Themes
Documents Analyzed
This report is based on 7 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 10-Q/A Filing (Primary) | 0001500435-26-000069 |
| Document: gpro2026-3x31exhibit311a.htm | 0001500435-26-000069 |
| Document: gpro2026-3x31exhibit312a.htm | 0001500435-26-000069 |
| Document: gpro2026-3x31exhibit321a.htm | 0001500435-26-000069 |
| Document: 0001500435-26-000069-index-headers.html | 0001500435-26-000069 |
| Document: 0001500435-26-000069-index.html | 0001500435-26-000069 |
| Document: 0001500435-26-000069.txt | 0001500435-26-000069 |
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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