GoPro, mired in debt, said that a lack of memory could become a lethal threat to it

GoPro in a financial crisis: what’s happening now

*The company’s financial position has long been news.*

In mid‑last month GoPro openly announced it was looking for strategic alternatives, and now the company has admitted that it cannot guarantee business sustainability amid rising debt obligations and a shortage of memory chips.

Why the situation is critical
1. The core product – cameras for active recreation designed for extreme conditions (moisture, temperature, drops, water immersion).

2. The key component – memory. In the face of an escalating supply deficit, its availability is shrinking:

* prices have risen by 80–115 %;

* suppliers already warned in April about reduced supply volumes.

3. This leads to lower production output and, consequently, a drop in sales.

In Q1 revenue fell by 26 %. In addition, GoPro was unable to fully meet its debt obligations and began considering debt restructuring.

Current steps
- Official acknowledgment: a recent statement cites “significant doubts about the company’s ability to continue operations.”

- Updated financial statements will be released soon to provide a clearer picture of the situation.

- GoPro is exploring two possible rescue paths:

* selling the business;

* bringing in a strategic investor who would allow the preservation of technological developments and manufacturing capacity.

- A potential move into the defense sector has already been mentioned as an alternative.

What could happen next
The company is struggling with several credit agreements. If simultaneous debt recovery claims are presented, GoPro will be forced to declare default. This will increase pressure on its financial condition and accelerate the search for a solution – whether through asset sales or investment attraction.

In short:

GoPro is in a critical situation: rising memory prices, shrinking supplies, and falling revenue threaten the company’s ability to service debt. Updated financial statements are expected soon, along with potential steps to save the business via sale or investor engagement.