GoPro Strategic Review Opens M&A Options

On May 11, 2026, GoPro Inc. (GPRO) authorized a strategic-review process after reporting first-quarter results, saying it engaged a financial adviser and approved restructuring to address near-term liquidity and maximize shareholder value.

First-Quarter Results and Balance Sheet

GoPro reported first-quarter revenue of $99.1 million, down 26.2% year-over-year. Hardware sales accounted for $72.2 million, while subscriptions and services contributed $26.9 million, roughly flat from the prior year. The company sold about 313,000 cameras, a 29% decline, and had 2.26 million subscribers, down 8%.

GAAP gross margin fell to 4.3% from 32.1% a year earlier, reflecting a $24.5 million charge related to component-purchase commitments and a $4.5 million slow-moving inventory sale. Non-GAAP gross margin was 4.5%. GoPro posted a GAAP net loss of $80.8 million, or $0.50 per share, compared with a loss of $46.7 million, or $0.30 per share, a year earlier. On a non-GAAP basis, the net loss was $57.7 million, or $0.35 per share, with adjusted EBITDA at negative $49.8 million.

Operating cash use improved by $21 million year-over-year to a range of $36.6 million to $37.0 million. As of March 31, 2026, the company held $40.7 million in cash and equivalents, faced $72.0 million in short-term debt, and had total debt of about $99.9 million. Stockholders’ equity was negative $1.9 million.

Board Launches Strategic Review and Restructuring

The board authorized a review of strategic alternatives, including a potential sale, merger, or asset sales, and engaged a financial adviser to evaluate options. The company said the board plans to work with independent financial and legal advisors during the process.

GoPro’s 10-Q filing cited substantial doubt about its ability to continue as a going concern due to ongoing losses, cash burn, weak demand, and the risk of covenant non-compliance. To reduce costs, the board approved a roughly 23% reduction in global headcount from 631 employees, with expected severance charges between $11.5 million and $15.0 million in 2026.

The company also launched the MISSION 1 high-end camera series and engaged consulting firm Oliver Wyman to assess opportunities and product synergies in the defense and aerospace markets.

Taken together, the going-concern disclosure, cash and debt profile, and adviser engagement suggest that a sale, merger, or targeted asset disposals are the most immediate paths to shore liquidity and pursue shareholder value.

"In authorizing this process, the board plans to work with independent financial and legal advisors," the company said in its May 11 press release.