GoPro, Inc.

GoPro’s capital structure is severely distressed, with total liabilities of $383.2 million exceeding total assets of $381.4 million, resulting in negative total equity of -$1.9 million. The company holds $40.7 million in cash and equivalents against $72.0 million in short-term debt, yielding a current ratio of 0.58, which indicates current liabilities exceed current assets. Operating cash flow is negative at -$36.6 million, and free cash flow is -$37.7 million, reflecting significant liquidity pressure. The debt-to-equity ratio is -38.5, a mathematical artifact of the negative equity base, but it underscores the insolvency risk. Filings reference going-concern or substantial-doubt language, confirming the high liquidity risk.

Profitability is deeply negative, with Q1 2026 revenue of $99.1 million generating a gross profit of only $4.3 million, implying a gross margin of approximately 4.3%. Operating income is -$57.2 million, and net income is -$80.8 million. Return on assets is -24.5%, and return on equity is reported as 50.0%, which is misleading due to the negative equity denominator. The company is burning cash rapidly, with operating losses far exceeding revenue. There is no cohort median data provided for comparison, but the financial metrics indicate a business in severe distress, far below any healthy industry benchmark.

Revenue is derived from hardware and subscription services, though specific segment revenue splits for Q1 2026 are not explicitly quantified in the snapshot. Geographically, the company operates in the Americas, EMEA, and Asia-Pacific. Customer concentration risk is present, with disclosures referencing specific retailer customers (Customer A, B, C, D) for accounts receivable. The reliance on third-party suppliers and contract manufacturers adds supply chain risk. The business model depends on growing camera sales to drive subscription volume, but subscriber count risks are noted.

Growth trajectory is negative. Q1 2026 revenue of $99.1 million represents a decline from prior periods, though specific year-over-year percentage changes are not calculated in the snapshot. The company has undergone multiple restructuring plans, including a Third Quarter 2024 restructuring and a Second Quarter 2026 restructuring, indicating ongoing efforts to reduce costs and improve efficiency. The negative operating cash flow and net income suggest that revenue growth is not sufficient to cover operating expenses.

Risk factors are elevated. Liquidity risk is high, with current liabilities exceeding current assets and negative net cash. Dilution risk is medium, with filings referencing dilution or offering risk. The company has convertible debentures and warrants outstanding, which could lead to further dilution. Key flags include going-concern language and substantial doubt about the company’s ability to continue as a going concern. The company also faces risks from global conflicts, geopolitical issues, and macroeconomic factors such as inflation and interest rates.

Recent events include an 8-K filing with high severity items, including material agreements and changes in financial statements. The company has announced restructuring plans for the second quarter of 2026, with expected costs disclosed in subsequent events. Analyst estimates show a mean price target of $1.39, with a mean recommendation of 4.00 (sell), indicating negative sentiment from the market. The company is also facing litigation and legal proceedings, which add to the uncertainty.

Revenue $99.1M; Operating income -$57.2M.

• ▍Revenue $99.1M
• ▍Operating income -$57.2M
• ▍Net margin -81.6%

Revenue $449.9M; Operating income -$75.1M.

• ▍Revenue $449.9M
• ▍Operating income -$75.1M
• ▍Net margin -18.8%

Revenue $287.0M; Operating income -$59.2M.

• ▍Revenue $287.0M
• ▍Operating income -$59.2M
• ▍Net margin -22.0%

Revenue $651.5M; Operating income -$83.3M.

• ▍Revenue $651.5M
• ▍Operating income -$83.3M
• ▍Net margin -14.3%

Revenue $801.5M; Operating income -$135.0M.

• ▍Revenue $801.5M
• ▍Operating income -$135.0M
• ▍Net margin -53.9%

Revenue $801.5M; Operating income -$135.0M.

• ▍Revenue $801.5M
• ▍Operating income -$135.0M
• ▍Net margin -53.9%