GoPro's business continuity is in 'serious concern' due to rising costs and declining sales caused by a global memory shortage.

GoPro, a leading action camera manufacturer, indicated in a filing with the U.S. Securities and Exchange Commission dated June 1, 2026, that it has 'serious doubts about whether it can continue its business for the next 12 months.' The company cited slowing sales and a sharp rise in memory-related costs as reasons for its worsening financial situation.

Date of Report (Date of earliest event reported): June 1, 2026
https://d18rn0p25nwr6d.cloudfront.net/CIK-0001500435/c68e0973-5303-48d1-bc65-54a4b2e99fd4.pdf

GoPro is at risk of potential bankruptcy amid lower sales and high memory costs, new documents reveal | Digital Camera World
https://www.digitalcameraworld.com/cameras/action-cameras/breaking-news-gopro-is-in-serious-financial-trouble-and-may-be-required-to-significantly-reduce-restructure-cease-operations-amid-lower-sales-and-high-memory-costs

GoPro warns 'substantial doubt about the company's ability to continue' in regulatory filings — AI memory shortage hits action camera maker | Tom's Hardware
https://www.tomshardware.com/pc-components/ram/memory-chip-crisis-hits-action-camera-industry-gopro-says-that-its-in-substantial-doubt-about-the-companys-ability-to-continue-in-regulatory-filings

GoPro's projected 2025 revenue is approximately $652 million (approximately 104 billion yen), a decrease of about 19% from the previous year.

GoPro plans to cut approximately a quarter of its workforce, and expects a decrease in revenue compared to the same period last year in its full-year 2025 financial results - GIGAZINE

Although net losses narrowed by approximately 78% from the previous year, the company remains in the red, and operating losses and negative operating cash flow continue. The breakdown of revenue was approximately $546 million (approximately 87.3 billion yen) from hardware and approximately $106 million (approximately 17 billion yen) from subscriptions and services.

GoPro cited an 80% to 115% increase in memory costs in the last week of March 2026 as a factor contributing to its worsening outlook. Furthermore, in April, suppliers informed the company that they would be reducing production of the memory used in its products. GoPro action cameras do not have built-in storage, but their processors require RAM, making them highly susceptible to fluctuations in component prices and supply.

GoPro has revealed that by the end of 2025, its cash and cash equivalents will have decreased significantly from the previous year, and its shareholders' equity will have halved. Furthermore, it stated that under current projections, it would not be able to secure sufficient liquidity if it defaults on its debt or if cross-default clauses are triggered and it is required to repay its borrowings.

As a countermeasure, the company is considering strategic options including divesting or merging its businesses. It is also exploring the possibility of leveraging existing technologies in the defense and aerospace sectors, selling non-core assets, raising additional funds, and negotiating with financial institutions for modified terms or exemptions.

Regarding cost reductions, the company announced a restructuring plan that will cut approximately 23% of its workforce by the end of the first quarter of 2026. This restructuring is expected to begin in the second quarter of 2026 and be largely completed by the end of 2026. On the other hand, the submitted documents do not directly indicate that a bankruptcy filing is imminent. GoPro itself has stated that it has 'not initiated or considered any concrete plans regarding filing for protection under the U.S. federal bankruptcy law.'

Digital Camera World, a news site specializing in cameras, points out that 'GoPro has just started shipping the Mission 1 series, but there is no mention of the series in the documents it has submitted.' The focus going forward will be on how much the introduction of new products, including the Mission 1, can improve sluggish sales and financial stability.