Action camera manufacturer GoPro is close to bankruptcy: its revenue has halved since 2023
Tazabek - Action camera maker GoPro is on the verge of bankruptcy. This is reported by Carscoops.
The company's shares, which were valued at $11 billion in 2014, are now trading at $1.14 each. GoPro's auditor warned that the company may cease operations.
GoPro, founded in 2002, specializes in action cameras. As smartphone cameras improved and competitors emerged, including DJI with its own action cameras, the company lost its first-mover advantage and now faces an acute shortage of funds.
In 2014, shortly after going public, the company's share price reached $93.85, and its market capitalization was $11 billion. A few years later, GoPro released the Karma drone to compete with DJI's drones, but the project was unsuccessful and was discontinued in January 2018, after which the company returned to its core business of action cameras.
GoPro's revenue fell from over $1 billion in 2023 to $801.5 million in 2024 and $651.5 million in 2025. Last year, the net loss was $93.5 million, and cash on hand as of December was $49.7 million.
In an 8-K report published this week, GoPro's auditor, PricewaterhouseCoopers, expressed "substantial doubt about the company's ability to continue as a going concern." If GoPro cannot raise new financing, it "may have to significantly reduce, restructure, or cease operations, or seek protection under federal bankruptcy laws."
In addition to falling sales, production costs are also rising. Due to high demand from data centers working with artificial intelligence, there is a global shortage of memory chips, leading to price increases. According to GoPro, in the last week of March alone, the company recorded chip price increases of 80% to 115% amid reduced production volumes by chip suppliers.
