GoPro Faces Going-Concern Risks Amid Covenant Compliance Issues
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GoPro ( (GPRO) ) has provided an update.
In February 2026, GoPro entered into a securities purchase agreement with YA II PN, Ltd. for up to $50 million of convertible debentures, adding to its existing $50 million second-lien term loan with Farallon Capital and a revolving credit facility with Wells Fargo Bank. The company disclosed that refiling its consolidated financial statements on June 1, 2026, with an auditor going‑concern explanatory paragraph, could be deemed an event of default under these credit facilities, which include cross‑default provisions that may allow lenders to accelerate repayment if covenants are breached.
GoPro warned that restrictive covenants in its 2025 Term Loan and 2021 Credit Facility—covering minimum EBITDA, liquidity, asset coverage ratios, and other financial and operational limits—may constrain its ability to raise capital, pursue acquisitions, or manage liquidity. The company said it anticipates future non‑compliance with these covenants and is in active discussions with Farallon, Wells Fargo and YA II PN, but acknowledged that failure to secure waivers, amendments or additional financing could trigger defaults and leave it without sufficient assets to repay accelerated borrowings, raising substantial doubt about its ability to continue as a going concern as of the December 31, 2025 year‑end.
The most recent analyst rating on (GPRO) stock is a Sell
with a $1.30 price target.
To see the full list of analyst forecasts on GoPro stock,
see the GPRO Stock Forecast page.
Spark’s Take on GPRO Stock
According to Spark, TipRanks’ AI Analyst, GPRO is a Neutral.
The score is held down primarily by weak financial performance (shrinking revenue, deep losses, negative equity, and negative free cash flow). Technicals also indicate a weak trend versus key moving averages, and valuation support is limited due to losses and no dividend. The earnings call adds some upside optionality via a strategic review and new product initiatives, but near-term uncertainty is elevated after guidance withdrawal and sharply weaker reported results.
To see Spark’s full report on GPRO stock,
click here.
More about GoPro
GoPro, Inc. is a U.S.-based consumer electronics company specializing in action cameras, mounts, accessories and related subscription and service offerings, with revenue of $652 million in 2025. Its business depends heavily on hardware sales, variable sales incentives, and ongoing post-contract support, positioning the company in the competitive digital imaging and content-creation hardware market.
Average Trading Volume: 7,877,856
Technical Sentiment Signal: Sell
Current Market Cap: $217M
See more insights into GPRO stock on TipRanks’ Stock Analysis page.
