June 3, 2026, 10:21 am | Read time: 3 minutes
GoPro is fighting for its economic survival. The action camera manufacturer is facing declining revenues, high losses, and significantly increased production costs. The strained financial situation has now led the company to point out potential risks to its own future.
Decline in Revenue Worsens the Situation
Over the past 20 years, GoPro has conquered the action camera market with its Hero cameras. However, the current business development paints a bleak picture for the company’s future. In the first quarter of 2026, it reported significant doubts about further development. Compared to the same period last year, revenue fell by 26 percent.
Available financial resources have also shrunk significantly. Cash reserves recently stood at only 50 million U.S. dollars, equivalent to about 43 million euros. The 2025 fiscal year was already weak. Revenue fell to around 560 million euros. At the same time, GoPro recorded a net loss of approximately 72 million euros.
AI Boom Leads to Rising Production Costs
An important reason for the difficult situation is related to the boom around artificial intelligence. Manufacturers of memory chips are increasingly focusing their production on so-called HBM memory. These components are needed for modern AI systems and data centers and are considered particularly profitable.
For other electronics manufacturers, however, this development has consequences. Standard memory chips are becoming scarcer. According to GoPro, the prices of important components have risen by up to 115 percent. This significantly increases the cost of manufacturing the cameras.
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GoPro Can Hardly Compensate for Higher Costs
Large technology companies often have long-term supply contracts and can better absorb price fluctuations. According to the news portal “TNW,” GoPro is not among these companies. Therefore, the higher prices for memory directly affect profit margins.
Additionally, the manufacturer’s action cameras are mostly sold in a price range of 260 to 430 euros. According to the company, the increased production costs cannot be fully passed on to customers. As a result, less profit remains per device sold.
Company Examines Various Rescue Measures
To stabilize the financial situation, GoPro has already taken several steps. The company is selling assets to obtain additional capital. Additionally, since April 2026, about a quarter of the global workforce has lost their jobs.
Furthermore, management is exploring various strategic options. These include both a possible sale of the company and a merger with another provider. At the same time, GoPro is seeking additional business opportunities and is in talks with potential customers from the government and aviation sectors.
Whether these measures will be sufficient remains open. As of now, there are neither concrete large orders nor long-term commitments that could secure the company’s future.