GoPro warns it may not survive — memory costs and DJI have pushed it to the brink

GoPro has filed a formal warning with the SEC admitting there is "substantial doubt" about its ability to continue as a going concern — meaning it may not survive beyond next year. Revenue in Q1 2026 dropped 26% to $99 million, well below the $137 million analysts had forecast, and the company posted a $93.5 million net loss for the full year 2025. If you own a GoPro or were thinking of buying one, the brand's future is now genuinely uncertain.

The memory crisis

The headline culprit is not smartphones. Memory chip prices surged 80–110% — driven in part by AI-related demand consuming NAND supply — making GoPro's hardware business structurally unprofitable, according to Bloomberg. The company has already received covenant waivers from its lenders, a sign that its debt obligations are at risk. To cut costs, GoPro laid off 23% of its workforce. Shipments collapsed from 385,000 units in Q1 2025 to 267,000 in Q1 2026 — a drop of nearly a third in a single year.

DJI and the market shift

Memory costs alone didn't create this hole. ChannelNews reports that DJI now holds roughly two-thirds of global action-camera revenue — a position it reached by late 2025. The DJI Osmo Action 6 undercuts GoPro's new flagship MISSION 1 PRO by more than £270 in the UK, while offering comparable specs. GoPro's subscription model, which locks discounts behind an annual fee, hasn't helped its value case against a cheaper, aggressively priced rival.

The MISSION 1 PRO launched on May 28 at £599–£799 in the UK — an ambitious price for a company warning investors it might not exist in 12 months.

What happens next

GoPro's board is actively exploring a sale or merger. No bankruptcy filing has been made yet, and the company insists it is pursuing options. But the going-concern warning is a legal disclosure, not a press release — it signals that management itself cannot guarantee the lights stay on.

For consumers, the practical risk is post-purchase support: firmware updates, warranties, and cloud storage through GoPro's subscription service could all be affected if the company is sold or wound down. Anyone considering the MISSION 1 PRO at its current price should factor that uncertainty in.