GoPro is wondering whether the company will make it to 2028 due to increased memory prices

GoPro has 'substantial concerns' about the future of the company. The company has had problems for some time, but is now suffering from the explosive increase in memory prices. GoPro is therefore considering a sale, among other things. If that fails, the company may cease to exist.

This news in short

- Action cam manufacturer GoPro does not know whether it will still be around in twelve months.

- The company has been losing money for years and now the memory crisis is on top of that.

- GoPro is considering selling business units, but doesn't know if that will be enough.

There are "substantial concerns" about whether GoPro can continue to exist, the company told the American regulator SEC. The company has been doing poorly for some time; GoPro therefore announced in April that it would be laying off 23 percent of its staff. However, GoPro wonders whether that plan can be implemented in time and whether it will be enough to save the company.

Memory crisis potentially devastating blow

In the letter to the SEC, GoPro says that on top of existing revenue problems, memory prices have risen 'unprecedentedly' and are still fluctuating widely. In the last week of March, memory prices are said to have risen by 80 to 115 percent.

In April, suppliers also announced that they would supply less memory, meaning that GoPro can make and sell fewer cameras. GoPro had already ordered $24.5 million worth of other materials for this and that order cannot be canceled. In addition, the company speaks of 'indications' in April and May that there is less demand for GoPro products than expected.

Does not comply with agreements with creditors

GoPro therefore expects that losses will increase, as a result of which the company will not meet agreements with creditors. For example, the company had promised to achieve certain profit targets that are now not being met. Presumably the creditors will want their money back faster.

The company is therefore in discussions with those financiers and is considering other options, such as the sale of certain business units. GoPro is in discussions with parties within the military and aviation sectors for this purpose.

Nevertheless, the company wonders whether this will succeed and whether this is enough, and whether GoPro will still exist in twelve months. GoPro may then be forced to downsize significantly, file for bankruptcy protection or even cease to exist. GoPro had revenue of $651.5 million last year, a gross profit of $219.2 million and a net loss of $93.5 million. The company has been loss-making for years.