GoPro explores possible sale, merger as financial struggles continue
GoPro is officially exploring strategic alternatives — including a possible sale or merger — as the iconic action camera maker looks to reverse ongoing revenue declines and capitalize on growing interest from outside investors in its technology.
The company announced this week that its board of directors has authorized a formal strategic review process following what it described as several “unsolicited inbound strategic inquiries” from parties in the defense, consumer and financial sectors.
As part of that effort, GoPro has retained investment bank Houlihan Lokey as its financial advisor. Law firm Fenwick & West is serving as legal counsel.
“We believe GoPro has substantial unrecognized value that can be realized via a sale of the company or other strategic event,” founder and CEO Nicholas Woodman said in a statement. “Given inbound interest since our announcement, it seems others feel similarly.”
The announcement follows GoPro’s May 11 disclosure that it was evaluating strategic options after receiving outside interest shortly after it expanded its focus into the defense and aerospace markets. Earlier this spring, the company engaged consulting firm Oliver Wyman to pursue opportunities for GoPro’s technology in those sectors.
Mounting financial pressure
For the first quarter ended March 31, the company reported revenue of $99 million, down 26% from $134 million during the same period last year. Retail channel revenue fell 35% year-over-year to $61 million, while unit sell-through declined 29% to 313,000 cameras.
The company also posted a wider adjusted loss of 35 cents per share compared to a 12-cent loss a year ago. Adjusted EBITDA was negative $50 million, versus negative $16 million in the prior-year quarter.
Shares of GoPro surged more than 27% in after-hours trading following the initial strategic review announcement. The company’s market capitalization stood at roughly $224 million prior to the spike.
GoPro has not established a timetable for completing the review process and said there is no guarantee a transaction will occur.
“In authorizing this process, the board plans to work with independent financial and legal advisors,” the company says. “The board and management team remain fully committed to acting in the best interests of the company and its stakeholders throughout this evaluation.”
The company has also been restructuring operations in response to declining sales. Last month, GoPro announced plans to reduce its global workforce by approximately 23% by the end of 2026. Based on its reported headcount of 631 employees at the close of Q1, the move could impact roughly 145 workers.
GoPro’s uncertainty comes as the brand remains deeply embedded in motorcycle, off-road and action sports culture through helmet-mounted cameras, creator partnerships and event sponsorships. Any acquisition or merger could potentially reshape how the brand approaches powersports marketing, OEM relationships and future product development.
