GoPro enters final stages of potential sale amid quarterly losses

GoPro has announced that its process to evaluate a potential sale of the company has entered the “final stages.” This development follows a difficult second quarter for the action camera manufacturer, which reported a GAAP net loss of $51 million.

Revenue for the quarter fell 31% year-over-year to $104.9 million, driven largely by a 40% decline in hardware revenue. Global camera shipments dropped 38% to approximately 291,000 units. While subscription and service revenue grew by 11% to $29 million, the company faces significant liquidity concerns, with cash and equivalents decreasing to $27.3 million.

CEO Nicholas Woodman indicated that while a deal has not been finalized, the evaluation process approved by the board in May is nearing completion, suggesting a sale could occur within months. The company’s struggles are attributed to intense competition from rivals like DJI and Insta360, as well as rising memory-related costs and a significant decline in retail channel sales.