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GoPro Inc

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GoPro Inc AI Insights

Informational only. Not investment advice.
As of 2025-12-18

Snapshot

  • Revenue down 37% YoY (TTM 650.8M) with negative EBITDA of -107.2M - accelerating decline vs 3Y CAGR of -19%[Total Revenue 1Y Growth]
  • Tangible book value is -57.8M with goodwill at 133.8M (166% of equity) - balance sheet impairment risk material[Goodwill]
  • Cash burn of 61.4M TTM vs 58.4M cash on hand - less than 12 months runway without financing[Cash Flow]

Watch Triggers

  • Cash and Equivalents: Falls below 40MAt current burn, triggers forced financing or asset sale within 6 months
  • Total Revenue 1Y Growth: Decline moderates to <15%Would signal demand stabilization and extend runway
  • Goodwill: Impairment charge recordedWould eliminate remaining equity cushion, accelerate covenant issues

Bull Case

P/S of 0.39x is 83% below industry median (2.24x) - if turnaround succeeds, significant multiple expansion possible

P/S RatioEnterprise Value

Brand recognition and 34.5% gross margin (TTM) near industry median suggests product still viable if costs right-sized

Gross MarginOperating Expense

Bear Case

Debt/equity of 2.55x with negative tangible equity and current debt 2.4x cash - restructuring or dilution imminent

Debt to EquityTotal DebtTangible Book Value

R&D of 144.7M (22% of revenue) producing accelerating revenue decline - product investment not translating to demand

Research and DevelopmentTotal Revenue 1Y Growth

Bull vs Bear Balance

AI-generated sentiment analysis based on fundamental metrics and market conditions.

BearBull
25%

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Forward Thesis

Liquidity crisis likely within 12 months without asset sales, debt restructuring, or equity raise

3-12mhigh
  • Cash burn rate exceeds cash balance
  • Current debt of 138.5M vs 58.4M cash
  • Negative working capital of -20.3M
FCF TTM: -64.5MCash: 58.4MCurrent liabilities: 379.1M vs current assets: 358.8M

Valuation Context

Caveats

Data Partners
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Fundamental company data provided by Morningstar, updated daily.

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