GoPro identified material misstatements in its previously issued financial statements for the fiscal year ended December 31, 2025, and quarters ended March 31 and June 30, 2026. The errors stemmed from incorrect valuation of warrant liabilities and convertible debentures, resulting in overstated debt and understated interest expense. Consequently, net loss was adjusted by up to $7 million in prior periods. The accounting failures constituted a default under existing credit facilities and notes; however, the company secured waivers from lenders for these defaults. GoPro plans to file amended 10-K and 10-Q filings to reflect the restatements. The company manufactures action cameras and wearable video technology.
