Why Is GPRO Down 7% Overnight?

• GPRO stock fell 7% in overnight trading late on Tuesday.
• GoPro expects September quarter revenue to decline 42% to $96 million.
• Retail sentiment for GPRO was ‘bearish’ as of late Tuesday.

GoPro said on Tuesday that it would delay its third-quarter results, which were due that day, because of previously disclosed accounting-control issues and unfinished accounting and valuation work on financing arrangements entered into during the quarter.

The company, which is in the process of merging with Starman Optical, however posted preliminary September quarter results, which show a continuously declining business. GoPro also said it is seeking waivers from lenders, and failing to secure those would risk its financial position and the impending merger.

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GPRO stock fell 7% in overnight trading late on Tuesday following the disclosure.

GoPro “requires additional time to complete its financial close procedures and documentation for the accounting and valuation of certain financing arrangements entered into during the third quarter of 2026,” the company said in an exchange filing.

“In addition, the Company is actively seeking waivers from its lenders and evaluating the financial reporting and disclosure implications of noncompliance with certain covenants under its financing arrangements if waivers are not received.”

A possible default on debt would constitute the failure of a merger condition, allowing Starman to terminate the deal, GoPro said.

GoPro’s Precarious Position

The latest disclosures highlight GoPro’s precarious financial position. In August, the company said there was substantial doubt about its ability to continue as a going concern because of expected loan-covenant problems and inadequate projected liquidity. 

In May, GoPro began reviewing strategic options, including a sale or merger. In September, it agreed to merge with Starman, a privately-held U.S. company developing and manufacturing optical transceivers and photonics technology. 

In Tuesday’s filing, GoPro said it expects September-quarter revenue of about $96 million, down from $163 million a year earlier. Gross margin is expected at 12.7%, versus 35.1% earlier. Operating expenses are forecast at $60 million, compared with $73 million earlier. 

The action camera maker’s revenue has declined for the last four years. 

Retail View On GPRO

On Stocktwits, the retail sentiment for GPRO remained ‘bearish’ for a second day.

“This is getting hard to hold,” a trader said. Another wrote: “$GPRO I think they are trying to figure out what the final buyout price price is going to be, expect -.50 a share from the 1.14.”

“$GPRO company can't file 10-Q on time and requests extension while also adding "going-concern" statement to Q3.   Next step - company hires bankruptcy consultants and share drops to 20 cents,” a third trader posted.

GPRO stock is down over 46% year to date.

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