GoPro shares drop as financing issues delay Q3 filing

What happened

GoPro shares opened about 12% lower on Wednesday after the company reported preliminary third-quarter 2026 revenue of about $96 million, down 41% year over year, and gross margin of 12.7%. It delayed its earnings announcement and quarterly filing while completing accounting and valuation work on financing arrangements.

Confirmed

Global impact / market context

Lower sales and a sharply thinner gross margin leave less money to cover GoPro’s operating costs, while the filing delay points to unresolved work around its financing. That combination can increase uncertainty about its financial position and complicate the pending merger with Starman Optical.

Analyst inference

The article reports a roughly 12% opening share decline and Morgan Stanley’s view that results materially missed its estimates. The brokerage kept an underweight rating, meaning it viewed the shares less favorably than the market benchmark, and called the investment increasingly deal-driven.

Confirmed

What to watch

1. GoPro’s delayed Form 10-Q and earnings announcement could clarify the accounting and valuation of financing arrangements and whether the reported preliminary figures change. Analyst inference
2. The company is seeking lender waivers over certain covenant noncom…; the supplied article text cuts off before stating the full covenant issue or its outcome. Confirmed
3. Updates on the pending Starman Optical merger may show whether financing uncertainty affects its progress or terms, though the article gives no specific timetable or conditions. Analyst inference

Evidence

• seekingalpha.com