GOPRO, INC., 10-Q filed on 5/11/2026
Quarterly Report
v3.26.1
Cover - shares
 3 Months Ended
Mar. 31, 2026
Apr. 30, 2026
Class of Stock [Line Items]    
Entity Incorporation, State or Country Code DE  
Entity Tax Identification Number 77-0629474  
Entity Address, Address Line One 3025 Clearview Way  
Entity Address, City or Town San Mateo,  
Entity Address, State or Province CA  
Entity Address, Postal Zip Code 94402  
Title of 12(b) Security Class A common stock, $0.0001 par value  
Trading Symbol GPRO  
Entity Registrant Name GOPRO, INC.  
City Area Code (650)  
Local Phone Number 332-7600  
Entity Central Index Key 0001500435  
Entity Filer Category Accelerated Filer  
Document Type 10-Q  
Document Period End Date Mar. 31, 2026  
Document Transition Report false  
Entity File Number 001-36514  
Document Fiscal Year Focus 2026  
Document Fiscal Period Focus Q1  
Amendment Flag false  
Entity Emerging Growth Company false  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Shell Company false  
Security Exchange Name NASDAQ  
Entity Small Business true  
Current Fiscal Year End Date --12-31  
Document Quarterly Report true  
Common Class A [Member]    
Class of Stock [Line Items]    
Entity Common Stock, Shares Outstanding   144,724,434
Common Class B [Member]    
Class of Stock [Line Items]    
Entity Common Stock, Shares Outstanding   26,258,546
v3.26.1
Condensed Consolidated Balance Sheets - USD ($)
Mar. 31, 2026
Dec. 31, 2025
Current assets:    
Cash, Cash Equivalents, and Short-Term Investments $ 40,723,000  
Accounts receivable, net 61,858,000 $ 93,513,000
Inventory 72,205,000 78,431,000
Prepaid expenses and other current assets 32,508,000 30,951,000
Total current assets 207,294,000 252,569,000
Property and equipment, net 7,772,000 5,903,000
Operating Lease, Right-of-Use Asset 10,580,000 11,138,000
Goodwill 133,751,000 133,751,000
Other long-term assets 21,958,000 24,622,000
Total assets 381,355,000 427,983,000
Current liabilities:    
Accounts payable 91,366,000 97,012,000
Accrued expenses and other current liabilities 130,146,000 95,856,000
Short-term operating lease liabilities 10,319,000 12,069,000
Deferred revenue 53,077,000 52,636,000
Short-term Debt 71,954,000 19,598,000
Total current liabilities 356,862,000 277,171,000
Long-term taxes payable 14,146,000 13,544,000
Long-term debt 0 44,322,000
Long-term operating lease liabilities 6,397,000 7,329,000
Other long-term liabilities 5,819,000 9,067,000
Total liabilities 383,224,000 351,433,000
Commitments, contingencies and guarantees
Stockholders’ equity:    
Preferred Stock, Value, Outstanding 0 0
Common Stocks, Including Additional Paid in Capital 1,047,276,000 1,044,875,000
Treasury Stock, Value 193,231,000 193,231,000
Accumulated deficit (855,914,000) (775,094,000)
Total stockholders’ equity (1,869,000) 76,550,000
Total liabilities and stockholders’ equity $ 381,355,000 $ 427,983,000
Preferred Stock    
Stockholders’ equity:    
Preferred Stock, par value (usd per share) $ 0.0001 $ 0.0001
Preferred Stock, Shares Authorized (shares) 5,000,000 5,000,000
Preferred Stock, Shares Issued (shares) 0 0
Common Class A [Member]    
Stockholders’ equity:    
Common Stock, Shares Authorized (shares) 500,000,000 500,000,000
Common Stock, Shares, Issued 137,904,000 136,056,000
Common stock outstanding (shares) 137,904,000 136,056,000
Common stock, par value (in dollars per share) $ 0.0001 $ 0.0001
Common Class B [Member]    
Stockholders’ equity:    
Common Stock, Shares Authorized (shares) 150,000,000 150,000,000
Common Stock, Shares, Issued 26,259,000 26,259,000
Common stock outstanding (shares) 26,259,000 26,259,000
Common stock, par value (in dollars per share) $ 0.0001 $ 0.0001
Treasury Stock, Common    
Stockholders’ equity:    
Treasury Stock, Common, Shares 26,608,000 26,608,000
v3.26.1
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares
Mar. 31, 2026
Dec. 31, 2025
Common Class A [Member]    
Common stock, par value (in dollars per share) $ 0.0001 $ 0.0001
Common Stock, Shares Authorized (shares) 500,000,000 500,000,000
Common Stock, Shares, Issued 137,904,000 136,056,000
Common stock outstanding (shares) 137,904,000 136,056,000
Common Class B [Member]    
Common stock, par value (in dollars per share) $ 0.0001 $ 0.0001
Common Stock, Shares Authorized (shares) 150,000,000 150,000,000
Common Stock, Shares, Issued 26,259,000 26,259,000
Common stock outstanding (shares) 26,259,000 26,259,000
v3.26.1
Condensed Consolidated Statements of Operations - USD ($)
shares in Thousands, $ in Thousands
 3 Months Ended
Mar. 31, 2026
Mar. 31, 2025
Revenues, Total $ 99,065 $ 134,308
Cost of revenue 94,759 91,159
Gross profit 4,306 43,149
Operating expenses:    
Research and development 28,435 29,557
Sales and marketing 23,218 23,258
General and administrative 9,898 16,942
Goodwill, Impairment Loss 0 18,600
Total operating expenses 61,551 88,357
Operating loss (57,245) (45,208)
Interest Income (Expense), Operating and Nonoperating (4,118) (797)
Total other income (expense), net (17,612) 948
Nonoperating Income (Expense) (21,730) 151
Loss before income taxes (78,975) (45,057)
Income tax expense 1,845 1,652
Net loss $ (80,820) $ (46,709)
Earnings Per Share, Diluted $ (0.50) $ (0.30)
Weighted Average Number of Shares Outstanding, Diluted 163,208 156,438
Hardware    
Revenues, Total $ 72,150 $ 107,419
Cost of revenue 85,689 83,596
Subscription and services    
Revenues, Total 26,915 26,889
Cost of revenue $ 9,070 $ 7,563
v3.26.1
Condensed Consolidated Statements of Cash Flows - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2026
Mar. 31, 2025
Noncash Investing and Financing Items [Abstract]    
Non-cash consideration related to debt extinguishment $ 8,731 $ 0
Non-cash Refinancing, Debt extinguished 44,745 0
Non-cash Refinancing, Debt Issued 44,884 0
Debt discount related to derivative liability 23,309 0
Operating activities:    
Net loss (80,820) (46,709)
Adjustments to reconcile net loss to net cash used in operating activities:    
Depreciation and amortization 1,794 1,718
operating lease, right-of-use asset, periodic reduction, net 1,360 (215)
Stock-based compensation 2,998 5,370
Goodwill, Impairment Loss 0 18,600
Deferred income taxes, net 573 103
Gain (Loss) on Extinguishment of Debt 8,870 0
Derivative Expense 7,552 0
Derivative, Gain (Loss) on Derivative, Net 5,652 0
Other 2,124 106
Changes in operating assets and liabilities:    
Accounts receivable, net 31,515 9,309
Inventory 6,226 24,434
Prepaid expenses and other current assets (236) (5,068)
Accounts payable and other liabilities (24,294) (63,050)
Deferred revenue 68 (1,784)
Cash Provided by (Used in) Operating Activity, Including Discontinued Operation (36,618) (57,186)
Investing activities:    
Purchases of property and equipment, net (1,043) (1,305)
Net cash used in investing activities (1,043) (1,305)
Financing activities:    
Proceeds from issuance of common stock 303 374
Payment, Tax Withholding, Share-based Payment Arrangement (429) (503)
Proceeds from Lines of Credit 30,250 25,000
Repayments of Lines of Credit (375) 0
Payments of Debt Issuance Costs (941) 0
Net cash provided by financing activities 28,808 24,871
Effect of Exchange Rate on Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents (98) 443
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect (8,951) (33,177)
Cash and cash equivalents $ 40,723 $ 69,634
v3.26.1
Condensed Consolidated Statements Stockholders' Equity (Deficit) - USD ($)
shares in Thousands, $ in Thousands
Total
Retained Earnings [Member]
Treasury Stock, Common
Common Stock Including Additional Paid in Capital [Member]
Stockholders' Equity Attributable to Parent $ 151,689 $ (681,607) $ (193,231) $ 1,026,527
Shares, Outstanding       155,455
Net loss (46,709) (46,709)    
Common stock issued under employee benefit plans, net of shares withheld for tax 360     $ 360
Common stock issued under employee benefit plans, net of shares withheld for tax (shares)       2,095
Share-based Payment Arrangement, Decrease for Tax Withholding Obligation (503)     $ 503
APIC, Share-Based Payment Arrangement, Increase for Cost Recognition       5,143
Allocated share-based compensation expense 5,143      
Stockholders' Equity Attributable to Parent 109,980 (728,316) (193,231) $ 1,031,527
Shares, Outstanding       157,550
Stockholders' Equity Attributable to Parent 76,550 (775,094) (193,231) $ 1,044,875
Shares, Outstanding       162,315
Net loss (80,820) (80,820)    
Common stock issued under employee benefit plans, net of shares withheld for tax 303     $ 303
Common stock issued under employee benefit plans, net of shares withheld for tax (shares)       1,848
Share-based Payment Arrangement, Decrease for Tax Withholding Obligation (429)     $ 429
APIC, Share-Based Payment Arrangement, Increase for Cost Recognition       2,527
Allocated share-based compensation expense 2,527      
Stockholders' Equity Attributable to Parent $ (1,869) $ (855,914) $ (193,231) $ 1,047,276
Shares, Outstanding       164,163
v3.26.1
Summary of business and significant accounting policies
 3 Months Ended
Mar. 31, 2026
Accounting Policies [Abstract]  
Summary of business and significant accounting policies
GoPro, Inc. and its subsidiaries (GoPro or the Company) make it easy for the world to capture and share itself in immersive and exciting ways, helping people get the most out of their photos and videos. The Company is committed to developing solutions that create an easy, seamless experience for consumers to capture, create, manage and share engaging personal content. To date, the Company’s cameras, mountable and wearable accessories, subscription and service, and implied post contract support have generated substantially all of its revenue. The Company sells its products globally on its website, and through retailers and wholesale distributors. The Company’s global corporate headquarters are located in San Mateo, California.
Basis of presentation. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles (GAAP) for financial information set forth in the Accounting Standards Codification (ASC), as published by the Financial Accounting Standards Board (FASB), and with the applicable rules and regulations of the Securities and Exchange Commission (SEC). The Company’s fiscal year ends on December 31, and its fiscal quarters end on March 31, June 30, and September 30.
The condensed consolidated financial statements reflect all adjustments, which are normal and recurring in nature, that management believes are necessary for the fair statement of the Company's financial statements, but are not necessarily indicative of the results expected in future periods. The condensed consolidated balance sheet as of December 31, 2025 has been derived from the audited financial statements at that date, but does not include all the disclosures required by GAAP. This Quarterly Report on Form 10-Q should be read in conjunction with the Company's Annual Report on Form 10-K for the year ended December 31, 2025. There have been no material changes in the Company’s critical accounting policies and estimates from those disclosed in its Annual Report on Form 10-K for the year ended December 31, 2025.
Principles of consolidation. These condensed consolidated financial statements include all the accounts of the Company and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation.
Use of estimates. The preparation of condensed consolidated financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the amounts reported and disclosed in the Company’s condensed consolidated financial statements and accompanying notes. Significant estimates and assumptions made by management include those related to revenue recognition and the allocation of the transaction price (including sales incentives, sales returns and implied post contract support), inventory valuation, product warranty liabilities, the valuation, impairment and useful lives of long-lived assets (property and equipment, operating lease right-of-use assets, intangible assets and goodwill), the valuation of derivative liabilities, and income taxes. The Company bases its estimates and assumptions on historical experience and on various other factors that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results could differ materially from management’s estimates. To the extent there are material differences between the estimates and the actual results, future results of operations could be affected.
Liquidity and Going Concern. The accompanying condensed consolidated financial statements have been prepared assuming the Company will continue as a going concern, which contemplates the continuity of operations, realization of assets, and the satisfaction of liabilities and commitments in the normal course of business. U.S. GAAP requires an evaluation of whether there are conditions or events, considered in the aggregate, that raise substantial doubt about an entity’s ability to continue as a going concern within one year after the date the financial statements are issued. This evaluation initially does not consider the potential mitigating effect of management’s plans that have not been fully implemented. When substantial doubt exists, management evaluates the mitigating effect of its plans to the extent it is probable that (1) the plans will be effectively implemented within one year after the date the financial statements are issued, and (2) when implemented, the plans will mitigate the relevant conditions or events that raise substantial doubt about the entity’s ability to continue as a going concern within one year after the date the financial statements are issued.
During the three months ended March 31, 2026, the Company’s performance continued to be adversely impacted by an increasingly global competitive landscape, consumer-related macroeconomic issues resulting in a softer global consumer market, rising memory costs and supply constraints. During the three months ended March 31, 2026 and 2025, total revenue was $99.1 million and $134.3 million, respectively, representing a 26.2% decline year-over-year. As a result, the Company incurred operating losses of $57.2 million and operating cash outflows of $36.6 million during the three months ended March 31, 2026. As of March 31, 2026 and December 31, 2025, the Company had cash and cash equivalents of $40.7 million and $49.7 million, respectively, an aggregate principal debt balance outstanding of $99.9 million and $69.3 million, respectively, and an accumulated deficit of $855.9 million and $775.1 million, respectively. Additionally, as of March 31, 2026, the Company was not in compliance with the financial covenants under its 2025 Credit Agreement due to the impact of the timing of redemption of sales incentives, revenue mix, and timing of working capital changes which impact the covenant calculation. The Company subsequently received a waiver from the lender of the 2025 Credit Agreement on May 8, 2026. Future non-compliance with financial covenants may limit the Company’s access to existing credit facilities or result in an acceleration of debt obligations, which would further adversely impact liquidity.
As of March 31, 2026, and through the issuance date of these financial statements, the Company’s forecast has been significantly impacted by events which were not known or reasonably knowable as of the issuance date of the annual financial statements including: (1) unprecedented increases and volatility in memory costs, including unexpected price increases ranging from 80% to 115% in the last week of March 2026; (2) communication from the Company’s memory suppliers in April 2026 regarding planned reductions in the production of the memory used in its products causing a reduction in forecasted sales volumes of certain products which also impacted the Company’s expected utilization of materials subject to a non-cancelable non-refundable purchase commitment of $24.5 million; and (3) indications in April and May 2026 of further softness in the sales channel. As a result, the Company expects to continue to incur operating losses and negative operating cash flows, further reducing liquidity and increasing reliance on external sources of capital. Additionally, the Company has not met certain covenants in the last two quarters which were subsequently cured or waived and does not expect to be able to meet the future minimum financial covenants in its 2021 Credit Agreement and 2025 Credit Agreement, including, but not limited to minimum liquidity, minimum EBITDA and a minimum asset coverage ratio, as further discussed in Note 4. Financing arrangements. As a result, the Company classified as current, all obligations under the 2021 Credit Agreement, 2025 Credit Agreement and the Convertible Debentures, as direct default and cross-default provisions embedded in each respective agreement could, upon an event of default, permit the applicable lenders to declare all outstanding principal and accrued interest immediately due and payable. Based on current projections, the Company does not expect to have sufficient liquidity to meet its obligations as they become due within one year after the issuance of these condensed consolidated financial statements. These conditions, considered in the aggregate, raise substantial doubt about the Company’s ability to continue as a going concern within one year after the date that these condensed consolidated financial statements are issued.
In response to these conditions, the Company has received approval from its Board of Directors to engage outside advisors to evaluate strategic alternatives including a potential sale or merger of the business and have engaged outside advisors to explore opportunities within the defense and aerospace sector to leverage the Company’s existing technology in new markets and product categories. The Company is also evaluating opportunities to sell certain non-critical assets and to secure additional financing through debt or equity securities. The Company is actively evaluating potential remediation options for the expectation that it will be unable to comply with its financial covenants under the 2021 Credit Agreement and the 2025 Credit Agreement within the next twelve months, including seeking waivers or amendments from its lenders. The Company continues to focus on optimizing the revenue mix and pricing strategies, and reducing operating expenses through disciplined cost management. The Company announced a restructuring plan in April 2026 to reduce its global workforce by approximately 23% compared to its headcount ending Q1 2026, as discussed in Note 13. Subsequent events. The restructuring plan is being implemented in the second quarter of 2026 and is expected to be substantially complete by the end of 2026. The Company expects to incur an aggregate severance charge in the range of $11.5 million to $15.0 million.
The Company has evaluated whether the plans described above are sufficient to alleviate the substantial doubt about the Company’s ability to continue as a going concern. Under this evaluation, the Company assessed whether it is probable that (1) the plans will be effectively implemented within one year after the date the financial
statements are issued, and (2) when implemented, the plans will mitigate the conditions and events that raise substantial doubt. The Company has determined that, while the plans described above are intended to improve the Company’s liquidity and operating results, certain elements of these plans have not been fully implemented and are dependent upon factors outside the Company’s control, including the ability to secure additional financing and the successful execution of new market initiatives, and therefore cannot be deemed probable. As a result, substantial doubt about the Company’s ability to continue as a going concern has not been alleviated. There can be no assurance that the Company will be able to generate the level of operating revenue or reduce operating expenses to levels to achieve profitability and generate cash, obtain waivers or amendments from the lenders related to financial covenants, source additional financing or ensure the availability of strategic alternatives on acceptable terms, if at all. Without obtaining additional sources of financing or consummating a strategic transaction, the Company’s ability to continue as a going concern would be materially and adversely impacted, and the Company may be required to significantly reduce, restructure or cease operations. The condensed consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.
Comprehensive income (loss). For all periods presented, comprehensive income (loss) approximated net income (loss). Therefore, the condensed consolidated statements of comprehensive income (loss) have been omitted.
Prior period reclassifications. Reclassifications of certain prior period amounts in the condensed consolidated financial statements have been made to conform to the current period presentation.
IEEPA Tariff Recovery. During the three months ended March 31, 2026, the U.S. Supreme Court ruled that tariffs imposed under the International Emergency Economic Powers Act (IEEPA) were unlawful. On April 20, 2026, U.S. Customs and Border Protection launched the Consolidated Administration and Processing of Entries (CAPE) process, under which, companies can submit claims to seek refunds of previously paid IEEPA tariffs. The Company has elected to apply a gain contingency model in accordance with ASC 450-30, Gain Contingencies, to account for potential recoveries of previously paid IEEPA tariffs. Under this model, a gain contingency is not recognized in the condensed consolidated financial statements until the gain is realized or realizable, which is at the earlier of when U.S. Customs and Border Protection (CBP) affirms the Company’s refund claim or the refund is received in cash. Any recovery, when recognized, would be reflected as a reduction of cost of revenue. The Company paid an aggregate amount of $20.2 million in tariffs under the IEEPA. In connection with the 2025 Credit Agreement amendment on February 27, 2026, the Company entered into a Claim Sale and Purchase Agreement (the IEEPA Agreement) with the lender on February 19, 2026, pursuant to which the Company transferred to the lender certain of the Company’s rights and claims for potential refunds of tariffs previously paid under IEEPA, representing an aggregate claim amount of approximately $19.4 million (the IEEPA Claim), as further discussed in Note 4 Financing arrangements. On the date of transfer, the Company assigned no value to the IEEPA Claim on the condensed consolidated balance sheet due to the significant uncertainty of any potential recovery prior to the U.S. Supreme Court’s ruling in Learning Resources, Inc. v. Trump. As a result of the IEEPA Agreement, the Company will not have rights for any future proceeds from the transferred IEEPA Claim.
Impairment of goodwill and long-lived assets. The Company performs an annual assessment of its goodwill during the fourth quarter of each calendar year, or more frequently if indicators of potential impairment exist, such as an adverse change in business climate, declines in market capitalization or a decline in the overall industry demand, that would indicate it is more likely than not that the fair value of its single reporting unit is less than its carrying value. If the Company determines that it is more likely than not that the fair value of its single reporting unit is less than the carrying value, the Company measures the amount of impairment as the amount the carrying value of its single reporting unit exceeds the fair value, up to the carrying value of goodwill, by using a discounted cash flow method and market approach method.
In the first quarter of 2025, the Company’s market capitalization declined 38% from December 31, 2024, in part due to tariffs and geopolitical events, resulting in the Company’s market capitalization to no longer exceed the carrying value of its single reporting unit as of March 31, 2025. As a result, the Company performed a quantitative goodwill impairment analysis and estimated the fair value of its single reporting unit utilizing the income approach using a discounted future cash flow model and a market approach. The analysis required estimates which consisted of significant judgment related to the estimation of future cash flow and discount rates. The analysis
was dependent on internal forecasts and profitability measures as well as certain unobservable Level 3 inputs such as the estimation of long-term revenue growth rates, terminal growth rates, and determination of the discount rate. As a result of the quantitative impairment test, the Company concluded that the carrying value of its single reporting unit exceeded its fair value, resulting in the recognition of an $18.6 million goodwill impairment charge in the first quarter of 2025.
The Company completed its annual impairment test of goodwill as of December 31, 2025 using a qualitative assessment and concluded that it was not more likely than not that the fair value of the Company’s single reporting unit was less than the carrying value. Additionally, as of December 31, 2025, the market capitalization exceeded the carrying value of the Company’s single reporting unit by 67%, which was not adjusted for an acquisition control premium, which would further increase the percentage the fair value exceeded the carrying value.
In the first quarter of 2026, the Company identified goodwill impairment triggering events, including: (i) the conclusion of substantial doubt regarding the Company’s ability to continue as a going concern, which represents a negative qualitative indicator; and (ii) a significant decline in revenue and gross margin compared to the prior year period. As a result, the Company performed an interim qualitative goodwill impairment assessment as of March 31, 2026. The Company evaluated each triggering event and concluded that, while they represent negative qualitative factors, the quantitative evidence did not indicate that these events would more likely than not reduce the reporting unit’s fair value below its carrying amount. Specifically, as of March 31, 2026, the Company’s market capitalization of $126.4 million exceeded the carrying value of its single reporting unit of negative $1.9 million by approximately 101%, before any acquisition control premium, representing the synergies a market participant would obtain when obtaining control of the business. Based on this assessment, the Company concluded it is not more likely than not that the fair value of its single reporting unit is less than its carrying value, and no goodwill impairment charge was recorded in the first quarter of 2026.
The estimated fair value of the Company’s single reporting unit is affected by volatility in the Company’s stock price. As a sensitivity, even a 50% decline in the Company’s March 31, 2026 stock price would result in the Company’s market capitalization exceeding the carrying value of its single reporting unit by more than 100%, before any acquisition control premium. If the Company's market capitalization declines, or if future performance falls below the Company’s current expectations, assumptions, or estimates, including assumptions related to current macroeconomic uncertainties, this may trigger a future material non-cash goodwill impairment charge, which could have a material adverse effect on the Company’s business, financial condition, and results of operations in the reporting period in which a charge would be necessary. The Company will continue to monitor developments, including updates to the Company’s forecasts and market capitalization, and will update the Company’s assessment and related estimates as needed in the future.
Long-lived assets, such as property and equipment, intangible assets subject to amortization, and right-of-use assets, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset group may not be recoverable. Recoverability of assets to be held and used is measured by comparing the carrying amount to the estimated future undiscounted cash flows expected to be generated by the asset group. If it is determined that an asset group is not recoverable, an impairment charge is recognized for the amount by which the carrying amount of the asset group exceeds its fair value.
As a result of the same impairment triggering events identified, which resulted in an interim qualitative goodwill impairment assessment, the Company performed an interim quantitative long-lived asset impairment assessment as of March 31, 2026. As the Company has a single asset group, the Company considered the undiscounted operating and disposal cash flows to assess recoverability. Based on this assessment, the Company concluded the carrying amount of its long-lived assets are recoverable and no long-lived asset impairment charge was recorded in the first quarter of 2026.
Revenue recognition. The Company derives substantially all of its revenue from the sale of cameras, mounts, accessories, subscription and service, and implied post contract support to customers. The transaction price recognized as revenue represents the consideration the Company expects to be entitled to and is primarily comprised of hardware revenue, net of returns and variable consideration, which includes sales incentives provided to customers.
The Company’s camera sales contain multiple performance obligations that can include the following four separate obligations: (i) a camera hardware component (which may be bundled with hardware accessories) and the embedded firmware essential to the functionality of the camera component delivered at the time of sale; (ii) a subscription and service; (iii) the implied right for the customer to receive post contract support after the initial sale (PCS); and (iv) the implicit right to the Company’s downloadable free apps and software solutions. The Company’s PCS includes the right to receive, on a when and if available basis, future unspecified firmware upgrades and features as well as bug fixes, and email, chat, and telephone support.
The Company recognizes revenue from its sales arrangements when control of the promised goods or services are transferred to its customers, in an amount that reflects the amount of consideration expected to be received in exchange for the transferred goods or services. For the sale of hardware products, including related firmware and free software solutions, revenue is recognized when transfer of control occurs at a point in time, which generally is at the time the hardware product is shipped and collection is considered probable. For customers who purchase hardware products directly from GoPro.com, the Company retains a portion of the risk of loss on these sales during transit, which are accounted for as fulfillment costs. For PCS, revenue is recognized ratably over 24 months, which represents the estimated period PCS is expected to be provided based on historical experience.
The Company’s subscription and service revenue is recognized primarily from its Premium+, Premium, and Quik subscription offerings and is recognized ratably over the subscription term, with any payments received in advance of services rendered recorded as deferred revenue. The Company’s Premium+ subscription includes cloud storage up to 500 gigabytes (GB) of non-GoPro content, access to GoPro’s HyperSmooth Pro video stabilization software, and the features included in the Premium subscription. The Company’s Premium subscription offers a range of services, including unlimited cloud storage of GoPro content supporting source video and photo quality, damaged camera replacement, cloud storage up to 100 GB of non-GoPro content, highlight videos automatically delivered via the Company’s mobile app when GoPro camera footage is uploaded to a GoPro cloud account using Auto Upload, access to a high-quality live streaming service on GoPro.com as well as discounts on GoPro cameras, gear, mounts, and accessories. The Company also offers the Quik subscription that provides access to a suite of simple single-clip and multi-clip editing tools.
For the Company’s camera sale arrangements with multiple performance obligations, revenue is allocated to each performance obligation based on its relative standalone selling price. Standalone selling prices are based on observable prices at which the Company separately sells its hardware products, and subscription and service. If a standalone selling price is not directly observable, then the Company estimates the standalone selling prices considering market conditions and entity-specific factors. For example, the standalone selling price for PCS is determined based on a cost-plus approach, which incorporates the level of support provided to customers, estimated costs to provide such support, and the amount of time and costs that are allocated to efforts to develop undelivered elements.
The Company’s standard terms and conditions for non-web-based sales do not allow for product returns other than under warranty. However, the Company grants limited rights of return, primarily to certain large retailers. The Company reduces revenue and cost of revenue for the estimated returns based on analyses of historical return trends by customer class and other factors. An estimated return liability along with a right to recover assets are recorded for future product returns. Return trends are influenced by product life cycles, new product introductions, market acceptance of products, product sell-through, the type of customer, seasonality, and other factors. Return rates may fluctuate over time but are sufficiently predictable to allow the Company to estimate expected future product returns.
The Company provides sales commissions to internal and external sales representatives which are earned in the period in which revenue is recognized. As a result, the Company expenses sales commissions as incurred.
Deferred revenue as of March 31, 2026 and December 31, 2025 includes amounts related to the Company’s subscriptions and PCS. The Company’s short-term and long-term deferred revenue balances totaled $54.3 million and $54.2 million as of March 31, 2026 and December 31, 2025, respectively. During the three months ended March 31, 2026 and 2025, the Company recognized $21.9 million and $23.0 million of revenue that was included in the deferred revenue balance as of December 31, 2025 and 2024, respectively.
Sales incentives. The Company offers sales incentives through various programs, including cooperative advertising, price protection, marketing development funds, and other incentives. Sales incentives are considered to be variable consideration, which the Company estimates and records as a reduction to revenue at the date of sale. The Company estimates sales incentives based on historical experience, product sell-through, and other factors.
Derivative financial instruments. The Company evaluates its financial instruments to determine if such instruments are derivatives or contain features that qualify as embedded derivatives in accordance with ASC Topic 815 Derivatives and Hedging. For derivative financial instruments that are accounted for as liabilities, the derivative instrument is initially recorded at its fair value and is then marked-to-market at each reporting date, with changes in fair value recorded in other income (expense), net, in the condensed consolidated statements of operations. The Company determined that the conversion feature of the Convertible Debentures created a derivative liability that required bifurcation from the host debt instrument as discussed in Note 4 Financing arrangements. A Monte Carlo simulation was used to determine the fair value of the derivative liability. Additionally, the IEEPA Claim in the IEEPA Agreement created a derivative liability as discussed in Note 4 Financing arrangements. The fair value of the IEEPA Claim was determined based on observable transaction prices for identical IEEPA refund rights.
Income taxes. The Company utilizes the asset and liability method for computing its income tax provision, under which, deferred tax assets and liabilities are recognized for the expected future consequences of temporary differences between the financial reporting and tax bases of assets and liabilities using enacted tax rates. The Company makes estimates, assumptions, and judgments to determine the Company’s provision for income taxes, deferred tax assets and liabilities, and any valuation allowance recorded against deferred tax assets. The Company assesses the likelihood that its deferred tax assets will be recovered from future taxable income in each tax jurisdiction and, to the extent the Company believes recovery is not likely, establishes a valuation allowance. As of March 31, 2026, the Company intends to continue to maintain a full valuation allowance on its United States federal and state deferred tax assets until there is sufficient evident to support the reversal of all or some portion of these allowances.
The Company recognizes the tax benefit from an uncertain tax position only if it is more likely than not the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized from such positions are then measured based on the largest benefit that has a greater than 50% likelihood of being realized upon settlement. Interest and penalties related to unrecognized tax benefits are recognized within income tax expense.
Segment information. The Company operates as one operating segment as it only reports financial information on an aggregated and consolidated basis to its Chief Executive Officer, who is the Company’s chief operating decision maker (CODM). The CODM assesses performance of the Company’s one operating segment and decides how to allocate resources based on net income (loss), which is also reported on the condensed consolidated statements of operations as net income (loss). The CODM regularly compares net income (loss) against forecast and prior periods when deciding which areas of the business to allocate resources. The significant expense categories within net income (loss) that the CODM regularly reviews are cost of revenue and operating expenses, which consists of three main subcategories: research and development, sales and marketing, and general and administrative. All significant expense categories and subcategories are reported on the condensed consolidated statements of operations. Other items included in net income (loss) but are excluded from the significant expense categories include interest expense, other income (expense), net, and income tax expense (benefit), all of which are also reported on the condensed consolidated statements of operations. Interest income, which is included in other income (expense), net was $0.4 million and $0.5 million for the three months ended March 31, 2026 and 2025, respectively.
Recent accounting standards.
StandardDescription
Effect on the condensed consolidated financial statements or other significant matters
Standards not yet adopted
Income Statement Reporting - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses
ASU No. 2024-03
This guidance is designed to improve financial reporting by requiring public business entities to disclose additional information about specific expense categories in the notes to financial statements at interim and annual reporting periods, including amounts and qualitative descriptions of inventory purchases, employee compensation, depreciation and intangible asset amortization, among other requirements. This standard is effective for fiscal years beginning after December 15, 2026, and for interim reporting periods beginning after December 15, 2027, with early adoption is permitted. The standard should be applied prospectively, however retrospective application is permitted.The Company is currently evaluating the impact of adopting this standard on its financial statements and related disclosures.
Although there are several other new accounting standards issued or proposed by the FASB, which the Company has adopted or will adopt, as applicable, the Company does not believe any of these accounting pronouncements has had or will have a material impact on its condensed consolidated financial statements.
Accounting Standards Update and Change in Accounting Principle
Recent accounting standards.
StandardDescription
Effect on the condensed consolidated financial statements or other significant matters
Standards not yet adopted
Income Statement Reporting - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses
ASU No. 2024-03
This guidance is designed to improve financial reporting by requiring public business entities to disclose additional information about specific expense categories in the notes to financial statements at interim and annual reporting periods, including amounts and qualitative descriptions of inventory purchases, employee compensation, depreciation and intangible asset amortization, among other requirements. This standard is effective for fiscal years beginning after December 15, 2026, and for interim reporting periods beginning after December 15, 2027, with early adoption is permitted. The standard should be applied prospectively, however retrospective application is permitted.The Company is currently evaluating the impact of adopting this standard on its financial statements and related disclosures.
Although there are several other new accounting standards issued or proposed by the FASB, which the Company has adopted or will adopt, as applicable, the Company does not believe any of these accounting pronouncements has had or will have a material impact on its condensed consolidated financial statements.
v3.26.1
Fair value measurements
 3 Months Ended
Mar. 31, 2026
Fair Value Disclosures [Abstract]  
Fair Value measurements Fair value measurements
The Company’s assets that are measured at fair value on a recurring basis within the fair value hierarchy are summarized as follows:
March 31, 2026December 31, 2025
(in thousands)Level 1Level 2Level 3TotalLevel 1Level 2Level 3Total
Cash equivalents (1):
Money market funds$15,502 $— $— $15,502 $40,120 $— $— $40,120 
Total cash equivalents$15,502 $— $— $15,502 $40,120 $— $— $40,120 
Other long-term liabilities
Warrant liability$— $— $3,504 $3,504 $— $— $6,255 $6,255 
Derivative liabilities— 14,552 30,692 45,244 — — — — 
Total other long-term liabilities$— $14,552 $34,196 $48,748 $— $— $6,255 $6,255 
(1)    Included in cash and cash equivalents in the accompanying condensed consolidated balance sheets. Cash balances were $25.2 million and $9.6 million as of March 31, 2026 and December 31, 2025, respectively.
Cash equivalents are classified as Level 1 because the Company uses quoted market prices to determine their fair value. As of March 31, 2026 and December 31, 2025, the amortized cost of the Company’s cash equivalents approximated their fair value and there were no material realized or unrealized gains or losses, either individually or in the aggregate. The liability-classified warrants are classified as Level 3 and are valued based on a Black-Scholes option pricing model each reporting period.
The fair value of the warrants was estimated with the following assumptions:
March 31, 2026
Volatility90 %
Risk-free interest rate3.8 %
Dividend yield— %
Expected term (years)1.81
The expected term is assumed to be equivalent to the remaining contractual term. The Company estimates the expected volatility of its common stock based on the Company’s historical volatility. The risk-free interest rate is based on the U.S. Treasury zero-coupon yield curve on the valuation date for a maturity similar to the remaining expected term. The Company does not plan to pay a dividend during the warrant term, and has not historically, thus the dividend rate will remain at zero.
The conversion feature associated with the Convertible Debentures met the criteria for a derivative liability under ASC 815 which required bifurcation. The Company used a Monte Carlo simulation to fair value the derivative liability associated with the Convertible Debentures conversion feature and classified the derivative liability as a Level 3 financial instrument. The derivative liability was measured at fair value upon issuance and subsequently remeasured at fair value on a recurring basis. Changes in the fair value of the derivative liability was recorded in other income (expense), net, in the condensed consolidated statements of operations. The fair value of the derivative liability associated with the Convertible Debentures was estimated with the following assumptions:
March 31, 2026
Volatility105 %
Risk-free/credit spread interest rate20.3 %
Dividend yield— %
Conversion price discount92 %
Changes in the fair value of the Level 3 warrant liability and derivative liability related to the conversion feature of the Convertible Debentures during the three months ended March 31, 2026 were as follows:
(in thousands)
Warrant LiabilityDerivative Liability associated with the Convertible Debentures
Balance as of December 31, 2025$6,255 $— 
Issuance of warrants or derivative liability— 30,861 
Change in fair value(2,751)(169)
Balance as of March 31, 2026$3,504 $30,692 
The IEEPA Claim in the IEEPA Agreement created a derivative liability and the Company used observable transaction prices for identical IEEPA refund rights to determine the fair value. The Company classified the derivative liability associated with the IEEPA Claim as a Level 2 financial instrument as there was a limited number of transactions in the market. The derivative liability was measured at fair value upon issuance and subsequently remeasured at fair value on a recurring basis. Changes in the fair value of the derivative liability was recorded in other income (expense), net, in the condensed consolidated statements of operations.
For certain other financial assets and liabilities, including accounts receivable, accounts payable and other current assets and liabilities, the carrying amounts approximate their fair value primarily due to the relatively short maturity of these balances.
The Company also measures certain non-financial assets at fair value on a nonrecurring basis, primarily goodwill, intangible assets, and operating lease right-of-use assets, in connection with periodic evaluations for potential impairment. In the first quarter of 2025, the fair value of the Company’s single reporting unit was determined
based on unobservable (Level 3) inputs, as discussed in Note 1 Summary of business and significant accounting policies.
v3.26.1
Condensed consolidated financial statement details
 3 Months Ended
Mar. 31, 2026
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Consolidated financial statement details
The following section provides details of selected balance sheet items.
Inventory
(in thousands)
March 31, 2026December 31, 2025
Components
$2,621 $2,554 
Finished goods
69,584 75,877 
Total inventory$72,205 $78,431 
Property and equipment, net
(in thousands)
March 31, 2026December 31, 2025
Leasehold improvements$24,015 $24,014 
Production, engineering, and other equipment37,857 37,265 
Tooling7,049 7,208 
Computers and software7,730 8,064 
Furniture and office equipment3,524 3,524 
Tradeshow equipment and other1,424 1,424 
Construction in progress2,318 132 
Gross property and equipment83,917 81,631 
Less: Accumulated depreciation and amortization(76,145)(75,728)
Property and equipment, net$7,772 $5,903 
Depreciation expense was $1.3 million and $1.2 million for the three months ended March 31, 2026 and 2025, respectively.
Other long-term assets
(in thousands)
March 31, 2026December 31, 2025
Point of purchase (POP) displays$8,349 $9,986 
Deposits and other10,000 9,977 
Intangible assets, net3,609 4,078 
Long-term deferred tax assets— 581 
Other long-term assets$21,958 $24,622 
Amortization expense for POP displays was $1.8 million and $1.7 million for the three months ended March 31, 2026 and 2025, respectively. Expenditures for POP displays were $0.1 million and $0.9 million for the three months ended March 31, 2026 and 2025, respectively.
Intangible assets
Useful life
(in months)		March 31, 2026
(in thousands)Gross carrying valueAccumulated amortizationNet carrying value
Purchased technology 20-72$58,566 $(54,972)$3,594 
Domain name15 —15 
Total intangible assets$58,581$(54,972)$3,609

Useful life
(in months)		December 31, 2025
(in thousands)Gross carrying valueAccumulated amortizationNet carrying value
Purchased technology 20-72$58,566 $(54,503)$4,063 
Domain name15 —15 
Total intangible assets$58,581$(54,503)$4,078
Amortization expense was $0.5 million and $0.5 million for the three months ended March 31, 2026 and 2025, respectively.
As of March 31, 2026, expected amortization expense of intangible assets with definite lives for future periods was as follows:
(in thousands)
Total
Year ending December 31,
2026 (remaining 9 months)$1,406 
20271,875 
2028313 
2029— 
2030— 
$3,594 
Goodwill
Changes to the carrying amount of goodwill during the three months ended March 31, 2026 were as follows:
(in thousands)Carrying Amount
Carrying amount as of December 31, 2025$133,751 
Goodwill impairment— 
Carrying amount as of March 31, 2026$133,751 
Accrued expenses and other current liabilities
(in thousands)
March 31, 2026December 31, 2025
Derivative Liabilities$45,244 $— 
Purchase order commitments25,819 1,343 
Accrued sales incentives19,050 38,259 
Accrued liabilities18,237 30,274 
Employee related liabilities7,267 8,255 
Warranty liabilities3,827 4,315 
Inventory received3,037 3,423 
Customer deposits2,640 1,216 
Return liability1,927 3,293 
Other3,098 5,478 
Accrued expenses and other current liabilities$130,146 $95,856 
Product warranty
Three months ended March 31,
(in thousands)
20262025
Beginning balance$4,593 $6,207 
Charged to cost of revenue2,540 2,615 
Settlement of warranty claims(3,146)(2,907)
Warranty liability$3,987 $5,915 
As of March 31, 2026 and December 31, 2025, $3.8 million and $4.3 million, respectively, of the warranty liability was recorded as a component of accrued expenses and other current liabilities, and $0.2 million and $0.3 million, respectively, was recorded as a component of other long-term liabilities.
Intangible Assets Disclosure
Intangible assets
Useful life
(in months)		March 31, 2026
(in thousands)Gross carrying valueAccumulated amortizationNet carrying value
Purchased technology 20-72$58,566 $(54,972)$3,594 
Domain name15 —15 
Total intangible assets$58,581$(54,972)$3,609

Useful life
(in months)		December 31, 2025
(in thousands)Gross carrying valueAccumulated amortizationNet carrying value
Purchased technology 20-72$58,566 $(54,503)$4,063 
Domain name15 —15 
Total intangible assets$58,581$(54,503)$4,078
Amortization expense was $0.5 million and $0.5 million for the three months ended March 31, 2026 and 2025, respectively.
As of March 31, 2026, expected amortization expense of intangible assets with definite lives for future periods was as follows:
(in thousands)
Total
Year ending December 31,
2026 (remaining 9 months)$1,406 
20271,875 
2028313 
2029— 
2030— 
$3,594 
v3.26.1
Financing Arrangements
 3 Months Ended
Mar. 31, 2026
Debt Disclosure [Abstract]  
Financing Arrangements
4. Financing arrangements
2021 Credit Agreement
In January 2021, the Company entered into a credit agreement which provides for a revolving credit facility (2021 Credit Facility) and the Company amended the agreement in March 2023, August 2025, and February 2026 (collectively, the 2021 Credit Agreement). Under the 2021 Credit Agreement, the Company may borrow up to an aggregate amount of $35.0 million until the Borrowing Base Conversion Date (the date on which the lender implements a borrowing base following completion of an appraisal, field exam and other collateral diligence measures), unless the Company’s asset coverage ratio is less than 1.50, which would subject the amount that may be borrowed to a customary borrowing base calculation. With the February 2026 amendment, the testing of the asset coverage ratio changed from quarterly to monthly until the Borrowing Base Conversion Date. The asset coverage ratio is defined as the ratio of (i) the sum of (a) the Company’s cash and cash equivalents in the United States plus specified percentages of other qualified debt investments (Qualified Cash) plus (b) specified percentages of the net book values of the Company’s accounts receivable and certain inventory to (ii) $50.0 million. After the Borrowing Base Conversion Date, the amount that may be borrowed under the 2021 Credit Agreement is based on a customary borrowing base calculation, and up to $50.0 million. The February 2026 amendment extended the maturity of the 2021 Credit Agreement to June 2027, changed the interest rate at which borrowed funds accrue interest, and changed the liquidity minimums, all of which are further discussed below. The February 2026 amendment was accounted for as a debt modification, resulting in no gain or loss as there was no unamortized debt issuance costs at the time of modification. Upon termination of the 2021 Credit Agreement in June 2027, any outstanding borrowings will become due and payable.
Borrowed funds accrue interest, at the Company’s option, at a rate equal to either (i) a per annum rate equal to the base rate plus a margin of 2.50% or (ii) a per annum rate equal to the Secured Overnight Financing Rate (SOFR) plus a 10 basis point premium and a margin of 3.50%. The Company is required to pay a commitment fee on the unused portion of the 2021 Credit Facility of 0.25% per annum. Amounts owed under the 2021 Credit Agreement are guaranteed by certain of the Company’s United States subsidiaries and secured by a first-priority security interest in substantially all of the assets of the Company and certain of its subsidiaries (including intellectual property registrations and applications, which is subject to an intercreditor agreement).
The 2021 Credit Agreement contains customary representations, warranties, affirmative and negative covenants, and events of default. The negative covenants include restrictions on the incurrence of liens and indebtedness, certain investments, dividends, stock repurchases, and other matters, all subject to certain exceptions. In addition, the Company is required to maintain liquidity (the sum of unused availability under the 2021 Credit Facility and the Company’s Qualified Cash) of at least (i) $25.0 million from February 27, 2026 through June 30, 2026, (ii) $30.0 million during the period from July 1, 2026 through July 31, 2026, (iii) $35.0 million during the period from August 1, 2026 through August 31, 2026, and (iv) $40.0 million from September 1, 2026 through the maturity date (of which at least $10.0 million shall be attributable to Qualified Cash during all periods), and maintain a minimum unused availability under the credit facility of at least $10.0 million after the Borrowing Base Conversion Date. The 2021 Credit Agreement also includes customary events of default that include, among other things, non-payment of principal, interest or fees, inaccuracy of representations and warranties, violation of certain covenants, cross default to certain other indebtedness, bankruptcy and insolvency events, material judgments and change of control. Upon an event of default, the lender may, subject to customary cure rights, require the immediate payment of all amounts outstanding.
For the period ended December 31, 2025, the Company was in compliance with the liquidity and asset coverage ratio financial covenants contained in the 2021 Credit Agreement; however, the 2021 Credit Agreement also required the Company to be in compliance with the financial covenants within the 2025 Credit Agreement. The Company was not in compliance with the 2025 Credit Agreement asset coverage ratio of 1.25x or the minimum EBITDA covenant of not less than $10.0 million for the fiscal quarter ending December 31, 2025 and subsequently cured the non-compliance by entering into an amendment on February 27, 2026. For the period ended March 31, 2026, the Company was in compliance with the liquidity and asset coverage ratio financial covenants contained in the 2021 Credit Agreement; however, the Company was not in compliance with the minimum asset coverage ratio of 1.05x under the 2025 Credit Agreement. On May 8, 2026, the Company received a waiver from the Lender under the 2025 Credit Agreement waiving the asset coverage ratio non-compliance as of March 31, 2026. There are outstanding letters of credit under the 2021 Credit Agreement which total $9.2 million for certain duty-related requirements which were not collateralized by any cash on hand. As of March 31, 2026, the Company had $25.5 million outstanding under the 2021 Credit Agreement and had zero available to draw.
Notwithstanding the waiver received on May 8, 2026, the Company concluded that substantial doubt exists about its ability to continue as a going concern, as further described in Note 1 Summary of business and significant accounting policies. Based on the Company’s current financial forecasts, the Company does not expect to be able to comply with its financial covenants under the 2021 Credit Agreement and the 2025 Credit Agreement within the next twelve months. The Company is actively evaluating potential remediation options, including seeking waivers or amendments from its lenders; however, no waiver or amendment, other than for the existing waiver, has been obtained as of the date of the issuance of these condensed consolidated financial statements, and there can be no assurance that any such relief will be obtained. Given the absence of a waiver or amendment obtained prior to the issuance of these condensed consolidated financial statements, ASC 470-10-45 Debt requires the Company to classify as current, all obligations under the 2021 Credit Agreement, 2025 Credit Agreement and the Convertible Debentures, as direct default and cross-default provisions embedded in each respective agreement could, upon an event of default, permit the applicable lenders to declare all outstanding principal and accrued interest immediately due and payable. As a result, the outstanding balance under the 2021 Credit Agreement has been classified as short-term debt in the condensed consolidated balance sheet as of March 31, 2026.
2025 Credit Agreement
On August 4, 2025, the Company entered into a credit agreement with Farallon Capital Management, L.L.C., as administrative agent and collateral agent (the Agent), and Mateo Financing, LLC (the Lender) and the Company amended the credit agreement on November 5, 2025 and February 27, 2026 (collectively, the 2025 Credit Agreement). The 2025 Credit Agreement provides for a second lien credit facility up to $50.0 million (the 2025 Term Loan). The 2025 Credit Agreement will mature, and any outstanding borrowings become due and payable on January 22, 2028. The February 2026 amendment revised the (i) minimum liquidity for the remaining term of the 2025 Credit Agreement, (ii) removed the EBITDA minimums for the fiscal quarter ending December 31, 2025 and for the period of four consecutive fiscal quarters ending March 31, 2026, (iii) revised the EBITDA minimum for the remainder of the 2025 Credit Agreement, and (iv) revised the minimum asset coverage ratio for periods on or prior to March 31, 2026, all of which are disclosed below. The amendment on February 27, 2026 of the 2025 Credit Agreement was accounted for as a debt extinguishment, resulting in a loss on extinguishment of debt of $8.9 million, which was recorded in other income (expense), net, in the condensed consolidated statements of operations for the three months ended March 31, 2026.
In connection with the amendment on February 27, 2026 to the 2025 Credit Agreement, the Company entered into the IEEPA Agreement with the Lender on February 19, 2026, pursuant to which the Company transferred to the Lender certain of the Company’s rights and claims for potential refunds of tariffs previously paid under IEEPA, representing an aggregate claim amount of approximately $19.4 million (the IEEPA Claim). On the date of transfer, the Company assigned no value to the IEEPA Claim on the condensed consolidated balance sheet due to the significant uncertainty of any potential recovery prior to the U.S. Supreme Court’s ruling in Learning Resources, Inc. v. Trump. As a result of the IEEPA Agreement, the Company will not have rights to any future proceeds from the transferred IEEPA Claim. The Company accounted for the transfer of the IEEPA Claim as a derivative liability and classified the derivative liability as a Level 2 financial instrument as discussed in Note 2 Fair value measurements. Despite the Company assigning no value to the IEEPA Claim on the condensed consolidated balance sheet on the date of transfer, the Company assigned an $8.7 million value to the IEEPA Claim obligation as of February 27, 2026, and recorded the derivative liability within accrued expenses and other current liabilities in the condensed consolidated balance sheets. The IEEPA Claim obligation is remeasured at each reporting period, with changes in value recorded in other income (expense), net, in the condensed consolidated statements of operations. As of March 31, 2026, the IEEPA Claim obligation was remeasured at $14.6 million.
Borrowed funds accrue interest, at the Company’s option, at a rate equal to either (i) the applicable one or three-month SOFR, plus a 10 basis point premium for one-month SOFR or 15 basis point premium for three-month SOFR, plus 7.5%, or (ii) the Base Rate plus 6.50%. The Base Rate is defined as the greater of (i) the Wall Street Journal prime rate, (ii) the federal funds rate plus 0.50% or (iii) a one-month adjusted term SOFR plus 1.00%. During an event of default, the applicable interest rates are increased by 2.0% per annum. For Base Rate loans, the Company will pay interest on a quarterly basis and at the maturity date. For SOFR rate loans, the Company will pay interest at least quarterly, or more frequently, as defined in the 2025 Credit Agreement, and at the maturity date. The Company shall make quarterly principal payments on the 2025 Term Loan, with the remaining principal due on the maturity date. Under the 2025 Credit Agreement, the Company may be obligated to pay additional amounts which would allow for a minimum return. The 2025 Term Loan is subject to mandatory prepayment in certain cases involving asset dispositions, debt issuances, certain receipts of cash proceeds from insurance and other extraordinary receipts, and a change in control. The Company is required to apply 25% of excess cash flow to repay the 2025 Term Loan. Prepayments of the 2025 Term Loan, whether optional or mandatory, before, on or after January 22, 2028, or as a result of any acceleration of the 2025 Term Loan as a result of an event of default, require a prepayment premium in an amount set forth in the 2025 Credit Agreement. Amounts owed under the 2025 Credit Agreement are guaranteed by certain of the Company’s domestic subsidiaries, and are secured by a second lien security interest in substantially all of the assets of the Company and certain of the Company’s subsidiaries.
The 2025 Credit Agreement contains customary representations, warranties, and affirmative and negative covenants, including financial covenants. The negative covenants include restrictions on the incurrence of liens and indebtedness, certain investments, dividends, stock repurchases and other matters, all subject to certain exceptions. The financial covenants require (a) the Company to maintain liquidity (defined as the sum of
unrestricted cash, cash equivalents and availability under the 2021 Credit Agreement) of at least (i) $25.0 million during the fiscal quarters ending March 31, 2026 and June 30, 2026, (ii) $30.0 million during the fiscal month ending July 31, 2026, (iii) $35.0 million during the fiscal month ending August 31, 2026 and (iv) $40.0 million during any fiscal month thereafter; (b) the Company not to have EBITDA (as defined in the 2025 Credit Agreement) of (i) less than $5.0 million, subject to adjustment, for the fiscal quarter ending June 30, 2026, (ii) less than zero, subject to adjustment, for the fiscal quarter ending September 30, 2026, (iii) less than zero for the fiscal quarter ending December 31, 2026, (iv) less than $20.0 million for the period of four consecutive fiscal quarters ending March 31, 2027, (v) less than $30.0 million for the period of four consecutive fiscal quarters ending June 30, 2027, (vi) less than $35.0 million for the period of four consecutive fiscal quarters ending September 30, 2027, and (vii) less than $40.0 million for the period of four consecutive fiscal quarters ending December 31, 2027 and thereafter; and (c) the Company not to permit an asset coverage ratio (defined as the ratio of (x) the sum of unrestricted cash, cash equivalents, and certain receivables and inventory, divided by (y) the sum of accounts payable and total debt (as defined in the 2025 Credit Agreement) of less than (i) 1.05:1.00 on or prior to March 31, 2026 or (ii) 1.15:1.00 thereafter. The EBITDA thresholds for fiscal quarters ending June 30, 2026 and September 30, 2026 are subject to potential adjustments in the event of a reduction in tariff amounts in Malaysia or Thailand (or both) to a level that is 10% or lower, as described in further detail in the 2025 Credit Agreement. To the extent there are adjustments to the tariff rates of only one of the countries, the corresponding adjustments will be apportioned accordingly.
The 2025 Credit Agreement also includes customary events of default that include, among other things, non-payment of principal, interest or fees, inaccuracy of representations and warranties, violation of certain covenants, cross default to certain other indebtedness, bankruptcy and insolvency events, material judgments, change of control and certain material ERISA events. An event of default would also occur in the event the Company fails to maintain the listing of its common stock on the Nasdaq stock market for a period of 30 consecutive days. The occurrence of an event of default could result in the acceleration of the obligations under the 2025 Credit Agreement.
As of March 31, 2026 and December 31, 2025, the outstanding principal under the 2025 Term Loan was $49.4 million and $49.8 million, respectively, the unamortized debt issuance cost was zero and $1.9 million, respectively, the unamortized debt discount was $4.7 million and $3.6 million, respectively, and the net carrying amount of the liability was $44.7 million and $44.3 million, respectively, which was recorded as short term debt as of March 31, 2026 and long-term debt as of December 31, 2025 within the condensed consolidated balance sheets. For the three months ended March 31, 2026 and 2025, the Company recorded $1.4 million and zero, respectively, of interest expense, and $0.5 million and zero, respectively, for amortization of the debt discount. For the period ended December 31, 2025, the Company was not in compliance with the asset coverage ratio of 1.25x or minimum EBITDA covenant of not less than $10.0 million for the fiscal quarter ending December 31, 2025 and the Company subsequently cured the non-compliance by entering into an amendment on February 27, 2026.
As of March 31, 2026, the Company was not in compliance with the minimum asset coverage ratio of 1.05x under the 2025 Credit Agreement. On May 8, 2026, the Company received a waiver from the Lender under the 2025 Credit Agreement waiving the asset coverage ratio non-compliance as of March 31, 2026. No fees or consideration were paid in connection with the waiver.
Notwithstanding the waiver received on May 8, 2026, the Company concluded that substantial doubt exists about its ability to continue as a going concern, as further described in Note 1 Summary of business and significant accounting policies. Based on the Company’s current financial forecasts, the Company does not expect to be able to comply with its financial covenants under the 2021 Credit Agreement and 2025 Credit Agreement within the next twelve months. The Company is actively evaluating potential remediation options, including seeking waivers or amendments from its lenders; however, no waiver or amendment, other than for the existing waiver, has been obtained as of the date of the issuance of these condensed consolidated financial statements, and there can be no assurance that any such relief will be obtained. Given the absence of a waiver or amendment obtained prior to the issuance of these condensed consolidated financial statements, ASC 470-10-45 Debt requires the Company to classify as current all obligations under the 2021 Credit Agreement, the 2025 Credit Agreement, the Convertible Debentures, as direct default and cross-default provisions embedded in each respective agreement could, upon an event of default, permit the applicable lenders to declare all outstanding principal and accrued interest immediately due and payable. As a result, the outstanding balance under the 2025 Credit Agreement has been
classified as short-term debt in the condensed consolidated balance sheet as of March 31, 2026.
On August 4, 2025, in connection with the 2025 Credit Agreement, and as subsequently amended on November 5, 2025, the Company issued an aggregate of 11,076,968 warrants to purchase shares of its common stock, which can be exercised at a price of $0.75. The warrants were initially valued at $3.2 million using a Black-Scholes option pricing model and are marked-to-market with any changes in fair value recorded through earnings. The warrants were classified as a Level 3 financial instrument as discussed in Note 2 Fair value measurements. The warrants may be exercised at any time prior to 5:00 p.m. Eastern time, on August 1, 2035. Exercise of the warrants will dilute the ownership interests of existing stockholders. Any warrants not exercised prior to such time will expire.
Securities Purchase Agreement
On February 27, 2026, the Company entered into a securities purchase agreement (Securities Purchase Agreement) with YA II PN, Ltd. (YA II PN), a fund of Yorkville Advisors Global, LP, in connection with the issuance and sale by the Company of convertible debentures (the Convertible Debentures) issuable in an aggregate principal amount of up to $50.0 million. The Convertible Debentures will be convertible into shares of the Company’s Class A common stock, par value $0.0001 per share (the Common Stock) (as converted, the Conversion Shares). Conversion of the Convertible Debentures will dilute the ownership interests of existing stockholders. Pursuant to the Securities Purchase Agreement, YA II PN purchased $25.0 million in aggregate principal amount of Convertible Debentures upon the signing of the Securities Purchase Agreement. Subject to certain closing conditions, YA II PN would have been able to purchase an additional $5.0 million in aggregate principal amount of Convertible Debentures on the day prior to the filing of the Initial Registration Statement (defined below); however, the closing conditions were not met. YA II PN may still purchase and the Company may issue an additional $20.0 million in aggregate principal amount of Convertible Debentures on or about the second business day following the satisfaction of certain additional closing conditions, including gaining effectiveness of the Initial Registration Statement by May 15, 2026. If the closing conditions for the third tranche of Convertible Debentures are not met and remain uncured, then the Company may trigger an event of default under the Convertible Debentures.
In connection with the Securities Purchase Agreement, the Company entered into a registration rights agreement (Registration Rights Agreement) with YA II PN pursuant to which YA II PN is entitled to certain registration rights under the Securities Act, and YA II PN has been granted demand registration rights and piggyback registration rights in addition under certain conditions. Under the Registration Rights Agreement, the Company was required to file a preliminary prospectus registration statement on Form S-1, which was filed on March 20, 2026 with the SEC, to register the resale by YA II PN of all Conversion Shares (Initial Registration Statement) and is required to have the Initial Registration Statement declared effective by the SEC by May 15, 2026. As of the date of this Quarterly Report on Form 10-Q, the Initial Registration Statement has not been declared effective. Failure to have the Initial Registration Statement declared effective by the SEC by May 15, 2026 would constitute a default under the Convertible Debentures, which if uncured within the timeframe set forth therein, could give rise to an event of default thereunder.
The Convertible Debentures accrue interest at 0% per annum, unless (i) certain interest rate adjustment events occur, upon which the Convertible Debentures will bear interest at an annual rate of 5.00% until such interest rate adjustment event is resolved, or (ii) the Company has issued Conversion Shares that reaches a capped level within the first six months or an event of default occurs and remains uncured, upon which the Convertible Debentures will bear interest at an annual rate of 18.00%. The Convertible Debentures will mature in August 2027, unless previously redeemed. The Convertible Debentures may be redeemed prior to maturity if the volume weighted average price of the Company’s stock is less than $1.1453 on the date the redemption notice is delivered, with a redemption premium of 7% of the principal amount being paid. The Convertible Debentures will be issued at an original issue discount of 3.00%.
The Convertible Debentures are convertible at the option of the holder into Common Stock equal to the applicable Conversion Amount divided by the Conversion Price. The conversion price for the Convertible Debentures will be the lower of (i) $1.1453, or (ii) 98% of the lowest daily volume weighted average price of the Common Stock during the five consecutive trading days immediately preceding the date of conversion or other date of determination, but which shall not be lower than $0.1736, (the Conversion Price).
The Conversion Amount with respect to any requested conversion will equal the principal amount requested to be converted plus all accrued and unpaid interest on the Convertible Debentures as of such conversion, with fractional shares rounded up (the Conversion Amount). In addition, no conversion will be permitted to the extent that, after giving effect to such conversion, the holder together with the certain related parties would beneficially own in excess of 4.99% of the Common Stock outstanding immediately after giving effect to such conversion, subject to certain adjustments.
The Company shall not issue any Common Stock upon conversion of the Convertible Debentures held by YA II PN if the issuance of such Common Stock underlying the Convertible Debentures would exceed the aggregate number of Common Stock that the Company may issue upon conversion of the Convertible Debentures in compliance with the Company’s obligations under the rules or regulations of Nasdaq Stock Market (the Exchange Cap). The Exchange Cap will not apply under certain circumstances, including if the Company obtains the approval of its stockholders as required by the applicable rules of the Nasdaq Stock Market for issuances of Common Stock in excess of such amount, or if the Company obtains a written opinion from outside counsel that such stockholder approval is not required. In addition, for the first six months following the date of the Securities Purchase Agreement, the Company shall not issue any Conversion Shares to the extent that the aggregate number of Conversion Shares that the Company has issued would exceed 47,650,000 common shares. Any portion of the Convertible Debentures may be converted at any time and from time to time, subject to the Exchange Cap.
The Company determined that the conversion feature of the Convertible Debentures created a derivative liability that required bifurcation from the host debt instrument. At the issuance date, the derivative liability had a fair value of $30.9 million and was recorded in other long-term liabilities on the condensed consolidated balance sheets. The resulting total debt discount, considering the original issue discount, fair value of the conversion feature and debt issuance costs, was limited to the outstanding aggregate principal amount of the Convertible Debentures of $25.0 million. The total debt discount of $25.0 million is being amortized to interest expense over the term of the Convertible Debentures. The excess of the derivative liability fair value of $7.6 million was recognized as derivative expense in other income (expense), net, in the condensed consolidated statements of operations for the three months ended March 31, 2026. The fair value of the derivative liability was determined using a Monte Carlo simulation and changes in the fair value were recorded in other income (expense), net, in the condensed consolidated statements of operations. As of March 31, 2026 and December 31, 2025, the fair value of the derivative liability was $30.7 million and zero, respectively.
As of March 31, 2026 and December 31, 2025, the outstanding principal of the Convertible Debentures was $25.0 million and zero, respectively, the unamortized debt issuance cost was $0.9 million and zero, respectively, the unamortized debt discounts were $22.6 million and zero, respectively, and the net carrying amount of the liability was $1.5 million and zero, respectively, which was recorded as short-term debt within the condensed consolidated balance sheets. For the three months ended March 31, 2026 and 2025, the Company recorded $0.1 million and zero, respectively, for amortization of debt issuance costs, and $1.5 million and zero, respectively, for amortization of the debt discounts.
Based on the Company’s current financial forecast, the Company does not expect to be able to comply with its financial covenants under the 2021 Credit Agreement and 2025 Credit Agreement within the next twelve months. The Company is actively evaluating potential remediation options, including seeking waivers or amendments from its lenders; however, no waiver or amendment, other than for the existing waiver, has been obtained as of the date of the issuance of these condensed consolidated financial statements, and there can be no assurance that any such relief will be obtained. Given the absence of a waiver or amendment obtained prior to the issuance of these condensed consolidated financial statements, ASC 470-10-45 Debt requires the Company to classify as current all obligations under the 2021 Credit Agreement, the 2025 Credit Agreement, and the Convertible Debentures, as direct default and cross-default provisions embedded in each respective agreement could, upon an event of default, permit the applicable lenders to declare all outstanding principal and accrued interest immediately due and payable. As a result, the outstanding balance under the Convertible Debentures has been classified as short-term debt in the condensed consolidated balance sheet as of March 31, 2026.
v3.26.1
Employee benefit plans
 3 Months Ended
Mar. 31, 2026
Share-Based Payment Arrangement [Abstract]  
Compensation and Employee Benefit Plans
6. Employee benefit plans
Equity incentive plans. The Company has outstanding equity grants from four of its five stock-based employee compensation plans: the 2024 Equity Incentive Plan (2024 Plan), the 2014 Equity Incentive Plan (2014 Plan), the 2010 Equity Incentive Plan (2010 Plan), and the 2024 Employee Stock Purchase Plan (2024 ESPP). The 2024 Plan serves as a successor to the 2014 Plan and the 2014 Plan served as successor to the 2010 Plan. The effective date of both the 2024 Plan and the 2024 ESPP was February 15, 2024. The 2014 Plan and the 2014 Employee Stock Purchase Plan (2014 ESPP) each expired on February 15, 2024. The 2014 ESPP plan’s final purchase was on February 15, 2024, and no remaining purchase rights are accrued under this plan. Awards granted under the 2010 and 2014 Plans will continue to be subject to the terms and provisions of the 2010 and 2014 Plans.
The 2024 Plan provides for the granting of incentive and non-qualified stock options, restricted stock awards (RSAs), restricted stock units (RSUs), stock appreciation rights, stock bonus awards (SBAs) and performance awards to qualified employees, non-employee directors and consultants. Options granted under the 2024 Plan generally expire within ten years from the date of grant and generally vest over one to four years. RSUs granted under the 2024 Plan generally vest over two to four years based upon continued service and are settled at vesting in shares of the Company’s Class A common stock. Performance stock units (PSUs) granted under the 2024 Plan generally vest over three years based upon continued service and the Company achieving certain financial and operating targets and are settled at vesting in shares of the Company’s Class A common stock. SBAs granted under the 2024 Plan are generally granted and vested on the same day based on continued service and employees achieving certain performance goals and are settled at vesting in shares of the Company’s Class A common stock. The Company accounts for forfeitures of stock-based payment awards in the period they occur. The 2024 ESPP allows eligible employees to purchase shares of the Company’s Class A common stock through payroll deductions at a price equal to 85% of the lesser of the fair market value of the stock as of the first date or the ending date of each six-month offering period. For additional information regarding the Company’s equity incentive plans, refer to the Annual Report on Form 10-K for the year ended December 31, 2025.
Stock options
A summary of the Company’s stock option activity for the three months ended March 31, 2026 is as follows:
Shares
(in thousands)
Weighted-average exercise price
Weighted-average remaining contractual term (in years)
Aggregate intrinsic value (in thousands)
Outstanding at December 31, 20251,444 $7.06 3.24$— 
Granted— — 
Exercised— — 
Forfeited/Cancelled(213)7.44 
Outstanding at March 31, 20261,231 $7.00 3.52$— 
Vested and expected to vest at March 31, 20261,231 $7.00 3.52$— 
Exercisable at March 31, 20261,231 $7.00 3.52$— 
The aggregate intrinsic value of the stock options outstanding as of March 31, 2026 represents the value of the Company’s closing stock price on March 31, 2026 in excess of the exercise price multiplied by the number of options outstanding.
Restricted stock units
A summary of the Company’s RSU activity for the three months ended March 31, 2026 is as follows:
Shares
(in thousands)
Weighted-average grant date fair value
Non-vested shares at December 31, 20259,915 $1.81 
Granted104 0.81 
Vested(1,918)3.15 
Forfeited(379)1.99 
Non-vested shares at March 31, 20267,722 $1.46 
Performance stock units
A summary of the Company’s PSU activity for the three months ended March 31, 2026 is as follows:
Shares
(in thousands)
Weighted-average grant date fair value
Non-vested shares at December 31, 202547 

$5.79 
Granted— — 
Vested(47)5.79 
Forfeited— — 
Non-vested shares at March 31, 2026— $— 
Employee stock purchase plan. For the three months ended March 31, 2026 and 2025, the Company issued 0.4 million and 0.6 million shares under its employee stock purchase plans, respectively, at weighted-average prices of $0.73 and $0.68 per share, respectively.
Stock-based compensation expense. The Company measures compensation expense for all stock-based payment awards based on the estimated fair values on the date of the grant. The fair value of stock options
granted and ESPP issuances is estimated using the Black-Scholes option pricing model. The fair value of RSUs and PSUs are determined using the Company’s closing stock price on the date of grant. The fair value of SBAs is determined using the expected fixed dollar amount that will be settled by issuing shares of the Company’s Class A common stock on the vesting date. There have been no significant changes in the Company’s valuation assumptions from those disclosed in its Annual Report on Form 10-K for the year ended December 31, 2025.
The following table summarizes stock-based compensation expense included in the condensed consolidated statements of operations:
Three months ended March 31,
(in thousands)20262025
Cost of revenue$144 $248 
Research and development1,560 2,820 
Sales and marketing575 882 
General and administrative719 1,420 
Total stock-based compensation expense$2,998 $5,370 
Total stock-based compensation expense includes accrued stock bonus expense of $0.5 million and $0.2 million for the three months ended March 31, 2026 and 2025, respectively.
There was no income tax benefit related to stock-based compensation expense for the three months ended March 31, 2026 and 2025 due to a full valuation allowance on the Company’s United States net deferred tax assets. See Note 8, Income taxes, for additional details.
As of March 31, 2026, total unearned stock-based compensation of $11.3 million related to stock options, RSUs, PSUs, SBAs and ESPP shares is expected to be recognized over a weighted-average period of 1.93 years
v3.26.1
Net loss per share
 3 Months Ended
Mar. 31, 2026
Earnings Per Share [Abstract]  
Net loss per share
The following table presents the calculations of basic and diluted net loss per share:
Three months ended March 31,
(in thousands, except per share data)20262025
Numerator:
Net loss$(80,820)$(46,709)
Denominator:
Weighted-average common shares - basic and diluted for Class A and Class B common stock163,208 156,438 
Basic and diluted net loss per share$(0.50)$(0.30)
The following potentially dilutive shares were not included in the calculation of diluted shares outstanding as the effect would have been anti-dilutive:
Three months ended March 31,
(in thousands)20262025
Stock-based awards10,838 14,446 
Shares related to convertible senior notes— 10,050 
Warrants2,816 — 
Shares related to Convertible Debentures12,016 — 
Total anti-dilutive securities25,670 24,496 
Basic net income (loss) per share is calculated by dividing net income (loss) by the weighted-average number of shares of common stock outstanding. Diluted net income per share adjusts the basic net income per share and the weighted-average number of shares of common stock outstanding for the potentially dilutive impact of the Company’s ESPP awards, stock awards, and warrants using the treasury stock method. The Company calculated the potential dilutive effect of its 2025 convertible senior notes and its Convertible Debentures under the if-converted method. Under the if-converted method, diluted net income per share would be determined by assuming all of the outstanding 2025 convertible senior notes and Convertible Debentures were converted into shares of the Company’s Class A common stock at the beginning of the reporting period, or at the issuance date if later. In addition, in periods of net income, interest charges on the 2025 convertible senior notes and Convertible Debentures, which includes both coupon interest and amortization of debt issuance costs, would be added back to net income on an after-tax effected basis. The Company repaid the remaining $93.8 million in aggregate principal of the 2025 convertible senior notes at maturity on November 15, 2025 with restricted cash on hand. The Convertible Debentures will mature on August 26, 2027, unless earlier repurchased or converted into shares of Class A common stock under certain circumstances as described further in Note 4 Financing arrangements.
The rights of the holders of Class A common stock and Class B common stock are identical, except with respect to voting and conversion. Each share of Class A common stock is entitled to one vote per share and each share of Class B common stock is entitled to ten votes per share. Each share of Class B common stock is convertible at any time at the option of the stockholder into one share of Class A common stock and has no expiration date. Each share of Class B common stock will convert automatically into one share of Class A common stock upon the date when the outstanding shares of Class B common stock represent less than 10% of the aggregate number of shares of common stock then outstanding. Class A common stock is not convertible into Class B common stock. The computation of the diluted net income per share of Class A common stock assumes the conversion of Class B common stock.
v3.26.1
Income taxes
 3 Months Ended
Mar. 31, 2026
Income Tax Disclosure [Abstract]  
Income taxes
8. Income taxes
The following table provides the income tax expense amount:
Three months ended March 31,
(dollars in thousands)20262025
Income tax expense$1,845 $1,652 
The Company recorded an income tax expense of $1.8 million for the three months ended March 31, 2026 on a pre-tax net loss of $79.0 million. The Company’s income tax expense for the three months ended March 31, 2026 primarily resulted from a tax expense of $1.2 million on pre-tax book income in certain tax jurisdictions and discrete items that included $1.3 million of nondeductible equity tax expense for employee stock-based compensation and $0.6 million from the establishment of valuation allowance on foreign deferred tax assets due to the substantial doubt about the Company’s ability to continue as a going concern, partially offset by a net decrease in the domestic valuation allowance of $1.2 million.
The Company recorded an income tax expense of $1.7 million for the three months ended March 31, 2025 on pre-tax net loss of $45.1 million. The Company’s income tax expense for the three months ended March 31, 2025 primarily resulted from a tax expense of $1.6 million on pre-tax book income in certain tax jurisdictions and discrete items that included $2.1 million of nondeductible equity tax expense for employee stock-based compensation, partially offset by a net decrease in the valuation allowance of $1.6 million and an income tax benefit of $0.5 million related to restructuring charges. The Company evaluated the impact of goodwill impairment on tax-deductible goodwill and determined that it did not materially impact the tax provision due to a full valuation allowance on its United States federal and state net deferred tax assets.
Each quarter, the Company assesses the realizability of its existing deferred tax assets under ASC Topic 740. The Company assesses available positive and negative evidence to estimate whether sufficient future taxable income will be generated to realize its deferred tax assets. In the assessment for the period ended March 31, 2026, the Company concluded that it remains more likely than not that the Company will not be able to realize its deferred tax assets. As of March 31, 2026, the total valuation allowance on United States federal and state net deferred tax assets was $344.6 million.
In the assessment for the period ended March 31, 2026, the Company concluded that the substantial doubt about its ability to continue as a going concern as discussed in Note 1 Summary of business and significant accounting policies constituted significant negative evidence of the recoverability of its foreign deferred tax assets. Therefore, the Company established a full valuation allowance of $0.6 million against its foreign deferred tax assets, as it is more likely than not that those assets will not be realized. The Company will continue to monitor its future financial results, expected projections and their potential impact on the Company’s assessment regarding the recoverability of its deferred tax asset balances and in the event there is a need to release the valuation allowance, a tax benefit would be recorded.
As of March 31, 2026 and December 31, 2025, the Company’s gross unrecognized tax benefits were $30.4 million and $29.7 million, respectively. If recognized, $13.1 million of these unrecognized tax benefits (net of United States federal benefit) as of March 31, 2026 would reduce income tax expense. A material portion of the Company’s gross unrecognized tax benefits, if recognized, would increase the Company’s net operating loss carryforward, which would be offset by a full valuation allowance based on present circumstances.
The Company conducts business globally and as a result, files income tax returns in the United States and foreign jurisdictions. The Company’s unrecognized tax benefits relate primarily to unresolved matters with taxing authorities. While it is often difficult to predict the final outcome or the timing of resolution of any particular uncertain tax position, the Company believes that its reserves reflect the more likely outcome.
In 2021, the Organization for Economic Co-operation and Development (OECD) established an inclusive framework on base erosion and profit shifting and agreed on a two-pillar solution (Pillar Two) to global taxation, focusing on global profit allocation and a 15% global minimum effective tax rate. On December 15, 2022, the EU member states agreed to implement the OECD’s global minimum tax rate of 15%. The OECD issued Pillar Two model rules and continues to release guidance on these rules. The inclusive framework calls for tax law changes by participating countries to take effect in 2024 and 2025. Various countries have enacted or have announced plans to enact new tax laws to implement the global minimum tax. The Company assessed the impact of Pillar Two and determined that there is no material impact on the provision for income taxes for the three months ended March 31, 2026. The Company will continue to monitor future guidance issued and assess the potential impact on the Company’s condensed consolidated financial statements.
v3.26.1
Related party transactions
 3 Months Ended
Mar. 31, 2026
Related Party Transactions [Abstract]  
Related party transactions Related party transactions
On November 5, 2025, a trust affiliated with Nicholas Woodman, the Company’s Chief Executive Officer and Chairman of the Board of Directors, entered into an agreement (the Subscription Agreement) to purchase an aggregate of $2.0 million of the Company’s Class A common stock shares, par value $0.0001. Pursuant to the Subscription Agreement, the actual amount of Class A common stock shares to be issued were to be determined upon the calculation of the purchase price of the shares, which was calculated as the greater of the following variables: (a) the consolidated closing bid price (as determined pursuant to the rules of the Nasdaq Stock Market) immediately prior to entry into the Subscription Agreement or (b) the average closing price of the Class A common
stock over the five (5) trading days prior to the date of issuance, as reported on the Nasdaq Global Select Market. On November 10, 2025, 1,129,944 shares of Class A common stock were issued at a price per share of $1.77, which price was based on the consolidated closing bid price, which was the greater of the two variables. The issuance of shares was included within common stock and additional paid-in capital on the condensed consolidated balance sheets. The $2.0 million was paid to the Company in November 2025, and the Company had zero outstanding receivables from the Chief Executive Officer as of December 31, 2025.
v3.26.1
Commitments, contingencies and guarantees
 3 Months Ended
Mar. 31, 2026
Commitments and Contingencies Disclosure [Abstract]  
Commitments, contingencies and guarantees
10. Commitments, contingencies, and guarantees
Facility leases. The Company leases its facilities under long-term operating leases, which expire at various dates through 2033.
The components of net lease cost, which were primarily recorded in operating expenses, were as follows:
Three months ended March 31,
(in thousands)20262025
Operating lease cost (1)
$2,252 $2,076 
Sublease income(723)(723)
Net lease cost$1,529 $1,353 
(1)    Operating lease costs include immaterial variable lease costs.

Supplemental cash flow information related to leases was as follows:
Three months ended March 31,
(in thousands)20262025
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases$3,684 $3,395 
Right-of-use assets obtained in exchange for operating lease liabilities802 1,527 

Supplemental balance sheet information related to leases was as follows:
March 31, 2026December 31, 2025
Weighted-average remaining lease term (in years) - operating leases2.812.76
Weighted-average discount rate - operating leases6.4%6.4%

As of March 31, 2026, maturities of operating lease liabilities were as follows:
(in thousands)March 31, 2026
2026 (remaining 9 months)$9,732 
20273,278 
20281,570 
20291,072 
2030761 
Thereafter2,157 
Total lease payments18,570 
Less: Imputed interest(1,854)
Present value of lease liabilities$16,716 
Other commitments. In the ordinary course of business, the Company enters into multi-year agreements to purchase sponsorships with event organizers, resorts and athletes as part of its marketing efforts; software licenses related to its financial and IT systems; debt agreements, which may contain minimum returns; non-cancellable non-returnable purchase agreements for hardware products and components, and various other contractual commitments. As of March 31, 2026, the Company’s total undiscounted future expected obligations under multi-year agreements described above with terms longer than one year was $191.9 million. As discussed in Note 1 Summary of business and significant accounting policies, communication from the Company’s memory suppliers regarding planned reductions in the production of the memory used in its products caused a reduction in forecasted sales volumes of certain products which also impacted the Company’s expected utilization of materials subject to a non-cancelable non-refundable purchase commitment. As a result, the Company accrued $24.5 million for expected underutilization of such materials as of March 31, 2026.
Legal proceedings and investigations. Since 2015, non-practicing entity Contour IP Holding LLC (CIPH) and its affiliates have filed lawsuits against the Company in various federal district courts alleging patent infringement of the Company’s camera products. Following litigation before federal district courts, the Federal Circuit, and the United States Patent and Trademark Office, CIPH’s patents were ruled invalid in March 2022. Judgment was then entered in favor of the Company and against CIPH. CIPH later appealed to the Federal Circuit. In September 2024, the Federal Circuit panel reversed the district court ruling. On remand, a trial for Contour IP Holding, LLC v. GoPro, Inc. (Case No. 3:17-cv-04738-WHO) commenced on September 29, 2025 before the United States District Court for the Northern District of California (the Court). On October 10, 2025, a jury returned a verdict. The jury concluded that none of the Company’s products commercially launched from 2020 – 2024, including HERO9 Black to HERO13 Black, infringe the two asserted patents. Additionally, the jury invalidated the only asserted claim of one of the two patents. With respect to the other asserted patent, the jury found one independent claim valid, but also determined that the related dependent claim is invalid. The Company has been advised by legal counsel that as a matter of patent law, if a dependent claim is invalid as obvious or anticipated by prior art, then the claim from which it depends is also invalid. The verdict is subject to post-trial motions by both parties. We are unable to predict the outcome of the matter and therefore cannot estimate the range of possible loss. With respect to certain legacy cameras that the Court previously found to infringe, the jury awarded CIPH $8.2 million in past damages. Based on the jury’s findings of non-infringement and invalidity, none of the Company’s products introduced in or after 2020 are subject to the damages award. In addition to post-trial motions, the verdict is subject to appeal. No judgment has been entered.
On March 29, 2024, the Company filed a complaint with the U.S. International Trade Commission (ITC) and a lawsuit in the U.S. District Court for the Central District of California against Arashi Vision Inc., and Arashi Vision (U.S.) LLC, both d/b/a Insta360 (Insta360). The complaint and lawsuit each allege infringement of certain GoPro patents related to the Company’s cameras and digital imaging technology. On February 27, 2026, the ITC found that Insta360 had infringed GoPro’s valid design patent and issued a limited exclusion order and cease and desist order prohibiting Insta360 from continued importation or sale after importation of its infringing Ace, Ace Pro, and Ace Pro 2 action cameras. The ITC also found that some claims of certain utility patents were shown not to be infringed and some claims of certain patents were shown to be invalid. GoPro is considering whether to appeal certain of these rulings. Separately, Insta360 filed inter partes review (IPR) petitions seeking to challenge the validity of several GoPro patents at the Patent Office’s Patent Trial and Appeal Board (PTAB). The PTAB largely found that Insta360 had failed to establish unpatentability of most of GoPro’s patent claims. The PTAB found only partial unpatentability on two patents, and GoPro has taken steps to challenge these rulings. Insta360 has also filed three patent infringement actions against the Company in China (Jiangsu High Court, Changsha Intermediate Court IP Tribunal, and Shenzhen Intermediate People’s Court), each of which the Company believes lacks merit and intends to defend against. GoPro’s district court litigation, including its claims for damages on the same patents asserted in the ITC, remains stayed pending any appeals from the ITC ruling. The ITC ruling is not binding on the federal district court.
The Company regularly evaluates the associated developments of the legal proceedings described above, as well as other legal proceedings that arise in the ordinary course of business. While litigation is inherently uncertain, based on the currently available information, the Company is unable to determine a loss or a range of loss, and does not believe the ultimate cost to resolve these matters will have a material adverse effect on its business, financial condition, cash flows or results of operations.
Indemnifications. The Company has entered into indemnification agreements with its directors and executive officers which requires the Company to indemnify its directors and executive officers against liabilities that may arise by reason of their status or service. In addition, in the ordinary course of business, the Company enters into agreements that contain a variety of representations and warranties and provide for general indemnification. The Company’s exposure under these agreements is unknown because it involves claims that may be made against the Company in the future but have not yet been made. It is not possible to determine the maximum potential amount under these indemnification agreements due to the Company’s limited history with indemnification claims and the unique facts and circumstances involved in each particular agreement. As of March 31, 2026, the Company has not paid any claims, nor has it been required to defend any action related to its indemnification obligations. However, the Company may record charges in the future as a result of these indemnification obligations.
v3.26.1
Concentrations of risk and geographic information
 3 Months Ended
Mar. 31, 2026
Risks and Uncertainties [Abstract]  
Concentrations of risk and segment information Concentrations of risk and geographic information
Concentration of risk. Financial instruments that potentially subject the Company to concentration of credit risk include cash, cash equivalents, accounts receivable, and derivative instruments. The Company places cash and cash equivalents with high-credit-quality financial institutions; however, the Company maintains cash balances in excess of the FDIC insurance limits. The Company believes that credit risk for accounts receivable is mitigated by the Company’s credit evaluation process, relatively short collection terms and dispersion of its customer base. The Company generally does not require collateral and losses on trade receivables have historically been within the Company’s expectations.
Customers who represented 10% or more of the Company’s net accounts receivable balance were as follows:
March 31, 2026December 31, 2025
Customer A14%*
Customer B13%14%
Customer C11%10%
Customer D*10%
* Less than 10% of net accounts receivable for the periods indicated.
The following table summarizes the Company’s accounts receivables sold, without recourse, and factoring fees paid:
Three months ended March 31,
(in thousands)
20262025
Accounts receivable sold$4,321 $6,957 
Factoring fees83 123 
Third-party customers who represented 10% or more of the Company’s total revenue were as follows:
Three months ended March 31,
20262025
Customer A*17%
* Less than 10% of total revenue for the periods indicated.
Supplier concentration. The Company relies on third parties for the supply and manufacture of its hardware products, some of which are sole-source suppliers. The Company believes that outsourcing manufacturing enables greater scale and flexibility. As demand and product lines change, the Company periodically evaluates the need and advisability of adding manufacturers to support its operations. In instances where a supply and manufacture agreement does not exist or suppliers fail to perform their obligations, the Company may be unable to find alternative suppliers or satisfactorily deliver its hardware products to its customers on time, if at all. The Company also relies on third parties with whom it outsources supply chain activities related to inventory
warehousing, order fulfillment, distribution and other direct sales logistics. In instances where an outsourcing agreement does not exist or these third parties fail to perform their obligations, the Company may be unable to find alternative partners or satisfactorily deliver its hardware products to its customers on time.
Geographic information
Revenue by geographic region, based on ship-to locations, was as follows:
Three months ended March 31,
(in thousands)
20262025
Americas$67,448 $81,855 
Europe, Middle East and Africa (EMEA)20,749 40,076 
Asia and Pacific (APAC)10,868 12,377 
Total revenue$99,065 $134,308 
Revenue from the United States, which is included in the Americas geographic region, was $55.3 million and $62.8 million for the three months ended March 31, 2026 and 2025, respectively. No other individual country exceeded 10% of total revenue for any period presented.
As of March 31, 2026 and December 31, 2025, long-lived assets, which represent net property and equipment, located outside the United States, primarily in Hong Kong and mainland China, were $5.5 million and $3.1 million, respectively.
v3.26.1
Restructuring charges
 3 Months Ended
Mar. 31, 2026
Restructuring and Related Activities [Abstract]  
Restructuring and Related Activities Disclosure
12. Restructuring charges
Restructuring charges for each period were as follows:
Three months ended March 31,
(in thousands)20262025
Cost of revenue$9 $2 
Research and development3 762 
Sales and marketing(6)477 
General and administrative55 1,189 
Total restructuring charges$61 $2,430 
Third quarter 2024 restructuring
In August 2024, the Company approved a restructuring plan (the Original Restructuring Plan) and in October 2024, the Company approved an amended restructuring plan (the Updated Restructuring Plan). In connection with the Original Restructuring Plan and Updated Restructuring Plan, the Company reduced its global workforce by 25% compared to its headcount ending Q2 2024, and recorded restructuring charges of $18.7 million including $12.7 million related to severance and $6.0 million of project cancellation costs. As of March 31, 2026, the Company expects to pay the remaining restructuring liability related to the Updated Restructuring Plan in cash.
(in thousands)SeveranceOther
Total
Restructuring liability as of December 31, 2025
$— $4,000 $4,000 
Cash paid— — — 
Non-cash reductions— — — 
Restructuring liability as of March 31, 2026
$— $4,000 $4,000 
v3.26.1
Subsequent Events
 3 Months Ended
Mar. 31, 2026
Subsequent Events [Abstract]  
Subsequent Events [Text Block] Subsequent events
Financing waiver
As of March 31, 2026, the Company was not in compliance with the minimum asset coverage ratio of 1.05x under the 2025 Credit Agreement. On May 8, 2026, the Company received a waiver from the Lender under the 2025 Credit Agreement waiving the asset coverage ratio non-compliance as of March 31, 2026. No fees or consideration were paid in connection with the waiver.
Second quarter 2026 restructuring
In April 2026, the Company approved a restructuring plan to reduce its global workforce by approximately 23% compared to its headcount ending Q1 2026. The restructuring plan is being implemented in the second quarter of 2026 and is expected to be substantially complete by the end of 2026. The Company expects to incur an aggregate severance charge in a range of $11.5 million and $15.0 million, with expected cash expenditures of approximately $1.5 million in the second quarter of 2026, approximately $5.5 million to $8.0 million in the third quarter of 2026, and approximately $4.5 million to $5.5 million in the fourth quarter of 2026.
Engagement of strategic advisor
In May 2026, the Company received approval from its Board of Directors to engage a financial advisor to assist in actively considering strategic alternatives, which may include, among other things, a sale or merger of the Company, a sale or license of certain assets or intellectual property, strategic investments, partnerships, or other transactions.
v3.26.1
Insider Trading Arrangements
 3 Months Ended
Mar. 31, 2026
Trading Arrangements, by Individual  
Material Terms of Trading Arrangement None of the Company’s directors or officers, as defined in Rule 16a-1(f), adopted, modified, or terminated a Rule 10b5-1 trading arrangement (Rule 10b5-1 trading plan) or a non-Rule 10b5-1 trading arrangement (non-Rule 10b5-1 trading plan) during the first quarter ended March 31, 2026,
Dean Jahnke [Member]  
Trading Arrangements, by Individual  
Name 1,845
v3.26.1
Cybersecurity Risk Management and Strategy Disclosure
 3 Months Ended
Mar. 31, 2026
Cybersecurity Risk Management, Strategy, and Governance [Line Items]  
Cybersecurity Risk Management Processes Integrated [Text Block]
Our periodic assessment and testing of policies, standards, processes, and practices that are designed to address cybersecurity threats and incidents include a wide range of activities, including audits, assessments, tabletop exercises, threat modeling, vulnerability testing, simulated attacks and other exercises focused on evaluating the effectiveness of our cybersecurity measures and planning. We regularly engage third parties to perform assessments on our cybersecurity measures, including information security maturity assessments, audits, and independent reviews of our information security control environment and operating effectiveness.
We also actively engage with key vendors, industry participants, and intelligence and law enforcement communities as part of our continuing efforts to evaluate and enhance the effectiveness of our information security policies and procedures. We regularly train all employees on cybersecurity risks, such as phishing attacks, and employees are required to acknowledge our cybersecurity policy annually through our Code of Conduct.
Cybersecurity Risk Management Positions or Committees Responsible [Text Block]
Our Chief Information Security Officer (CISO) oversees our information security program and is responsible for leading and implementing, with a cross functional team, our cybersecurity strategy, policy, architecture, and risk management processes. Our CISO has over 20 years of experience in cybersecurity, serving as a security consultant to Fortune 100 companies, and a subject matter expert in computer forensics to law firms and U.S. Government agencies.
The Audit Committee of our board of directors (Audit Committee) has oversight responsibility for our cybersecurity program and reviews with management the Company’s policies and procedures for identifying, assessing, managing, and monitoring information security and cybersecurity risks.
The CISO provides regular updates to the Audit Committee on cybersecurity and other risks relevant to our information technology environment, including developments in the cybersecurity space and evolving standards, the results of periodic exercises and response readiness assessments and we adjust our cybersecurity policies, standards, processes, and practices as necessary based on the information provided by these assessments, audits, and reviews. Our cybersecurity program is regularly evaluated by internal and external experts with the results of those reviews reported to senior management and the Audit Committee.
v3.26.1
Summary of business and significant accounting policies (Policies)
 3 Months Ended
Mar. 31, 2026
Accounting Policies [Abstract]  
Basis of presentation
Basis of presentation. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles (GAAP) for financial information set forth in the Accounting Standards Codification (ASC), as published by the Financial Accounting Standards Board (FASB), and with the applicable rules and regulations of the Securities and Exchange Commission (SEC). The Company’s fiscal year ends on December 31, and its fiscal quarters end on March 31, June 30, and September 30.
The condensed consolidated financial statements reflect all adjustments, which are normal and recurring in nature, that management believes are necessary for the fair statement of the Company's financial statements, but are not necessarily indicative of the results expected in future periods. The condensed consolidated balance sheet as of December 31, 2025 has been derived from the audited financial statements at that date, but does not include all the disclosures required by GAAP. This Quarterly Report on Form 10-Q should be read in conjunction with the Company's Annual Report on Form 10-K for the year ended December 31, 2025. There have been no material changes in the Company’s critical accounting policies and estimates from those disclosed in its Annual Report on Form 10-K for the year ended December 31, 2025.
Principles of consolidation
Principles of consolidation. These condensed consolidated financial statements include all the accounts of the Company and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation.
Use of estimates
Use of estimates. The preparation of condensed consolidated financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the amounts reported and disclosed in the Company’s condensed consolidated financial statements and accompanying notes. Significant estimates and assumptions made by management include those related to revenue recognition and the allocation of the transaction price (including sales incentives, sales returns and implied post contract support), inventory valuation, product warranty liabilities, the valuation, impairment and useful lives of long-lived assets (property and equipment, operating lease right-of-use assets, intangible assets and goodwill), the valuation of derivative liabilities, and income taxes. The Company bases its estimates and assumptions on historical experience and on various other factors that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results could differ materially from management’s estimates. To the extent there are material differences between the estimates and the actual results, future results of operations could be affected.
Comprehensive income (loss) Comprehensive income (loss). For all periods presented, comprehensive income (loss) approximated net income (loss). Therefore, the condensed consolidated statements of comprehensive income (loss) have been omitted
Impairment or Disposal of Long-Lived Assets, Including Intangible Assets, Policy
Impairment of goodwill and long-lived assets. The Company performs an annual assessment of its goodwill during the fourth quarter of each calendar year, or more frequently if indicators of potential impairment exist, such as an adverse change in business climate, declines in market capitalization or a decline in the overall industry demand, that would indicate it is more likely than not that the fair value of its single reporting unit is less than its carrying value. If the Company determines that it is more likely than not that the fair value of its single reporting unit is less than the carrying value, the Company measures the amount of impairment as the amount the carrying value of its single reporting unit exceeds the fair value, up to the carrying value of goodwill, by using a discounted cash flow method and market approach method.
In the first quarter of 2025, the Company’s market capitalization declined 38% from December 31, 2024, in part due to tariffs and geopolitical events, resulting in the Company’s market capitalization to no longer exceed the carrying value of its single reporting unit as of March 31, 2025. As a result, the Company performed a quantitative goodwill impairment analysis and estimated the fair value of its single reporting unit utilizing the income approach using a discounted future cash flow model and a market approach. The analysis required estimates which consisted of significant judgment related to the estimation of future cash flow and discount rates. The analysis
was dependent on internal forecasts and profitability measures as well as certain unobservable Level 3 inputs such as the estimation of long-term revenue growth rates, terminal growth rates, and determination of the discount rate. As a result of the quantitative impairment test, the Company concluded that the carrying value of its single reporting unit exceeded its fair value, resulting in the recognition of an $18.6 million goodwill impairment charge in the first quarter of 2025.
The Company completed its annual impairment test of goodwill as of December 31, 2025 using a qualitative assessment and concluded that it was not more likely than not that the fair value of the Company’s single reporting unit was less than the carrying value. Additionally, as of December 31, 2025, the market capitalization exceeded the carrying value of the Company’s single reporting unit by 67%, which was not adjusted for an acquisition control premium, which would further increase the percentage the fair value exceeded the carrying value.
In the first quarter of 2026, the Company identified goodwill impairment triggering events, including: (i) the conclusion of substantial doubt regarding the Company’s ability to continue as a going concern, which represents a negative qualitative indicator; and (ii) a significant decline in revenue and gross margin compared to the prior year period. As a result, the Company performed an interim qualitative goodwill impairment assessment as of March 31, 2026. The Company evaluated each triggering event and concluded that, while they represent negative qualitative factors, the quantitative evidence did not indicate that these events would more likely than not reduce the reporting unit’s fair value below its carrying amount. Specifically, as of March 31, 2026, the Company’s market capitalization of $126.4 million exceeded the carrying value of its single reporting unit of negative $1.9 million by approximately 101%, before any acquisition control premium, representing the synergies a market participant would obtain when obtaining control of the business. Based on this assessment, the Company concluded it is not more likely than not that the fair value of its single reporting unit is less than its carrying value, and no goodwill impairment charge was recorded in the first quarter of 2026.
The estimated fair value of the Company’s single reporting unit is affected by volatility in the Company’s stock price. As a sensitivity, even a 50% decline in the Company’s March 31, 2026 stock price would result in the Company’s market capitalization exceeding the carrying value of its single reporting unit by more than 100%, before any acquisition control premium. If the Company's market capitalization declines, or if future performance falls below the Company’s current expectations, assumptions, or estimates, including assumptions related to current macroeconomic uncertainties, this may trigger a future material non-cash goodwill impairment charge, which could have a material adverse effect on the Company’s business, financial condition, and results of operations in the reporting period in which a charge would be necessary. The Company will continue to monitor developments, including updates to the Company’s forecasts and market capitalization, and will update the Company’s assessment and related estimates as needed in the future.
Long-lived assets, such as property and equipment, intangible assets subject to amortization, and right-of-use assets, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset group may not be recoverable. Recoverability of assets to be held and used is measured by comparing the carrying amount to the estimated future undiscounted cash flows expected to be generated by the asset group. If it is determined that an asset group is not recoverable, an impairment charge is recognized for the amount by which the carrying amount of the asset group exceeds its fair value.
As a result of the same impairment triggering events identified, which resulted in an interim qualitative goodwill impairment assessment, the Company performed an interim quantitative long-lived asset impairment assessment as of March 31, 2026. As the Company has a single asset group, the Company considered the undiscounted operating and disposal cash flows to assess recoverability. Based on this assessment, the Company concluded the carrying amount of its long-lived assets are recoverable and no long-lived asset impairment charge was recorded in the first quarter of 2026.
Revenue recognition
Revenue recognition. The Company derives substantially all of its revenue from the sale of cameras, mounts, accessories, subscription and service, and implied post contract support to customers. The transaction price recognized as revenue represents the consideration the Company expects to be entitled to and is primarily comprised of hardware revenue, net of returns and variable consideration, which includes sales incentives provided to customers.
The Company’s camera sales contain multiple performance obligations that can include the following four separate obligations: (i) a camera hardware component (which may be bundled with hardware accessories) and the embedded firmware essential to the functionality of the camera component delivered at the time of sale; (ii) a subscription and service; (iii) the implied right for the customer to receive post contract support after the initial sale (PCS); and (iv) the implicit right to the Company’s downloadable free apps and software solutions. The Company’s PCS includes the right to receive, on a when and if available basis, future unspecified firmware upgrades and features as well as bug fixes, and email, chat, and telephone support.
The Company recognizes revenue from its sales arrangements when control of the promised goods or services are transferred to its customers, in an amount that reflects the amount of consideration expected to be received in exchange for the transferred goods or services. For the sale of hardware products, including related firmware and free software solutions, revenue is recognized when transfer of control occurs at a point in time, which generally is at the time the hardware product is shipped and collection is considered probable. For customers who purchase hardware products directly from GoPro.com, the Company retains a portion of the risk of loss on these sales during transit, which are accounted for as fulfillment costs. For PCS, revenue is recognized ratably over 24 months, which represents the estimated period PCS is expected to be provided based on historical experience.
The Company’s subscription and service revenue is recognized primarily from its Premium+, Premium, and Quik subscription offerings and is recognized ratably over the subscription term, with any payments received in advance of services rendered recorded as deferred revenue. The Company’s Premium+ subscription includes cloud storage up to 500 gigabytes (GB) of non-GoPro content, access to GoPro’s HyperSmooth Pro video stabilization software, and the features included in the Premium subscription. The Company’s Premium subscription offers a range of services, including unlimited cloud storage of GoPro content supporting source video and photo quality, damaged camera replacement, cloud storage up to 100 GB of non-GoPro content, highlight videos automatically delivered via the Company’s mobile app when GoPro camera footage is uploaded to a GoPro cloud account using Auto Upload, access to a high-quality live streaming service on GoPro.com as well as discounts on GoPro cameras, gear, mounts, and accessories. The Company also offers the Quik subscription that provides access to a suite of simple single-clip and multi-clip editing tools.
For the Company’s camera sale arrangements with multiple performance obligations, revenue is allocated to each performance obligation based on its relative standalone selling price. Standalone selling prices are based on observable prices at which the Company separately sells its hardware products, and subscription and service. If a standalone selling price is not directly observable, then the Company estimates the standalone selling prices considering market conditions and entity-specific factors. For example, the standalone selling price for PCS is determined based on a cost-plus approach, which incorporates the level of support provided to customers, estimated costs to provide such support, and the amount of time and costs that are allocated to efforts to develop undelivered elements.
The Company’s standard terms and conditions for non-web-based sales do not allow for product returns other than under warranty. However, the Company grants limited rights of return, primarily to certain large retailers. The Company reduces revenue and cost of revenue for the estimated returns based on analyses of historical return trends by customer class and other factors. An estimated return liability along with a right to recover assets are recorded for future product returns. Return trends are influenced by product life cycles, new product introductions, market acceptance of products, product sell-through, the type of customer, seasonality, and other factors. Return rates may fluctuate over time but are sufficiently predictable to allow the Company to estimate expected future product returns.
The Company provides sales commissions to internal and external sales representatives which are earned in the period in which revenue is recognized. As a result, the Company expenses sales commissions as incurred.
Deferred revenue as of March 31, 2026 and December 31, 2025 includes amounts related to the Company’s subscriptions and PCS. The Company’s short-term and long-term deferred revenue balances totaled $54.3 million and $54.2 million as of March 31, 2026 and December 31, 2025, respectively. During the three months ended March 31, 2026 and 2025, the Company recognized $21.9 million and $23.0 million of revenue that was included in the deferred revenue balance as of December 31, 2025 and 2024, respectively.
Income Tax, Policy
Income taxes. The Company utilizes the asset and liability method for computing its income tax provision, under which, deferred tax assets and liabilities are recognized for the expected future consequences of temporary differences between the financial reporting and tax bases of assets and liabilities using enacted tax rates. The Company makes estimates, assumptions, and judgments to determine the Company’s provision for income taxes, deferred tax assets and liabilities, and any valuation allowance recorded against deferred tax assets. The Company assesses the likelihood that its deferred tax assets will be recovered from future taxable income in each tax jurisdiction and, to the extent the Company believes recovery is not likely, establishes a valuation allowance. As of March 31, 2026, the Company intends to continue to maintain a full valuation allowance on its United States federal and state deferred tax assets until there is sufficient evident to support the reversal of all or some portion of these allowances.
The Company recognizes the tax benefit from an uncertain tax position only if it is more likely than not the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized from such positions are then measured based on the largest benefit that has a greater than 50% likelihood of being realized upon settlement. Interest and penalties related to unrecognized tax benefits are recognized within income tax expense.
Segment information Segment information. The Company operates as one operating segment as it only reports financial information on an aggregated and consolidated basis to its Chief Executive Officer, who is the Company’s chief operating decision maker (CODM). The CODM assesses performance of the Company’s one operating segment and decides how to allocate resources based on net income (loss), which is also reported on the condensed consolidated statements of operations as net income (loss). The CODM regularly compares net income (loss) against forecast and prior periods when deciding which areas of the business to allocate resources. The significant expense categories within net income (loss) that the CODM regularly reviews are cost of revenue and operating expenses, which consists of three main subcategories: research and development, sales and marketing, and general and administrative. All significant expense categories and subcategories are reported on the condensed consolidated statements of operations. Other items included in net income (loss) but are excluded from the significant expense categories include interest expense, other income (expense), net, and income tax expense (benefit), all of which are also reported on the condensed consolidated statements of operations. Interest income, which is included in other income (expense), net was $0.4 million and $0.5 million for the three months ended March 31, 2026 and 2025, respectively.
Liquidity
Liquidity and Going Concern. The accompanying condensed consolidated financial statements have been prepared assuming the Company will continue as a going concern, which contemplates the continuity of operations, realization of assets, and the satisfaction of liabilities and commitments in the normal course of business. U.S. GAAP requires an evaluation of whether there are conditions or events, considered in the aggregate, that raise substantial doubt about an entity’s ability to continue as a going concern within one year after the date the financial statements are issued. This evaluation initially does not consider the potential mitigating effect of management’s plans that have not been fully implemented. When substantial doubt exists, management evaluates the mitigating effect of its plans to the extent it is probable that (1) the plans will be effectively implemented within one year after the date the financial statements are issued, and (2) when implemented, the plans will mitigate the relevant conditions or events that raise substantial doubt about the entity’s ability to continue as a going concern within one year after the date the financial statements are issued.
During the three months ended March 31, 2026, the Company’s performance continued to be adversely impacted by an increasingly global competitive landscape, consumer-related macroeconomic issues resulting in a softer global consumer market, rising memory costs and supply constraints. During the three months ended March 31, 2026 and 2025, total revenue was $99.1 million and $134.3 million, respectively, representing a 26.2% decline year-over-year. As a result, the Company incurred operating losses of $57.2 million and operating cash outflows of $36.6 million during the three months ended March 31, 2026. As of March 31, 2026 and December 31, 2025, the Company had cash and cash equivalents of $40.7 million and $49.7 million, respectively, an aggregate principal debt balance outstanding of $99.9 million and $69.3 million, respectively, and an accumulated deficit of $855.9 million and $775.1 million, respectively. Additionally, as of March 31, 2026, the Company was not in compliance with the financial covenants under its 2025 Credit Agreement due to the impact of the timing of redemption of sales incentives, revenue mix, and timing of working capital changes which impact the covenant calculation. The Company subsequently received a waiver from the lender of the 2025 Credit Agreement on May 8, 2026. Future non-compliance with financial covenants may limit the Company’s access to existing credit facilities or result in an acceleration of debt obligations, which would further adversely impact liquidity.
As of March 31, 2026, and through the issuance date of these financial statements, the Company’s forecast has been significantly impacted by events which were not known or reasonably knowable as of the issuance date of the annual financial statements including: (1) unprecedented increases and volatility in memory costs, including unexpected price increases ranging from 80% to 115% in the last week of March 2026; (2) communication from the Company’s memory suppliers in April 2026 regarding planned reductions in the production of the memory used in its products causing a reduction in forecasted sales volumes of certain products which also impacted the Company’s expected utilization of materials subject to a non-cancelable non-refundable purchase commitment of $24.5 million; and (3) indications in April and May 2026 of further softness in the sales channel. As a result, the Company expects to continue to incur operating losses and negative operating cash flows, further reducing liquidity and increasing reliance on external sources of capital. Additionally, the Company has not met certain covenants in the last two quarters which were subsequently cured or waived and does not expect to be able to meet the future minimum financial covenants in its 2021 Credit Agreement and 2025 Credit Agreement, including, but not limited to minimum liquidity, minimum EBITDA and a minimum asset coverage ratio, as further discussed in Note 4. Financing arrangements. As a result, the Company classified as current, all obligations under the 2021 Credit Agreement, 2025 Credit Agreement and the Convertible Debentures, as direct default and cross-default provisions embedded in each respective agreement could, upon an event of default, permit the applicable lenders to declare all outstanding principal and accrued interest immediately due and payable. Based on current projections, the Company does not expect to have sufficient liquidity to meet its obligations as they become due within one year after the issuance of these condensed consolidated financial statements. These conditions, considered in the aggregate, raise substantial doubt about the Company’s ability to continue as a going concern within one year after the date that these condensed consolidated financial statements are issued.
In response to these conditions, the Company has received approval from its Board of Directors to engage outside advisors to evaluate strategic alternatives including a potential sale or merger of the business and have engaged outside advisors to explore opportunities within the defense and aerospace sector to leverage the Company’s existing technology in new markets and product categories. The Company is also evaluating opportunities to sell certain non-critical assets and to secure additional financing through debt or equity securities. The Company is actively evaluating potential remediation options for the expectation that it will be unable to comply with its financial covenants under the 2021 Credit Agreement and the 2025 Credit Agreement within the next twelve months, including seeking waivers or amendments from its lenders. The Company continues to focus on optimizing the revenue mix and pricing strategies, and reducing operating expenses through disciplined cost management. The Company announced a restructuring plan in April 2026 to reduce its global workforce by approximately 23% compared to its headcount ending Q1 2026, as discussed in Note 13. Subsequent events. The restructuring plan is being implemented in the second quarter of 2026 and is expected to be substantially complete by the end of 2026. The Company expects to incur an aggregate severance charge in the range of $11.5 million to $15.0 million.
The Company has evaluated whether the plans described above are sufficient to alleviate the substantial doubt about the Company’s ability to continue as a going concern. Under this evaluation, the Company assessed whether it is probable that (1) the plans will be effectively implemented within one year after the date the financial
statements are issued, and (2) when implemented, the plans will mitigate the conditions and events that raise substantial doubt. The Company has determined that, while the plans described above are intended to improve the Company’s liquidity and operating results, certain elements of these plans have not been fully implemented and are dependent upon factors outside the Company’s control, including the ability to secure additional financing and the successful execution of new market initiatives, and therefore cannot be deemed probable. As a result, substantial doubt about the Company’s ability to continue as a going concern has not been alleviated. There can be no assurance that the Company will be able to generate the level of operating revenue or reduce operating expenses to levels to achieve profitability and generate cash, obtain waivers or amendments from the lenders related to financial covenants, source additional financing or ensure the availability of strategic alternatives on acceptable terms, if at all. Without obtaining additional sources of financing or consummating a strategic transaction, the Company’s ability to continue as a going concern would be materially and adversely impacted, and the Company may be required to significantly reduce, restructure or cease operations. The condensed consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.
v3.26.1
Equity (Policies)
 3 Months Ended
Mar. 31, 2026
Equity [Abstract]  
Stockholders' Equity, Policy
5. Stockholders’ equity
Stock Repurchase Program. On January 27, 2022, the Company’s board of directors authorized the repurchase of up to $100.0 million of its Class A common stock, and on February 9, 2023, the Company’s board of directors authorized the repurchase of an additional $40.0 million of its Class A common stock. Stock repurchases under the program may be made periodically using a variety of methods, including without limitation, open market purchases, block trades or otherwise in compliance with all federal and state securities laws and state corporate law and in accordance with the single broker, timing, price, and volume guidelines set forth in Rule 10b-18 and Rule 10b5-1 under the Securities Exchange Act of 1934, as amended, as such guidelines may be modified by the SEC from time to time. This stock repurchase program has no time limit and may be modified, suspended, or discontinued at any time. The Company currently intends to hold its repurchased shares as treasury stock.
As of March 31, 2026, the remaining amount of share repurchases under the program was $60.4 million. The Company did not repurchase any shares during the three months ended March 31, 2026 and 2025.
v3.26.1
Fair value measurements (Tables)
 3 Months Ended
Mar. 31, 2026
Fair Value Disclosures [Abstract]  
Assets measured at fair value on recurring basis
The Company’s assets that are measured at fair value on a recurring basis within the fair value hierarchy are summarized as follows:
March 31, 2026December 31, 2025
(in thousands)Level 1Level 2Level 3TotalLevel 1Level 2Level 3Total
Cash equivalents (1):
Money market funds$15,502 $— $— $15,502 $40,120 $— $— $40,120 
Total cash equivalents$15,502 $— $— $15,502 $40,120 $— $— $40,120 
Other long-term liabilities
Warrant liability$— $— $3,504 $3,504 $— $— $6,255 $6,255 
Derivative liabilities— 14,552 30,692 45,244 — — — — 
Total other long-term liabilities$— $14,552 $34,196 $48,748 $— $— $6,255 $6,255 
(1)    Included in cash and cash equivalents in the accompanying condensed consolidated balance sheets. Cash balances were $25.2 million and $9.6 million as of March 31, 2026 and December 31, 2025, respectively.
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation
Changes in the fair value of the Level 3 warrant liability and derivative liability related to the conversion feature of the Convertible Debentures during the three months ended March 31, 2026 were as follows:
(in thousands)
Warrant LiabilityDerivative Liability associated with the Convertible Debentures
Balance as of December 31, 2025$6,255 $— 
Issuance of warrants or derivative liability— 30,861 
Change in fair value(2,751)(169)
Balance as of March 31, 2026$3,504 $30,692 
Fair Value Measurement Inputs and Valuation Techniques
The fair value of the warrants was estimated with the following assumptions:
March 31, 2026
Volatility90 %
Risk-free interest rate3.8 %
Dividend yield— %
Expected term (years)1.81
v3.26.1
Condensed consolidated financial statement details (Tables)
 3 Months Ended
Mar. 31, 2026
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Schedule of Inventory
Inventory
(in thousands)
March 31, 2026December 31, 2025
Components
$2,621 $2,554 
Finished goods
69,584 75,877 
Total inventory$72,205 $78,431 
Property, Plant and Equipment
Property and equipment, net
(in thousands)
March 31, 2026December 31, 2025
Leasehold improvements$24,015 $24,014 
Production, engineering, and other equipment37,857 37,265 
Tooling7,049 7,208 
Computers and software7,730 8,064 
Furniture and office equipment3,524 3,524 
Tradeshow equipment and other1,424 1,424 
Construction in progress2,318 132 
Gross property and equipment83,917 81,631 
Less: Accumulated depreciation and amortization(76,145)(75,728)
Property and equipment, net$7,772 $5,903 
Schedule of Other Assets
Other long-term assets
(in thousands)
March 31, 2026December 31, 2025
Point of purchase (POP) displays$8,349 $9,986 
Deposits and other10,000 9,977 
Intangible assets, net3,609 4,078 
Long-term deferred tax assets— 581 
Other long-term assets$21,958 $24,622 
Schedule of Accrued Liabilities
Accrued expenses and other current liabilities
(in thousands)
March 31, 2026December 31, 2025
Derivative Liabilities$45,244 $— 
Purchase order commitments25,819 1,343 
Accrued sales incentives19,050 38,259 
Accrued liabilities18,237 30,274 
Employee related liabilities7,267 8,255 
Warranty liabilities3,827 4,315 
Inventory received3,037 3,423 
Customer deposits2,640 1,216 
Return liability1,927 3,293 
Other3,098 5,478 
Accrued expenses and other current liabilities$130,146 $95,856 
Schedule of Product Warranty Liability
Product warranty
Three months ended March 31,
(in thousands)
20262025
Beginning balance$4,593 $6,207 
Charged to cost of revenue2,540 2,615 
Settlement of warranty claims(3,146)(2,907)
Warranty liability$3,987 $5,915 
As of March 31, 2026 and December 31, 2025, $3.8 million and $4.3 million, respectively, of the warranty liability was recorded as a component of accrued expenses and other current liabilities, and $0.2 million and $0.3 million, respectively, was recorded as a component of other long-term liabilities.
Schedule of Goodwill
Changes to the carrying amount of goodwill during the three months ended March 31, 2026 were as follows:
(in thousands)Carrying Amount
Carrying amount as of December 31, 2025$133,751 
Goodwill impairment— 
Carrying amount as of March 31, 2026$133,751 
v3.26.1
Employee benefit plans (Tables)
 3 Months Ended
Mar. 31, 2026
Share-Based Payment Arrangement [Abstract]  
schedule of share-based compensation, Performance Stock Units Award Activity [Table Text Block]
A summary of the Company’s PSU activity for the three months ended March 31, 2026 is as follows:
Shares
(in thousands)
Weighted-average grant date fair value
Non-vested shares at December 31, 202547 

$5.79 
Granted— — 
Vested(47)5.79 
Forfeited— — 
Non-vested shares at March 31, 2026— $— 
Schedule of Share-based Compensation, Stock Options, Activity
A summary of the Company’s stock option activity for the three months ended March 31, 2026 is as follows:
Shares
(in thousands)
Weighted-average exercise price
Weighted-average remaining contractual term (in years)
Aggregate intrinsic value (in thousands)
Outstanding at December 31, 20251,444 $7.06 3.24$— 
Granted— — 
Exercised— — 
Forfeited/Cancelled(213)7.44 
Outstanding at March 31, 20261,231 $7.00 3.52$— 
Vested and expected to vest at March 31, 20261,231 $7.00 3.52$— 
Exercisable at March 31, 20261,231 $7.00 3.52$— 
Schedule of Share-based Compensation, Restricted Stock Units Award Activity
A summary of the Company’s RSU activity for the three months ended March 31, 2026 is as follows:
Shares
(in thousands)
Weighted-average grant date fair value
Non-vested shares at December 31, 20259,915 $1.81 
Granted104 0.81 
Vested(1,918)3.15 
Forfeited(379)1.99 
Non-vested shares at March 31, 20267,722 $1.46 
Allocation of Stock-based Compensation Expense
The following table summarizes stock-based compensation expense included in the condensed consolidated statements of operations:
Three months ended March 31,
(in thousands)20262025
Cost of revenue$144 $248 
Research and development1,560 2,820 
Sales and marketing575 882 
General and administrative719 1,420 
Total stock-based compensation expense$2,998 $5,370 
Total stock-based compensation expense includes accrued stock bonus expense of $0.5 million and $0.2 million for the three months ended March 31, 2026 and 2025, respectively.
v3.26.1
Net loss per share (Tables)
 3 Months Ended
Mar. 31, 2026
Earnings Per Share [Abstract]  
Schedule of Net Income per Share, Basic and Diluted
7. Net loss per share
The following table presents the calculations of basic and diluted net loss per share:
Three months ended March 31,
(in thousands, except per share data)20262025
Numerator:
Net loss$(80,820)$(46,709)
Denominator:
Weighted-average common shares - basic and diluted for Class A and Class B common stock163,208 156,438 
Basic and diluted net loss per share$(0.50)$(0.30)
Schedule of Antidilutive Securities Excluded from Computation of Net Income per Share
The following potentially dilutive shares were not included in the calculation of diluted shares outstanding as the effect would have been anti-dilutive:
Three months ended March 31,
(in thousands)20262025
Stock-based awards10,838 14,446 
Shares related to convertible senior notes— 10,050 
Warrants2,816 — 
Shares related to Convertible Debentures12,016 — 
Total anti-dilutive securities25,670 24,496 
v3.26.1
Commitments, contingencies and guarantees (Tables)
 3 Months Ended
Mar. 31, 2026
Commitments and Contingencies Disclosure [Abstract]  
Components of Lease Expense [Text Block]
The components of net lease cost, which were primarily recorded in operating expenses, were as follows:
Three months ended March 31,
(in thousands)20262025
Operating lease cost (1)
$2,252 $2,076 
Sublease income(723)(723)
Net lease cost$1,529 $1,353 
Supplemental cash flow information related to leases was as follows:
Three months ended March 31,
(in thousands)20262025
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases$3,684 $3,395 
Right-of-use assets obtained in exchange for operating lease liabilities802 1,527 

Supplemental balance sheet information related to leases was as follows:
March 31, 2026December 31, 2025
Weighted-average remaining lease term (in years) - operating leases2.812.76
Weighted-average discount rate - operating leases6.4%6.4%
Schedule of Maturities of Lease Liabilities [Text Block]
As of March 31, 2026, maturities of operating lease liabilities were as follows:
(in thousands)March 31, 2026
2026 (remaining 9 months)$9,732 
20273,278 
20281,570 
20291,072 
2030761 
Thereafter2,157 
Total lease payments18,570 
Less: Imputed interest(1,854)
Present value of lease liabilities$16,716 
v3.26.1
Concentrations of risk and geographic information (Tables)
 3 Months Ended
Mar. 31, 2026
Concentration Risk [Line Items]  
Schedule of Accounts, Notes, Loans and Financing Receivable
The following table summarizes the Company’s accounts receivables sold, without recourse, and factoring fees paid:
Three months ended March 31,
(in thousands)
20262025
Accounts receivable sold$4,321 $6,957 
Factoring fees83 123 
Schedule of Revenue by Geographic Region
Revenue by geographic region, based on ship-to locations, was as follows:
Three months ended March 31,
(in thousands)
20262025
Americas$67,448 $81,855 
Europe, Middle East and Africa (EMEA)20,749 40,076 
Asia and Pacific (APAC)10,868 12,377 
Total revenue$99,065 $134,308 
Accounts Receivable [Member]  
Concentration Risk [Line Items]  
Schedules of Customer Concentration by Risk Factor
Customers who represented 10% or more of the Company’s net accounts receivable balance were as follows:
March 31, 2026December 31, 2025
Customer A14%*
Customer B13%14%
Customer C11%10%
Customer D*10%
* Less than 10% of net accounts receivable for the periods indicated.
Sales Revenue [Member]  
Concentration Risk [Line Items]  
Schedules of Customer Concentration by Risk Factor
Third-party customers who represented 10% or more of the Company’s total revenue were as follows:
Three months ended March 31,
20262025
Customer A*17%
v3.26.1
Restructuring charges (Tables)
 3 Months Ended
Mar. 31, 2026
Restructuring and Related Activities [Abstract]  
Restructuring and Related Costs [Table Text Block]
Restructuring charges for each period were as follows:
Three months ended March 31,
(in thousands)20262025
Cost of revenue$9 $2 
Research and development3 762 
Sales and marketing(6)477 
General and administrative55 1,189 
Total restructuring charges$61 $2,430 
v3.26.1
Summary of business and significant accounting policies (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2026
Mar. 31, 2025
Dec. 31, 2025
Property, Plant and Equipment [Line Items]      
Contract with Customer, Liability $ 54,300   $ 54,200
Deferred Revenue, Revenue Recognized 21,900 $ 23,000  
Accumulated deficit $ (855,914)   (775,094)
RevenueIncreaseDecrease (26.20%)    
Gain (Loss) on Extinguishment of Debt $ (8,870) 0  
Revenues 99,065 134,308  
Cash and cash equivalents $ 40,723 $ 69,634 49,674
Reporting Unit, Percentage of Fair Value in Excess of Carrying Amount 101.00%    
Cash, Cash Equivalents, and Short-Term Investments $ 40,723    
Market Capitalization, Percentage Increase/Decrease   38.00%  
Goodwill, Impairment Loss 0 $ 18,600  
Repayments of Lines of Credit $ 375 0  
Market Capitalization Sensitivity 100.00%    
Interest Income, Other $ 400 500  
Operating Income (Loss) (57,245) $ (45,208)  
Market Capitalization 126,400    
Net Assets (1,900)    
Aggregate Debt Outstanding, Principal 99,900   69,300
Purchase Commitment, Remaining Minimum Amount Committed 25,819   $ 1,343
Non-Cancelable Non-Refundable Purchase Commitment $ 24,500    
v3.26.1
Fair value measurements (Details)
$ in Thousands
 3 Months Ended
Mar. 31, 2026
USD ($)
Dec. 31, 2025
USD ($)
Nov. 15, 2025
USD ($)
Convertible Senior Notes due 2025 [Member]      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Debt Instrument     $ 93,800
Fair Value, Recurring [Member]      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Cash and Cash Equivalents $ 15,502 $ 40,120  
Liabilities, Fair Value Disclosure 48,748 6,255  
Fair Value, Recurring [Member] | Money Market Funds [Member]      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Cash and Cash Equivalents 15,502 40,120  
Fair Value, Recurring [Member] | Level 1 [Member]      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Cash and Cash Equivalents 15,502 40,120  
Liabilities, Fair Value Disclosure 0 0  
Fair Value, Recurring [Member] | Level 1 [Member] | Money Market Funds [Member]      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Cash and Cash Equivalents 15,502 40,120  
Fair Value, Recurring [Member] | Level 2 [Member]      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Cash and Cash Equivalents 0 0  
Liabilities, Fair Value Disclosure 14,552 0  
Fair Value, Recurring [Member] | Level 2 [Member] | Money Market Funds [Member]      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Cash and Cash Equivalents 0 0  
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Cash and Cash Equivalents 0 0  
Liabilities, Fair Value Disclosure 34,196 6,255  
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 | Money Market Funds [Member]      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Cash and Cash Equivalents $ 0 0  
Measurement Input, Price Volatility      
Fair Value Measurement Inputs and Valuation Techniques [Line Items]      
Warrants and Rights Outstanding, Measurement Input 0.90    
Derivative Liability, Measurement Input 1.05    
Measurement Input, Risk Free Interest Rate      
Fair Value Measurement Inputs and Valuation Techniques [Line Items]      
Warrants and Rights Outstanding, Measurement Input 0.038    
Derivative Liability, Measurement Input 0.203    
Measurement Input, Expected Dividend Rate      
Fair Value Measurement Inputs and Valuation Techniques [Line Items]      
Warrants and Rights Outstanding, Measurement Input 0    
Derivative Liability, Measurement Input 0    
Measurement Input, Expected Term      
Fair Value Measurement Inputs and Valuation Techniques [Line Items]      
Warrants and Rights Outstanding, Measurement Input 1.81    
Measurement Input, Conversion Price      
Fair Value Measurement Inputs and Valuation Techniques [Line Items]      
Derivative Liability, Measurement Input 0.92    
Warrant      
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]      
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability Value $ 3,504 6,255  
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Mark To Market Adjustment (2,751)    
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Issuances 0    
Warrant | Fair Value, Recurring [Member]      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Liabilities, Fair Value Disclosure 3,504 6,255  
Warrant | Fair Value, Recurring [Member] | Level 1 [Member]      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Liabilities, Fair Value Disclosure 0 0  
Warrant | Fair Value, Recurring [Member] | Level 2 [Member]      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Liabilities, Fair Value Disclosure 0 0  
Warrant | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Liabilities, Fair Value Disclosure 3,504 6,255  
Derivative Financial Instruments, Liabilities      
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]      
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability Value 30,692 0  
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Mark To Market Adjustment (169)    
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Issuances 30,861    
Derivative Financial Instruments, Liabilities | Fair Value, Recurring [Member]      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Liabilities, Fair Value Disclosure 45,244 0  
Derivative Financial Instruments, Liabilities | Fair Value, Recurring [Member] | Level 1 [Member]      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Liabilities, Fair Value Disclosure 0 0  
Derivative Financial Instruments, Liabilities | Fair Value, Recurring [Member] | Level 2 [Member]      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Liabilities, Fair Value Disclosure 14,552 0  
Derivative Financial Instruments, Liabilities | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Liabilities, Fair Value Disclosure $ 30,692 $ 0  
v3.26.1
Condensed consolidated financial statement details - Cash, Cash Equivalents and Marketable Securities (Details) - USD ($)
$ in Thousands
Mar. 31, 2026
Dec. 31, 2025
Mar. 31, 2025
Cash and Cash Equivalents [Line Items]      
Cash $ 25,200 $ 9,600  
Cash and cash equivalents $ 40,723 $ 49,674 $ 69,634
v3.26.1
Condensed consolidated financial statement details - Inventory (Details) - USD ($)
$ in Thousands
Mar. 31, 2026
Dec. 31, 2025
Organization, Consolidation and Presentation of Financial Statements [Abstract]    
Components $ 2,621 $ 2,554
Finished goods 69,584 75,877
Total inventory $ 72,205 $ 78,431
v3.26.1
Condensed consolidated financial statement details - Property and Equipment, Net (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2026
Mar. 31, 2025
Dec. 31, 2025
Property, Plant and Equipment [Line Items]      
Gross property and equipment $ 83,917   $ 81,631
Less: Accumulated depreciation and amortization (76,145)   (75,728)
Property and equipment, net 7,772   5,903
Depreciation 1,300 $ 1,200  
Leasehold Improvements [Member]      
Property, Plant and Equipment [Line Items]      
Gross property and equipment 24,015   24,014
Production, engineering and other equipment [Member]      
Property, Plant and Equipment [Line Items]      
Gross property and equipment 37,857   37,265
Tooling [Member]      
Property, Plant and Equipment [Line Items]      
Gross property and equipment 7,049   7,208
Computers and software [Member]      
Property, Plant and Equipment [Line Items]      
Gross property and equipment 7,730   8,064
Furniture and office equipment [Member]      
Property, Plant and Equipment [Line Items]      
Gross property and equipment 3,524   3,524
Tradeshow Equipment and other [Member]      
Property, Plant and Equipment [Line Items]      
Gross property and equipment 1,424   1,424
Construction in Progress [Member]      
Property, Plant and Equipment [Line Items]      
Gross property and equipment $ 2,318   $ 132
v3.26.1
Condensed consolidated financial statement details - Intangible Assets and Goodwill (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2026
Mar. 31, 2025
Dec. 31, 2025
Finite-Lived Intangible Assets, Net [Abstract]      
Finite-Lived Intangible Assets, Gross $ 58,566   $ 58,566
Finite-Lived Intangible Assets, Accumulated Amortization (54,972)   (54,503)
Finite-Lived Intangible Assets, Net, Total 3,594   4,063
Intangible Assets, Gross (Excluding Goodwill) 58,581   58,581
Intangible assets, net 3,609   4,078
Indefinite-lived Intangible Assets [Roll Forward]      
Amortization of intangible assets 500 $ 500  
Goodwill 133,751   133,751
Indefinite-Lived Trademarks $ 15   $ 15
v3.26.1
Condensed consolidated financial statement details - Future Amortization (Details) - USD ($)
$ in Thousands
Mar. 31, 2026
Dec. 31, 2025
Organization, Consolidation and Presentation of Financial Statements [Abstract]    
Finite-Lived Intangible Assets, Net $ 3,594 $ 4,063
Finite-Lived Intangible Assets [Line Items]    
Finite-Lived Intangible Assets, Net 3,594 $ 4,063
Intangibles, Total    
Organization, Consolidation and Presentation of Financial Statements [Abstract]    
Finite-Lived Intangible Asset, Expected Amortization, Year Two 1,875  
Finite-Lived Intangible Assets [Line Items]    
Next Rolling 12 Months 1,406  
Finite-Lived Intangible Asset, Expected Amortization, Year Two 1,875  
Finite-Lived Intangible Assets, Amortization Expense, Year Three 313  
Finite-Lived Intangible Asset, Expected Amortization, Year Four 0  
Finite-Lived Intangible Asset, Expected Amortization, Year Five $ 0  
v3.26.1
Condensed consolidated financial statement details - Goodwill (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2026
Mar. 31, 2025
Dec. 31, 2025
Organization, Consolidation and Presentation of Financial Statements [Abstract]      
Goodwill $ 133,751   $ 133,751
Goodwill, Impairment Loss $ 0 $ (18,600)  
v3.26.1
Condensed consolidated financial statement details - Other Assets (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2026
Mar. 31, 2025
Dec. 31, 2025
Organization, Consolidation and Presentation of Financial Statements [Abstract]      
POP Displays $ 8,349   $ 9,986
Deposits and other 10,000   9,977
Other long-term assets 21,958   24,622
Amortization of intangible assets 500 $ 500  
Amortization 1,800 1,700  
Intangible Assets, Net (Excluding Goodwill) 3,609   4,078
Deferred Income Taxes and Other Assets, Noncurrent 0   $ 581
Segment, Expenditure, Addition to Long-Lived Assets $ 100 $ 900  
v3.26.1
Condensed consolidated financial statement details - Product Warranty (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2026
Mar. 31, 2025
Dec. 31, 2025
Organization, Consolidation and Presentation of Financial Statements [Abstract]      
Beginning balances $ 4,593 $ 6,207  
Charged to cost of revenue 2,540 2,615  
Settlements of warranty claims (3,146) (2,907)  
Ending balances 3,987 $ 5,915  
Product Warranty Accrual, Noncurrent 200   $ 300
Product Warranty Accrual, Current $ 3,827   $ 4,315
v3.26.1
Condensed consolidated financial statement details - Accrued Liabilities (Details) - USD ($)
$ in Thousands
Mar. 31, 2026
Dec. 31, 2025
Organization, Consolidation and Presentation of Financial Statements [Abstract]    
Product Warranty Accrual, Current $ 3,827 $ 4,315
Employee related liabilities 7,267 8,255
Accrued sales incentives 19,050 38,259
Other Accounts Payable and Accrued Liabilities 18,237 30,274
Customer Refund Liability, Current 1,927 3,293
Customer deposits 2,640 1,216
Purchase Commitment, Remaining Minimum Amount Committed 25,819 1,343
Inventory received 3,037 3,423
Other 3,098 5,478
Accrued expenses and other current liabilities $ 130,146 $ 95,856
v3.26.1
Financing Arrangements (Details)
 3 Months Ended
Mar. 31, 2026
USD ($)
$ / shares
shares
Mar. 31, 2025
USD ($)
Feb. 27, 2026
USD ($)
Dec. 31, 2025
USD ($)
Nov. 15, 2025
USD ($)
Aug. 04, 2025
USD ($)
Line of Credit Facility [Line Items]            
Debt Instrument, Covenant Compliance, Asset Coverage Ratio 1.50          
Gain (Loss) on Extinguishment of Debt $ (8,870,000) $ 0        
Short-term Debt 71,954,000     $ 19,598,000    
Letters of Credit Outstanding, Amount 9,200,000          
Repayments of Lines of Credit 375,000 0        
Warrants and Rights Outstanding           $ 3,200,000
Derivative Expense 7,552,000 0        
Total IEEPA Potential Claim to Refunds 19,400,000          
IEEPA Claim Obligation 14,600,000   $ 8,700,000      
Loss on Extinguishment of Debt $ 8,900,000          
Convertible Senior Notes due 2025 [Member]            
Line of Credit Facility [Line Items]            
Debt Instrument         $ 93,800,000  
Convertible Debentures            
Line of Credit Facility [Line Items]            
Common stock, par value (in dollars per share) | $ / shares $ 0.0001          
Redemption Premium Percentage 7.00%          
Convertible Debentures Issue Discount 3.00%          
Derivative Expense $ 7,600,000          
Debt Instrument, Convertible, Beneficial Conversion Feature 30,900,000          
Embedded Derivative, Fair Value of Embedded Derivative Liability 30,700,000     0    
Aggregate Debt Discount 25,000,000.0          
2021 Credit Facility [Member]            
Line of Credit Facility [Line Items]            
Credit agreement, current borrowing capacity 50,000,000.0          
Minimum Fixed Charge Coverage Ratio, minimum balance 10,000,000.0          
Debt Instrument 25,500,000          
Line of Credit Facility, Unused Capacity, Qualified Cash 10,000,000.0          
Line of Credit Facility, Remaining Borrowing Capacity 0          
2021 Credit Facility [Member] | August 4, 2025 - October 30, 2025            
Line of Credit Facility [Line Items]            
Line of Credit Facility, Unused Capacity, Minimum Liquidity Requirement, Amount 25,000,000.0          
2021 Credit Facility [Member] | October 31, 2025 - November 14, 2025            
Line of Credit Facility [Line Items]            
Line of Credit Facility, Unused Capacity, Minimum Liquidity Requirement, Amount 30,000,000.0          
2021 Credit Facility [Member] | November 15, 2025 - November 30, 2025            
Line of Credit Facility [Line Items]            
Line of Credit Facility, Unused Capacity, Minimum Liquidity Requirement, Amount 35,000,000.0          
2021 Credit Facility [Member] | December 1, 2025 - Thereafter            
Line of Credit Facility [Line Items]            
Line of Credit Facility, Unused Capacity, Minimum Liquidity Requirement, Amount 40,000,000.0          
2021 Credit Facility [Member] | Feb 2026 to Borrowing Base Conversion Date            
Line of Credit Facility [Line Items]            
Credit agreement, current borrowing capacity $ 35,000,000.0          
2021 Credit Facility [Member] | Ending December 31, 2025            
Line of Credit Facility [Line Items]            
Debt Instrument, Covenant Compliance, Asset Coverage Ratio 1.25          
Line of Credit Facility, Unused Capacity, Minimum Liquidity Requirement, Amount $ 10,000,000.0          
2025 Term Loan [Member]            
Line of Credit Facility [Line Items]            
Debt Instrument 49,400,000     49,800,000    
Debt Issuance Costs, Net 0     1,900,000    
Interest Expense, Debt $ 1,400,000 0        
Class of Warrant or Right, Outstanding | shares 11,076,968          
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ / shares $ 0.75          
Debt Instrument, Unamortized Discount $ 4,700,000     3,600,000    
Amortization of Debt Discount (Premium) 500,000 0        
Line of Credit Facility, Fair Value of Amount Outstanding 44,700,000     44,300,000    
Debt Instrument, Issued, Principal 50,000,000.0          
2025 Term Loan [Member] | Current Liquidity Requirement            
Line of Credit Facility [Line Items]            
Line of Credit Facility, Unused Capacity, Minimum Liquidity Requirement, Amount $ 25,000,000.0          
2025 Term Loan [Member] | Fiscal quarter ending December 31, 2025            
Line of Credit Facility [Line Items]            
Debt Instrument, Covenant Compliance, Asset Coverage Ratio 1.05          
Line of Credit Facility, Unused Capacity, Minimum AEBITDA Requirement, Amount $ (5,000,000.0)          
2025 Term Loan [Member] | Four consecutive fiscal quarters ending March 31, 2026            
Line of Credit Facility [Line Items]            
Line of Credit Facility, Unused Capacity, Minimum AEBITDA Requirement, Amount 0          
2025 Term Loan [Member] | Four consecutive fiscal quarters ending June 30, 2026            
Line of Credit Facility [Line Items]            
Line of Credit Facility, Unused Capacity, Minimum AEBITDA Requirement, Amount 0          
2025 Term Loan [Member] | Four consecutive fiscal quarters ending Sept 30, 2026            
Line of Credit Facility [Line Items]            
Line of Credit Facility, Unused Capacity, Minimum AEBITDA Requirement, Amount (20,000,000.0)          
2025 Term Loan [Member] | Four consecutive fiscal quarters ending Dec 31, 2026            
Line of Credit Facility [Line Items]            
Line of Credit Facility, Unused Capacity, Minimum AEBITDA Requirement, Amount $ (30,000,000.0)          
2025 Term Loan [Member] | Thereafter            
Line of Credit Facility [Line Items]            
Debt Instrument, Covenant Compliance, Asset Coverage Ratio 1.15          
2025 Term Loan [Member] | Fiscal month ending July 31, 2026            
Line of Credit Facility [Line Items]            
Line of Credit Facility, Unused Capacity, Minimum Liquidity Requirement, Amount $ 30,000,000.0          
2025 Term Loan [Member] | Fiscal month ending August 31, 2026            
Line of Credit Facility [Line Items]            
Line of Credit Facility, Unused Capacity, Minimum Liquidity Requirement, Amount 35,000,000.0          
2025 Term Loan [Member] | Fiscal months thereafter            
Line of Credit Facility [Line Items]            
Line of Credit Facility, Unused Capacity, Minimum Liquidity Requirement, Amount 40,000,000.0          
2025 Term Loan [Member] | Four consecutive fiscal quarters ending Sept 30, 2027            
Line of Credit Facility [Line Items]            
Line of Credit Facility, Unused Capacity, Minimum AEBITDA Requirement, Amount (35,000,000.0)          
2025 Term Loan [Member] | Four consecutive fiscal quarters ending Dec 31, 2027            
Line of Credit Facility [Line Items]            
Line of Credit Facility, Unused Capacity, Minimum AEBITDA Requirement, Amount (40,000,000.0)          
Convertible Debentures            
Line of Credit Facility [Line Items]            
Credit agreement, current borrowing capacity 50,000,000.0          
Debt Instrument 25,000,000.0     0    
Debt Issuance Costs, Net 900,000     0    
Amortization of Debt Issuance Costs 100,000 0        
Debt Instrument, Unamortized Discount 22,600,000     0    
Amortization of Debt Discount (Premium) 1,500,000 $ 0        
Line of Credit Facility, Fair Value of Amount Outstanding 1,500,000     $ 0    
Proceeds from Issuance of Private Placement 25,000,000.0          
Potential Private Placement - Prior to Reg Statement 5,000,000.0          
Potential Private Placement - Following Closing Conditions $ 20,000,000.0          
Minimum [Member] | Convertible Debentures            
Line of Credit Facility [Line Items]            
Debt Instrument, Convertible, Conversion Price | $ / shares $ 0.1736          
Interest rate 0.00%          
Maximum [Member] | Convertible Debentures            
Line of Credit Facility [Line Items]            
Debt Instrument, Convertible, Conversion Price | $ / shares $ 1.1453          
Interest rate 18.00%          
Excess Stock, Shares Authorized | shares 47,650,000          
Median | Convertible Debentures            
Line of Credit Facility [Line Items]            
Interest rate 5.00%          
Base Rate [Member] | 2025 Term Loan [Member]            
Line of Credit Facility [Line Items]            
Basis Spread on Variable Rate 6.50%          
Base Rate [Member] | Minimum [Member] | 2021 Credit Facility [Member]            
Line of Credit Facility [Line Items]            
Basis Spread on Variable Rate 2.50%          
Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | Minimum [Member] | 2021 Credit Facility [Member]            
Line of Credit Facility [Line Items]            
Basis Spread on Variable Rate 3.50%          
Secured Overnight Financing Rate (SOFR) [Member] | 2025 Term Loan [Member]            
Line of Credit Facility [Line Items]            
Basis Spread on Variable Rate 7.50%          
v3.26.1
Stockholders' equity (Details)
 3 Months Ended
Mar. 31, 2026
USD ($)
shares
Dec. 31, 2025
USD ($)
shares
Mar. 31, 2025
USD ($)
Dec. 31, 2024
USD ($)
Feb. 09, 2023
USD ($)
Jan. 27, 2022
USD ($)
Class of Stock [Line Items]            
Stock options outstanding (shares) 1,231,000 1,444,000        
Stockholders' Equity Attributable to Parent | $ $ (1,869,000) $ 76,550,000 $ 109,980,000 $ 151,689,000    
Stock Repurchase Program, Authorized Amount | $         $ 40,000,000.0 $ 100,000,000.0
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 60,400,000          
Treasury Stock, Common            
Class of Stock [Line Items]            
Stockholders' Equity Attributable to Parent | $ $ (193,231,000) $ (193,231,000) $ (193,231,000) $ (193,231,000)    
Common Class A [Member]            
Class of Stock [Line Items]            
Common stock authorized (shares) 500,000,000 500,000,000        
Common stock outstanding (shares) 137,904,000 136,056,000        
Common Stock, Voting Rights, Number 1          
Common Stock, Shares, Issued 137,904,000 136,056,000        
Common Class B [Member]            
Class of Stock [Line Items]            
Common stock authorized (shares) 150,000,000 150,000,000        
Common stock outstanding (shares) 26,259,000 26,259,000        
Common Stock, Voting Rights, Number 10          
Common Stock, Shares, Issued 26,259,000 26,259,000        
Restricted Stock Units (RSUs) [Member]            
Class of Stock [Line Items]            
Restricted stock units outstanding (shares) 7,722,000 9,915,000        
Performance Shares [Member]            
Class of Stock [Line Items]            
Restricted stock units outstanding (shares) 0 47,000        
v3.26.1
Employee benefit plans - Narrative (Details) - USD ($)
$ / shares in Units, $ in Thousands
 3 Months Ended
Mar. 31, 2025
Mar. 31, 2026
Mar. 31, 2025
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
ESPP weighted average purchase price of shares purchased (usd per share)   $ 0.73 $ 0.68
Unearned stock-based compensation, expected recognition period 1 year 11 months 4 days    
Share-based Payment Arrangement, Expense, Tax Benefit   $ 0 $ 0
Stock Issued During Period, Shares, Employee Stock Purchase Plans   400,000 600,000
Stock-based compensation   $ 2,998 $ 5,370
Deferred Bonus      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Stock-based compensation   $ 500 $ 200
RSUs [Member]      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Shares granted (shares)   104,000  
Weighted average price of shares granted (usd per share)   $ 0.81  
Performance Shares [Member]      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Shares granted (shares)   0  
Weighted average price of shares granted (usd per share)   $ 0  
Employee Stock Purchase Plan Shares [Member]      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Purchase Price of Common Stock, Percent   85.00%  
Stock Options, ESPP and Restricted Stock Units (RSUs) [Member]      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Unearned stock-based compensation costs   $ 11,300  
2024 Equity Incentive Plans | Stock Options [Member]      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Expiration Period   10 years  
2024 Equity Incentive Plans | Performance Shares [Member]      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Award Vesting Period   3 years  
2024 Equity Incentive Plans | Minimum [Member] | Stock Options [Member]      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Award Vesting Period   1 year  
2024 Equity Incentive Plans | Minimum [Member] | RSUs [Member]      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Award Vesting Period   2 years  
2024 Equity Incentive Plans | Maximum [Member] | Stock Options [Member]      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Award Vesting Period   4 years  
2024 Equity Incentive Plans | Maximum [Member] | RSUs [Member]      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Award Vesting Period   4 years  
v3.26.1
Employee benefit plans - Stock Option Activity (Details) - USD ($)
$ / shares in Units, shares in Thousands
 3 Months Ended
Dec. 31, 2025
Mar. 31, 2026
Shares (in thousands)    
Outstanding at beginning of period (shares)   1,444
Granted (shares)   0
Exercised (shares)   0
Forfeited/Cancelled (shares)   (213)
Outstanding at end of period (shares) 1,444 1,231
Weighted-average exercise price    
Outstanding at beginning of period (in dollars per share)   $ 7.06
Granted (usd per share)   0
Exercised (usd per share)   0
Outstanding at end of period (in dollars per share) $ 7.06 $ 7.00
Aggregate intrinsic value (in thousands) $ 0 $ 0
Vested and Expected to Vest (shares)   1,231
Vested and Expected to Vest - Weighted Average Exercise Price (in dollars per share)   $ 7.00
Vested and Expected to Vest- Weighted Average Remaining Contractual Term   3 years 6 months 7 days
Vested and Expected to Vest - Aggregate Intrinsic Value   $ 0
Exercisable (shares)   1,231
Exercisable - Weighted average exercise price (in dollars per share)   $ 7.00
Exercisable - Weighted Average Remaining Contractual Term   3 years 6 months 7 days
Exercisable - Aggregate intrinsic value   $ 0
Share-based Compensation Arrangements by Share-based Payment Award, Options, Forfeitures in Period, Weighted Average Exercise Price   $ 7.44
Weighted Average Remaining Contractual Term (in years) 3 years 2 months 26 days 3 years 6 months 7 days
v3.26.1
Employee benefit plans - Restricted Stock Units Activity (Details)
shares in Thousands
 3 Months Ended
Mar. 31, 2026
$ / shares
shares
RSUs [Member]  
Shares (in thousands)  
Non-vested shares at beginning of period (shares) | shares 9,915
Granted (shares) | shares 104
Vested (shares) | shares (1,918)
Forfeited (shares) | shares (379)
Non-vested shares at end of period (shares) | shares 7,722
Weighted-average grant date fair value  
Non-vested shares at beginning of period (in dollars per share) | $ / shares $ 1.81
Weighted average price of shares granted (usd per share) | $ / shares 0.81
Weighted average price of shares vested (usd per share) | $ / shares 3.15
Weighted average price of shares forfeited (usd per share) | $ / shares 1.99
Non-vested shares at end of period (in dollars per share) | $ / shares $ 1.46
Performance Shares [Member]  
Shares (in thousands)  
Non-vested shares at beginning of period (shares) | shares 47
Granted (shares) | shares 0
Vested (shares) | shares (47)
Forfeited (shares) | shares 0
Non-vested shares at end of period (shares) | shares 0
Weighted-average grant date fair value  
Non-vested shares at beginning of period (in dollars per share) | $ / shares $ 5.79
Weighted average price of shares granted (usd per share) | $ / shares 0
Weighted average price of shares vested (usd per share) | $ / shares 5.79
Weighted average price of shares forfeited (usd per share) | $ / shares 0
Non-vested shares at end of period (in dollars per share) | $ / shares $ 0
v3.26.1
Employee benefit plans - Allocation of Stock-based Compensation Expense (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2026
Mar. 31, 2025
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]    
Total stock-based compensation expense $ 2,998 $ 5,370
Share-based Payment Arrangement, Expense, Tax Benefit 0 0
Deferred Bonus    
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]    
Total stock-based compensation expense 500 200
Cost of Revenue [Member]    
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]    
Total stock-based compensation expense 144 248
Research and Development [Member]    
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]    
Total stock-based compensation expense 1,560 2,820
Selling and Marketing Expense [Member]    
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]    
Total stock-based compensation expense 575 882
General and Administrative [Member]    
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]    
Total stock-based compensation expense $ 719 $ 1,420
v3.26.1
Employee benefit plans Performance Stock Units activity (Details) - $ / shares
shares in Thousands
 3 Months Ended
Mar. 31, 2026
Dec. 31, 2025
Performance Shares [Member]    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Restricted stock units outstanding (shares) 0 47
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value $ 0 $ 5.79
Granted (shares) 0  
Weighted average price of shares granted (usd per share) $ 0  
Vested (shares) (47)  
Weighted average price of shares vested (usd per share) $ 5.79  
Forfeited (shares) 0  
Weighted average price of shares forfeited (usd per share) $ 0  
Restricted Stock Units (RSUs) [Member]    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Restricted stock units outstanding (shares) 7,722 9,915
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value $ 1.46 $ 1.81
Granted (shares) 104  
Weighted average price of shares granted (usd per share) $ 0.81  
Vested (shares) (1,918)  
Weighted average price of shares vested (usd per share) $ 3.15  
Forfeited (shares) (379)  
Weighted average price of shares forfeited (usd per share) $ 1.99  
v3.26.1
Net loss per share Additional Information (Details)
 3 Months Ended
Mar. 31, 2026
shares
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]  
Conversion of Stock maxium percent of outstanding shares in class of total outstanding shares 10.00%
Conversion of Stock maxium percent of outstanding shares in class of total outstanding shares 10.00%
Common Class A [Member]  
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]  
Common Stock, Voting Rights, Number 1
Conversion of Stock, Shares Issued 1
Common Class B [Member]  
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]  
Common Stock, Voting Rights, Number 10
v3.26.1
Net loss per share - Basic and Diluted Net Income per Share Attributable to Common Stockholders (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands
 3 Months Ended
Mar. 31, 2026
Mar. 31, 2025
Numerator:    
Net loss $ (80,820) $ (46,709)
Denominator:    
Earnings Per Share, Diluted $ (0.50) $ (0.30)
Weighted Average Number of Shares Outstanding, Diluted 163,208 156,438
v3.26.1
Net loss per share - Antidilutive Securities Excluded from Computation of Net Income per Share (Details) - shares
shares in Thousands
 3 Months Ended
Mar. 31, 2026
Mar. 31, 2025
Earnings Per Share [Abstract]    
Antidilutive securities excluded from computation of earnings per share (shares) 25,670 24,496
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]    
Antidilutive securities excluded from computation of earnings per share (shares) 25,670 24,496
Convertible Debt Securities    
Earnings Per Share [Abstract]    
Antidilutive securities excluded from computation of earnings per share (shares) 0 10,050
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]    
Antidilutive securities excluded from computation of earnings per share (shares) 0 10,050
Share-based Payment Arrangement    
Earnings Per Share [Abstract]    
Antidilutive securities excluded from computation of earnings per share (shares) 10,838 14,446
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]    
Antidilutive securities excluded from computation of earnings per share (shares) 10,838 14,446
Warrant    
Earnings Per Share [Abstract]    
Antidilutive securities excluded from computation of earnings per share (shares) 2,816 0
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]    
Antidilutive securities excluded from computation of earnings per share (shares) 2,816 0
Convertible Debentures    
Earnings Per Share [Abstract]    
Antidilutive securities excluded from computation of earnings per share (shares) 12,016 0
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]    
Antidilutive securities excluded from computation of earnings per share (shares) 12,016 0
v3.26.1
Income taxes - Narrative (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2026
Mar. 31, 2025
Dec. 31, 2025
Income Tax Disclosure [Abstract]      
Income tax (benefit) expense $ 1,845 $ 1,652  
Loss before income taxes (78,975) (45,057)  
Current Foreign Tax Expense (Benefit) 1,200 $ 1,600  
Unrecognized Tax Benefits 30,400   $ 29,700
Unrecognized Tax Benefits that Would Impact Effective Tax Rate $ 13,100    
v3.26.1
Income Taxes (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2026
Mar. 31, 2025
Income Tax Disclosure [Abstract]    
Income Tax Effects Allocated Directly to Equity, Other $ 1,300 $ 2,100
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Restructuring Charges, Amount   (500)
Minimum Effective Tax 1500.00%  
Schedule of Components of Income Tax Expense (Benefit)
The following table provides the income tax expense amount:
Three months ended March 31,
(dollars in thousands)20262025
Income tax expense$1,845 $1,652 
  
Valuation Allowance [Line Items]    
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount   $ (1,600)
Valuation allowance $ 344,600  
Geographic Distribution, Foreign    
Valuation Allowance [Line Items]    
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount 600  
Geographic Distribution, Domestic    
Valuation Allowance [Line Items]    
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount $ (1,200)  
v3.26.1
Related party transactions (Details) - Chief Executive Officer (CEO) [Member]
$ / shares in Units, $ in Millions
 12 Months Ended
Dec. 31, 2025
USD ($)
$ / shares
shares
Related Party Transaction [Line Items]  
Related Party Transaction, Purchases from Related Party | $ $ 2
Common stock, par value (in dollars per share) $ 0.0001
Common Stock, Shares, Issued | shares 1,129,944
Shares Issued, Price Per Share $ 1.77
v3.26.1
Commitment and Contingencies (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2026
Mar. 31, 2025
Dec. 31, 2025
Long-term Purchase Commitment [Line Items]      
Finance Lease, Liability, to be Paid, Year One $ 9,732    
Finance Lease, Liability, to be Paid, Year Two 3,278    
Finance Lease, Liability, to be Paid, Year Three 1,570    
Finance Lease, Liability, to be Paid, Year Four 1,072    
Finance Lease, Liability, to be Paid, Year Five 761    
Lessee, Operating Lease, Liability, Payments, Due after Year Five 2,157    
Lessee, Operating Lease, Liability, Payments, Due 18,570    
Lessee, Operating Lease, Liability, Undiscounted Excess Amount (1,854)    
Operating Lease, Liability 16,716    
Operating Lease, Cost 2,252 $ 2,076  
Sublease Income (723) (723)  
Lease, Cost 1,529 1,353  
Operating Lease, Payments 3,684 3,395  
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability $ 802 $ 1,527  
Operating Lease, Weighted Average Remaining Lease Term 2 years 9 months 21 days   2 years 9 months 3 days
Operating Lease, Weighted Average Discount Rate, Percent 6.40%   6.40%
Other Commitment $ 191,900    
Loss Contingency, Damages Awarded, Value $ 8,200    
v3.26.1
Concentrations of risk and geographic information - Narrative (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2026
Mar. 31, 2025
Dec. 31, 2025
Revenue, Major Customer [Line Items]      
Revenues $ 99,065 $ 134,308  
United States [Member]      
Revenue, Major Customer [Line Items]      
Revenues 55,300 $ 62,800  
Non-US      
Revenue, Major Customer [Line Items]      
Assets, Noncurrent $ 5,500   $ 3,100
v3.26.1
Concentrations of risk and geographic information - Schedule of Customer Concentration by Risk Factor (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2026
Dec. 31, 2025
Mar. 31, 2025
Concentration Risk [Line Items]      
Accounts receivable sold $ 4,321   $ 6,957
Factoring fees $ 83   $ 123
Customer Concentration Risk [Member] | Accounts Receivable [Member] | Customer A [Member]      
Concentration Risk [Line Items]      
Concentration risk 14.00%    
Customer Concentration Risk [Member] | Accounts Receivable [Member] | Customer B (Retailer) (Member)      
Concentration Risk [Line Items]      
Concentration risk 13.00% 14.00%  
Customer Concentration Risk [Member] | Accounts Receivable [Member] | Customer C (Retailer)      
Concentration Risk [Line Items]      
Concentration risk 11.00% 10.00%  
Customer Concentration Risk [Member] | Accounts Receivable [Member] | Customer D (Retailer)      
Concentration Risk [Line Items]      
Concentration risk   10.00%  
Customer Concentration Risk [Member] | Sales Revenue [Member] | Customer A [Member]      
Concentration Risk [Line Items]      
Concentration risk     17.00%
v3.26.1
Concentrations of risk and geographic information - Schedule of Revenue by Geographic Segment (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2026
Mar. 31, 2025
Segment Reporting Information [Line Items]    
Revenues $ 99,065 $ 134,308
United States [Member]    
Segment Reporting Information [Line Items]    
Revenues 55,300 62,800
Americas [Member]    
Segment Reporting Information [Line Items]    
Revenues 67,448 81,855
Europe, Middle East and Africa [Member]    
Segment Reporting Information [Line Items]    
Revenues 20,749 40,076
Asia and Pacific Area Countries [Member]    
Segment Reporting Information [Line Items]    
Revenues $ 10,868 $ 12,377
v3.26.1
Restructuring charges - Restructuring Costs (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2026
Dec. 31, 2025
Mar. 31, 2025
Restructuring Cost and Reserve [Line Items]      
Restructuring Charges $ 61   $ 2,430
Third quarter 2024 restructuring      
Restructuring Cost and Reserve [Line Items]      
Restructuring Charges   $ 18,700  
Cost of Revenue [Member]      
Restructuring Cost and Reserve [Line Items]      
Restructuring Charges $ 9   $ 2
Restructuring Charges, Statement of Income or Comprehensive Income [Extensible Enumeration] Cost of revenue   Cost of revenue
Research and Development [Member]      
Restructuring Cost and Reserve [Line Items]      
Restructuring Charges $ 3   $ 762
Restructuring Charges, Statement of Income or Comprehensive Income [Extensible Enumeration] Operating Expenses   Operating Expenses
Selling and Marketing Expense [Member]      
Restructuring Cost and Reserve [Line Items]      
Restructuring Charges $ (6)   $ 477
Restructuring Charges, Statement of Income or Comprehensive Income [Extensible Enumeration] Sales and marketing   Sales and marketing
General and Administrative [Member]      
Restructuring Cost and Reserve [Line Items]      
Restructuring Charges $ 55   $ 1,189
Restructuring Charges, Statement of Income or Comprehensive Income [Extensible Enumeration] General and administrative   General and administrative
v3.26.1
Restructuring charges - Narrative (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2026
Dec. 31, 2025
Mar. 31, 2025
Restructuring Reserve [Roll Forward]      
Restructuring charges $ 61   $ 2,430
Third quarter 2024 restructuring      
Restructuring Cost and Reserve [Line Items]      
Expected percent of positions eliminated   25.00%  
Severance Costs   $ 12,700  
Restructuring Reserve [Roll Forward]      
Restructuring liability Start of Period 4,000    
Cash paid 0    
Non-cash settlements 0    
Restructuring liability End of Period 4,000 4,000  
Restructuring charges   18,700  
Third quarter 2024 restructuring | Employee Severance and Pay Related Costs [Member]      
Restructuring Reserve [Roll Forward]      
Restructuring liability Start of Period 0    
Cash paid 0    
Non-cash settlements 0    
Restructuring liability End of Period 0 0  
Third quarter 2024 restructuring | Other Restructuring [Member]      
Restructuring Reserve [Roll Forward]      
Cash paid 0    
Non-cash settlements 0    
Third quarter 2024 restructuring | Contract Termination      
Restructuring Reserve [Roll Forward]      
Restructuring liability Start of Period 4,000    
Restructuring liability End of Period $ 4,000 4,000  
Restructuring charges   $ 6,000  
v3.26.1
Subsequent Events (Details) - Subsequent Event [Member] - Second quarter 2026 restructuring
$ in Millions
Apr. 07, 2026
USD ($)
Subsequent Event [Line Items]  
Expected percent of positions eliminated 23.00%
2026 Second Quarter  
Subsequent Event [Line Items]  
Restructuring and Related Cost, Expected Cost $ 1.5
Minimum [Member]  
Subsequent Event [Line Items]  
Restructuring and Related Cost, Expected Cost 11.5
Minimum [Member] | 2026 Third Quarter  
Subsequent Event [Line Items]  
Restructuring and Related Cost, Expected Cost 5.5
Minimum [Member] | 2026 Fourth Quarter  
Subsequent Event [Line Items]  
Restructuring and Related Cost, Expected Cost 4.5
Maximum [Member]  
Subsequent Event [Line Items]  
Restructuring and Related Cost, Expected Cost 15.0
Maximum [Member] | 2026 Third Quarter  
Subsequent Event [Line Items]  
Restructuring and Related Cost, Expected Cost 8.0
Maximum [Member] | 2026 Fourth Quarter  
Subsequent Event [Line Items]  
Restructuring and Related Cost, Expected Cost $ 5.5