Cambium Networks faces Nasdaq non-compliance issue

Published 21/04/2025, 21:38
Cambium Networks faces Nasdaq non-compliance issue

HOFFMAN ESTATES, Ill. - Cambium Networks (NASDAQ: CMBM), a provider of networking solutions, announced today that it received a second deficiency notice from The Nasdaq Stock Market. The notice, dated April 16, 2025, is due to the company’s failure to file its annual report on Form 10-K for the year ended December 31, 2024, within the stipulated timeframe, thus continuing its non-compliance with Nasdaq’s listing rules. The company, currently valued at just $10.6 million in market capitalization, has seen its stock price decline by 88% over the past year amid challenging financial conditions. InvestingPro analysis indicates the company faces significant headwinds, with negative EBITDA of $76.5 million in the last twelve months.

This recent notification follows an earlier delinquency notice received on April 10, 2024, regarding the company’s stock price not meeting the minimum bid price requirement. According to Nasdaq Listing Rule 5250(c)(1), Cambium Networks now has 60 days from the receipt of the second notice to file the overdue Form 10-K or to present a plan to regain compliance. If Nasdaq accepts the company’s compliance plan, it may grant an extension of up to 180 days from the Form 10-K’s original due date, or until October 13, 2025, for Cambium Networks to meet the listing requirements. InvestingPro data reveals concerning trends, including a 35% revenue decline and rapidly diminishing cash reserves. Get access to 14 additional ProTips and comprehensive financial analysis with an InvestingPro subscription.

The company has expressed its intention to remedy the filing delay and regain compliance with Nasdaq’s listing standards. Cambium Networks specializes in providing service providers, enterprises, industrial organizations, and governments with digital connectivity solutions through its ONE Network platform, which simplifies the management of both wired and wireless broadband and network edge technologies.

The information reported here is based on a press release statement from Cambium Networks. The company’s focus remains on ensuring their customers can dedicate more resources to their core business operations rather than network management. Cambium Networks has not provided any further details on the specific reasons for the delay in filing or the measures it plans to take to address the issue.

In other recent news, Cambium Networks Corp has received a notice from the Nasdaq Stock Market indicating a risk of delisting due to its share price falling below the required minimum. The notification specifies that Cambium’s ordinary shares have closed below the $1.00 minimum bid price for the last 30 consecutive business days, not meeting the Nasdaq Global Select Market’s continued listing standards. Under Nasdaq’s rules, Cambium has until October 7, 2025, to regain compliance by maintaining a closing bid price of at least $1.00 for a minimum of 10 consecutive business days before this deadline. If Cambium achieves this, it will continue its listing on the Nasdaq Global Select Market. Should Cambium fail to meet the requirements by the compliance date, it could be granted a second 180-day period to regain compliance, which might involve a potential reverse stock split to boost the share price above the $1.00 threshold. In the event of non-compliance after the additional period, or if Nasdaq determines that compliance cannot be achieved, Cambium’s shares could be delisted. However, Cambium would have the right to appeal any delisting decision to a Nasdaq Hearings Panel. The company has stated its intention to monitor the share price closely and explore options to address the deficiency. Despite the notice, Cambium’s ordinary shares will continue to trade on the Nasdaq for the time being.

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