Tile Shop plans to delist from Nasdaq, go private in cost-saving move

MINNEAPOLIS - Tile Shop Holdings, Inc. (NASDAQ:TTSH), a specialty retailer with a market capitalization of $263 million and annual revenue of $340 million, announced Monday that its board has approved a plan to delist from the Nasdaq Capital Market and terminate its SEC reporting obligations following a proposed reverse stock split expected to be completed in December 2025. According to InvestingPro analysis, the company currently trades above its Fair Value.

The specialty retailer of natural stone and tile products said the move aims to eliminate the costs associated with being a public company, with anticipated annual savings of approximately $2.4 million. The company plans to use these savings to focus resources on enhancing long-term stockholder value. InvestingPro data shows the company maintains impressive gross profit margins of 65% and healthy liquidity with a current ratio of 1.53, though it has not been profitable over the last twelve months.

The proposed transaction involves a reverse stock split at a ratio between 1-for-2,000 and 1-for-4,000, which would cash out holders of fewer shares than the split ratio denominator at $6.60 per share. This price represents a premium over the stock’s October 2 closing price, according to the company’s press release.

Stockholders owning more shares than the reverse split ratio would remain investors in the company. A forward split would immediately follow to negate any effects on continuing stockholders.

The board unanimously determined the transaction is in the best interests of the company and its stockholders, noting that Tile Shop "currently realizes none of the traditional benefits of public company status, yet incurs all of the significant annual expenses and indirect costs."

Other factors considered included limited trading volume of the company’s stock, the ability to provide smaller stockholders liquidity at a premium, and allowing management to focus more on operations rather than compliance requirements.

The transaction requires stockholder approval at a special meeting expected in December 2025. If approved, Tile Shop would cease filing SEC reports and delist from Nasdaq.

Tile Shop currently operates 140 stores across 31 states and the District of Columbia, according to the company’s statement. For deeper insights into TTSH’s financial health and future prospects, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro, which covers over 1,400 US stocks with detailed analysis and actionable intelligence.

In other recent news, Tile Shop Holdings Inc. announced its earnings for the second quarter of 2025. The company reported a slight increase in revenue, reaching $88.26 million. However, the earnings per share (EPS) came in at $0.01. Despite the revenue growth, there were investor concerns, which were reflected in the company’s stock performance. The earnings report highlighted the market conditions and strategic shifts that may have contributed to these concerns. No mergers, acquisitions, or analyst upgrades or downgrades were reported in this period. These developments provide investors with insight into the current financial standing and market challenges facing Tile Shop Holdings Inc.

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