Urgent.ly to execute reverse stock split to meet Nasdaq requirements

VIENNA, Va. - Urgent.ly Inc. (NASDAQ: ULY), a provider of digital roadside assistance technology, announced it will carry out a reverse stock split at a 1-for-12 ratio, effective at the close of trading on March 17, 2025. This move aims to comply with Nasdaq’s minimum bid price requirement, following a challenging period where the stock has declined nearly 84% over the past year. Currently trading at $0.51, near its 52-week low of $0.41, the company’s common stock will trade on a split-adjusted basis from March 18, 2025, under the current ticker symbol ULY. According to InvestingPro analysis, the stock currently appears undervalued based on its Fair Value assessment.

The reverse stock split was authorized by stockholders at a special meeting on March 12, 2025. The action will reduce the total authorized shares of common stock from 1 billion to 500 million, while preferred stock remains at 100 million shares. The par value per share will stay at $0.001. Fractional shares resulting from the split will be settled in cash based on the prior day’s closing price, adjusted for the split. InvestingPro data reveals the company faces significant financial challenges, with a current ratio of 0.56 and negative EBITDA of $27.79 million in the last twelve months.

Adjustments will also be made to outstanding warrants, stock options, restricted stock units, and shares allocated for equity incentive and employee stock purchase plans. Equiniti Trust Company, LLC, will act as the exchange agent for the reverse split.

Urgent.ly’s platform aims to enhance mobility assistance through real-time data, AI, and machine-to-machine communication, catering to various transportation sectors. Despite generating revenues of $155.93 million in the last twelve months, the company’s goal to offer connected roadside assistance services globally faces challenges, with analysts forecasting a sales decline in the current year. For detailed analysis and 12 additional key insights about ULY, visit InvestingPro, where you can access the comprehensive Pro Research Report.

This press release contains forward-looking statements about the anticipated effects of the reverse stock split, including its potential impact on stock price, marketability, and Nasdaq compliance. These statements are subject to risks and uncertainties, and actual outcomes may differ.

Investors and stockholders who have questions regarding the reverse split are encouraged to contact their financial institutions. Additional details can be found in Urgent.ly’s definitive proxy statement filed with the SEC on February 21, 2025, available at www.sec.gov.

The information in this article is based on a press release statement from Urgent.ly Inc.

In other recent news, Urgent.ly Inc reported its Q4 2024 financial results, which fell short of analyst expectations. The company announced an earnings per share (EPS) of -0.65, missing the anticipated -0.36, while revenue was $32 million, significantly below the projected $55.2 million. Despite these challenges, Urgent.ly managed to improve its gross margin to 22% and reduce its non-GAAP operating loss by 18% compared to the previous year. The company also highlighted strategic divestments and workforce reductions during its earnings call. For the full year 2024, Urgent.ly’s revenue was $142.9 million, marking a 23% decrease from the previous year. Looking ahead, the company has provided revenue guidance of $30-33 million for Q1 2025 and aims for non-GAAP operating breakeven by mid-2025. Urgent.ly’s leadership emphasized their focus on operational efficiencies and expanding into new markets. Furthermore, the company secured a $20 million credit facility with MidCap Financial to support its transformation efforts.

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