Workhorse regains Nasdaq compliance with share price

Published 02/04/2025, 13:38
Workhorse regains Nasdaq compliance with share price

CINCINNATI - Workhorse Group Inc. (NASDAQ: WKHS), a company specializing in zero-emission commercial vehicles, has successfully met Nasdaq’s minimum bid price requirement, avoiding the risk of delisting. Nasdaq confirmed that Workhorse’s common stock has maintained a closing bid price of at least $1.00 for ten consecutive trading days, as required by Listing Rule 5550(a)(2). According to InvestingPro data, the stock currently trades at $1.69, though it has experienced a significant 96.8% decline over the past year.

The compliance milestone follows Workhorse’s strategic move to implement a 1-for-12.5 reverse stock split on March 17, 2025, which was aimed at boosting the market price of its shares. This adjustment allowed the stock to trade on a split-adjusted basis, eventually leading to the regained compliance. InvestingPro analysis reveals concerning fundamentals, including significant cash burn and weak gross profit margins of -333.3%.

Workhorse initially fell below the minimum bid price threshold on October 2, 2024, when its stock closed below $1.00 for 30 consecutive trading days. The notification from Nasdaq prompted the company to take corrective actions to restore its compliance with the stock market’s listing standards.

The company, headquartered in Union City, Indiana, is known for designing and manufacturing electric vehicles for last-mile delivery, medium-duty operations, and a variety of specialized applications. Workhorse’s commitment to innovation in the zero-emission vehicle sector is part of its broader strategy to meet the growing demand for environmentally friendly transportation solutions. However, InvestingPro data shows the company faces significant operational challenges, with revenue declining 25% and an EBITDA of -$85.1 million in the last twelve months. Get access to 20+ additional ProTips and comprehensive analysis with an InvestingPro subscription.

This news is based on a press release statement and reflects the company’s current status in the stock market. It is important to note that forward-looking statements involve risks and uncertainties, and actual results may differ materially. Factors that could influence Workhorse’s future performance include its ability to develop and manufacture products, market acceptance, and changes in the political and regulatory environment, among others. Based on current metrics, InvestingPro’s Fair Value analysis suggests the stock is slightly undervalued, though investors should note the company’s weak financial health score and analysts’ expectations of continued losses this year.

In other recent news, Workhorse Group Inc. reported its full-year 2024 financial results, revealing a decline in sales to $6.6 million from $13.1 million in 2023. Despite this drop, the company managed to improve its net loss to $101.8 million, down from $123.9 million the previous year, primarily due to significant cost-cutting measures. These measures included staff reductions and leadership pay cuts, as Workhorse aims to extend its financial runway and secure more commercial electric vehicle orders. The company has refrained from providing specific revenue guidance due to market uncertainties but plans to launch a new 140kW W56 model in the third quarter of 2025. Workhorse also received approval to sell its W750 and W56 step van models in Canada, with demos scheduled for the coming months. Additionally, the company has been focusing on expanding its presence in the medium-duty EV space and has established in-house manufacturing capabilities for complete step vans. Analysts from various firms have noted the company’s challenges in the commercial EV market, including slower-than-expected adoption and regulatory hurdles.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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