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What happened to 145 Nasdaq companies after the $1 warning letter

By · Published by Everything Blog

In short

Tracking reveals that while 108 of the 145 flagged firms retained their Nasdaq presence up to 22 months later, 37 departed through delisting, acquisition, or bankruptcy. Reverse stock splits proved to be the primary survival tactic, yet stocks undergoing these actions suffered a median decline of 83.0%. Additionally, a lower initial share price at the time of the warning closely correlated with a higher risk of business failure.

Key points

  • Initial price levels heavily influence survival odds, with sub-$0.50 stocks suffering far…: Initial price levels heavily influence survival odds, with sub-$0.50 stocks suffering far more bankruptcies and delistings than higher-priced peers.
  • Relying on reverse stock splits to maintain market listing generally results in devastati…: Relying on reverse stock splits to maintain market listing generally results in devastating equity losses for existing public investors.
  • Escaping a minimum bid warning rarely secures long-term stability, as many surviving busi…: Escaping a minimum bid warning rarely secures long-term stability, as many surviving businesses quickly sink back into regulatory non-compliance.

Sources checked by our analysis pipeline: 1

On May 28, 2025, Nasdaq told Opendoor (OPEN $1.90 -0.52%) that its shares had closed below $1.00 for 30 business days in a row. The company did what most companies in that position do: it called a special meeting to ask shareholders for permission to do a reverse split. Then the stock ran. Opendoor closed at $1.00 or more on 12 straight trading days from July 15 to July 30, Nasdaq closed the matter, and the board cancelled the meeting.

Opendoor is the story everyone remembers, but it isn't the typical one. We followed every Nasdaq company that disclosed its first minimum bid price notice in the first half of 2025, 145 of them, to October 26, 2026. Most are still listed. Most did a reverse split to get there. And for most of the people who held the stock on the day the letter was disclosed, the shares are worth less now.

The data behind this piece

Explore the primary data Equibles carries for OPEN:

The short answer

- 108 of the 145 companies (74.5%) are still listed on…

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