March 24, 2025
Orion Energy Systems Dodges Nasdaq Delisting
Reverse stock split on the table as Orion fights Nasdaq compliance deadline
The Wisconsin-based lighting and energy solutions company received a Nasdaq compliance extension on March 20, giving it an additional six months — until September 15, 2025 — to pull its share price back above the critical $1.00 mark. It’s the latest chapter in a long-running struggle between Orion Energy Systems and the market’s unforgiving bid price rule, a fight that has seen the company flirt with delisting multiple times in the past year.
But this time, Orion isn’t just waiting for a market rebound. The company has already told Nasdaq that it’s prepared to take drastic measures, including a reverse stock split, to regain compliance if necessary.
Six More Months to Prove Itself
Orion’s Nasdaq troubles began anew in September 2024 when its stock fell below the $1.00 threshold for 30 consecutive trading days, triggering a non-compliance notice. The company was initially given until March 19, 2025, to correct the issue, but as the deadline approached, Orion requested a second 180-day extension.
Nasdaq granted the request based on Orion’s ability to meet all other listing criteria — except for the bid price rule — and its written commitment to fixing the issue. If Orion’s stock can maintain a closing bid price of at least $1.00 for ten consecutive trading days at any point before the September deadline, Nasdaq will consider the matter resolved. Otherwise, the company could face delisting proceedings, though it retains the right to appeal.
A Stock in a Holding Pattern
The question is whether Orion can actually pull this off. The company’s recent trading activity offers little reassurance:
- Since early February 2025, Orion’s stock has hovered between $0.73 and $0.93 per share, showing no sustained upward momentum.
- Even in its best-performing recent stretch — from late January to mid-February — the stock barely touched $0.93 before dipping again.
- On March 21, the day after receiving the extension, Orion closed at $0.79, still well short of the $1.00 threshold.
With no significant market catalysts in sight, a reverse stock split is looking increasingly likely. The move would artificially boost the share price by consolidating existing shares, though such actions can also spook investors if they signal deeper financial instability.
What’s Next for Orion?
Orion’s ongoing stock struggles come at a time when the company is trying to position itself as a leader in LED lighting and EV charging solutions. Despite some operational improvements, Orion remains unprofitable, with a reported loss of $0.05 per share in its most recent quarter​.
The company insists it has a plan, emphasizing cost discipline and revenue growth as key strategies. But with a September deadline looming and the stock stuck in neutral, Orion’s next move — whether a market-driven comeback or a forced restructuring — could determine its fate on Nasdaq.
One thing is clear: the clock is ticking.
