Nasdaq's $1 Warning: Most Companies Survive, But Shareholders Lose
What happened to 145 Nasdaq companies after the $1 warning letter
Equibles tracked 145 Nasdaq companies that received a minimum bid price notice in the first half of 2025 through October 2026. 74.5% remain listed, but 58.6% used a reverse split to stay compliant. For shareholders, the median stock fell 47.3% from the day the letter was disclosed, versus a 32.4% gain for the S&P 500. Companies that split were down a median 83.0%. The price on the day of the letter mattered most.
The gap between the last two isn't evidence that reverse splits destroy value. It's the other way around: the companies whose stock recovered on its own never needed a split, so the split marks the companies that didn't recover.