PAVmed Inc. (NASDAQ: PAVM) announced a 1‑for‑30 reverse stock split that will take effect on January 2, 2026 at 12:01 a.m. Eastern Time. The split will reduce the number of shares outstanding from 250 million to 25 million and adjust the stock’s price so that the bid price exceeds Nasdaq’s $1.00 minimum requirement.
The board approved the reverse split on December 8, 2025, and shareholders voted in favor of the plan at a special meeting held on December 5, 2025. The company’s new CUSIP number for the split‑adjusted shares will be 70387R 502. The reverse split will also trigger adjustments to exercise prices and conversion prices for any outstanding options and convertible securities.
PAVmed’s financial performance in the most recent quarter underscores the need for the split. In Q3 2025 the company reported a GAAP net loss of $6 million and a non‑GAAP loss of $446,000, translating to an earnings per share of $‑0.02—an 90 % beat over the consensus estimate of $‑0.20. The loss compares to a Q3 2024 EPS of $‑0.54, indicating a modest improvement in profitability. Revenue has declined 22 % over the past three years, and the company’s operating margin remains negative, reflecting persistent cost pressures and limited pricing power. Liquidity constraints are evident, with a current ratio of 0.4 and a quick ratio of 0.38, while the Altman Z‑Score of –9.13 and a Beneish M‑Score of 9.33 signal high bankruptcy risk and potential earnings manipulation concerns.
The reverse split is a compliance measure to avoid delisting after Nasdaq granted PAVmed an extension until January 19, 2026. While the split will raise the bid price above the $1.00 threshold, it is largely cosmetic and does not address the underlying financial challenges. Investors view the action as a sign of ongoing distress, and the company’s negative cash flows and declining revenue trajectory reinforce that perception.
PAVmed’s subsidiaries continue to pursue growth opportunities. Lucid Diagnostics reported $1.2 million in revenue from its EsoGuard® Esophageal DNA Test in Q3 2025 and secured Medicare coverage for the test, expanding its potential market. Veris Health remains focused on remote patient monitoring for cancer care, though its financial contribution to the parent company remains modest. These subsidiary developments provide limited upside against the broader financial headwinds faced by the parent company.
Investor sentiment has turned negative following the announcement, reflecting concerns that the reverse split signals deeper financial instability. The company’s inability to maintain a bid price above $1.00, coupled with persistent losses and liquidity constraints, has eroded confidence in its ability to sustain operations and achieve profitability.
The reverse split will also adjust the terms of any outstanding options and convertible securities, ensuring that exercise and conversion prices remain aligned with the new share structure. The company’s management has indicated that the split is a necessary step to preserve Nasdaq listing status while it continues to focus on cost discipline and strategic initiatives aimed at improving long‑term financial health.
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