NaaS Technology Inc. (NASDAQ: NAAS) received a written notice from Nasdaq on February 20, 2026, stating that the company is not in compliance with the minimum market value of listing securities (MVLS) requirement of US$35 million. The notice, dated February 17, 2026, gives the company 180 days—until August 17, 2026—to restore its MVLS to the required threshold for at least ten consecutive business days. Failure to meet the deadline will trigger a further notice and could result in delisting.
The MVLS deficiency also signals that NaaS is falling short of other Nasdaq listing standards, including a minimum stockholders’ equity of US$2.5 million and a net income of US$500,000 in the most recent fiscal year or in two of the last three years. The company had previously regained compliance in December 2025 after a June 2025 notice, but the current shortfall indicates ongoing volatility in meeting listing requirements. In addition, NaaS announced a change of independent auditor to Guangdong Prouden CPAs GP effective February 4, 2026, a move that may reflect the company’s efforts to strengthen financial reporting.
NaaS’s financial health is under pressure. Its market capitalization was approximately US$25.9 million as of February 20, 2026, well below the MVLS threshold. The company’s stockholders’ equity sits at US$2.5 million, and its net income for the most recent fiscal year was negative, falling short of the required US$500,000. Other metrics underscore distress: a negative net margin of –324.36 %, an operating margin of –190.83 %, a debt‑to‑equity ratio of –1.33, and an Altman Z‑score of –23.38, placing it in the distress zone and raising concerns about its ability to sustain operations.
NaaS operates as the first U.S.-listed EV charging service company in China, offering integrated online and offline solutions for charging station operators and EV users. Revenue fell 56 % in the last year, although the company has achieved 134 % growth over the past three years. A December 2025 report highlighted high‑margin charging services that produced a positive non‑IFRS net profit and a record gross margin of 57 % in Q3 2024, with core charging services revenue growing 36 % year‑over‑year. The recent decline in revenue reflects broader headwinds in the EV charging market, while the high‑margin segment remains a potential growth engine.
Management has stated that it will monitor its market value and work to regain compliance within the grace period. The company’s prior compliance in December 2025 suggests that it has the capacity to meet the MVLS requirement, but the recurrence of the deficiency signals persistent challenges. Investors are watching the company’s ability to stabilize its market value, improve equity, and generate positive net income, as failure to do so could trigger delisting and further damage its reputation.
The content on EveryTicker is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.