Nerdy Inc. (NYSE: NRDY) received a notice from the New York Stock Exchange on March 5, 2026 that the company’s average closing price of Class A common stock had fallen below the $1.00 threshold required by Section 802.01C of the NYSE Listed Company Manual. The company disclosed the notice the following day, March 6, 2026.
Under Section 802.01C, a listed company must maintain a 30‑day average closing price of at least $1.00. If the average price remains below this level for a consecutive 30‑day period, the NYSE may initiate a delisting process. Nerdy has a six‑month cure period, during which it can regain compliance by achieving a $1.00 closing price on the last trading day of any calendar month and maintaining a 30‑day average of $1.00 or more.
The notice signals a material risk to Nerdy’s market presence. A delisting would shift the company’s shares to an over‑the‑counter market, reducing liquidity and potentially eroding investor confidence. The event also complicates future capital‑raising efforts, as investors may view the company as a higher‑risk investment.
Nerdy has stated it intends to cure the deficiency and is evaluating a reverse stock split as a possible remedy. The company will need shareholder approval at its 2027 annual meeting to implement the split, and recent regulatory changes by the SEC and NYSE limit the use of reverse splits as a temporary fix for underlying financial issues.
Investors have reacted with heightened concern, focusing on the delisting risk and the company’s sustained trading below the $1.00 threshold. The notice underscores the need for Nerdy to strengthen its fundamentals and demonstrate a clear path to regaining compliance.
With a six‑month window to restore compliance, Nerdy’s management must accelerate its efforts to improve the share price and address the underlying business challenges that have driven the decline. The company’s ability to navigate this regulatory hurdle will be closely monitored by shareholders and market participants.
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