XpresSpa Parent Company Faces Nasdaq Delisting Deadline

XWELL Inc., the parent company of the XpresSpa brand, is now on the clock. The Nasdaq stock exchange has issued a formal notification to the company after its share price closed below the mandatory $1.00 minimum bid requirement for 30 consecutive trading days. This action triggers a compliance process, giving the firm 180 calendar days to rectify the situation or risk being delisted.

The notice, delivered under Nasdaq Listing Rule 5550(a)(2), does not result in an immediate suspension. Trading of XWELL shares will continue on the exchange, provided the company meets all other listing standards. The deadline for regaining compliance is set for June 1, 2026.

To satisfy the exchange's requirements, XWELL's stock must achieve a closing bid price of at least $1.00 for a minimum of ten consecutive business days before the deadline. This necessitates a sustained recovery in the stock's market valuation.

Should the company fail to meet this target by early June 2026, it may qualify for an additional 180-day grace period. Eligibility for this extension would depend on XWELL meeting all other initial listing criteria for the Nasdaq Capital Market and publicly disclosing its plan to resolve the deficiency, which could include executing a reverse stock split.

Should investors sell immediately? Or is it worth buying XpresSpa Group?

Financial Performance Under Scrutiny

This regulatory challenge comes amid persistent financial headwinds for the wellness and travel services company. Recent quarterly results underscore ongoing pressures on revenue and profitability. For Q3 2025, the company reported revenue of $7.3 million. This follows a year-over-year decline of approximately 17% recorded in the preceding quarter.

In response, management has implemented cost-reduction initiatives. These include eliminating roughly $2.4 million in annual personnel expenses. The company has also consolidated its HyperPointe™ business into existing operations to streamline resources. Despite these efforts, key financial metrics highlight significant challenges:
* EBITDA stands at -$9.21 million.
* The company is experiencing a high cash burn rate.
* Shareholders' equity is negative.
* The firm's market capitalization has dwindled to approximately $4.5 million.

Corporate Strategy in Flux

Alongside navigating the Nasdaq listing issue, XWELL has made other strategic adjustments. The company has canceled its Annual Meeting of Stockholders, which was scheduled for 2025. All proposals that were set for a shareholder vote have been withdrawn. XWELL intends to reschedule the meeting for a later date.

Corporate communications continue to emphasize a focus on providing wellness solutions for travelers and expanding its service portfolio. Nevertheless, the most immediate and critical objective for executives and investors remains unequivocal: achieving Nasdaq listing compliance and improving the company's fundamental financial health by the June 2026 cutoff.