BowFlex Risks NYSE Delisting Over Low Market Cap
Can the fitness equipment maker, fresh off a rebrand that doubles down on at-home fitness, turn things around?
BowFlex, the Washington-based fitness equipment maker formerly known as Nautilus, has received notice from the New York Stock Exchange (NYSE) warning the company that it isn’t in compliance with continued listing standards, which requires it to maintain an average global market capitalization of at least $50 million over a 30-day consecutive trading period and a total stockholders’ equity equal to or greater than $50 million.
The struggling fitness equipment company was also hit with a non-compliance notice in September, which targeted the brand for having an average closing price of less than $1.00 per share over a consecutive 30-trading day period.
The fitness equipment maker received the most recent notice on November 27, and plans to notify the NYSE of its receipt by Dec. 11, 2023. The company says it will provide the NYSE with a plan to cure the current deficiency. If BowFlex isn’t able to cure the deficiency, it risks having its stock delisted.
The notice doesn’t affect BowFlex’s operations or its reporting obligations with the SEC, and the NYSE will provide a 45-day period for BowFlex to submit a plan of action it has taken (or will take) to bring it into compliance within 18 months.
The NYSE notice follows a rather grim financial report that BowFlex issued last month, where the equipment maker lowered its revenue forecast, expecting full-year net revenue to be in the range of $215 million to $240 million, compared to previous guidance of a range of $270 million to $300 million. BowFlex execs indicated that retailers are taking a conservative approach to reorders.
From Nautilus to BowFlex
In October, the equipment maker underwent a total company rebrand that transitioned it from the Nautilus name to BowFlex, leaning into its strongest at-home fitness brand and ushering in a more colorful and youthful marketing vibe. Last month, the rebrand was reflected on the stock exchange, with the company’s ticker changing from NLS to BFX.
BowFlex has had an uphill battle in a post-pandemic environment that saw consumers flock to the gym and in-person boutique fitness studios. The equipment maker recently sold $13 million in non-core assets to strengthen its balance sheet, conducted layoffs this year and announced plans to raise $5 million for general corporate purposes to boost its cash balance.
Despite ongoing challenges, the company made good on its promise to add new equipment offerings to its product lineup, introducing the BowFlex Max Trainer SE and the BowFlex IC Bike SE, two new cardio machines with at-home fitness-friendly “nearly silent” hardware that doesn’t disturb other household members.
“Home fitness is here to stay, and there’s no reason to relegate it to the basement or limit when you can exercise,” said Jim Barr, BowFlex CEO, of the company’s mission to create at-home fitness products with form and function in mind.
