Cambium Networks is at risk of being delisted from the Nasdaq stock exchange after repeatedly missing deadlines to file its financial reports with the Securities and Exchange Commission (SEC).

Last week, the Illinois-based vendor confirmed that it received a Staff Determination Letter from Nasdaq warning of a potential delisting after missing four consecutive filing deadlines.

The vendor, which was spun out of Motorola Solutions in 2011, failed to file its 2024 annual report and went on to miss deadlines for filing Q1, Q2, and, most recently, Q3 reports.

Nasdaq had given Cambium until October 13 to catch up – but it failed to meet this extension. Instead, Cambium requested a continued stay of its delisting, pending achieving full compliance at a hearing in November. That request is still pending.

If the Hearings Panel denies Cambium's request and the networking vendor finds itself delisted from the Nasdaq, its shares can no longer be traded on the exchange and would instead move to an over-the-counter (OTC) market.

Shareholders would still own their shares, but it would become far harder to buy and sell them. OTC markets provide far less oversight and lower liquidity.

Delistings happen all the time – multiple companies were removed back in July, including clinical-stage biotech company NKGen Biotech.

Juniper, another networking firm, was delisted in the summer, though this was due to its acquisition by Hewlett Packard Enterprise.

In Nasdaq’s own words, delisting only happens in cases of “potential financial instability or regulatory issues.”

The networking vendor's stock price has fallen significantly in recent weeks, standing at $1.83 at the time of writing compared to $3.24 just one month ago – a 44% drop.

In an unaudited financial update posted in mid-November, Cambium president and CEO Morgan Kurk said the vendor was "starting to see stability."

The vendor saw a 4% decrease in customer orders placed in Q3 at $45 million, compared to $47 million in Q2, but put the drop down to "traditional seasonal variation" that it has also experienced in previous years.

Its distributors did see a 9% decrease in sell-through on a sequential quarter basis, but the vendor contended this was due to a lack of available inventory, an issue it said "is expected to improve as our available inventory improves."

Cambium has been listed on the Nasdaq since June 2019, some eight years after it was spun out of Motorola Solutions. It offers wired and wireless broadband and network edge technologies. Its One Network platform, meanwhile, simplifies management of its array of solutions. The fabric acts as a single pane, allowing operators to manage their networks as a whole rather than the individual devices and nodes.

SDxCentral has contacted Cambium for comment.