DefaultApr 30, 2026, 05:28 PM
CMBM Going Concern Doubt; Defaults on Debt Covenants
AI Summary
Cambium Networks Corp faces substantial doubt about its ability to continue as a going concern due to non-compliance with debt covenants as of June 30, 2025, and ongoing. The company's ordinary shares were suspended from Nasdaq and now trade on the OTC Experts Market. For Q2 2025, CMBM reported a net loss of $(9.125) million on total revenues of $39.393 million, alongside a restatement of its Q2 2024 financial statements.
Key Highlights
- Substantial doubt exists about CMBM's ability to continue as a going concern.
- CMBM was not in compliance with quarterly fixed charge coverage ratio and consolidated leverage ratio covenants as of June 30, 2025.
- Lender has the right to declare outstanding debt immediately due and payable; CMBM has not obtained a waiver or refinanced.
- Ordinary shares were suspended from Nasdaq on March 27, 2026, and now trade on the OTC Experts Market under "CMBMF".
- Net loss for Q2 2025 was $(9.125)M, compared to $(14.246)M (restated) in Q2 2024.
- Total revenues for Q2 2025 were $39.393M, down from $45.233M (restated) in Q2 2024.
- Cash balance at June 30, 2025, was $15.795M, down from $34.925M at December 31, 2024.
- Previously issued unaudited interim consolidated financial statements for Q2 2024 were restated due to errors.