Femasys Inc. (NASDAQ:FEMY), a medical device company with a current market capitalization of $28.06 million, received a notice from The Nasdaq Stock Market on May 19, 2025, warning that the company does not meet the minimum Market Value of Listed Securities (MVLS) requirement of $35.0 million for continued listing on The Nasdaq Capital Market. According to InvestingPro data, the company’s overall financial health score is rated as WEAK, with particularly concerning metrics in profitability and cash flow. The company’s MVLS has been below this threshold for the past 30 consecutive business days.
The notice also indicated that Femasys does not meet the alternative continued listing standards, which include having stockholders’ equity of at least $2.5 million or net income of $500,000 in the most recently completed fiscal year or in two of the last three fiscal years. InvestingPro analysis reveals the company reported an EBITDA of -$19.47 million in the last twelve months, with a concerning cash burn rate that could impact its ability to meet listing requirements. Despite the notice, Femasys common stock will remain listed on Nasdaq under the symbol "FEMY" with no immediate impact on trading.
Femasys has been given 180 calendar days, until November 17, 2025, to regain compliance with the MVLS requirement. The company must achieve an MVLS of $35.0 million or more for at least 10 consecutive business days within this period to confirm compliance. If Femasys fails to meet the MVLS requirement by the deadline, Nasdaq will notify the company of its potential delisting, at which point Femasys may appeal the decision to a Nasdaq hearings panel.
The company has stated its intention to actively monitor its MVLS and explore available options to regain compliance with Nasdaq’s MVLS requirement. However, there is no guarantee that Femasys will be able to regain or maintain compliance with the Nasdaq’s continued listing requirements. Investors seeking deeper insights into Femasys’s financial health metrics and real-time monitoring tools can access additional analysis through InvestingPro, which offers comprehensive financial health scores and forward-looking indicators.
This information is based on a press release statement filed with the SEC.
In other recent news, Femasys Inc. has been the subject of various analyst evaluations following its first-quarter earnings report for 2025. Notably, Jones Trading adjusted its price target for Femasys to $6.00 from $10.00, maintaining a Buy rating. The adjustment reflects slower-than-expected uptake of FemaSeed in the U.S. and potential equity dilution due to future financing activities. Meanwhile, H.C. Wainwright reduced its price target for Femasys to $12.00 from $15.00, following lower-than-expected first-quarter sales of $0.34 million, a significant drop from the previous quarter’s revenue. Despite the revenue shortfall, Femasys saw a 78% increase in U.S. revenues quarter-over-quarter, supported by partnerships with fertility centers like CNY Fertility.
H.C. Wainwright also highlighted Femasys’ CE mark certification for its FemBloc delivery system, allowing pre-marketing activities in Europe. This certification marks a significant regulatory milestone for Femasys, enabling potential market expansion in Europe. The firm’s revenue forecast for 2025 was adjusted to $5.3 million, down from $10 million, yet it maintained a Buy rating. Additionally, Femasys’ partnership with CNY Fertility is expected to enhance FemaSeed’s availability across the U.S., potentially increasing revenue from 2025 onward. The company’s strategic efforts in expanding market presence and product offerings continue to garner analyst support, with both firms maintaining their Buy ratings on Femasys stock.
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