Turbo Energy Faces Nasdaq Delisting Risk Over Financial Shortfall

2026-01-17 companies

Valencia, Friday, 16 January 2026.
With equity $1 million below the Nasdaq threshold, Turbo Energy faces a critical February 26 deadline to present a recovery plan and secure its continued market listing.

Nasdaq Notification Details

Turbo Energy S.A. (Nasdaq: TURB) formally announced on January 16, 2026, that it has received a deficiency notice from the Nasdaq Stock Market regarding its listing status [1][2]. The notification, which the company received on January 12, 2026, explicitly states that Turbo Energy is no longer in compliance with Nasdaq Listing Rule 5550(b)(1) [3][5]. This rule mandates a minimum stockholders’ equity of $2.5 million for continued listing on the Nasdaq Capital Market [6]. According to the company’s Form 6-K filed on November 4, 2025, its reported stockholders’ equity stood at approximately $1.5 million as of June 30, 2025 [1][5]. This figure represents a shortfall of roughly $1 million from the exchange’s requirement.

Regulatory Timeline and Options

The receipt of this notice triggers a strict regulatory timeline for the Valencia-based energy storage developer. Turbo Energy has been given 45 calendar days, setting a deadline of February 26, 2026, to submit a comprehensive plan to regain compliance [1][5]. Should Nasdaq accept this remediation plan, the exchange may grant an extension of up to 180 calendar days from the original notice date of January 12, 2026, for the company to demonstrate that it has met the listing standards [6]. However, Nasdaq has also determined that the company does not currently meet alternative continued listing standards related to the market value of listed securities or net income from continuing operations, narrowing the available paths for recovery [2][6].

Market Reaction and Financial Health

Despite the regulatory warning, the notice does not immediately affect the listing or trading of Turbo Energy’s ordinary shares [2]. On January 16, 2026, the stock closed at $1.07 [4]. Interestingly, in the wake of the news regarding the deficiency notice, the stock price actually experienced an upward movement, gaining 6.54% [3]. This counter-intuitive market movement occurred even as the stock has decreased by 56.50% over the last 52 weeks [4]. The company’s current market capitalization stands at $11.79 million [4].

Underlying Balance Sheet Metrics

A deeper look at the company’s financials reveals the structural challenges prompting the Nasdaq notice. Turbo Energy currently holds $1.86 million in cash and cash equivalents, contrasted against a debt load of $9.39 million [4]. This results in a net cash position of -$7.53 million [4]. Furthermore, the company has reported a net loss of $2.20 million over the last 12 months, with an operating cash flow of -$3.15 million [4]. These figures underscore the necessity for the company to execute its stated strategy of accelerating revenue growth and strengthening its balance sheet to satisfy the equity requirements [2].

Strategic Outlook

Founded in 2013, Turbo Energy operates as a subsidiary of Umbrella Global Energy, S.A., focusing on AI-optimized solar energy storage systems for residential, commercial, and industrial sectors [1][6]. While the company has indicated it intends to submit a compliance plan within the required timeframe, it has also acknowledged that there is no assurance Nasdaq will accept the plan or that the company will successfully regain compliance within any granted extension period [5][6]. The coming weeks leading up to the February 26 deadline will be pivotal for the company’s future on the US public markets.

Sources

Nasdaq Compliance Turbo Energy