Waldencast Shares Fall Over 15% on Plan to Delist From Nasdaq

Shares of Waldencast plc (NASDAQ:WALD) fell more than 15% in premarket trading on Monday after the company announced its intention to voluntarily delist from the Nasdaq stock exchange. The decision comes as the company streamlines its operations to focus on its Milk Makeup brand following the sale of Obagi Medical.

Delisting Timeline and Rebranding

Waldencast stated it expects to file a Form 25 with the U.S. Securities and Exchange Commission (SEC) on or about September 24, 2026, to initiate the delisting process. The company anticipates its last day of trading on the Nasdaq will be October 2, 2026, with the delisting becoming effective around October 4.

Following the delisting, Waldencast's Board of Directors will recommend that shareholders approve renaming the company to Milk Makeup plc. If approved, the company intends to have its shares quoted on an over-the-counter (OTC) market, a less regulated marketplace than a major exchange, under the proposed ticker symbol "MLKM".

Rationale for the Move

The Board approved the decision after determining that the costs and requirements of a Nasdaq listing were no longer justified for the newly streamlined company. Key factors cited in the announcement include:

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• Cost Reduction: The company incurred $18.5 million in central headquarters costs in the year ended December 31, 2025, and expects to eliminate a substantial portion of these expenses after delisting.
• Strategic Realignment: After the Obagi Medical divestiture, Waldencast is now a single-brand entity, reducing the scale and complexity of its operations.
• Limited Liquidity: The Board noted the limited trading volume and public float of its Class A Ordinary Shares.
• Reduced Capital Needs: The company no longer requires access to U.S. public equity markets for financing after fully paying down its debt with proceeds from recent asset sales.

Impact on Reporting and Investors

Delisting from a major exchange like Nasdaq typically reduces a stock's liquidity and can make it less attractive to institutional investors. The move to an OTC market generally involves less stringent reporting requirements and lower visibility.

Waldencast plans to file a Form 15 with the SEC around October 5, 2026, which will immediately suspend its obligation to file periodic reports, such as quarterly and annual financial statements. This will significantly reduce the amount of public information available to investors.