Waldencast Shares Plunge on Plans to Voluntarily Delist From Nasdaq

Shares of Waldencast (NASDAQ: WALD) plummeted in trading after the company announced its intention to voluntarily delist from the Nasdaq stock exchange. The stock dropped 15.3% in pre-open trading on the news, which included plans to seek a quotation on the over-the-counter (OTC) markets.

Delisting Details and Rationale

In a disclosure, Waldencast stated it plans to file a Form 25 with the U.S. Securities and Exchange Commission on or about September 24, 2026, to initiate the delisting process. The company expects the last day of trading on the Nasdaq to be on or about October 2, 2026.

The board cited several factors driving the decision, including:

• The high costs associated with U.S. public listing and compliance.
• Significant demands on management's time.
• The stock's limited trading volume and public float.

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Waldencast also noted that following the $460 million sale of its Obagi Medical division, which was completed in July 2026, it has substantially reduced its debt. As a result, the company no longer views U.S. public equity markets as a critical source of funding, making the costs of a Nasdaq listing difficult to justify. Following the move, the company plans to rename itself Milk Makeup plc and trade under the new ticker symbol "MLKM."

Market Impact and Outlook

The market's reaction was sharply negative, sending shares to $1.11, significantly below the stock's 52-week high of $3.22. The sell-off was amplified by a broader risk-off sentiment, with the Nasdaq Composite declining 1.7% during the session.

A move from a major exchange like Nasdaq to the OTC markets is generally viewed as a significant downgrade in liquidity for a stock. Many institutional investment funds are restricted by their mandates from holding securities that are not listed on a major national exchange. This can lead to forced selling from existing institutional holders and result in wider bid-ask spreads, making the stock more difficult and costly to trade.