Broadway Financial Corporation (BYFC) received a formal Nasdaq notice on November 25, 2025, stating that the company is not in compliance with Listing Rule 5250(c)(1) because its Q3 Form 10‑Q for the quarter ended September 30, 2025 was filed after the required deadline.
The notice, dated November 20, 2025, grants BYFC an extension until February 16, 2026 to file the overdue report and requires an updated compliance plan by December 8, 2025. The company has confirmed it will submit the plan and file the 10‑Q as promptly as reasonably practicable, but the late filing remains a material compliance concern.
The delay stems from an ongoing evaluation of “sold loan participation accounting” and its impact on consolidated financial statements. This is not the first late filing; a similar notice for the Q2 2025 report was issued in August 2025, with the same February 16, 2026 extension. The repeated delays raise questions about the effectiveness of BYFC’s internal controls and the complexity of its accounting for loan participations.
The regulatory risk, combined with weak financial performance—evidenced by a low price‑to‑book ratio of 0.41, a negative P/E of –46.77, and a quick ratio of 0.03—has eroded investor confidence. Management’s emphasis on filing the plan and the 10‑Q signals an attempt to mitigate the risk, but the pattern of late filings suggests ongoing operational and reporting challenges that could affect the company’s long‑term prospects.
Market reaction has been negative, with analysts downgrading the stock and citing the compliance risk and weak financials as key concerns. The notice does not suspend trading, but the potential for future delisting and the repeated pattern of late filings are viewed as significant risks by investors.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.