Key Highlights

● Nasdaq suspended trading on December 22, 2025 after a panel denied the appeal.

● Nasdaq cited equity below the $2.5 million minimum and a bid price below $1.00.

● Total equity was negative $604.0 million at June 30, 2025.

● The 10-Q repeated an auditor's substantial doubt about going concern.

MSP Recovery, Inc. (OTC:MSPR) lost its Nasdaq listing because it could not meet the exchange's minimum equity and bid-price rules. A Nasdaq Hearings Panel denied the company's appeal on 18 December 2025, and trading on Nasdaq was suspended from the open on 22 December 2025. The healthcare claims-recovery company said it expected its Class A common stock to trade on the OTCQB market under the same symbol.

The business

MSP Recovery operates as a single segment. According to its quarterly report for the period ended 30 June 2025, the company acquires healthcare claim recovery rights from secondary payers through claims cost recovery agreements, and uses a proprietary data analytics platform to identify recoverable claims. It has offices in the United States and Puerto Rico and uses an Up-C structure, in which former owners of the legacy business hold Class V shares and Class B units. Recoveries can take time and are uncertain.

The delisting timeline

The company's Form 8-K, filed on 22 December 2025, sets out the sequence. Nasdaq staff issued a delisting determination on 22 October 2025. MSP Recovery requested a hearing on 29 October, made a written submission on 21 November, and received a further bid-price determination on 28 November. The panel hearing took place on 11 December, and the appeal was denied on 18 December. Nasdaq cited stockholders' equity in the 2024 Form 10-K below the $2.5 million minimum under Rule 5550(b)(1), the absence of alternative qualifying measures such as $35 million in market value of listed securities or $500,000 of net income from continuing operations, and a bid price below $1.00 for thirty consecutive business days under Rule 5550(a)(2).

Financial position at the last verified figures

The latest financial statements verified are the Form 10-Q for the quarter ended 30 June 2025, filed on 14 August 2025. They show total revenues of $536,000 for the second quarter, against $337,000 a year earlier, and $1.373 million for the first half, against $6.338 million. Net loss for the quarter was $241.78 million, with interest expense of $124.747 million. Total equity was negative $604.0 million, against negative $128.4 million at 31 December 2024, and cash stood at $3.99 million. Operating cash outflow for the six months was $15.654 million, up from $11.164 million a year earlier, while the six-month net loss reached $477.8 million. The second-quarter operating loss was $124.755 million, slightly narrower than the $134.924 million recorded a year earlier. Later results have not been verified.

Risks and uncertainties

The 10-Q repeated an auditor's substantial doubt about the company's ability to continue as a going concern. It said the Yorkville standby equity purchase agreement was the only near-term liquidity source, the working capital credit facility had no remaining capacity, and that insolvency proceedings might be needed if Yorkville could not provide funds. Obligations are large: a related-party return obligation of $1,234.5 million, due 30 November 2026 subject to acceleration, plus current claims financing obligations and notes payable of $483.9 million. Substantially all shares registered for Yorkville resale had been sold, so further sales would need new registration. A move to OTC trading can also reduce liquidity and institutional participation.

What to watch next

Developments to follow include any filing after the December 2025 8-K that updates liquidity, the related-party obligation due on 30 November 2026, and the status of Yorkville funding. Equally important is whether the company can show recoveries large enough to offset interest costs. Until newer filings are available, the verified picture is of a company with small reported revenue, very large liabilities and a change of venue that follows a long compliance dispute.