URBAN ONE, INC. ANNOUNCES REVERSE STOCK SPLIT
Rhea-AI Summary
Urban One (Nasdaq: UONE and UONEK) announced a 10-for-1 reverse stock split for all classes of common stock, effective 11:59 p.m. on January 22, 2026, with split-adjusted trading expected to begin on Nasdaq on January 23, 2026. The move is intended to help the Company regain compliance with Nasdaq's $1.00 minimum bid for continued listing for Class D shares. Symbols will remain UONE and UONEK and new CUSIPs were provided. No fractional shares will be issued; holders entitled to fractions will receive cash in lieu based on the closing price on the Effective Date. The split applies uniformly to all common classes and does not change proportional ownership or total stockholders' equity, aside from cash payments for fractional shares.
Positive
- Reverse split ratio of 10-for-1 to raise per-share price
- Expected to restore compliance with Nasdaq $1.00 bid rule
- Trading symbols remain unchanged as UONE and UONEK
Negative
- Reverse split may reduce share liquidity and trading volume
- Cash payments for fractional shares could slightly alter share counts
News Market Reaction
On the day this news was published, UONE declined 15.52%, reflecting a significant negative market reaction. Argus tracked a trough of -11.1% from its starting point during tracking. Our momentum scanner triggered 16 alerts that day, indicating notable trading interest and price volatility. This price movement removed approximately $9M from the company's valuation, bringing the market cap to $46M at that time. Trading volume was very high at 4.1x the daily average, suggesting heavy selling pressure.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
UONE was down 0.96% pre-announcement while key peers were mixed: UONEK up 9.36%, BBGI up 8.45%, MDIA up 3.19%, and XHLD/SGA modestly negative. This mixed action points to a stock-specific catalyst rather than a sector-wide move.
Historical Context
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Dec 15 | Debt exchange results | Positive | -3.6% | Final results of major note exchange, tender, and consent transactions. |
| Nov 14 | Debt restructuring launch | Positive | +10.3% | Launch of exchange and tender offers to extend and restructure 2028 notes. |
| Sep 30 | Cultural ROI study | Positive | -0.7% | Release of landmark study on Black cultural influence and brand growth. |
| Aug 13 | Q2 2025 earnings | Negative | -4.2% | Weak Q2 results with revenue decline, larger losses, and lower guidance. |
| Jul 24 | Earnings call notice | Neutral | -2.2% | Scheduling details for the upcoming Q2 2025 earnings conference call. |
Price has generally tracked the tone of news, with 4 aligned reactions and 1 divergence across the last five events, suggesting the stock often moves in line with the perceived impact of announcements.
Over the past six months, Urban One has focused heavily on balance sheet repair and operational updates. In Q2 2025, results showed significant revenue and earnings pressure, followed by lowered 2025 EBITDA guidance in early November. Subsequent 8-K filings detailed a large-scale refinancing of 7.375% notes into new 2030–2031 instruments and an updated credit facility. Against this backdrop, today’s 10-for-1 reverse split centers on Nasdaq bid-price compliance rather than operating changes.
Market Pulse Summary
The stock dropped -15.5% in the session following this news. A negative reaction despite a largely technical action fits a backdrop of prior earnings pressure and balance sheet work. The reverse split at 10-for-1 targets Nasdaq bid-price compliance rather than operational change, so traders may reassess valuation given shares were already near a 52-week low. Historical patterns, with 4 of the last 5 events aligned to news tone, suggest reactions often mirror perceived fundamental impact.
Key Terms
reverse stock split financial
minimum bid price requirement regulatory
nasdaq capital market regulatory
cusip technical
AI-generated analysis. Not financial advice.
The reverse stock split is being conducted to regain compliance with the
The reverse stock split is expected to become effective at 11:59 p.m. on January 22, 2026 (the "Effective Date"). Shares of the Company's Class A and Class D Common Stock are expected to begin trading on a split-adjusted basis on Nasdaq on January 23, 2026. Shares of the Class A Common Stock will continue to trade under the symbol "UONE" and the new CUSIP number will be 91705J 303. Shares of the Class D Common Stock will continue to trade under the symbol "UONEK" and the new CUSIP number will be 91705J 402.
On the Effective Date, every 10 shares of the Company's Class A Common Stock issued and outstanding will be automatically converted into one share of Class A Common Stock, and every 10 shares of the Company's Class D Common Stock issued and outstanding will be automatically converted into one share of Class D Common Stock.
No fractional shares of Class A or Class D Common Stock will be issued in connection with the reverse stock split. Holders of Class A or Class D Common Stock who would otherwise receive a fractional share of Class A or Class D Common Stock pursuant to the reverse stock split will receive cash in lieu of the fractional share equal to the closing sales price of the Class A or Class D Common Stock on the Effective Date.
The reverse stock split will be realized simultaneously and in the same ratio for all classes (Class A, Class B, Class C and Class D) of our common stock. The reverse stock split will affect all holders of our common stock uniformly and will not affect any stockholder's percentage of ownership interest in the Company. Further, the proposed reverse stock split would not affect the Company's underlying business operations, total stockholders' equity, or the proportional ownership interests of existing shareholders, except for adjustments resulting from fractional share treatment. Immediately after the reverse stock split, each stockholder's percentage of ownership interest in the Company and proportional voting power will remain unchanged, except for minor changes that will result from the treatment of fractional shares.
Urban One Inc. (urban1.com), together with its subsidiaries, is the largest diversified media company that primarily targets Black Americans and urban consumers in
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SOURCE Urban One, Inc.