Shares of Shift Technologies (NASDAQ:SFT) are down at the time of writing as the firm is grappling with significant financial hurdles. The company recently disclosed a missed interest payment of $3.56 million on its 4.75% Convertible Senior Notes due in 2026, choosing to use a 30-day grace period instead. Simultaneously, Shift has engaged advisors to explore restructuring options, though no agreement has been reached yet.
Alongside these issues, Shift managed to pull in $57.7 million in revenue for the first quarter of 2023 and sold a respectable 2,396 retail units. That said, it wasn’t enough to stave off a pretty hefty net loss of $48.1 million.
CEO Jeff Clementz acknowledged the company’s struggles but emphasized the team’s ongoing efforts to improve their omni-channel strategy and prepare for the launch of a dealer marketplace in Q3 2023. Additionally, in an attempt to enhance value for all stakeholders, Shift’s board is currently evaluating strategic alternatives for the business, including potential sales, partnerships, or other funding alternatives. However, there is no set timeline for this process nor any guarantee that it will result in any strategic changes.
A look at the past year in SFT stock trading highlights the struggles the company has been experiencing. Indeed, shares have shed over 85% of their value during this timeframe.