Nauticus Robotics Announces 1-for-9 Reverse Stock Split: A Move to Enhance Company's Financial Position

Nauticus Robotics, a company developing autonomous robots for ocean industries, has announced a 1-for-9 reverse stock split. The company's business model includes using robotic systems for service, selling vehicles and components, and licensing software to both commercial and defense sectors. It designs and tests new vehicles to reduce operational costs and gather data to maintain subsea infrastructure.

Nauticus Robotics, Inc. (NASDAQ: KITT), a company specializing in the development of autonomous robots for ocean industries, has announced a 1-for-9 reverse stock split effective September 5, 2025. This move is aimed at meeting Nasdaq's $1 minimum bid price requirement and attracting institutional investors [1].

The reverse split, approved by shareholders in June 2025, consolidates every nine shares into one, proportionally increasing the stock price while preserving ownership value [1]. This action follows a July 2024 delisting threat and a prior 1-for-36 split, which temporarily stabilized the stock but failed to sustain the price above the Nasdaq threshold [2].

Despite the stock's volatility, Nauticus has shown operational progress. Second-quarter 2025 revenue rose to $2.1 million, driven by increased offshore demand and the acquisition of SeaTrepid, which expanded its subsea robotics capabilities [3]. The company is also advancing AI-driven autonomy software (ToolKITT) and electric manipulators, positioning itself as a leader in autonomous oceanic solutions [5]. However, these gains are offset by steep operating expenses of $8.4 million in Q2 2025, resulting in a $7.4 million adjusted net loss [3].

The success of the reverse split hinges on its ability to attract institutional investors, who often avoid low-priced stocks due to administrative and liquidity constraints. While the company argues that a higher share price will make KITT more appealing to this demographic, the data is inconclusive. Institutional ownership currently stands at 20.5% of shares [8], but there is no evidence of significant inflows post-split.

Nauticus’ AI-driven ocean robotics platform represents a compelling long-term narrative. Collaborations with Open Ocean Robotics and Advanced Ocean Systems aim to integrate autonomous subsea vehicles with solar-powered surface vessels, reducing operational costs and environmental impact [5]. These innovations align with global trends in offshore energy and defense. However, the company’s ability to monetize these technologies depends on sustained capital inflows and regulatory stability.

The reverse split, while necessary for short-term compliance, does not address underlying profitability challenges. For investors, the split raises critical questions: Can Nauticus stabilize its stock price above $1? Will its technological advancements translate into revenue growth? And does the company’s current valuation reflect the potential of its ocean robotics platform? The answers will determine whether this reverse split is a bridge to a brighter future or a temporary reprieve.

References:
[1] https://www.prnewswire.com/news-releases/nauticus-robotics-announces-1-for-9-reverse-stock-split-302543762.html
[2] https://ir.nauticusrobotics.com/news-events/press-releases/detail/57/nauticus-robotics-announces-transformative-1-for-36-reverse
[3] https://ir.nauticusrobotics.com/news-events/press-releases/detail/89/nauticus-robotics-announces-results-for-the-second-quarter
[4] https://www.akerman.com/en/perspectives/sec-approves-changes-to-nyse-and-nasdaq-minimum-price-rules-what-public-companies-need-to-know.html
[5] https://ir.nauticusrobotics.com/news-events/press-releases/detail/83/nauticus-robotics-reports-strong-start-to-2025
[6] https://finance.yahoo.com/quote/KITT/history/
[7] https://finance.yahoo.com/quote/KITT/
[8] https://www.perplexity.ai/finance/KITT