Luminar Raises Doubts Over Its Ability To Stay Afloat, Slashes Workforce By 25%

• Luminar stated that it anticipates incurring approximately $2 million to $3 million in cash charges related to employee severance and other employee costs, primarily in the fourth quarter of 2025.
• The company announced that CFO Thomas Fennimore will step down from his role, effective Nov. 13, 2025, to pursue other career opportunities. 
• Luminar reported a total debt of approximately $429.2 million as of September 30 and had cash and marketable securities of nearly $74.0 million.

Luminar Technologies Inc. (LAZR) shares fell over 30% before the bell on Friday after the company raised doubts about its ability to stay solvent and announced a 25% reduction in its total workforce.

“Given the uncertainty regarding the company’s financial condition, substantial doubt exists about the company’s ability to continue as a going concern,” the company said in a statement.

The company also announced that Thomas Fennimore will step down as its Chief Financial Officer effective Nov. 13, 2025, to pursue other career opportunities. Luminar said that Fennimore’s departure is not the result of any disagreement with the company or in any matter related to its financial statements, internal control over financial reporting, operations, policies, or practices.

Retail sentiment on Luminar remained unchanged in the ‘bullish’ territory, with message volumes at ‘high’ levels, according to data from Stocktwits.

Workforce Reduction

Luminar stated that on October 29, it committed to a plan to reduce its workforce by approximately 25% to lower operating costs. “The reduction will commence immediately and is expected to be substantially completed by 2025 year-end,” the company added.

The company expects to incur approximately $2.0 million to $3.0 million in cash charges associated with employee severance and related employee costs, primarily in the fourth quarter of 2025.

Forbearance Agreement And Preliminary Q3 Results

Luminar also said that it has entered into forbearance agreements on October 30, effective on the same day, with an ad hoc group of holders of the company’s floating rate senior secured notes due 2028, 9% convertible second lien senior secured notes due 2030, and 11.5% convertible second lien senior secured notes due 2030.

The company expects to report third-quarter revenue in the range of approximately $18 million to $19 million for the three months ended September 30. This compares to Wall Street estimates of $17.56 million, according to Fiscal AI.

Luminar reported a total debt of approximately $429.2 million as of September 30, along with cash and marketable securities of nearly $74 million.

Shares of Luminar have declined by over 82% in the last 12 months. 

For updates and corrections, email newsroom[at]stocktwits[dot]com.

Also See: Amazon Turns Street Favorite As Majority Of Wall Street Expects Stock To Hit $300 Or Above: Dan Ives Sees Huge Inflection Point

Share

·

Add us on