DGLY stock faces a 1-for-10 reverse split before Nasdaq trading

Published on 09/30/2026 at 11:13 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

DGLY stock faces a 1-for-10 reverse split before Nasdaq trading on October 1, 2026. Q2 revenue rose 88 percent as losses persisted.

DGLY, US2538181057, Illustration mit AI erstellt.

DGLY stock (ISIN US2538181057) is approaching a major corporate reset as Digital Ally, now Kustom Entertainment, prepares a 1-for-10 reverse split before split-adjusted Nasdaq trading on October 1, 2026. The move is designed to raise the per-share price enough to meet Nasdaq's USD 1.00 minimum bid requirement, according to Yahoo Finance in a company release dated September 29, 2026.

Reverse split changes share count

The planned transaction would reduce outstanding common shares from 6,506,860 to 650,686, subject to adjustments for fractional shares. That is a 90.00 percent reduction in the stated share count, while the authorized common share total would fall from 13,333,333 to 1,333,334.

The board approved the reverse split on September 18, 2026. The company also said the stock would receive a new CUSIP number, 25382T705, when split-adjusted trading begins on Nasdaq.

Revenue growth meets persistent losses

The balance sheet story remains more difficult than the share-count math. Quartr reports that Q2 2026 revenue increased 88 percent as the company shifted toward entertainment, while losses persisted. The finance data for the quarter shows revenue of USD 5.4 million and a net loss of USD 3.8 million.

That contrast matters for investors: the revenue comparison is positive, but the loss figure shows that the planned split addresses the listing threshold rather than operating profitability. The company is positioning itself around live event production, music festivals and ticketing technology.

Small market value ahead of reset

Kustom Entertainment had a market capitalization of USD 0.7 million on September 29, 2026. The 52-week range was USD 0.51 to USD 32.40, leaving a wide valuation backdrop for a security undergoing a name, ticker and capital-structure transition.

The company expects split-adjusted trading to begin on October 1, 2026. The reverse split is therefore the immediate checkpoint, while the Q2 revenue increase and continuing losses provide the more important test of whether the entertainment strategy can develop into a sustainable business.