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Amid SEC Investigation, Luminar Cuts Workforce, Weighs Bankruptcy
PALO ALTO, Calif., Nov. 4, 2025 — Lidar developer Luminar Technologies is weighing its options this week following missed interest payments, the departure of its CFO, the collapse of its deal with Volvo, and an ongoing SEC investigation. The company said in an 8-K filing last week it plans to lay off 25% of its workforce to reduce operating while it considers its next steps, which may include bankruptcy, as the company works to address liquidity challenges.
Luminar has entered into forbearance agreements with an ad hoc group of creditors, following missed interest payments resulting in a default on secured notes. The company engaged in discussions with the noteholders about potential strategies and options for a solution to its liquidity needs. The resulting agreements stave off any action from the noteholders until this Thursday, Nov. 6, as Luminar works to negotiate longer-term agreements.
“Given the uncertainty regarding [the company’s] financial condition, substantial doubt exists about the [company’s] ability to continue as a going concern,” Luminar said in the 8-K filing. “Doubts regarding our ability to continue as a going concern could have an adverse impact on our relationships with customers, vendors, suppliers, employees, and others, which in turn could materially adversely affect our business, results of operations and financial condition.”
Unfinalized financial results for the company’s third quarter ending Sept. 30, indicate revenue between $18 and 19 million with debt standing at $429 million at the quarter’s end. The company’s cash reserves stand at $74 million.
If it remains on its current course in terms of cash expenditures without additional fundraising, Luminar will not have sufficient resources to meet operating and liquidity needs during the first quarter of 2026, and may breach minimum liquidity requirements related to the notes on which it defaulted before the end of the fourth quarter 2025, it said.
“If the [company] is unable to raise sufficient additional capital, not successful in executing on any other strategic alternatives or unable to consummate another financing or restructuring solution, the Company will need to curtail or cease operations and/or seek relief under the U.S. Bankruptcy Code,” the company said in its Oct. 30 8-K filing.
The options that the company is exploring include the sale of all or part of the company’s business or assets, raising additional capital, or restructuring. The company said that it has already begun to receive proposals and indications of interest to purchase the company in its entirety or certain assets and business lines.
One of those indications of interest came from Russell AI Labs, a company founded by Austin Russell, Luminar’s founder and former CEO. Russell resigned earlier this year following a code of business conduct and ethics inquiry by the audit committee of the company’s board of directors. Luminar additionally cut its workforce by 20% last year.
SEC investigation
As it attempts to resolve its financials, Luminar received a subpoena from the SEC for documents in connection with an investigation that aims to determine whether there has been a violation of federal securities laws.
“The SEC informed [Luminar] that its investigation does not mean that it has concluded that anyone has violated the law and that receipt of the subpoena does not mean that the SEC has a negative opinion of any person, entity, or security,” Luminar said in the 8-K filing.
Luminar has advised shareholders that should the company proceed with liquidation or bankruptcy proceedings, holders of the company’s Class A common stock would likely suffer a total loss of their investment.
Customer loss
Workforce reductions are underway, and are expected to be completed by the end of the year, with company's CFO Thomas Fenimore stepping down Nov. 13. The company said it expects to name a new CFO shortly.
Amid the personnel transition, Luminar’s largest customer, Volvo Cars, has indicated that it will no longer make Luminar’s Iris lidar standard on its EX90 and ES90 vehicles; Volvo has deferred the decision as to whether to include lidar, including Luminar’s next-generation Halo, in its next generation of vehicles from 2027 to 2029 at the earliest. In response, Luminar filed a claim against Volvo for significant damages and has suspended further commitments of Iris lidar products for Volvo pending resolution of the dispute.
Luminar has also stopped payments with respect to its Iris lidar products for Volvo, resulting in the receipt of a notice of breach from its principal supplier of Iris lidar sensors. Pursuant to the notice of breach, the supplier may terminate the existing contract manufacturing services agreement.
Luminar went public in 2020 through a merger with special purpose acquisition company Gores Metropoulos Inc. At the time of the merger, the company had a pro forma enterprise value of approximately $2.9 billion and an equity value of approximately $3.4 billion.
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