2U sinks after raising ‘substantial doubt’ about ability to continue

2U reported last night that as of December 31, 2023, its cash, cash equivalents, and restricted cash totaled $73.4M, a decrease of $109.2M from December 31, 2022. As of December 31, 2023, the company’s total debt was $904.7M. 2U stated in its earnings release, “The company expects that if it does not amend or refinance its term loan, or raise capital to reduce its debt in the short term, and in the event the obligations under its term loan accelerate or come due within twelve months from the date of its financial statement issuance in accordance with its current terms, there is substantial doubt about its ability to continue as a going concern.” Shares of 2U are down 23% to 70c in premarket trading. Needham this morning downgrades the shares on balance sheet concerns.