Detailed financial statements for Adagene Inc. (ADAG): income statement, balance sheet and cash-flow summary. Track margins, debt, liquidity and profitability trends year over year with up to 20 years of history.
Adagene Inc. functions as a clinical-stage biopharmaceutical organization, primarily concentrating on the identification, evolution, and fabrication of monoclonal antibody-based therapeutics engineered to combat various types of cancer. The company's developmental pipeline encompasses several investigational assets currently undergoing human trials.
Analysis Summary
Adagene Inc. reported revenue of $7.7M in the most recent fiscal year, growing at a 5-year CAGR of 74.1%.
Trailing-twelve-month margins: gross margin 94.2%, operating margin -240.3%, net margin -220.7%.
At the current price of $3.17, ADAG has negative trailing earnings (P/E not meaningful) and an ROE of -29.09%. Market capitalisation stands at $119M.
Balance sheet quality for ADAG: current ratio of 3.1, net cash position of $68.3M. A debt-to-equity below 1.0 typically signals conservative capital structure, while a current ratio above 1.5 indicates comfortable short-term liquidity.
Income Statement (10y)
| Year | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|
| Revenue | $1.5M | $480000 | $480000 | $10.2M | $9.3M | $18.1M | $103204 | $7.7M |
| Cost of Revenue | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Gross Profit | $1.5M | $480000 | $480000 | $10.2M | $9.3M | $18.1M | -$823044 | $7.7M |
| Research & Development | $16.1M | $16.2M | $16.2M | $68.1M | $81.3M | $36.6M | $28.8M | $22.0M |
| Selling, General & Admin | $2.8M | $3.4M | $3.4M | $14.4M | $11.9M | $8.7M | $7.3M | $7.1M |
| Operating Expenses | $18.8M | $19.6M | $19.6M | $82.5M | $93.2M | $41.8M | $36.1M | $29.1M |
| Operating Income | -$17.3M | -$19.2M | -$19.2M | -$72.4M | -$83.9M | -$23.7M | -$36.0M | -$21.4M |
| EBITDA | -$14.3M | -$15.5M | -$41.3M | -$70.0M | -$77.4M | -$15.0M | -$31.7M | -$16.9M |
| Interest Expense | $91085 | $138096 | $202165 | $363762 | $693323 | $1.1M | $851874 | $463132 |
| Pre-tax Income | -$15.3M | -$16.4M | -$16.4M | -$71.5M | -$79.5M | -$17.3M | -$33.4M | -$17.9M |
| Income Tax | -$547003 | 0 | $3164 | $1.7M | $459055 | $1.7M | -$17553 | -$297860 |
| Net Income | -$14.7M | -$17.3M | -$16.4M | -$73.2M | -$80.0M | -$18.9M | -$33.4M | -$17.6M |
| EPS | $-1.51 | $-0.49 | $-0.59 | $-2.29 | $-2.31 | $-0.55 | $-0.95 | $-0.46 |
| EPS (Diluted) | $-1.51 | $-0.49 | $-0.59 | $-2.29 | $-2.31 | $-0.54 | $-0.95 | $-0.46 |
| Shares Outstanding (Diluted) | $9.7M | $35.3M | $28.1M | $32.0M | $34.6M | $35.0M | $36.0M | $37.8M |
Income Statement (Quarterly)
| Year | 2024-Q4 | 2025-Q2 | 2025-Q4 | 2026-Q2 |
|---|---|---|---|---|
| Revenue | $103204 | 0 | $7.7M | $1.6M |
| Gross Profit | -$823044 | -$300326 | $7.4M | $1.4M |
| Operating Income | -$26.8M | -$15.7M | -$5.8M | -$16.6M |
| EBITDA | -$22.7M | -$15.4M | -$5.5M | -$16.4M |
| Net Income | -$24.9M | -$13.5M | -$4.1M | -$16.4M |
| EPS | $-0.71 | $-0.36 | $-0.11 | $-0.36 |
| EPS (Diluted) | $-0.71 | $-0.36 | $-0.11 | $-0.36 |
Balance Sheet (10y)
| Year | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|
| Cash & Equivalents | $16.1M | $92.5M | $75.2M | $174.4M | $143.8M | $109.9M | $85.2M | $74.5M |
| Short-term Investments | $33.0M | $8.0M | 0 | 0 | 0 | 0 | 0 | 0 |
| Receivables | $1.4M | $2.1M | $132396 | $7.5M | $619432 | $222027 | $8309 | $17349 |
| Inventory | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total Current Assets | $51.8M | $103.9M | $79.1M | $186.0M | $149.3M | $113.4M | $87.8M | $77.4M |
| Property, Plant & Equipment | $2.6M | $1.9M | $2.1M | $3.5M | $3.0M | $2.2M | $1.4M | $862909 |
| Goodwill | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Intangible Assets | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total Assets | $54.4M | $105.9M | $84.3M | $189.5M | $152.4M | $115.7M | $89.3M | $78.3M |
| Accounts Payable | $558977 | $712714 | $1.8M | $3.3M | $3.7M | $3.1M | $4.2M | $2.9M |
| Short-term Debt | $2.3M | $1.0M | $5.0M | $4.5M | $13.6M | $8.4M | $17.8M | $5.0M |
| Total Current Liabilities | $10.3M | $7.2M | $16.1M | $29.8M | $55.1M | $31.5M | $38.2M | $25.2M |
| Long-term Debt | 0 | $1.5M | $3.0M | $3.0M | $14.1M | $13.5M | $417339 | $1.1M |
| Total Liabilities | $95.4M | $162.9M | $173.7M | $33.0M | $69.3M | $45.2M | $38.7M | $42.9M |
| Retained Earnings | -$46.8M | -$63.3M | -$105.7M | -$178.8M | -$258.8M | -$277.8M | -$311.2M | -$328.8M |
| Total Equity | -$41.0M | -$57.0M | -$89.4M | $156.6M | $83.1M | $70.6M | $50.5M | $35.3M |
| Total Debt | $2.3M | $2.6M | $8.0M | $7.5M | $28.0M | $22.3M | $18.5M | $6.3M |
| Net Debt | -$46.7M | -$98.0M | -$67.2M | -$166.9M | -$115.8M | -$87.6M | -$66.7M | -$68.3M |
| Working Capital | $41.5M | $96.7M | $63.0M | $156.1M | $94.2M | $82.0M | $49.6M | $52.2M |
Balance Sheet (Quarterly)
| Year | 2024-Q4 | 2025-Q2 | 2025-Q4 | 2026-Q2 |
|---|---|---|---|---|
| Cash & Equivalents | $85.2M | $62.8M | $74.5M | $127.9M |
| Total Assets | $89.3M | $66.5M | $78.3M | $133.6M |
| Total Liabilities | $38.7M | $28.6M | $42.9M | $27.6M |
| Total Equity | $50.5M | $37.9M | $35.3M | $106.0M |
| Total Debt | $18.5M | $6.9M | $6.3M | $6.1M |
Cash Flow (10y)
| Year | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|
| Net Income | -$15.3M | -$16.4M | -$42.4M | -$73.2M | -$80.0M | -$18.9M | -$33.4M | -$17.6M |
| Depreciation & Amortization | $909002 | $816686 | $858408 | $1.1M | $1.4M | $1.2M | $926248 | $589791 |
| Stock-based Compensation | $126540 | $611711 | $10.1M | $18.7M | $10.5M | $7.3M | $4.9M | $3.7M |
| Change in Working Capital | $513826 | -$1.9M | $2.2M | $9.3M | $21.9M | -$16.6M | -$1.9M | -$775300 |
| Operating Cash Flow | -$14.3M | -$18.2M | -$28.5M | -$43.4M | -$48.6M | -$28.5M | -$29.7M | -$15.7M |
| Capital Expenditure | -$514703 | -$151829 | -$935199 | -$2.5M | -$690938 | -$85012 | -$33580 | -$17053 |
| Acquisitions | $5166 | $7697 | $7930 | 0 | 0 | 0 | 0 | 0 |
| Stock Repurchased | 0 | 0 | 0 | -$2.4M | -$4.0M | 0 | 0 | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Free Cash Flow | -$14.8M | -$18.3M | -$29.5M | -$45.9M | -$49.3M | -$28.5M | -$29.7M | -$15.7M |
Cash Flow (Quarterly)
| Year | 2024-Q4 | 2025-Q2 | 2025-Q4 | 2026-Q2 |
|---|---|---|---|---|
| Operating Cash Flow | -$23.0M | -$11.2M | -$4.5M | -$14.8M |
| Capital Expenditure | -$27306 | -$2499 | -$14602 | -$156551 |
| Free Cash Flow | -$23.0M | -$11.2M | -$4.6M | -$14.9M |
| Dividends Paid | 0 | 0 | 0 | 0 |
| Stock-based Compensation | $2.9M | $2.0M | 0 | 0 |
Growth & Margins (10y)
| Year | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|
| Revenue Growth (YoY) | -68.2% | +0.0% | +2019.8% | -8.7% | +94.9% | -99.4% | +7332.8% | |
| Net Income Growth (YoY) | -17.5% | +5.0% | -345.2% | -9.3% | +76.3% | -76.4% | +47.3% | |
| EPS Growth (YoY) | +67.5% | -20.4% | -288.1% | -0.9% | +76.2% | -72.7% | +51.6% | |
| Shares Change (YoY) | +264.1% | -20.6% | +14.1% | +8.2% | +1.1% | +2.8% | +4.8% | |
| FCF Growth (YoY) | -23.9% | -61.0% | -55.9% | -7.4% | +42.1% | -4.2% | +47.3% | |
| Gross Margin | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | -797.5% | 100.0% |
| Operating Margin | -1147.1% | -3993.7% | -3993.7% | -711.2% | -903.1% | -131.0% | -34835.4% | -279.5% |
| EBITDA Margin | -944.0% | -3224.5% | -8611.8% | -687.8% | -832.8% | -82.5% | -30680.5% | -219.7% |
| Net Margin | -974.0% | -3602.9% | -3424.1% | -719.2% | -860.6% | -104.6% | -32386.4% | -229.6% |
| FCF Margin | -978.0% | -3813.6% | -6138.5% | -451.3% | -530.6% | -157.6% | -28811.4% | -204.3% |
| Effective Tax Rate | 3.6% | -0.0% | -0.0% | -2.4% | -0.6% | -9.8% | 0.1% | 1.7% |
Per-Share Data (10y)
| Year | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|
| FCF Per Share | $-1.52 | $-0.52 | $-1.05 | $-1.43 | $-1.42 | $-0.81 | $-0.83 | $-0.42 |
| Dividends Per Share | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 |
| Shares Outstanding (Basic) | $9.7M | $35.3M | $28.1M | $32.0M | $34.6M | $34.6M | $36.0M | $37.8M |
What to look at in Biotech
Most small biotechs lose money. Analysing them with P/E makes no sense — look at cash and pipeline.
- Cash Runway — Months of cash at current burn rate. <18 months = urgent dilution risk
- Annual cash burn — Rate at which they burn operating cash. Compare with cash position to project runway
- Total Debt — Biotech with no revenue + debt = recipe for bankruptcy
- R&D / Market cap — How much they invest in pipeline vs the company value — research-intensity indicator
- Market cap / Cash — If it trades near its cash, the market assigns ~0 value to the pipeline — opportunity or trap
Profitability
| Return on Equity | -29.09% |
| Return on Invested Capital | -19.62% |
| Return on Assets | -15.39% |
| Gross Margin | 94.22% |
| Operating Margin | -240.31% |
| Net Margin | -220.66% |
Financial Health
| Debt / Equity | 0.06 |
| Current Ratio | 5.02 |
| Piotroski F-Score | 5 |
| Altman Z-Score | -4.89 |
Key Ratios (10y)
| Year | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|
| P/E | -19.83 | -61.52 | -51.05 | -3.53 | -0.57 | -3.51 | -2.09 | -4.09 |
| P/B | -7.09 | -18.59 | -9.42 | 1.65 | 0.55 | 0.95 | 1.42 | 2.02 |
| P/S | 192.59 | 2207.53 | 1753.53 | 25.39 | 4.94 | 3.69 | 694.63 | 9.30 |
| Gross Margin | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | -797.5% | 100.0% |
| Operating Margin | -1147.1% | -3993.7% | -3993.7% | -711.2% | -903.1% | -131.0% | -34835.4% | -279.5% |
| Net Margin | -974.0% | -3602.9% | -3424.1% | -719.2% | -860.6% | -104.6% | -32386.4% | -229.6% |
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