Adagene Inc. Financials

ADAG

Source SEC Filings (10-K/10-Q) Updated Jun 30, 2025 Currency USD FYE December

Financial Health Signals

Financial Profile 34/100

Based on FY2024 annual data. Scores normalized against common benchmarks. How we calculate these scores

Profitability

Adagene Inc. has an operating margin of -34835.4%, meaning the company retains $-34835 of operating profit per $100 of revenue. This below-average margin results in a low score of 0/100, suggesting thin profitability after operating expenses. This is down from -131.0% the prior year.

Growth

Adagene Inc.'s revenue declined 99.4% year-over-year, from $18.1M to $103K. This contraction results in a growth score of 0/100.

Leverage

100

Adagene Inc. carries a low D/E ratio of 0.01, meaning only $0.01 of long-term debt for every $1 of shareholders' equity. This conservative leverage earns a score of 100/100, indicating a strong balance sheet with room for future borrowing.

Liquidity

With a current ratio of 2.30, Adagene Inc. holds $2.30 in current assets for every $1 of short-term obligations. This comfortable liquidity earns a score of 72/100.

Cash Flow

While Adagene Inc. generated -$29.7M in operating cash flow, capex of $34K consumed most of it, leaving -$29.7M in free cash flow. This results in a low score of 0/100, reflecting heavy capital investment rather than weak cash generation.

Piotroski F-Score Weak

2/9

Adagene Inc. passes 2 of 9 financial strength tests. 1 of 4 profitability signals pass, 1 of 3 leverage/liquidity signals pass, neither operating efficiency signal passes.

Earnings Quality Low Quality

0.89x

For every $1 of reported earnings, Adagene Inc. generates $0.89 in operating cash flow (-$29.7M OCF vs -$33.4M net income). This low ratio suggests earnings are primarily driven by accounting accruals rather than cash generation, which may not be sustainable.

Interest Coverage At Risk

-42.2x

Adagene Inc. earns $-42.2 in operating income for every $1 of interest expense (-$36.0M vs $852K). This narrow margin raises concern about the company's ability to service its debt if operating income declines.

This page shows Adagene Inc. (ADAG) financial statements, including the income statement, balance sheet, cash flow statement, and key financial ratios. View 7 years of annual fundamentals and quarterly data, with year-over-year growth rates and compound annual growth rates (CAGR). All figures are derived from SEC filings (10-K and 10-Q reports).

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Key Financial Metrics

Revenue

$103K

YoY-99.4%

5Y CAGR-26.5%

Adagene Inc. generated $103K in revenue in fiscal year 2024. This represents a decrease of 99.4% from the prior year.

EBITDA

-$35.2M

YoY-54.9%

Adagene Inc.'s EBITDA was -$35.2M in fiscal year 2024, measuring earnings before interest, taxes, depreciation, and amortization. This represents a decrease of 54.9% from the prior year.

Free Cash Flow

-$29.7M

YoY-4.2%

Adagene Inc. generated -$29.7M in free cash flow in fiscal year 2024, representing cash available after capex. This represents a decrease of 4.2% from the prior year.

Net Income

-$33.4M

YoY-76.4%

Adagene Inc. reported -$33.4M in net income in fiscal year 2024. This represents a decrease of 76.4% from the prior year.

EPS (Diluted)

$-0.23

YoY+34.3%

Adagene Inc. earned $-0.23 per diluted share (EPS) in fiscal year 2024. This represents an increase of 34.3% from the prior year.

Cash & Debt

$85.2M

YoY-22.5%

5Y CAGR-1.6%

Adagene Inc. held $85.2M in cash against $417K in long-term debt as of fiscal year 2024.

Dividends Per Share

N/A

Shares Outstanding

59M

YoY+6.8%

5Y CAGR+31.1%

Adagene Inc. had 59M shares outstanding in fiscal year 2024. This represents an increase of 6.8% from the prior year.

Gross Margin

N/A

Operating Margin

-34835.4%

YoY-34704.4pp

5Y CAGR-30841.7pp

Adagene Inc.'s operating margin was -34835.4% in fiscal year 2024, reflecting core business profitability. This is down 34704.4 percentage points from the prior year.

Net Margin

-32386.5%

YoY-32281.8pp

5Y CAGR-28963.1pp

Adagene Inc.'s net profit margin was -32386.5% in fiscal year 2024, showing the share of revenue converted to profit. This is down 32281.8 percentage points from the prior year.

Return on Equity

N/A

R&D Spending

$28.8M

YoY-21.4%

5Y CAGR+12.2%

Adagene Inc. invested $28.8M in research and development in fiscal year 2024. This represents a decrease of 21.4% from the prior year.

Share Buybacks

N/A

Capital Expenditures

$34K

YoY-60.5%

5Y CAGR-26.0%

Adagene Inc. invested $34K in capex in fiscal year 2024, funding long-term assets and infrastructure. This represents a decrease of 60.5% from the prior year.

ADAG Income Statement

Metric	FY24	FY23	FY22	FY21	FY20	FY19
Revenue	$103K-99.4%	$18.1M+94.9%	$9.3M-8.7%	$10.2M+1351.7%	$701K+46.0%	$480K
Cost of Revenue	N/A	N/A	N/A	N/A	N/A	N/A
Gross Profit	N/A	N/A	N/A	N/A	N/A	N/A
R&D Expenses	$28.8M-21.4%	$36.6M-55.0%	$81.3M+19.4%	$68.1M+103.1%	$33.5M+106.9%	$16.2M
SG&A Expenses	$7.3M-16.1%	$8.7M-27.0%	$11.9M-17.8%	$14.4M+40.0%	$10.3M+200.0%	$3.4M
Operating Income	-$36.0M-51.6%	-$23.7M+71.7%	-$83.9M-16.0%	-$72.4M-67.7%	-$43.2M-125.1%	-$19.2M
Interest Expense	$852K-23.1%	$1.1M+59.8%	$693K+90.6%	$364K+79.9%	$202K+46.4%	$138K
Income Tax	-$18K-101.0%	$1.7M+268.5%	$459K-73.0%	$1.7M	N/A	N/A
Net Income	-$33.4M-76.4%	-$18.9M+76.3%	-$80.0M-9.3%	-$73.2M-72.6%	-$42.4M-158.0%	-$16.4M
EPS (Diluted)	$-0.23+34.3%	$-0.35-12.9%	$-0.31+78.8%	$-1.46+45.3%	$-2.67-142.7%	$-1.10

Metric	Q2'25	Q2'24	Q4'23	Q4'22	Q4'21	Q4'20	Q4'19
Revenue	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Cost of Revenue	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Gross Profit	N/A	N/A	N/A	N/A	N/A	N/A	N/A
R&D Expenses	N/A	N/A	N/A	N/A	N/A	N/A	N/A
SG&A Expenses	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Operating Income	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Interest Expense	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Income Tax	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Net Income	N/A	N/A	N/A	N/A	N/A	N/A	N/A
EPS (Diluted)	N/A	N/A	N/A	N/A	N/A	N/A	N/A

ADAG Balance Sheet

Metric	FY24	FY23	FY22	FY21	FY20	FY19
Total Assets	$89.3M-22.9%	$115.7M-24.1%	$152.4M-19.6%	$189.5M+124.9%	$84.3M-20.4%	$105.9M
Current Assets	$87.8M-22.6%	$113.4M-24.0%	$149.3M-19.7%	$186.0M+135.1%	$79.1M-23.9%	$103.9M
Cash & Equivalents	$85.2M-22.5%	$109.9M-23.5%	$143.8M-17.6%	$174.4M+132.1%	$75.2M-18.8%	$92.5M
Inventory	N/A	N/A	N/A	N/A	N/A	N/A
Accounts Receivable	N/A	N/A	N/A	$3.0M	N/A	$480K
Goodwill	N/A	N/A	N/A	N/A	N/A	N/A
Total Liabilities	$38.7M-14.2%	$45.2M-34.8%	$69.3M+110.3%	$33.0M-81.0%	$173.7M+6.6%	$162.9M
Current Liabilities	$38.2M+21.4%	$31.5M-42.9%	$55.1M+84.7%	$29.8M+84.7%	$16.1M+124.8%	$7.2M
Long-Term Debt	$417K-96.9%	$13.5M-4.3%	$14.1M+372.8%	$3.0M+0.9%	$3.0M+95.6%	$1.5M
Total Equity	$50.5M-28.4%	$70.6M-15.1%	$83.1M-46.9%	$156.6M+275.1%	-$89.4M-56.8%	-$57.0M
Retained Earnings	-$311.2M-12.0%	-$277.8M-7.3%	-$258.8M-44.7%	-$178.8M-69.3%	-$105.7M-67.0%	-$63.3M

Metric	Q2'25	Q2'24	Q4'23	Q4'22	Q4'21	Q4'20	Q4'19
Total Assets	$66.5M-25.5%	$89.3M-22.9%	$115.7M-24.1%	$152.4M-19.6%	$189.5M+124.9%	$84.3M-20.4%	$105.9M
Current Assets	$65.4M-25.5%	$87.8M-22.6%	$113.4M-24.0%	$149.3M-19.7%	$186.0M+135.1%	$79.1M-23.9%	$103.9M
Cash & Equivalents	$62.8M-26.3%	$85.2M-22.5%	$109.9M-23.5%	$143.8M-17.6%	$174.4M+132.1%	$75.2M-18.8%	$92.5M
Inventory	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Accounts Receivable	N/A	N/A	N/A	N/A	$3.0M	N/A	$480K
Goodwill	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Total Liabilities	$28.6M-26.2%	$38.7M-14.2%	$45.2M-34.8%	$69.3M+110.3%	$33.0M-81.0%	$173.7M+6.6%	$162.9M
Current Liabilities	$28.5M-25.3%	$38.2M+21.4%	$31.5M-42.9%	$55.1M+84.7%	$29.8M+84.7%	$16.1M+124.8%	$7.2M
Long-Term Debt	N/A	$417K-96.9%	$13.5M-4.3%	$14.1M+372.8%	$3.0M+0.9%	$3.0M+95.6%	$1.5M
Total Equity	$37.9M-25.0%	$50.5M-28.4%	$70.6M-15.1%	$83.1M-46.9%	$156.6M+275.1%	-$89.4M-56.8%	-$57.0M
Retained Earnings	-$324.7M-4.3%	-$311.2M-12.0%	-$277.8M-7.3%	-$258.8M-44.7%	-$178.8M-69.3%	-$105.7M-67.0%	-$63.3M

ADAG Cash Flow Statement

Metric	FY24	FY23	FY22	FY21	FY20	FY19
Operating Cash Flow	-$29.7M-4.4%	-$28.5M+41.5%	-$48.6M-12.0%	-$43.4M-52.2%	-$28.5M-57.2%	-$18.2M
Capital Expenditures	$34K-60.5%	$85K-87.7%	$691K-72.5%	$2.5M+168.4%	$935K+516.0%	$152K
Free Cash Flow	-$29.7M-4.2%	-$28.5M+42.1%	-$49.3M-7.4%	-$45.9M-55.9%	-$29.5M-61.0%	-$18.3M
Investing Cash Flow	$1.1M+1535.1%	-$77K+88.7%	-$686K+72.7%	-$2.5M-135.5%	$7.1M-71.5%	$24.9M
Financing Cash Flow	$3.8M+170.2%	-$5.4M-130.1%	$17.8M-87.7%	$145.4M+3174.3%	$4.4M-93.6%	$69.7M
Dividends Paid	N/A	N/A	N/A	N/A	N/A	N/A
Share Buybacks	N/A	N/A	$4.0M+68.4%	$2.4M	N/A	N/A

Metric	Q2'25	Q2'24	Q4'23	Q4'22	Q4'21	Q4'20	Q4'19
Operating Cash Flow	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Capital Expenditures	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Free Cash Flow	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Investing Cash Flow	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Financing Cash Flow	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Dividends Paid	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Share Buybacks	N/A	N/A	N/A	N/A	N/A	N/A	N/A

ADAG Financial Ratios

Metric	FY24	FY23	FY22	FY21	FY20	FY19
Gross Margin	N/A	N/A	N/A	N/A	N/A	N/A
Operating Margin	-34835.4%-34704.4pp	-131.0%+772.1pp	-903.1%-191.9pp	-711.2%+5445.3pp	-6156.5%-2162.8pp	-3993.7%
Net Margin	-32386.5%-32281.8pp	-104.6%+756.0pp	-860.6%-141.4pp	-719.2%+5329.7pp	-6048.9%-2625.5pp	-3423.4%
Return on Equity	N/A	N/A	N/A	N/A	N/A	N/A
Return on Assets	-37.4%-21.1pp	-16.4%+36.1pp	-52.5%-13.9pp	-38.6%+11.7pp	-50.3%-34.8pp	-15.5%
Current Ratio	2.30-1.3	3.61+0.9	2.71-3.5	6.24+1.3	4.90-9.6	14.47
Debt-to-Equity	0.01-0.2	0.19+0.0	0.17+0.2	0.02+0.1	-0.030.0	-0.03
FCF Margin	-28811.5%-28653.9pp	-157.6%+373.0pp	-530.6%-79.2pp	-451.3%+3752.5pp	-4203.8%-390.2pp	-3813.6%

Metric	Q2'25	Q2'24	Q4'23	Q4'22	Q4'21	Q4'20	Q4'19
Gross Margin	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Operating Margin	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Net Margin	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Return on Equity	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Return on Assets	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Current Ratio	2.290.0	2.30-1.3	3.61+0.9	2.71-3.5	6.24+1.3	4.90-9.6	14.47
Debt-to-Equity	0.75+0.7	0.01-0.2	0.19+0.0	0.17+0.2	0.02+0.1	-0.030.0	-0.03
FCF Margin	N/A	N/A	N/A	N/A	N/A	N/A	N/A

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Frequently Asked Questions

What is Adagene Inc.'s annual revenue?

Adagene Inc. (ADAG) reported $103K in total revenue for fiscal year 2024. This represents a -99.4% change compared to the previous fiscal year. Revenue measures the total income earned from the company's primary business operations before any expenses are deducted.

How fast is Adagene Inc.'s revenue growing?

Adagene Inc. (ADAG) revenue declined by 99.4% year-over-year, from $18.1M to $103K in fiscal year 2024.

Is Adagene Inc. profitable?

No, Adagene Inc. (ADAG) reported a net income of -$33.4M in fiscal year 2024, with a net profit margin of -32386.5%.

What is Adagene Inc.'s earnings per share (EPS)?

Adagene Inc. (ADAG) reported diluted earnings per share of $-0.23 for fiscal year 2024. This represents a 34.3% change compared to the previous fiscal year. EPS represents the portion of a company's net income allocated to each outstanding share of common stock and is widely used to evaluate profitability on a per-share basis.

What is Adagene Inc.'s EBITDA?

Adagene Inc. (ADAG) had EBITDA of -$35.2M in fiscal year 2024, measuring earnings before interest, taxes, depreciation, and amortization.

How much debt does Adagene Inc. have?

As of fiscal year 2024, Adagene Inc. (ADAG) had $85.2M in cash and equivalents against $417K in long-term debt.

What is Adagene Inc.'s operating margin?

Adagene Inc. (ADAG) had an operating margin of -34835.4% in fiscal year 2024, reflecting the profitability of core business operations before interest and taxes.

What is Adagene Inc.'s net profit margin?

Adagene Inc. (ADAG) had a net profit margin of -32386.5% in fiscal year 2024, representing the share of revenue converted into profit after all expenses.

What is Adagene Inc.'s free cash flow?

Adagene Inc. (ADAG) generated -$29.7M in free cash flow during fiscal year 2024. This represents a -4.2% change compared to the previous fiscal year. Free cash flow represents the cash a company generates after accounting for capital expenditures, and is widely used to assess financial flexibility and shareholder value.

What is Adagene Inc.'s operating cash flow?

Adagene Inc. (ADAG) generated -$29.7M in operating cash flow during fiscal year 2024, representing cash generated from core business activities.

What are Adagene Inc.'s total assets?

Adagene Inc. (ADAG) had $89.3M in total assets as of fiscal year 2024, including both current and long-term assets.

What are Adagene Inc.'s capital expenditures?

Adagene Inc. (ADAG) invested $34K in capital expenditures during fiscal year 2024, funding long-term assets and infrastructure.

How much does Adagene Inc. spend on research and development?

Adagene Inc. (ADAG) invested $28.8M in research and development during fiscal year 2024.

How many shares does Adagene Inc. have outstanding?

Adagene Inc. (ADAG) had 59M shares outstanding as of fiscal year 2024.

What is Adagene Inc.'s current ratio?

Adagene Inc. (ADAG) had a current ratio of 2.30 as of fiscal year 2024, which is generally considered healthy.

What is Adagene Inc.'s debt-to-equity ratio?

Adagene Inc. (ADAG) had a debt-to-equity ratio of 0.01 as of fiscal year 2024, measuring the company's financial leverage by comparing total debt to shareholder equity.

What is Adagene Inc.'s return on assets (ROA)?

Adagene Inc. (ADAG) had a return on assets of -37.4% for fiscal year 2024, measuring how efficiently the company uses its assets to generate profit.

What is Adagene Inc.'s cash runway?

Based on fiscal year 2024 data, Adagene Inc. (ADAG) had $85.2M in cash against an annual operating cash burn of $29.7M. This gives an estimated cash runway of approximately 34 months at the current burn rate. Cash runway measures how long a company can continue operating before running out of cash, assuming no additional funding.

What is Adagene Inc.'s Piotroski F-Score?

Adagene Inc. (ADAG) has a Piotroski F-Score of 2 out of 9, indicating weak financial health. The F-Score evaluates nine binary signals across profitability (positive ROA, positive cash flow, improving ROA, earnings quality), leverage (decreasing debt, improving liquidity, no share dilution), and operating efficiency (improving gross margin, improving asset turnover). Scores of 7–9 indicate strong and improving fundamentals. Learn more in our complete guide to financial health indicators.

Are Adagene Inc.'s earnings high quality?

Adagene Inc. (ADAG) has an earnings quality ratio of 0.89x, considered low quality (accrual-driven). This ratio compares operating cash flow to net income. A ratio above 1.0x means the company generates more cash than its reported earnings, indicating sustainable, cash-backed profits. Ratios below 1.0x suggest earnings rely on accounting accruals rather than actual cash generation. Learn more in our complete guide to financial health indicators.

Can Adagene Inc. cover its interest payments?

Adagene Inc. (ADAG) has an interest coverage ratio of -42.2x, meaning it can struggle to cover its interest obligations. This ratio divides operating income by interest expense. Ratios above 5x indicate strong debt-servicing ability, while ratios below 2x suggest the company may face difficulty meeting interest payments if earnings decline. Learn more in our complete guide to financial health indicators.

How financially healthy is Adagene Inc.?

Adagene Inc. (ADAG) scores 34 out of 100 on our Financial Profile, indicating weak overall financial health. This composite score evaluates six dimensions: profitability (operating margin), revenue growth, leverage (debt-to-equity), liquidity (current ratio), cash flow quality (free cash flow margin), and shareholder returns (return on equity). Each dimension is normalized against standard financial benchmarks. Learn more in our complete guide to financial health indicators.