Adagene Inc. Financials
Adagene Inc. (ADAG) reported $7.7M in revenue for fiscal year 2025, up 7332.8% from the prior fiscal year. This page shows its income statement, balance sheet, cash flow statement, and key financial ratios. View 8 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).
Adagene’s business mechanic is a cash-funded R&D program, with losses driven more by investment scale than by a functioning revenue base.
Across the last three annual periods, operating cash burn fell from-$28.5M to-$15.7M , showing the cash cost of running the pipeline has been cut materially. With cash of$74.5M against current liabilities of$25.2M , the near-term constraint is continued burn rather than day-to-day liquidity.
In FY2025, R&D of
Free cash flow of
Financial Health Signals
Scored against emerging companies for FY2025. Each of the six dimensions is a percentile rank within that peer group; the overall is their average, with missing dimensions counted as zero out of six. A high score means strong standing among peers, not absolute cross-industry strength. How this score is calculated →
Health score ≠ stock price. This rates the quality of Adagene Inc.'s business: profitability, growth, balance sheet strength. It doesn't tell you whether the stock is a good buy at today's price. Not financial advice. Use it alongside valuation analysis and your own research.
Adagene Inc. scores -2.27, below the 1.81 distress threshold. The score is driven primarily by a large market capitalization ($258.5M) relative to total liabilities ($42.9M). This indicates elevated financial distress risk and warrants close attention to liquidity and debt levels.
Distress-screening estimate for non-financial companies. Not computed for banks or insurers, where the Altman model does not apply.
Adagene Inc. passes 4 of 8 computable financial strength tests (1 of the nine could not be computed from available data). 2 of 4 profitability signals pass, 1 of 3 leverage/liquidity signals pass, both operating efficiency signals pass.
Adagene Inc. reported a net loss of $17.6M while operations used $15.7M of cash. With neither figure positive, the ratio between the two carries no quality signal.
Adagene Inc. reported an operating loss of $21.4M against $463K in interest expense. There is no operating profit to cover interest, so interest must be met from cash reserves or from financing rather than from operations.
Key Financial Metrics
Earnings & Revenue
Adagene Inc. generated $7.7M in revenue in fiscal year 2025. This represents an increase of 7332.8% from the prior year.
Adagene Inc.'s EBITDA was -$21.0M in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization. This represents an increase of 40.4% from the prior year.
Adagene Inc. reported -$17.6M in net income in fiscal year 2025. This represents an increase of 47.3% from the prior year.
Adagene Inc. earned -$0.30 per diluted share (EPS) in fiscal year 2025. This represents an increase of 49.2% from the prior year.
Cash & Balance Sheet
Adagene Inc. recorded an outflow of $15.7M in free cash flow in fiscal year 2025, representing a cash shortfall after capex. This represents an increase of 47.3% from the prior year.
Adagene Inc. held $74.5M in cash against $1.1M in long-term debt as of fiscal year 2025.
Not reported for fiscal year 2025.
Margins & Returns
Adagene Inc.'s ROE was -49.8% in fiscal year 2025, measuring profit generated per dollar of shareholder equity. This is up 16.3 percentage points from the prior year.
Not reported for fiscal year 2025.
Not shown for fiscal year 2025: the reported ratio is below -100.0% of revenue, so it does not read as a share of revenue.
Not shown for fiscal year 2025: the reported ratio is below -100.0% of revenue, so it does not read as a share of revenue.
Capital Allocation
Adagene Inc. invested $22.0M in research and development in fiscal year 2025. This represents a decrease of 23.4% from the prior year.
Adagene Inc. invested $17K in capex in fiscal year 2025, funding long-term assets and infrastructure. This represents a decrease of 49.2% from the prior year.
Not reported for fiscal year 2025.
ADAG Income Statement
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type.
| Metric | FY25 | FY24 | FY23 | FY22 | FY21 | FY20 | FY19 | FY18 |
|---|---|---|---|---|---|---|---|---|
| Revenue | $7.7M+7332.8% | $103K-99.4% | $18.1M+94.9% | $9.3M-8.7% | $10.2M+1351.7% | $701K+46.0% | $480K-68.2% | $1.5M |
| R&D Expenses | $22.0M-23.4% | $28.8M-21.4% | $36.6M-55.0% | $81.3M+19.4% | $68.1M+103.1% | $33.5M+106.9% | $16.2M+0.8% | $16.1M |
| SG&A Expenses | $7.1M-2.7% | $7.3M-16.1% | $8.7M-27.0% | $11.9M-17.8% | $14.4M+40.0% | $10.3M+200.0% | $3.4M+24.3% | $2.8M |
| Operating Income | -$21.4M+40.4% | -$36.0M-51.6% | -$23.7M+71.7% | -$83.9M-16.0% | -$72.4M-67.7% | -$43.2M-125.1% | -$19.2M-10.6% | -$17.3M |
| Interest Expense | $463K-45.6% | $852K-23.1% | $1.1M+59.8% | $693K+90.6% | $364K+79.9% | $202K+46.4% | $138K+51.6% | $91K |
| Income Tax | -$298K-1596.9% | -$18K-101.0% | $1.7M+268.5% | $459K-73.0% | $1.7M | N/A | N/A | N/A |
| Net Income | -$17.6M+47.3% | -$33.4M-76.4% | -$18.9M+76.3% | -$80.0M-9.3% | -$73.2M-72.6% | -$42.4M-158.0% | -$16.4M-7.6% | -$15.3M |
| EPS (Diluted) | -$0.30+49.2% | -$0.59-68.6% | -$0.35 | -$0.31 | -$1.46 | -$2.67 | -$1.10-17.0% | -$0.94 |
Not reported in any period shown, so not listed: Cost of Revenue, Gross Profit.
ADAG Balance Sheet
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type.
| Metric | FY25 | FY24 | FY23 | FY22 | FY21 | FY20 | FY19 | FY18 |
|---|---|---|---|---|---|---|---|---|
| Total Assets | $78.3M-12.3% | $89.3M-22.9% | $115.7M-24.1% | $152.4M-19.6% | $189.5M+124.9% | $84.3M-20.4% | $105.9M | N/A |
| Current Assets | $77.4M-11.9% | $87.8M-22.6% | $113.4M-24.0% | $149.3M-19.7% | $186.0M+135.1% | $79.1M-23.9% | $103.9M | N/A |
| Cash & Equivalents | $74.5M-12.5% | $85.2M-22.5% | $109.9M-23.5% | $143.8M-17.6% | $174.4M+132.1% | $75.2M-18.8% | $92.5M+476.2% | $16.1M |
| Accounts Receivable | N/A | N/A | N/A | N/A | $3.0M | N/A | $480K | N/A |
| Total Liabilities | $42.9M+10.8% | $38.7M-14.2% | $45.2M-34.8% | $69.3M+110.3% | $33.0M-81.0% | $173.7M+6.6% | $162.9M | N/A |
| Current Liabilities | $25.2M-34.1% | $38.2M+21.4% | $31.5M-42.9% | $55.1M+84.7% | $29.8M+84.7% | $16.1M+124.8% | $7.2M | N/A |
| Long-Term Debt | $1.1M+172.7% | $417K-96.9% | $13.5M-4.3% | $14.1M+372.8% | $3.0M+0.9% | $3.0M+95.6% | $1.5M | N/A |
| Total Equity | $35.3M-30.0% | $50.5M-28.4% | $70.6M-15.1% | $83.1M-46.9% | $156.6M+275.1% | -$89.4M-56.8% | -$57.0M-39.0% | -$41.0M |
| Retained Earnings | -$328.8M-5.7% | -$311.2M-12.0% | -$277.8M-7.3% | -$258.8M-44.7% | -$178.8M-69.3% | -$105.7M-67.0% | -$63.3M | N/A |
Not reported in any period shown, so not listed: Inventory, Goodwill.
ADAG Cash Flow Statement
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type.
| Metric | FY25 | FY24 | FY23 | FY22 | FY21 | FY20 | FY19 | FY18 |
|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | -$15.7M+47.3% | -$29.7M-4.4% | -$28.5M+41.5% | -$48.6M-12.0% | -$43.4M-52.2% | -$28.5M-57.2% | -$18.2M-27.3% | -$14.3M |
| Capital Expenditures | $17K-49.2% | $34K-60.5% | $85K-87.7% | $691K-72.5% | $2.5M+168.4% | $935K+516.0% | $152K-70.5% | $515K |
| Free Cash Flow | -$15.7M+47.3% | -$29.7M-4.2% | -$28.5M+42.1% | -$49.3M-7.4% | -$45.9M-55.9% | -$29.5M-61.0% | -$18.3M-23.9% | -$14.8M |
| Investing Cash Flow | $477K-57.0% | $1.1M+1535.1% | -$77K+88.7% | -$686K+72.7% | -$2.5M-135.5% | $7.1M-71.5% | $24.9M+184.2% | -$29.5M |
| Financing Cash Flow | $4.4M+17.9% | $3.8M+170.2% | -$5.4M-130.1% | $17.8M-87.7% | $145.4M+3174.3% | $4.4M-93.6% | $69.7M+36.5% | $51.1M |
| Share Buybacks | N/A | N/A | N/A | $4.0M+68.4% | $2.4M | N/A | N/A | N/A |
Not reported in any period shown, so not listed: Dividends Paid.
ADAG Financial Ratios
Margins and returns are percentages; the remaining ratios are unitless multiples.
| Metric | FY25 | FY24 | FY23 | FY22 | FY21 | FY20 | FY19 | FY18 |
|---|---|---|---|---|---|---|---|---|
| Operating Margin | -279.5% | -34835.4% | -131.0% | -903.1% | -711.2% | -6156.5% | -3993.7% | -1147.1% |
| Net Margin | -229.6% | -32386.5% | -104.6% | -860.6% | -719.2% | -6048.9% | -3423.4% | -1010.2% |
| Return on Equity | -49.8%+16.3pp | -66.2%-39.3pp | -26.9%+69.4pp | -96.3%-49.5pp | -46.7% | N/A | N/A | N/A |
| Return on Assets | -22.5%+14.9pp | -37.4%-21.1pp | -16.4%+36.1pp | -52.5%-13.9pp | -38.6%+11.7pp | -50.3%-34.8pp | -15.5% | N/A |
| Current Ratio | 3.07+0.8x | 2.30-1.3x | 3.61+0.9x | 2.71-3.5x | 6.24+1.3x | 4.90-9.6x | 14.47 | N/A |
| Debt-to-Equity | 0.030.0x | 0.01-0.2x | 0.190.0x | 0.17+0.2x | 0.02 | N/A | N/A | N/A |
| FCF Margin | -204.3% | -28811.5% | -157.6% | -530.6% | -451.3% | -4203.8% | -3813.6% | -978.0% |
Not reported in any period shown, so not listed: Gross Margin.
Reported as filed but not readable as a share of revenue in the periods where the ratio runs further from zero than a revenue base allows; no change figure is given where either compared period is one of those: Operating Margin, Net Margin, FCF Margin.
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Where Adagene Inc. Ranks
Frequently Asked Questions
What is Adagene Inc.'s annual revenue?
Adagene Inc. (ADAG) reported $7.7M in total revenue for fiscal year 2025. This represents a 7332.8% 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 grew by 7332.8% year-over-year, from $103K to $7.7M in fiscal year 2025.
Is Adagene Inc. profitable?
No, Adagene Inc. (ADAG) reported a net income of -$17.6M in fiscal year 2025.
What is Adagene Inc.'s EBITDA?
Adagene Inc. (ADAG) had EBITDA of -$21.0M in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization.
How much debt does Adagene Inc. have?
As of fiscal year 2025, Adagene Inc. (ADAG) had $74.5M in cash and equivalents against $1.1M in long-term debt.
What is Adagene Inc.'s return on equity (ROE)?
Adagene Inc. (ADAG) has a return on equity of -49.8% for fiscal year 2025, measuring how efficiently the company generates profit from shareholder equity.
What is Adagene Inc.'s free cash flow?
Adagene Inc. (ADAG) recorded an outflow of $15.7M in free cash flow during fiscal year 2025. This represents a 47.3% 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) recorded an outflow of $15.7M in operating cash flow during fiscal year 2025, representing cash used by core business activities.
What are Adagene Inc.'s total assets?
Adagene Inc. (ADAG) had $78.3M in total assets as of fiscal year 2025, including both current and long-term assets.
What are Adagene Inc.'s capital expenditures?
Adagene Inc. (ADAG) invested $17K in capital expenditures during fiscal year 2025, funding long-term assets and infrastructure.
How much does Adagene Inc. spend on research and development?
Adagene Inc. (ADAG) invested $22.0M in research and development during fiscal year 2025.
What is Adagene Inc.'s current ratio?
Adagene Inc. (ADAG) had a current ratio of 3.07 as of fiscal year 2025, which is generally considered healthy.
What is Adagene Inc.'s debt-to-equity ratio?
Adagene Inc. (ADAG) had a debt-to-equity ratio of 0.03 as of fiscal year 2025, 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 -22.5% for fiscal year 2025, measuring how efficiently the company uses its assets to generate profit.
How does Adagene Inc.'s liquidity compare with its operating cash outflow?
At the end of fiscal year 2025, Adagene Inc. (ADAG) held $74.5M in cash, cash equivalents and investments, and reported an operating cash outflow of $15.7M over that year. Dividing the one by the other, the reported balance equals about 57 months of the outflow reported that year. This is arithmetic over figures already filed, not a projection: it assumes nothing about future spending, financing or operations.
What is Adagene Inc.'s Altman Z-Score?
Adagene Inc. (ADAG) has an Altman Z-Score of -2.27, placing it in the Distress Zone (elevated bankruptcy risk). The Z-Score combines five financial ratios (working capital, retained earnings, EBIT, market capitalization, and revenue relative to total assets) to predict the likelihood of bankruptcy. Scores above 2.99 indicate financial safety while scores below 1.81 suggest financial distress. Learn more in our complete guide to financial health indicators.
What is Adagene Inc.'s Piotroski F-Score?
Adagene Inc. (ADAG) has a Piotroski F-Score of 4 out of 8 computable signals; 1 of the nine could not be computed from available data, so the full-scale strength rating is not shown. 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 to 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) reported a net loss of $17.6M while operations used $15.7M of cash. With neither figure positive, the ratio between the two carries no quality signal. 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) reported an operating loss of $21.4M against $463K in interest expense. There is no operating profit to cover interest, so interest must be met from cash reserves or from financing rather than from operations. 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 68 out of 100 on our Financial Health Score, indicating strong standing within its emerging companies peer group. The score is a 0-100 composite of six dimensions (Cash Runway, Dilution, R&D Intensity, Revenue Progress, Burn Trend, Balance Sheet), each ranked as a percentile relative to companies in the same scoring family (banks against banks, REITs against REITs, and so on) rather than across all industries. It rates the quality of the business, not whether the stock is fairly priced, and is not financial advice. Learn more in our complete guide to financial health indicators.