The company's financial position has weakened significantly, with total assets contracting to $78.3M in 2025Q4 while the accumulated deficit deepened to -$328.8M.
| Total Current Assets | 77.38M | 87.78M | 113.44M | 149.32M | 185.95M | 79.1M | 103.92M | 51.82M |
| Cash & Short-Term Investments | 74.52M | 85.19M | 109.93M | 143.76M | 174.39M | 75.15M | 100.53M | 49.06M |
| Cash Only | 74.52M | 85.19M | 109.93M | 143.76M | 174.39M | 75.15M | 92.53M | 16.06M |
| Short-Term Investments | 0 | 0 | 0 | 0 | 0 | 0 | 8M | 33M |
| Accounts Receivable | 17.35K | 8.31K | 222.03K | 619.43K | 7.51M | 132.4K | 2.14M | 1.43M |
| Days Sales Outstanding | 0.83 | 29.39 | 4.47 | 24.33 | 269.27 | 100.68 | 1.63K | 345.44 |
| Inventory | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Days Inventory Outstanding | - | - | - | - | - | - | - | - |
| Other Current Assets | 1.2M | 527.71K | 2.7M | 3.78M | 2.49M | 0 | 0 | 0 |
| Total Non-Current Assets | 888.13K | 1.51M | 2.29M | 3.08M | 3.56M | 5.17M | 1.97M | 2.6M |
| Property, Plant & Equipment | 862.91K | 1.41M | 2.2M | 2.97M | 3.49M | 2.07M | 1.88M | 2.55M |
| Fixed Asset Turnover | 8.89x | 0.07x | 8.23x | 3.12x | 2.92x | 0.23x | 0.26x | 0.59x |
| Goodwill | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Intangible Assets | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Long-Term Investments | 0 | 0 | 0 | 0 | 0 | 7.17M | 197.07K | 197.07K |
| Other Non-Current Assets | 25.22K | 103.5K | 84.89K | 109.57K | 69.28K | -4.07M | -109.84K | -147.88K |
| Total Assets | 78.26M | 89.27M | 115.73M | 152.4M | 189.51M | 84.26M | 105.89M | 54.42M |
| Asset Turnover | 0.10x | 0.00x | 0.16x | 0.06x | 0.05x | 0.01x | 0.00x | 0.03x |
| Asset Growth % | -12.33% | -22.86% | -24.06% | -19.58% | 124.9% | -20.42% | 94.59% | - |
| Total Current Liabilities | 25.17M | 38.18M | 31.46M | 55.08M | 29.82M | 16.15M | 7.18M | 10.35M |
| Accounts Payable | 2.88M | 4.24M | 3.09M | 3.67M | 3.32M | 1.81M | 712.71K | 558.98K |
| Days Payables Outstanding | - | - | - | - | - | - | - | - |
| Short-Term Debt | 4.98M | 17.79M | 8.4M | 13.62M | 4.5M | 5.02M | 1.04M | 2.33M |
| Deferred Revenue (Current) | 3.46M | 0 | 0 | 15.11M | 5.5M | 725.54K | 993.38K | 32.98K |
| Other Current Liabilities | 232.24K | 56.27K | 119.75K | 111.92K | 11.62M | 6.2M | 2.07M | 1.41M |
| Current Ratio | 3.07x | 2.30x | 3.61x | 2.71x | 6.24x | 4.90x | 14.47x | 5.01x |
| Quick Ratio | 3.07x | 2.30x | 3.61x | 2.71x | 6.24x | 4.90x | 14.47x | 5.01x |
| Cash Conversion Cycle | - | - | - | - | - | - | - | - |
| Total Non-Current Liabilities | 17.74M | 559.64K | 13.71M | 14.23M | 3.13M | 157.51M | 155.72M | 85.1M |
| Long-Term Debt | 1.14M | 417.34K | 13.54M | 14.15M | 2.99M | 2.97M | 1.52M | 0 |
| Capital Lease Obligations | 53.48K | 142.3K | 173.66K | 53.83K | 0 | 0 | 0 | 0 |
| Deferred Tax Liabilities | 0 | 0 | 0 | 0 | 44.16K | 0 | 0 | 0 |
| Other Non-Current Liabilities | 16.55M | 0 | 0 | 28.72K | 94.11K | 154.54M | 154.2M | 85.1M |
| Total Liabilities | 42.91M | 38.74M | 45.17M | 69.31M | 32.95M | 173.65M | 162.9M | 95.44M |
| Total Debt | 6.26M | 18.49M | 22.31M | 27.97M | 7.49M | 7.98M | 2.56M | 2.33M |
| Net Debt | -68.26M | -66.7M | -87.63M | -115.79M | -166.9M | -67.17M | -89.98M | -13.73M |
| Debt / Equity | 0.18x | 0.37x | 0.32x | 0.34x | 0.05x | - | - | - |
| Debt / EBITDA | - | - | - | - | - | - | - | - |
| Net Debt / EBITDA | - | - | - | - | - | - | - | - |
| Interest Coverage | -37.67x | -38.26x | -14.58x | -113.68x | -195.49x | -208.72x | -117.99x | -166.60x |
| Total Equity | 35.35M | 50.52M | 70.56M | 83.09M | 156.56M | -89.39M | -57.01M | -41.03M |
| Equity Growth % | -30.03% | -28.4% | -15.08% | -46.93% | 275.14% | -56.8% | -38.96% | - |
| Book Value per Share | 0.94 | 1.40 | 2.01 | 2.40 | 4.89 | -3.19 | -1.61 | -4.23 |
| Total Shareholders' Equity | 35.35M | 50.52M | 70.56M | 83.09M | 156.56M | -89.39M | -57.01M | -41.03M |
| Common Stock | 5.92K | 5.89K | 5.55K | 5.5K | 5.63K | 1.89K | 1.52K | 1.52K |
| Retained Earnings | -328.79M | -311.18M | -277.75M | -258.81M | -178.83M | -105.66M | -63.26M | -46.83M |
| Treasury Stock | 0 | 0 | -4 | -4 | -619.61K | 0 | 0 | 0 |
| Accumulated OCI | -1.91M | -526.9K | -1.8M | -849.3K | -93.98K | -350.98K | -344.89K | -410.69K |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Liquidity and milestone dependency
As reported in financial statements, Adagene's total assets have declined from $152.4M in 2022Q4 to $78.3M by 2025Q4, signaling a persistent erosion of the balance sheet as the company consumes capital to fund its clinical development programs without offsetting commercial revenue streams.
The steady reduction in total assets over the last ten quarters highlights the company's reliance on cash reserves to sustain operations. This downward trajectory suggests that the current business model is not yet self-funding, necessitating either a significant increase in milestone-based inflows or further capital market participation.
Based on recent SEC filings, Adagene's cash position has fallen from $143.8M in 2022Q4 to $74.5M in 2025Q4, indicating that the company's liquidity buffer is shrinking as it continues to fund high-intensity research and development activities without a recurring revenue base.
While the current ratio of 3.07 appears superficially healthy, it is heavily influenced by the composition of current assets and the timing of milestone payments. Investors should monitor the burn rate closely, as the current cash balance may provide a limited window for clinical milestones before additional financing becomes a necessity.
According to the latest balance sheet data, Adagene maintains a debt-to-equity ratio of 0.18, reflecting a modest leverage profile that has decreased from 0.34 in 2022Q4 as the company has actively managed its debt obligations during a period of significant operational cash burn.
The reduction in total debt from $28.0M to $6.3M suggests a deliberate effort to de-leverage the balance sheet, likely to preserve financial flexibility. However, given the company's negative profitability, this deleveraging may limit future financing options if clinical trial costs continue to escalate.
As indicated by the company's reported figures, the retained earnings deficit has deepened to -$328.8M by 2025Q4, which directly reflects the cumulative impact of sustained research and development spending on the company's total equity position over the past several years.
The consistent expansion of the accumulated deficit underscores the high-risk nature of the company's clinical-stage business model. This trend warrants further investigation into the company's long-term capital allocation strategy and the potential for future equity dilution to support ongoing operations.
Quick answers to the most common questions about buying ADAG stock.
As of 2025, Adagene Inc. (ADAG) had total assets of $78.3M including $77.4M in current assets.
Adagene Inc. (ADAG) carries total debt of $6.3M, offset by $74.5M in cash and short-term investments. Comparing total debt to cash helps evaluate the company's debt burden and net leverage.
Adagene Inc. (ADAG) has total shareholders' equity (book value) of $35.3M ($0.94 book value per share). Book value represents the net worth of the company belonging to common stock holders.
Adagene Inc. (ADAG) reported a current ratio of 3.07x. A current ratio above 1.0x indicates that the company has more current assets than current liabilities, suggesting sufficient short-term liquidity.