Revenue remains highly volatile, evidenced by a 73.5% quarterly growth spike in 2025Q4 that fails to offset a structural negative net margin of 53.9%.
| Sales/Revenue | 7.67M | 103.2K | 18.11M | 9.29M | 10.18M | 480K | 480K | 1.51M |
| Revenue Growth % | 7332.76% | -99.43% | 94.9% | -8.67% | 2019.85% | 0% | -68.24% | - |
| Cost of Goods Sold | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| COGS % of Revenue | - | - | - | - | - | - | - | - |
| Gross Profit | 7.67M | -823.04K | 18.11M | 9.29M | 10.18M | 480K | 480K | 1.51M |
| Gross Margin % | 100% | -797.49% | 100% | 100% | 100% | 100% | 100% | 100% |
| Gross Profit Growth % | 1032.02% | -104.54% | 94.9% | -8.67% | 2019.85% | 0% | -68.24% | - |
| Operating Expenses | 29.11M | 36.05M | 41.83M | 93.21M | 82.54M | 19.65M | 19.65M | 18.85M |
| OpEx % of Revenue | 379.48% | 34935.42% | 230.97% | 1003.08% | 811.18% | 4093.68% | 4093.68% | 1247.09% |
| Selling, General & Admin | 7.08M | 7.27M | 8.67M | 11.87M | 14.44M | 3.44M | 3.44M | 2.77M |
| SG&A % of Revenue | 92.24% | 7047.53% | 47.89% | 127.78% | 141.91% | 716.23% | 716.23% | 182.98% |
| Research & Development | 22.03M | 28.78M | 36.64M | 81.34M | 68.1M | 16.21M | 16.21M | 16.08M |
| R&D % of Revenue | 287.24% | 27887.88% | 202.3% | 875.3% | 669.26% | 3377.45% | 3377.45% | 1064.11% |
| Other Operating Expenses | 0 | 0 | -3.48M | 0 | 0 | 0 | 0 | 0 |
| Operating Income | -21.44M | -35.95M | -23.72M | -83.92M | -72.36M | -19.17M | -19.17M | -17.33M |
| Operating Margin % | -279.48% | -34835.42% | -130.97% | -903.08% | -711.18% | -3993.68% | -3993.68% | -1147.09% |
| Operating Income Growth % | 40.37% | -51.57% | 71.74% | -15.97% | -277.49% | 0% | -10.59% | - |
| EBITDA | -20.85M | -35.03M | -22.51M | -82.49M | -71.24M | -18.31M | -18.35M | -16.43M |
| EBITDA Margin % | -271.79% | -33937.92% | -124.29% | -887.7% | -700.12% | -3814.84% | -3823.53% | -1086.94% |
| EBITDA Growth % | 40.48% | -55.59% | 72.71% | -15.8% | -289.05% | 0.23% | -11.73% | - |
| D&A (Non-Cash Add-back) | 589.79K | 926.25K | 1.21M | 1.43M | 1.13M | 858.41K | 816.69K | 909K |
| EBIT | -17.44M | -32.59M | -16.15M | -78.82M | -71.11M | -42.2M | -16.29M | -15.18M |
| Net Interest Income | 1.84M | 2.95M | 3.18M | -315.82K | -287.6K | 427.12K | 784.58K | 619.63K |
| Interest Income | 2.3M | 3.8M | 4.28M | 377.5K | 76.17K | 629.29K | 922.68K | 710.71K |
| Interest Expense | 463.13K | 851.87K | 1.11M | 693.32K | 363.76K | 202.16K | 138.1K | 91.08K |
| Other Income/Expense | 3.53M | 2.51M | 6.46M | 4.41M | 887.77K | 754.38K | 2.74M | 2.07M |
| Pretax Income | -17.91M | -33.44M | -17.25M | -79.51M | -71.48M | -16.43M | -16.43M | -15.27M |
| Pretax Margin % | -233.44% | -32403.46% | -95.27% | -855.65% | -702.45% | -3423.4% | -3423.4% | -1010.22% |
| Income Tax | -297.86K | -17.55K | 1.69M | 459.06K | 1.7M | 3.16K | 0 | -547K |
| Effective Tax Rate % | 1.66% | 0.05% | -9.8% | -0.58% | -2.38% | -0.02% | 0% | 3.58% |
| Net Income | -17.61M | -33.42M | -18.95M | -79.97M | -73.18M | -16.44M | -17.29M | -14.72M |
| Net Margin % | -229.56% | -32386.45% | -104.61% | -860.59% | -719.18% | -3424.06% | -3602.89% | -974.03% |
| Net Income Growth % | 47.32% | -76.41% | 76.31% | -9.28% | -345.24% | 4.96% | -17.49% | - |
| Net Income (Continuing) | -17.61M | -33.42M | -18.95M | -79.97M | -73.18M | -42.4M | -16.43M | -15.27M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -0.46 | -0.95 | -0.54 | -2.31 | -2.29 | -0.59 | -0.49 | -1.51 |
| EPS Growth % | 51.58% | -75.93% | 76.62% | -0.87% | -288.14% | -20.41% | 67.55% | - |
| EPS (Basic) | -0.46 | -0.95 | -0.55 | -2.31 | -2.29 | -0.59 | -0.49 | -1.51 |
| Diluted Shares Outstanding | 37.76M | 36.02M | 35.03M | 34.65M | 32.02M | 28.07M | 35.33M | 9.7M |
| Basic Shares Outstanding | 37.76M | 36.02M | 34.64M | 34.65M | 32.02M | 28.07M | 35.33M | 9.7M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - |
Geopolitical and liquidity constraints
According to recent financial disclosures, Adagene's revenue trajectory remains highly volatile, characterized by a 73.5% quarterly growth spike in 2025Q4 that reflects the unpredictable timing of milestone payments rather than a sustainable, linear expansion of the company's underlying commercial or service-based business model.
The revenue profile is entirely dependent on non-recurring licensing events, which creates significant quarter-over-quarter instability. Investors should interpret these figures as indicators of partnership execution rather than evidence of a scalable, repeatable revenue engine.
As reported in historical income statements, the company's cost structure is overwhelmingly dominated by research and development expenditures, which consistently consume the vast majority of capital and drive the persistent operating losses observed throughout the last ten quarters of clinical development.
The high R&D-to-revenue ratio underscores the firm's status as a pre-commercial entity where capital is prioritized for clinical trial execution. This expense discipline appears focused on platform validation, yet it leaves little room for operational flexibility should milestone inflows fail to materialize.
Based on the provided income statement data, the quality of reported net income is severely compromised by the absence of recurring revenue, resulting in a negative net margin of 53.9% in 2025Q4 despite the temporary recognition of significant upfront licensing fees.
The reliance on milestone-based accounting makes net income a poor proxy for operational health. The lack of consistent profitability suggests that the company remains in a high-risk phase where earnings quality is secondary to the preservation of cash runway.
Data from recent filings suggests that Adagene faces a tightening liquidity window, with an operating margin of -279% in 2024Q4 and a cash balance that may be insufficient to support long-term clinical programs without further dilutive financing or new, high-value partnership signatures.
Short-term observers may focus on the potential for further cash burn to outpace capital inflows, especially given the increasing legislative scrutiny on China-based biotech firms. This environment warrants caution regarding the company's ability to maintain its current pace of clinical development.
Quick answers to the most common questions about buying ADAG stock.
For fiscal year 2025, Adagene Inc. (ADAG) reported total revenue of $7.7M. This represents a 407.6% increase compared to $1.5M in 2018.
Adagene Inc. (ADAG) reported a net loss of $17.6M for the fiscal year ending 2025.
Adagene Inc. (ADAG) reported an operating income of $-21.4M, resulting in an operating profit margin of -279.5%. This margin reflects the operational efficiency of the business before interest and taxes.
Adagene Inc. (ADAG) generated $7.7M in gross profit for the year, representing a gross profit margin of 100.0%. This demonstrates the company's core pricing power and production efficiency.