Liquidity is under pressure as evidenced by a negative free cash flow trajectory with quarterly outflows consistently exceeding $4 million and an OCF/NI ratio of 0.59 in 2026Q1.
| Cash from Operations | -15.93M | -19.01M | -29.46M | -25.65M | -22.41M | -19.31M |
| Operating CF Margin % | - | - | -10951.3% | -8550.67% | -11858.2% | -7150.74% |
| Operating CF Growth % | 182.82% | 35.46% | -14.84% | -14.46% | -16.08% | - |
| Net Income | -24.37M | 0 | -75.04M | -36.59M | -23.67M | -19.94M |
| Depreciation & Amortization | -252K | 0 | 1.39M | 548K | 495K | 336K |
| Stock-Based Compensation | -355K | 0 | 0 | 442K | 365K | 339K |
| Deferred Taxes | 0 | 0 | -1.92M | 0 | 0 | 0 |
| Other Non-Cash Items | -19.54M | -21.68M | 40.33M | 9.98M | 71K | -623K |
| Working Capital Changes | 3.5M | 2.66M | 5.79M | -32K | 330K | 579K |
| Change in Receivables | -13K | 38K | 35K | -70K | 33K | 40K |
| Change in Inventory | 743K | 931K | 626K | -2.98M | 35K | -473K |
| Change in Payables | -1.43M | -1.76M | -4.56M | 0 | 436K | 279K |
| Cash from Investing | -41K | -374K | -1.65M | -340K | -500K | -1.27M |
| Capital Expenditures | 333K | -374K | -1.65M | -333K | -502K | -1.26M |
| CapEx % of Revenue | - | - | 612.64% | 111% | 265.61% | 465.93% |
| Acquisitions | 0 | 0 | 0 | 0 | 2K | 0 |
| Investments | - | - | - | - | - | - |
| Other Investing | -374K | 0 | 0 | -7K | 0 | -14K |
| Cash from Financing | 16.13M | 16.13M | 15.63M | 21.88M | 9.53M | 130K |
| Debt Issued (Net) | 0 | 0 | 15.63M | 21.86M | 9.5M | 0 |
| Equity Issued (Net) | 16.13M | 16.13M | 0 | 0 | 25K | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 0 | 0 | 0 | 18K | 0 | 130K |
| Net Change in Cash | -54K | -3.48M | 20.57M | -4.16M | 5.05M | -20.38M |
| Free Cash Flow | -15.6M | -19.39M | -31.11M | -25.98M | -22.9M | -20.58M |
| FCF Margin % | - | - | -11563.94% | -8661.67% | -12118.52% | -7621.85% |
| FCF Growth % | 50.88% | 37.67% | -19.71% | -13.45% | -11.3% | - |
| FCF per Share | -0.70 | -1.17 | -2.05 | -3.31 | -1.19 | -1.07 |
| FCF Conversion (FCF/Net Income) | 0.64x | 0.76x | 0.55x | 0.67x | 0.95x | 0.97x |
| Interest Paid | 0 | 0 | 0 | 208K | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 |
Capital Runway and Dilution
According to the provided financial data, ADGM's operating cash flow consistently trails net income, with the OCF/NI ratio fluctuating significantly, reaching 0.59 in 2026Q1, which suggests that non-cash adjustments and accruals are failing to bridge the gap between accounting losses and actual liquidity depletion.
The persistent divergence between net income and operating cash flow indicates that the company's reported losses are not merely accounting artifacts but reflect genuine cash outflows required to sustain operations. Investors should monitor this relationship closely, as the inability to align cash burn with operational milestones suggests a lack of efficiency in managing the underlying cost structure.
As reported in recent financial statements, ADGM's free cash flow remains deeply negative, with quarterly outflows consistently exceeding $4 million, highlighting a structural inability to generate self-sustaining capital while the firm remains in a pre-revenue developmental phase without a clear path to positive cash generation.
The consistent negative free cash flow trajectory underscores the company's reliance on external financing to fund its clinical and regulatory roadmap. Without a commercial revenue stream to offset these outflows, the current burn rate appears unsustainable over the long term, necessitating potential future capital raises that could dilute existing shareholders.
Based on the reported figures, ADGM exhibits significant volatility in working capital changes, with a $1.1 million inflow in 2026Q1 following a $1.6 million outflow in 2023Q4, suggesting that the company's liquidity is highly sensitive to the timing of clinical trial payments and vendor obligations.
This erratic pattern in working capital suggests that management is likely managing cash by delaying or accelerating payments to trial sites and suppliers. Such fluctuations may obscure the true underlying burn rate and warrant further investigation into the company's ability to maintain stable operational liquidity as clinical activities intensify.
As indicated by the financial data, the cash flow statement for ADGM is heavily influenced by non-cash adjustments such as stock-based compensation and depreciation, which may mask the true extent of the company's operational cash requirements during this critical pre-commercialization phase of its product development.
The reliance on these adjustments suggests that the headline cash flow figures may not fully capture the economic reality of the company's high-cost R&D environment. Investors should be wary of interpreting these figures as a proxy for operational health, as they do not account for the significant capital intensity required to bring the ULTC platform to market.
Quick answers to the most common questions about buying ADGM stock.
Adagio Medical Holdings, Inc. (ADGM) generated $-19.0M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Adagio Medical Holdings, Inc. (ADGM) reported negative free cash flow of $19.4M in 2025, indicating capital requirements exceeded cash from operations.
Adagio Medical Holdings, Inc. (ADGM) spent $0.4M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.