ADC Therapeutics (ADCT) AI Stock Analysis

• Market Cap: $448.44M
• Dividend Yield: N/A
• Average Volume (3M): 1.26M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.02
• Revenue Growth: 6.35%
• EPS Growth: 39.57%
• Country: US
• Employees: 263
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -0.30
• Shares Outstanding: 123,877,110
• 10 Day Avg. Volume: 2,177,579
• 30 Day Avg. Volume: 1,256,694
• PEG Ratio: 0.03
• Price to Book (P/B): -0.95
• Price to Sales (P/S): 2.73
• P/FCF Ratio: -1.55
• Enterprise Value/Market Cap: 1.71
• Enterprise Value/Revenue: 10.22
• Enterprise Value/Gross Profit: 11.02
• Enterprise Value/Ebitda: -6.77
• 1Y Price Target: $7.33
• Price Target Upside: 102.49% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 48 Neutral
• Price Target: $3.50 ▼(-3.31% Downside)

The score is held down primarily by weak financial performance (declining revenue, large losses, ongoing cash burn, and negative equity) and bearish-to-mixed technicals. This is partly offset by a relatively positive earnings-call backdrop, citing encouraging clinical data and financing that extends the cash runway to at least 2028, while valuation support is limited due to negative earnings and no dividend.

Positive Factors

High gross margins

Sustained ~93% gross margins reflect favorable ADC unit economics and pricing power. As sales scale, this margin profile provides meaningful operating leverage to convert incremental revenue into profit, funding R&D and commercialization and improving long-term sustainability.

Extended cash runway

A completed $60M private placement and cash balance near $292M extend runway to at least 2028, materially reducing near-term financing risk. This allows the company to fund pivotal trials and regulatory filings into 2026–27 without immediate dilutive capital raises.

Strong early clinical efficacy

High response and complete response rates in LOTIS/LOTUS combo data support potential label expansion into earlier DLBCL lines. Confirmatory Phase 3 success could expand the addressable market and sustain higher recurring revenues long term through broader adoption.

Negative Factors

Negative stockholders' equity

Cumulative deficits producing ~-$238M in equity constrain financial flexibility, weaken covenant and borrowing capacity, and signal sustained historical losses. Negative equity can hinder non-dilutive financing and complicate strategic responses to setbacks over the medium term.

Ongoing cash burn

Persistent negative operating and free cash flow (~-$132M TTM) means the business cannot self-fund growth today. Continued cash burn increases reliance on external financing and raises dilution risk if revenue ramps from trials are delayed or lower than expected.

Weak top-line and profitability trends

Revenue has declined and margins remain deeply negative despite high gross margins. Large operating and net losses indicate the company is not near break-even, limiting reinvestment capacity and making future execution and successful trial outcomes critical to achieving durable profitability.

ADC Therapeutics Business Overview & Revenue Model

Company Description

ADC Therapeutics SA, a commercial-stage biotechnology company, develops antibody drug conjugates (ADC) for patients suffering from hematological malignancies and solid tumors. Its flagship product ZYNLONTA that is in Phase II clinical trial for the treatment of relapsed or refractory diffuse large B-cell lymphoma (DLBCL) and follicular lymphoma; Phase III clinical trial in combination with rituximab to treat relapsed or refractory DLBCL in second-line transplant-ineligible patients; and Phase I clinical trial for treatment of relapsed or refractory non-hodgkin lymphoma (NHL). The company is also developing camidanlumab tesirine, an ADC that has completed Phase I clinical trial to treat relapsed or refractory NHL; in Phase II clinical trial in relapsed or refractory hodgkin lymphoma; and in Phase Ib clinical trial for selected advanced solid tumors. In addition, it develops ADCT-602, which is in Phase Ia clinical trial for treatment of acute lymphoblastic leukemia; ADCT-601 and ADCT-901 that are in Phase Ia clinical trial for treatment of various solid tumors; and preclinical product candidates, including ADCT-701 and ADCT-901 for the treatment of solid tumors. It has a collaboration and license agreement with Genmab A/S, Bergenbio AS, Synaffix B.V., Mitsubishi Tanabe Pharma Corporation, Overland Pharmaceuticals, and MedImmune Limited. ADC Therapeutics SA was incorporated in 2011 and is headquartered in Epalinges, Switzerland.

How the Company Makes Money

ADC Therapeutics generates revenue primarily through the commercialization of its approved products, which include ADCs that are sold to healthcare providers and institutions. The company also earns income from strategic partnerships and collaborations with pharmaceutical companies, which may include upfront payments, milestone payments based on the achievement of specific development goals, and royalties on product sales. Additionally, the company may receive funding from government grants and other sources to support its research and development activities. As ADCT continues to advance its pipeline and achieve regulatory approvals, it aims to increase its sales and revenue through the launch of new therapies.

ADC Therapeutics Financial Statement Overview

Summary

ADC Therapeutics faces significant financial challenges, with strong gross margins overshadowed by persistent losses and negative equity. The company struggles with profitability and cash flow, reflecting operational inefficiencies and financial instability.

Income Statement

ADC Therapeutics shows a high gross profit margin of 93.37% TTM, indicating efficient cost management relative to revenue. However, the company struggles with profitability, as evidenced by a negative net profit margin of -220.00% TTM and negative EBIT and EBITDA margins. Revenue growth is minimal at 1.89% TTM, reflecting challenges in expanding sales.

Balance Sheet

The balance sheet reveals significant financial instability, with a negative stockholders' equity and a concerning debt-to-equity ratio of -0.59 TTM. The return on equity is negative, indicating losses relative to shareholder investments. The equity ratio is also negative, highlighting a precarious financial position.

Cash Flow

Cash flow analysis shows a negative operating cash flow and free cash flow, with a slight deterioration in free cash flow growth at -5.55% TTM. The operating cash flow to net income ratio is negative, indicating cash flow challenges. However, the free cash flow to net income ratio is slightly positive, suggesting some alignment between cash flow and reported earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	75.21M	70.84M	69.56M	209.91M	33.92M	0.00
Gross Profit	69.74M	64.89M	67.03M	206.61M	32.52M	-141.82M
EBITDA	-113.53M	-102.65M	-145.83M	-107.70M	-230.53M	-218.23M
Net Income	-166.94M	-157.85M	-240.05M	-157.13M	-230.03M	-246.29M
Balance Sheet
Total Assets	289.76M	321.98M	354.78M	490.86M	617.97M	513.69M
Cash, Cash Equivalents and Short-Term Investments	234.74M	250.87M	278.60M	326.44M	466.54M	439.19M
Total Debt	117.27M	123.00M	124.38M	129.85M	139.70M	115.08M
Total Liabilities	527.94M	524.62M	503.03M	411.41M	451.88M	178.19M
Stockholders Equity	-238.18M	-202.64M	-148.25M	79.45M	166.09M	335.50M
Cash Flow
Free Cash Flow	-132.26M	-124.70M	-121.90M	-139.00M	-239.75M	-171.54M
Operating Cash Flow	-131.90M	-123.83M	-118.69M	-138.31M	-233.38M	-168.73M
Investing Cash Flow	-354.00K	-867.00K	-3.22M	-687.00K	-6.67M	-2.83M
Financing Cash Flow	92.74M	97.05M	73.88M	-897.00K	267.39M	494.97M

ADC Therapeutics Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3.62
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ADCT, the sentiment is Negative. The current price of 3.62 is above the 20-day moving average (MA) of 3.62, below the 50-day MA of 3.86, and above the 200-day MA of 3.15, indicating a neutral trend. The MACD of -0.06 indicates Negative momentum. The RSI at 46.92 is Neutral, neither overbought nor oversold. The STOCH value of 46.01 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ADCT.

ADC Therapeutics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AVIR	58 Neutral	$265.63M	-1.92	-37.98%	―	―	14.33%
OLMA	56 Neutral	$2.13B	-14.98	-59.22%	―	―	17.23%
JBIO	55 Neutral	$676.26M	-1.29	-50.23%	14.68%	―	89.16%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
ADCT	48 Neutral	$448.44M	-2.50	―	―	6.35%	39.57%
HRTX	48 Neutral	$273.21M	-18.42	―	―	12.60%	58.23%
SLN	47 Neutral	$238.06M	-3.01	―	―	―	―

ADC Therapeutics Corporate Events

ADC Therapeutics outlines ZYNLONTA-focused growth and financing strategy

On January 12, 2026, ADC Therapeutics released an updated corporate presentation highlighting its strategy to build growth around ZYNLONTA and strengthen its financial position following a year of portfolio derisking and cost restructuring in 2025. The company reported that preliminary full-year 2025 net revenue for ZYNLONTA was approximately $73 million, roughly in line with 2024, and detailed a strategic reprioritization that included discontinuation of its remaining solid-tumor preclinical pipeline, a roughly 30% global workforce reduction, and closure of its UK operations to concentrate resources on ZYNLONTA expansion. Clinical updates pointed to strong response rates in the LOTIS-7 trial and in investigator-initiated studies in FL and MZL, while financing activity raised about $160 million in equity and left the company with an estimated $261 million in cash and an expected runway extending at least to 2028, positioning it to pursue its ambition of establishing ZYNLONTA as a backbone therapy in DLBCL and indolent lymphomas and to target a substantial U.S. peak revenue opportunity.

The most recent analyst rating on (ADCT) stock is a Sell with a $3.50 price target. To see the full list of analyst forecasts on ADC Therapeutics stock, see the ADCT Stock Forecast page.

ADC Therapeutics Announces Preliminary 2025 Financial Results and Outlook

On January 8, 2026, ADC Therapeutics reported preliminary, unaudited 2025 financial figures indicating ZYNLONTA net product revenue of about $73 million for the full year, up modestly from $69.3 million in 2024, and approximately $22 million in the fourth quarter versus $16.4 million a year earlier, with demand in its current third-line-plus DLBCL indication described as broadly stable and cash and cash equivalents of roughly $261 million expected to fund operations at least to 2028. Operationally, the company highlighted strong updated Phase 1b LOTIS-7 data released in December 2025 for ZYNLONTA in combination with glofitamab in relapsed or refractory DLBCL, outlined key upcoming clinical milestones including expected topline Phase 3 LOTIS-5 results in second-quarter 2026 and full LOTIS-5 and LOTIS-7 data by the end of 2026, reported promising early results from investigator-initiated trials in indolent lymphomas, and noted completion of IND-enabling work on a PSMA-targeting ADC, all of which position the company for potential future label expansions and revenue acceleration but leave near-term growth still reliant on its existing ZYNLONTA franchise and successful execution of its clinical and regulatory strategy.

The most recent analyst rating on (ADCT) stock is a Hold with a $4.00 price target. To see the full list of analyst forecasts on ADC Therapeutics stock, see the ADCT Stock Forecast page.

ADC Therapeutics Reports Promising LOTIS-7 Trial Results

On December 3, 2025, ADC Therapeutics announced updated results from its LOTIS-7 Phase 1b trial, which evaluates the combination of ZYNLONTA® and glofitamab in patients with relapsed or refractory diffuse large B-cell lymphoma. The trial showed a high overall response rate of 89.8% and a complete response rate of 77.6%, with strong efficacy in both relapsed and primary refractory populations. The treatment was generally well tolerated, with manageable safety concerns, highlighting its potential impact on the company’s therapeutic offerings and market positioning.

The most recent analyst rating on (ADCT) stock is a Hold with a $3.50 price target. To see the full list of analyst forecasts on ADC Therapeutics stock, see the ADCT Stock Forecast page.