ADC Therapeutics (ADCT) AI Stock Analysis

• Market Cap: $491.79M
• Dividend Yield: N/A
• Average Volume (3M): 858.18K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.49
• 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: 775,188
• 30 Day Avg. Volume: 858,185
• 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: 1.56
• Enterprise Value/Revenue: 10.22
• Enterprise Value/Gross Profit: 11.02
• Enterprise Value/Ebitda: -6.77
• 1Y Price Target: $7.33
• Price Target Upside: 84.63% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): -1.44
• Revenue Forecast (FY): $76.59M

• Rating: 47 Neutral
• Price Target: $4.00 ▲(0.76% Upside)

ADC Therapeutics' stock score is primarily impacted by its financial instability and negative valuation metrics. While there are promising clinical developments and a strong cash position, the persistent financial losses and mixed technical indicators weigh heavily on the overall score.

Positive Factors

Strong Financial Position

The $60 million private placement enhances ADC Therapeutics' financial stability, providing a cash runway until 2028, which supports long-term strategic initiatives and reduces financial risk.

Promising Clinical Trial Results

The high response rates in clinical trials for ZENLATA indicate strong potential for future product success, enhancing ADC Therapeutics' competitive position in oncology treatments.

Revenue Growth Potential

The anticipated expansion into second-line DLBCL treatment with LOTUS V could significantly boost ADC Therapeutics' revenue, supporting long-term growth and market expansion.

Negative Factors

Financial Instability

Despite high gross margins, ongoing financial losses and negative equity indicate operational inefficiencies and financial instability, challenging ADC Therapeutics' long-term sustainability.

Negative Cash Flow

Negative cash flow trends highlight cash generation challenges, potentially limiting ADC Therapeutics' ability to invest in growth and innovation, impacting long-term financial health.

Decline in Net Product Revenues

The decline in net product revenues suggests potential market challenges or increased competition, which could hinder ADC Therapeutics' ability to sustain revenue growth.

ADC Therapeutics Business Overview & Revenue Model

Company Description

ADC Therapeutics (ADCT) is a biotechnology company focused on the development of antibody-drug conjugates (ADCs) for the treatment of hematological malignancies and solid tumors. The company leverages its proprietary technology platform to create targeted therapies that combine the specificity of monoclonal antibodies with the potency of cytotoxic drugs, aiming to improve efficacy and reduce side effects compared to traditional cancer treatments. ADCT's pipeline includes several clinical-stage candidates, with a focus on innovative therapies designed to address unmet medical needs in oncology.

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: Neutral
• Last Price: 3.97
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ADCT, the sentiment is Neutral. The current price of 3.97 is below the 20-day moving average (MA) of 4.16, below the 50-day MA of 3.98, and above the 200-day MA of 2.72, indicating a neutral trend. The MACD of -0.02 indicates Positive momentum. The RSI at 47.03 is Neutral, neither overbought nor oversold. The STOCH value of 47.49 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for ADCT.

ADC Therapeutics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SLN	54 Neutral	$307.49M	-3.89	―	―	―	―
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
ADCT	47 Neutral	$491.79M	―	―	―	6.35%	39.57%
AVIR	47 Neutral	$259.50M	―	-37.98%	―	―	14.33%
OLMA	46 Neutral	$576.74M	―	-59.22%	―	―	17.23%
HRTX	42 Neutral	$208.98M	-115.15	―	―	12.60%	58.23%
JBIO	39 Underperform	$293.64M	-0.30	-50.23%	18.97%	―	89.16%

ADC Therapeutics Corporate Events

ADC Therapeutics’ LOTIS-7 Study: A Promising Update for Investors

ADC Therapeutics Ltd is conducting a Phase 1b clinical study titled ‘A Study to Evaluate the Safety and Anti-cancer Activity of Loncastuximab Tesirine in Combination With Other Anti-cancer Agents in Participants With Relapsed or Refractory B-cell Non-Hodgkin Lymphoma (LOTIS-7)’. The primary goal is to assess the safety and tolerability of loncastuximab tesirine when combined with other anti-cancer drugs, and to determine the maximum tolerated dose or recommended dose for expansion.

ADC Therapeutics’ LOTIS-10 Study: A Step Forward in Lymphoma Treatment

ADC Therapeutics Ltd is conducting a Phase 1b study titled ‘A Phase 1b Open-Label Study to Evaluate the Pharmacokinetics and Safety of Loncastuximab Tesirine in Patients With Relapsed or Refractory Diffuse Large B-cell Lymphoma or High-grade B-cell Lymphoma With Hepatic Impairment (LOTIS-10)’. The study aims to determine the optimal dosing regimen for loncastuximab tesirine in patients with specific types of lymphoma who also have liver impairment, which is crucial for tailoring treatments to this subgroup.

ADC Therapeutics Announces $60M Private Placement

On October 12, 2025, ADC Therapeutics announced a $60 million private placement with institutional investors, expected to close on October 27, 2025. The proceeds will support the commercial expansion of ZYNLONTA and strengthen the company’s balance sheet, positioning it for long-term growth and a potential relaunch of ZYNLONTA in 2027.

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.

ADC Therapeutics Updates Strategic Focus on ZYNLONTA

On September 30, 2025, ADC Therapeutics released an updated corporate presentation detailing their strategic focus on expanding ZYNLONTA’s indications and advancing their PSMA-targeting ADC. The company aims to enhance its market position by leveraging its specialized capabilities in ADCs, supported by a multidisciplinary team and a cash runway extending into 2028. This strategic direction is expected to impact its operations and stakeholder interests positively.

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.

ADC Therapeutics Earnings Call: Growth Amid Challenges

The recent earnings call for ADC Therapeutics Ltd painted a picture of optimism tempered by challenges. The company showcased strong clinical trial results and a robust financial position, signaling significant potential for future growth. However, this positive outlook was balanced by the realities of restructuring costs and increased net losses.

ADC Therapeutics Reports Q2 2025 Financial Results

ADC Therapeutics Ltd, a commercial-stage global leader in the field of antibody drug conjugates, focuses on transforming cancer treatment with its innovative therapies. The company is headquartered in Lausanne, Switzerland, and is known for its flagship product, ZYNLONTA, which targets diffuse large B-cell lymphoma.