ADC Therapeutics (ADCT) AI Stock Analysis

• Market Cap: $457.87M
• Dividend Yield: N/A
• Average Volume (3M): 1.09M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.43
• Revenue Growth: 15.73%
• EPS Growth: 38.73%
• Country: US
• Employees: 263
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -0.50
• Shares Outstanding: 112,499,400
• 10 Day Avg. Volume: 1,041,303
• 30 Day Avg. Volume: 1,089,761
• 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: 1.07
• Enterprise Value/Revenue: 6.36
• Enterprise Value/Gross Profit: 6.81
• Enterprise Value/Ebitda: -4.14
• 1Y Price Target: $7.33
• Price Target Upside: 80.10% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

• Rating: 56 Neutral
• Price Target: $4.00 ▼(-1.72% Downside)

ADC Therapeutics' overall stock score is primarily impacted by its financial instability, despite strong technical momentum and promising clinical trial results. The negative valuation metrics and restructuring costs further weigh on the score, highlighting the need for strategic improvements to enhance financial health and growth prospects.

Positive Factors

Clinical Trial Success

Strong clinical trial results with high response rates bolster ADC Therapeutics' position in oncology, enhancing its competitive edge and potential market share.

Extended Cash Runway

A robust cash position extending into 2028 provides ADC Therapeutics with financial stability to support long-term R&D and strategic initiatives.

Revenue Potential

ZYNLONTA's potential peak U.S. revenues of $600 million to $1 billion indicate significant growth opportunities in the lymphoma treatment market.

Negative Factors

Financial Instability

Negative equity and a concerning debt-to-equity ratio highlight financial instability, which could impede ADC Therapeutics' ability to invest in growth.

Increased Net Losses

Rising net losses due to restructuring and R&D expenses could strain resources and delay profitability, affecting long-term financial health.

Restructuring Costs

Significant restructuring costs, including severance and impairment, reflect operational challenges that may disrupt business continuity and morale.

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 characterized by declining revenues and margins, high leverage, and negative cash flows. The company must address its operational inefficiencies and improve its financial resilience to stabilize and grow sustainably.

Income Statement

ADC Therapeutics has shown a significant decrease in revenue from 2022 to TTM 2025, with a negative revenue growth rate. The gross profit margin remains relatively high, indicating efficient cost management. However, the company is struggling with negative net and EBIT margins, reflecting ongoing operational and profitability challenges.

Balance Sheet

The balance sheet reveals a concerning financial position, with negative stockholders' equity and a high debt-to-equity ratio due to substantial liabilities outweighing assets. The equity ratio is also negative, indicating high leverage and financial instability.

Cash Flow

Cash flow analysis shows a consistent negative free cash flow, with operating cash flow significantly negative compared to net income, suggesting cash burn issues. While financing cash flow is positive, it primarily covers operational cash deficits rather than growth investments.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	77.25M	70.84M	69.56M	209.91M	33.92M	0.00
Gross Profit	72.13M	64.89M	67.03M	205.33M	32.52M	-1.97M
EBITDA	-118.55M	-103.71M	-146.76M	-108.06M	-223.72M	-219.26M
Net Income	-169.94M	-157.85M	-240.05M	-155.80M	-230.03M	-246.29M
Balance Sheet
Total Assets	321.56M	321.98M	354.78M	490.86M	617.97M	513.69M
Cash, Cash Equivalents and Short-Term Investments	264.56M	250.87M	278.60M	326.44M	466.54M	439.19M
Total Debt	117.52M	123.00M	124.38M	117.38M	101.75M	41.87M
Total Liabilities	520.75M	524.62M	503.03M	411.41M	451.88M	178.19M
Stockholders Equity	-199.18M	-202.64M	-148.25M	79.45M	166.09M	335.50M
Cash Flow
Free Cash Flow	-127.89M	-124.70M	-121.90M	-139.09M	-239.75M	-171.54M
Operating Cash Flow	-127.32M	-123.83M	-118.69M	-136.79M	-233.38M	-168.73M
Investing Cash Flow	-581.58K	-867.00K	-3.22M	-2.51M	-6.67M	-2.83M
Financing Cash Flow	92.06M	97.05M	73.88M	-593.00K	267.39M	494.97M

ADC Therapeutics Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 4.07
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 4.07 is below the 20-day moving average (MA) of 4.19, above the 50-day MA of 3.64, and above the 200-day MA of 2.50, indicating a neutral trend. The MACD of 0.15 indicates Positive momentum. The RSI at 52.17 is Neutral, neither overbought nor oversold. The STOCH value of 18.98 is Positive, 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
ADCT	56 Neutral	$457.87M	―	―	―	15.73%	38.73%
SLN	56 Neutral	$307.02M	―	―	―	―	―
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
AVIR	47 Neutral	$260.29M	―	-32.38%	―	―	23.24%
OLMA	46 Neutral	$568.29M	―	-49.72%	―	―	6.82%
HRTX	45 Neutral	$218.14M	-120.20	―	―	9.78%	98.13%
JBIO	39 Underperform	$305.71M	―	-38.06%	24.17%	―	72.33%

ADC Therapeutics Corporate Events

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.