Adial Pharmaceuticals (ADIL) AI Stock Analysis

• Market Cap: $5.92M
• Dividend Yield: N/A
• Average Volume (3M): 746.19K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.05
• Revenue Growth: N/A
• EPS Growth: 78.52%
• Country: US
• Employees: 5
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -0.08
• Shares Outstanding: 27,779,263
• 10 Day Avg. Volume: 779,793
• 30 Day Avg. Volume: 746,186
• PEG Ratio: 0.02
• Price to Book (P/B): 4.62
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -2.71
• Enterprise Value/Market Cap: 0.09
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: -1.79K
• Enterprise Value/Ebitda: -0.06
• 1Y Price Target: $1.50
• Price Target Upside: 581.82% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 41 Neutral
• Price Target: $0.22 ▲(0.45% Upside)

The score is held down primarily by weak fundamentals (no revenue, ongoing losses, and persistent cash burn) and a bearish technical backdrop (below key moving averages with negative MACD). A modest positive offset comes from a low-leverage balance sheet and the recent $2.86M financing that supports near-term liquidity.

Positive Factors

Regulatory Support

Legislative support for new clinical trial endpoints can streamline regulatory approval for AD04, enhancing Adial's strategic positioning and potentially accelerating market entry.

Leadership Stability

The appointment of Tony Goodman as COO ensures leadership continuity, which is crucial for strategic execution and operational stability as the company advances its clinical programs.

Regulatory Milestone

The FDA's approval of AD04's in vitro strategy is a key regulatory milestone, advancing the drug to Phase 3 trials and bringing it closer to commercialization, which is vital for future revenue generation.

Negative Factors

Financial Challenges

The lack of revenue and ongoing net losses highlight financial instability, which can hinder long-term growth and necessitate continued reliance on external funding.

Negative Cash Flow

Negative cash flow from operations indicates challenges in self-sustaining financial health, increasing dependency on external financing and potentially limiting strategic flexibility.

Operational Inefficiencies

Operational inefficiencies, as evidenced by negative EBIT and EBITDA, suggest difficulties in managing costs and achieving profitability, which could impact long-term viability.

Adial Pharmaceuticals Business Overview & Revenue Model

Company Description

Adial Pharmaceuticals, Inc., a clinical-stage biopharmaceutical company, focuses on the development of therapeutics for the treatment or prevention of addiction and related disorders. Its lead product is AD04, a selective serotonin-3 antagonist, which is in Phase III clinical trial for the treatment of alcohol use disorder. The company also focuses on developing drug candidates for non-opioid pain reduction and other diseases and disorders. Adial Pharmaceuticals, Inc. was founded in 2010 and is based in Charlottesville, Virginia.

How the Company Makes Money

Adial Pharmaceuticals generates revenue primarily through the development and potential commercialization of its lead product candidate, AD04, which is targeted at treating alcohol use disorder. The company aims to make money by obtaining regulatory approval for AD04 and then marketing it to healthcare providers and patients. Additionally, Adial may engage in strategic partnerships, licensing agreements, or collaborations with other pharmaceutical companies to enhance its market reach and share in the profits derived from sales of its products. Revenue streams may also include upfront payments, milestone payments, and royalties from these partnerships, but as a clinical-stage company, its earnings are contingent on successful product development and commercialization efforts.

Adial Pharmaceuticals Financial Statement Overview

Summary

Income statement and cash flow are very weak (no revenue, sizable net losses, and sustained negative operating/free cash flow), partially offset by a stronger balance sheet with no debt and positive equity.

Income Statement

TTM (Trailing-Twelve-Months) and the last several annual periods show no revenue, while losses remain sizable (TTM net loss of about $8.1M). Profitability is structurally weak with deeply negative operating results, though losses have narrowed versus the larger loss years (e.g., 2021) which is a modest positive trend. Overall, the income profile reflects a pre-commercial biotech with limited earnings visibility and continued burn.

Balance Sheet

Leverage appears low with total debt at $0 in TTM (Trailing-Twelve-Months) and recent annual periods, which reduces financial risk and provides flexibility. Equity is positive and has improved versus 2024 (TTM equity ~$4.5M vs. ~$4.1M in 2024), supporting balance-sheet stability. The key weakness is persistently negative returns on equity driven by ongoing net losses, which can pressure future capital needs if losses continue.

Cash Flow

Cash generation is weak with consistently negative operating cash flow and free cash flow (TTM operating cash flow about -$6.6M and free cash flow about -$6.6M). There is some improvement in burn versus 2024 (cash outflow modestly lower TTM), but cash flow remains firmly negative and dependent on external funding. Overall cash-flow quality is constrained by the lack of revenue and ongoing operating losses.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	0.00	0.00	0.00	0.00	0.00	0.00
Gross Profit	-282.00	0.00	-564.00	0.00	0.00	-564.00
EBITDA	-8.01M	-8.28M	-7.00M	-10.86M	-17.69M	-10.93M
Net Income	-8.05M	-13.20M	-7.00M	-12.73M	-19.42M	-10.86M
Balance Sheet
Total Assets	5.66M	5.04M	4.74M	5.73M	7.63M	5.49M
Cash, Cash Equivalents and Short-Term Investments	4.61M	3.75M	2.83M	4.00M	6.06M	4.40M
Total Debt	0.00	0.00	0.00	207.38K	256.96K	0.00
Total Liabilities	1.15M	975.86K	653.51K	2.46M	4.13M	1.51M
Stockholders Equity	4.51M	4.07M	4.08M	3.28M	3.51M	3.99M
Cash Flow
Free Cash Flow	-6.62M	-6.92M	0.00	-11.19M	-12.01M	-7.63M
Operating Cash Flow	-6.62M	-6.92M	-6.81M	-11.19M	-11.95M	-7.63M
Investing Cash Flow	150.00K	0.00	1.50M	0.00	-34.02K	-350.00K
Financing Cash Flow	5.87M	7.85M	4.13M	9.13M	13.64M	5.61M

Adial Pharmaceuticals Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.22
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ADIL, the sentiment is Negative. The current price of 0.22 is below the 20-day moving average (MA) of 0.23, below the 50-day MA of 0.26, and below the 200-day MA of 0.40, indicating a bearish trend. The MACD of -0.01 indicates Negative momentum. The RSI at 34.18 is Neutral, neither overbought nor oversold. The STOCH value of >-0.01 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ADIL.

Adial Pharmaceuticals Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
MTNB	45 Neutral	$3.83M	-0.18	-157.24%	―	―	25.19%
CLDI	45 Neutral	$7.31M	-0.11	―	―	―	87.42%
GLMD	44 Neutral	$3.89M	-0.19	-46.34%	―	―	70.71%
KPRX	44 Neutral	$8.83M	-0.95	-32.58%	―	-100.00%	-463.97%
ADIL	41 Neutral	$5.92M	-0.23	-155.01%	―	―	78.52%

Adial Pharmaceuticals Corporate Events

Adial Pharmaceuticals announces immediate resignation of board director

On January 5, 2025, Adial Pharmaceuticals announced that James W. Newman, Jr., a non-employee director and member of both the Audit Committee and the Compensation Committee, resigned from the company’s Board of Directors effective immediately. The company stated that Newman’s departure was not the result of any disagreement regarding Adial’s operations, policies, or practices, suggesting a routine governance change rather than a shift in strategic direction or indication of internal conflict for investors and other stakeholders.

The most recent analyst rating on (ADIL) stock is a Hold with a $0.22 price target. To see the full list of analyst forecasts on Adial Pharmaceuticals stock, see the ADIL Stock Forecast page.

Adial Pharmaceuticals Secures $2.86M Through Warrant Agreement

On November 25, 2025, Adial Pharmaceuticals entered into a warrant inducement agreement with an institutional investor, leading to the exercise of existing warrants for approximately $2.86 million in gross proceeds. The deal, which closed on November 28, 2025, involves issuing new unregistered Series F Warrants and is expected to support the company’s working capital and general corporate purposes.

The most recent analyst rating on (ADIL) stock is a Buy with a $1.50 price target. To see the full list of analyst forecasts on Adial Pharmaceuticals stock, see the ADIL Stock Forecast page.