Incannex Healthcare Limited Sponsored ADR (IXHL) AI Stock Analysis

• Market Cap: $135.27M
• Dividend Yield: N/A
• Average Volume (3M): 19.64M
• Price to Earnings (P/E): ―
• Beta (1Y): 3.64
• Revenue Growth: -86.05%
• EPS Growth: 24.17%
• Country: US
• Employees: 9
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): -0.02
• Shares Outstanding: 346,225,500
• 10 Day Avg. Volume: 5,419,955
• 30 Day Avg. Volume: 19,635,113
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.56
• Price to Sales (P/S): 86.42
• P/FCF Ratio: -0.59
• Enterprise Value/Market Cap: -0.05
• Enterprise Value/Revenue: -85.46
• Enterprise Value/Gross Profit: -85.46
• Enterprise Value/Ebitda: 0.15
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): -1.56
• Revenue Forecast (FY): $700.00K

• Rating: 47 Neutral
• Price Target: $0.37 ▼(-4.10% Downside)

Overall score is held down primarily by weak financial performance (large losses and negative free cash flow) and only neutral-to-weak technical momentum. Offsetting factors include positive clinical/regulatory corporate updates and a low-leverage balance sheet, but valuation remains unsupported due to ongoing losses and no dividend yield provided.

Positive Factors

FDA Fast Track Designation

The FDA Fast Track designation for IHL-42X enhances the company's ability to expedite the development and review process, potentially accelerating time to market and addressing unmet medical needs in sleep apnea treatment.

Clinical Progress

Positive Phase 2 results for IHL-42X and PSX-001 demonstrate strong efficacy and safety, positioning the company well for further clinical development and potential market entry, which could drive long-term growth.

Low Leverage

Low leverage reduces financial risk, providing the company with greater flexibility to invest in R&D and strategic initiatives without the burden of high debt servicing costs.

Negative Factors

Negative Cash Flow

Persistent negative cash flow indicates ongoing cash burn, necessitating external financing to sustain operations, which could dilute shareholder value and strain financial resources.

Weak Revenue Growth

The significant decline in revenue growth reflects challenges in commercializing products, which could hinder the company's ability to achieve profitability and sustain operations long-term.

Adjourned Annual Meeting

The adjournment of the annual meeting due to governance issues highlights potential weaknesses in shareholder engagement and corporate governance, which could affect investor confidence and strategic decision-making.

Incannex Healthcare Limited Sponsored ADR Business Overview & Revenue Model

Company Description

Incannex Healthcare Limited engages in the research, development, and sale of medicinal cannabinoid products in Australia. It offers pharmaceutical grade cannabinoid products under the Incannex brand name. The company's products include IHL-42X, which is in Phase II clinical trials for obstructive sleep apnea; IHL-216A for traumatic brain injury; and IHL-675A, a combination of hydroxychloroquine and cannabidiol for the prevention and treatment of inflammatory lung conditions, such as acute respiratory distress syndrome, chronic obstructive pulmonary disease, asthma, and bronchitis, as well as rheumatoid arthritis and inflammatory bowel diseases. It has partnership with The Alfred Hospital and Novotech on IHL-42X clinical program for obstructive sleep apnea; and Monash Trauma Group at the Department of Neuroscience, Monash University to conduct a study on the protective effect of IHL-216A in sports concussion. The company was formerly known as Impression Healthcare Limited and changed its name to Incannex Healthcare Limited in June 2020. Incannex Healthcare Limited was incorporated in 2001 and is based in Sydney, Australia.

How the Company Makes Money

Incannex Healthcare generates revenue through the development and commercialization of its proprietary pharmaceutical products. The company's primary revenue streams include sales of cannabinoid-based medications and psychedelic therapies, which are developed to treat specific medical conditions. In addition to direct sales, Incannex may enter into licensing agreements, strategic partnerships, or joint ventures with other pharmaceutical companies, enabling them to leverage external distribution networks and enhance market reach. Revenue is also derived from potential milestone payments and royalties associated with these partnerships, as well as from government grants or funding related to clinical research. Key factors contributing to the company's earnings include successful clinical trial outcomes, regulatory approvals, and the expansion of its product portfolio.

Incannex Healthcare Limited Sponsored ADR Financial Statement Overview

Summary

Incannex Healthcare Limited is experiencing initial revenue growth, but the company faces significant challenges with profitability and cash flow. Negative margins and declining cash reserves highlight financial difficulties, although a strong equity position offers some stability.

Income Statement

The company demonstrates a substantial increase in revenue from zero in 2023 to $12,000 in 2024, indicating some initial growth. However, profitability remains a concern with consistent negative net income, and EBIT and EBITDA margins are negative, highlighting operating challenges. Revenue growth is a positive sign, but the company struggles with profitability, typical for early-stage pharmaceutical companies.

Balance Sheet

The balance sheet reflects a healthy equity position with a debt-to-equity ratio of 0.03, showing limited leverage risk. However, the reduction in stockholders' equity from the previous year signals potential capital erosion. The equity ratio is strong, but the company's liabilities have increased, which could pose future risks if not managed effectively.

Cash Flow

The cash flow statement shows a concerning trend with negative operating cash flows and declining free cash flow over time. The operating cash flow to net income ratio is negative, indicating inefficient cash flow generation from operations. The lack of positive free cash flow growth highlights ongoing liquidity challenges.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	86.00K	86.00K	―	0.00	0.00	1.43M
Gross Profit	86.00K	86.00K	―	0.00	-4.36K	740.54K
EBITDA	-48.09M	-48.09M	-27.70M	-13.55M	-10.16M	-8.57M
Net Income	-45.09M	-46.88M	-27.63M	-48.81M	-10.25M	-8.54M
Balance Sheet
Total Assets	20.45M	20.45M	17.05M	23.78M	26.15M	7.00M
Cash, Cash Equivalents and Short-Term Investments	15.04M	15.04M	5.86M	22.12M	25.80M	6.84M
Total Debt	258.00K	258.00K	373.00K	521.00K	0.00	0.00
Total Liabilities	7.06M	7.06M	5.83M	2.96M	1.39M	566.17K
Stockholders Equity	13.39M	13.39M	11.22M	20.82M	24.76M	6.44M
Cash Flow
Free Cash Flow	-8.91M	-12.52M	-16.12M	-11.06M	-8.84M	-5.18M
Operating Cash Flow	-8.96M	-12.51M	-15.85M	-10.75M	-8.84M	-5.18M
Investing Cash Flow	54.00K	-8.00K	-277.00K	-316.00K	0.00	22.00K
Financing Cash Flow	21.45M	21.40M	0.00	8.18M	28.33M	9.30M

Incannex Healthcare Limited Sponsored ADR Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.39
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IXHL, the sentiment is Negative. The current price of 0.39 is below the 20-day moving average (MA) of 0.40, above the 50-day MA of 0.38, and below the 200-day MA of 0.42, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 46.21 is Neutral, neither overbought nor oversold. The STOCH value of 58.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IXHL.

Incannex Healthcare Limited Sponsored ADR Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BIOA	58 Neutral	$640.01M	-9.79	-25.64%	―	―	-1.89%
DERM	57 Neutral	$210.03M	-21.79	-47.05%	―	2.82%	60.26%
ASRT	53 Neutral	$59.80M	-2.19	-24.48%	―	9.21%	58.12%
CPIX	53 Neutral	$70.60M	-20.08	-13.08%	―	12.21%	69.91%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
IXHL	47 Neutral	$135.27M	―	-114.52%	―	-86.05%	24.17%

Incannex Healthcare Limited Sponsored ADR Corporate Events

Incannex Highlights Pivotal 2025 Clinical and Financial Milestones

On January 14, 2026, Incannex Healthcare reported that 2025 was a “defining” year, marked by positive Phase 2 clinical readouts in two central nervous system programs and significant strengthening of its balance sheet. The company achieved statistically significant efficacy and patient-reported benefits for its obstructive sleep apnea candidate IHL-42X in the RePOSA Phase 2 trial and secured FDA Fast Track designation for the therapy, underscoring both the unmet need in OSA and the perceived potential of its oral combination approach. Incannex also delivered positive Phase 2 results for its psilocybin-assisted therapy PSX-001 in generalized anxiety disorder, showing clinically meaningful improvement on the primary HAM-A endpoint and supportive safety and tolerability data, and it established an Obstructive Sleep Apnea Clinical Advisory Board to guide later-stage development. Financially, the company ended 2025 with more than $70 million in cash, raised $12.5 million via private placement, eliminated all outstanding Series A warrants, and authorized a $20 million share repurchase program, giving it an operating runway well into 2027 and easing near-term financing pressure as it advances its pipeline in 2026.

The most recent analyst rating on (IXHL) stock is a Hold with a $0.38 price target. To see the full list of analyst forecasts on Incannex Healthcare Limited Sponsored ADR stock, see the IXHL Stock Forecast page.

Incannex Healthcare Adjourns 2025 Annual Stockholder Meeting

Incannex Healthcare Inc. reported that its 2025 annual meeting of stockholders, held on December 18, 2025, could not proceed due to the absence of a quorum, which was primarily attributed to its transfer agent mistakenly classifying the auditor ratification proposal as non-routine and thereby limiting discretionary broker voting. As a result, the company adjourned the meeting to January 15, 2026, to be held virtually, and is working with its transfer agent and other parties to have the auditor ratification proposal reclassified as routine, while continuing to solicit additional proxies, with previously submitted proxies remaining valid unless revoked.

Incannex Healthcare Gains FDA Fast Track for IHL-42X

On December 3, 2025, Incannex Healthcare Inc. announced that it received Fast Track designation from the U.S. Food and Drug Administration for its IHL-42X product, aimed at treating obstructive sleep apnea. This designation, supported by successful Phase 2 trial results, allows for more frequent FDA interactions and potential expedited review processes, highlighting the significance of IHL-42X in addressing unmet medical needs in sleep apnea treatment.

Incannex Healthcare Highlights Clinical Progress in Shareholder Update

On October 30, 2025, Incannex Healthcare Inc. provided a shareholder update highlighting significant clinical progress and strategic focus for the end of 2025. The company reported successful Phase 2 trial results for IHL-42X and PSX-001, demonstrating substantial efficacy and safety in treating obstructive sleep apnea and generalized anxiety disorder, respectively. Incannex emphasized its strong financial position, maintaining capital discipline without further equity dilution, and outlined priorities for regulatory engagement and strategic partnerships to advance its clinical programs. These developments position Incannex for sustained growth and potential transformation in the treatment landscape for these conditions.

Incannex Healthcare Granted Nasdaq Compliance Extension

On October 22, 2025, Incannex Healthcare Inc. announced that it received a 180-day extension from Nasdaq to regain compliance with the minimum bid price requirement. The company now has until April 20, 2026, to meet the requirement of maintaining a closing bid price of at least US$1.00 per share. This extension allows Incannex to continue advancing its operational goals, supported by a strong cash position and a robust pipeline of combination therapies. The extension is crucial for Incannex as it continues to meet other Nasdaq listing criteria and aims to drive long-term value for shareholders.

Incannex Healthcare Granted Nasdaq Compliance Extension

On April 23, 2025, Incannex Healthcare Inc. received a notice from Nasdaq indicating that its common stock no longer met the minimum bid price requirement for continued inclusion on The Nasdaq Global Market. The company was initially given until October 20, 2025, to regain compliance, and later transferred its listing to The Nasdaq Capital Market. On October 21, 2025, Nasdaq granted a second grace period until April 20, 2026, to meet the bid price requirement, with the company planning to address the deficiency potentially through a reverse stock split. The listing of the common stock remains unaffected for now, and the company is actively working to maintain its Nasdaq listing.