Investment Thesis
Adaptive Biotechnologies demonstrates strong revenue growth of 54.8% YoY, indicating market traction, but this is severely undermined by persistent and worsening losses with negative operating margins of -20.6% and negative free cash flow of -48.9M. The company is burning cash despite growth, raising concerns about long-term sustainability and the quality of that growth without demonstrated path to profitability.
ADPT Strengths
- Strong revenue growth of 54.8% YoY demonstrates strong market demand and customer acquisition
- Solid liquidity position with current ratio of 3.34x and $70.5M in cash provides runway
- Manageable leverage with debt-to-equity of 0.58x indicates reasonable balance sheet structure
ADPT Risks
- Significant and persistent operating losses (-$57.1M) with negative operating margins of -20.6% show inability to achieve profitability at scale
- Negative free cash flow of -$48.9M indicates company is burning cash despite revenue growth, with only ~18 months of runway at current burn rate
- Deteriorating cash generation despite growth suggests fundamental unit economics issues; negative interest coverage ratio of -4.8x indicates inability to cover debt service from operations
- High insider trading activity (35 Form 4 filings in 90 days) may indicate uncertainty or liquidity needs among company insiders
Key Metrics to Watch
- Path to profitability timeline and milestones toward positive operating income
- Free cash flow trend and monthly cash burn rate relative to cash runway
- Gross margin expansion as company scales to demonstrate improving unit economics
- Operating margin improvement trajectory and when positive cash flow is expected
ADPT Financial Metrics
ADPT Profitability Ratios
ADPT Balance Sheet & Liquidity
ADPT 5-Year Financial Trend
5-Year Trend Summary: Adaptive Biotechnologies Corp's revenue has grown significantly by 79% over the 5-year period, indicating strong business expansion. The most recent EPS of $-1.56 indicates the company is currently unprofitable.
ADPT Growth Metrics (YoY)
ADPT Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $46.4M | $9.5M | $0.06 |
| Q2 2025 | $43.2M | -$25.6M | $-0.17 |
| Q1 2025 | $41.9M | -$29.9M | $-0.20 |
| Q3 2024 | $37.9M | -$32.1M | $-0.22 |
| Q2 2024 | $43.2M | -$46.2M | $-0.31 |
| Q1 2024 | $37.6M | -$47.5M | $-0.33 |
| Q3 2023 | $37.9M | -$45.3M | $-0.32 |
| Q2 2023 | $43.7M | -$47.8M | $-0.33 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
ADPT Capital Allocation
ADPT SEC Filings
Access official SEC EDGAR filings for Adaptive Biotechnologies Corp (CIK: 0001478320)