Investment Thesis
Adapti is a financially distressed company with severely impaired operational performance, burning cash at an unsustainable rate. The company generated only $3.7M in revenue while incurring $5.8M in net losses, indicating a fundamentally broken business model with negative unit economics. Critical liquidity constraints and ongoing operational losses pose existential risks without dramatic operational restructuring.
ADTI Strengths
- Positive gross margin of 23.5% indicates core product economics could be viable if operating leverage improves
- No long-term debt burden provides some financial flexibility compared to leveraged peers
- Non-zero asset base ($31.8M) provides potential liquidation value if company is wound down
ADTI Risks
- Severe operating losses of $5.4M on $3.7M revenue indicate complete operational failure and lack of cost control
- Critical liquidity crisis with only $32.8K cash against current liabilities exceeding current assets (0.68x current ratio)
- Massive negative free cash flow of $1.4M annually with no path to profitability shown in latest reported period
- Net margin of -159.6% and ROE of -43.2% demonstrate value destruction at alarming rates
- Zero insider buying activity suggests management has no conviction in turnaround prospects
Key Metrics to Watch
- Quarterly revenue trends and customer retention rates to assess business stabilization
- Operating cash burn rate and cash runway to determine time until potential insolvency
- Operating expense reduction initiatives and path to operating profitability
- Changes in stockholders equity and asset quality to monitor balance sheet deterioration
ADTI Financial Metrics
Revenue
$3.7M
Net Income
$-5.8M
EPS (Diluted)
$-0.93
Free Cash Flow
$-1.4M
Total Assets
$31.8M
Cash Position
$32.8K
ADTI Profitability Ratios
Gross Margin
23.5%
Operating Margin
-148.1%
Net Margin
-159.6%
ROE
-43.2%
ROA
-18.4%
FCF Margin
-37.4%
ADTI Balance Sheet & Liquidity
Current Ratio
0.68x
Quick Ratio
0.68x
Debt/Equity
0.00x
Debt/Assets
57.5%
Interest Coverage
N/A
Long-term Debt
N/A
ADTI Growth Metrics (YoY)
Revenue Growth
N/A
Year-over-year
Net Income Growth
N/A
Year-over-year
EPS Growth
N/A
Earnings per share
FCF Margin
-37.4%
Free cash flow / Revenue
ADTI Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2026 | $1.2K | -$285.1K | $-0.19 |
| Q2 2026 | $2.0K | -$152.0K | $-0.10 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
ADTI Capital Allocation
Operating Cash Flow
-$1.4M
Cash generated from operations
Dividends
None
No dividend program
ADTI SEC Filings
Access official SEC EDGAR filings for Adapti, Inc. (CIK: 0001420924)
Disclaimer: This analysis is generated by Claude AI based on publicly available SEC EDGAR filings.
It does not include stock price data and should not be considered financial advice.
All fundamental data is sourced from SEC public domain filings.
Always conduct your own research and consult with a qualified financial advisor before making investment decisions.
Data Source: SEC EDGAR |
Analysis Date: Mar 19, 2026 |
Data as of: 2025-12-31 |
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