Adagio Medical Holdings Inc Common Stock (ADGM)

FairStock Score: 32/100 — RISKY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

As a value investor, I want a business with durable earning power, a strong balance sheet, and a price that leaves a margin of safety. Adagio Medical is a 41-employee medical device company developing ablation technologies for cardiac arrhythmias, but the filed numbers show a business still far from that ideal. Reported revenue is minimal: in fiscal 2023, the year ended 2023-12-31, revenue was $300,000, and recent 10-Q filings show revenue as N/A. Meanwhile, losses are large: fiscal 2025 net loss was $25.1 million, or $1.51 per diluted share; fiscal Q3 2025 net loss was $10.1 million, or $0.66 per share; fiscal Q2 2026 net loss was $6.7 million, or $0.30 per share. Trailing free cash flow is negative $16.6 million, a negative 596.8% yield against the $2.8 million market cap. That is not a cash-generating enterprise. The balance sheet is also stretched: debt-to-equity is 4.21, Altman Z-Score is -4.36, Piotroski F-Score is 1/9, ROE is -657.76%, and ROCE is -35.52%. At the 2026-10-13 close of $0.13, the market cap is only $2.8 million, but P/B is 3.31, and the P/E is negative, so a low nominal price is not the same as cheap. A moat cannot be assessed without a revenue base, and the Lynch category is none because only two years of filed results exist. Until Adagio proves commercial demand and controls cash burn, this looks like a speculative financing story rather than a Graham-style bargain.

In plain English: Adagio Medical is a small medical device company trying to treat heart rhythm problems with ablation catheters. It has very little recent reported revenue and is losing millions of dollars, with high debt and negative cash flow. The share price is 13 cents, but because the business is not making money, it does not look cheap based on its financials; it looks weak and speculative.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer