ADMA Biologics, Inc. [ADMA] · Equity Underwriting Memo

Financial Model Notes

ADMA Biologics [ADMA] — Financial Model Notes

As of 2026-07-29. Every figure below is derived from SEC XBRL companyfacts (CIK 0001368514), the FY2025 10-K, the Q1 2026 10-Q, or the 8-K EX-99.1 earnings releases. Reproduction scripts are in scripts/ at the repository root; cached raw data in data/.

No Excel workbook was produced for this name. The valuation is a reverse DCF plus a multiple grid, both of which are fully specified in ADMA_Valuation.md and reproducible from the scripts. A spreadsheet would add no information and would introduce a second, un-audited copy of the same arithmetic.


1. Reported P&L — quarterly, from XBRL

Q4 figures are derived (FY minus the tagged nine-month period), because US registrants do not tag Q4 separately. The window was checked for consecutiveness before summing — this is the defect valuation.md flags as silently spanning 15 months.

Quarter Revenue $m Gross profit $m GM % Op income $m OM % Net income $m
Q1 2024 81.875 39.108 47.8% 21.821 26.7%
Q2 2024 107.191 57.453 53.6% 39.201 36.6%
Q3 2024 119.839 59.659 49.8% 39.638 33.1% 35.909
Q4 2024 (derived) 117.549 63.333 53.9% 38.323 32.6%
Q1 2025 114.802 61.097 53.2% 34.881 30.4% 26.904
Q2 2025 121.984 67.227 55.1% 42.798 35.1% 34.219
Q3 2025 134.224 75.626 56.3% 51.012 38.0% 36.428
Q4 2025 (derived) 139.163 88.816 63.8% 62.751 45.1% 49.379
Q1 2026 114.493 80.750 70.5% 58.274 50.9% 45.328

Annual:

FY Revenue $m Gross profit $m GM % Op income $m OM % Net income $m CFO $m Capex $m FCF $m
2021 80.943 1.173 1.4% −58.374 −112.4 13.5 −125.9
2022 154.080 35.265 22.9% −39.365 −59.5 13.9 −73.4
2023 258.215 88.942 34.4% 21.632 8.4% 8.8 4.8 4.0
2024 426.454 219.553 51.5% 138.983 32.6% 197.673 118.7 8.2 110.5
2025 510.173 292.765 57.4% 191.443 37.5% 146.930 50.4 22.6 27.8

Other FY2025 lines used: SBC $20.0m, D&A $8.0m.


2. TTM to 2026-03-31 — the figures the valuation runs on

Reported Clean Adjustment
Revenue $509.864m $509.864m
Gross profit $312.419m (61.3%) $312.419m
EBIT $214.835m (42.1%) $206.835m (40.6%) less the $8.0m Q1 2026 pre-tax gain on the sale of three plasma centres, which sits inside operating income
Net income $165.354m

Verification that the gain is inside operating income (Q1 2026, $m): 80.750 GP − 2.600 R&D − 1.100 plasma-centre opex − 0.100 amortisation − 26.700 SG&A + 8.000 gain = 58.250 against the tagged OperatingIncomeLoss of 58.274. Ties to within $0.024m of rounding. ✅

Scale cross-check required by the brief: net income ÷ diluted shares = 45,328 ÷ 239,955,762 = $0.189 vs filed diluted EPS $0.19. ✅ 45,328 ÷ 236,072,751 basic = $0.192 vs filed basic EPS $0.19. ✅


3. Balance sheet and share count

2024-12-31 2025-12-31 2026-03-31
Cash 103.147 87.630 138.153
Accounts receivable, net 49.999 158.429 135.862
Inventory, net 170.235 206.465 222.098
Total assets 488.678 624.242 665.184
Total liabilities 139.660 146.922 274.859
Stockholders' equity 349.018 477.320 390.325
LongTermDebt (incl. current) 72.337 72.143 196.865
LongTermDebtNoncurrent 72.337 69.330 193.584
Shares outstanding (BS) 236,620,545 237,874,496 232,288,977
Shares outstanding (cover page) 237,615,100 (2025-03-10) 238,159,176 (2026-02-20) 231,772,715 (2026-05-01)
Diluted weighted-average 244,904,640 (FY25) 239,955,762 (Q1'26)

Net debt used: $58.712m = 138.153 − 196.865. The screen used $55.431m, i.e. cash less LongTermDebtNoncurrent only, omitting the $3.281m current portion. Difference $3.281m — immaterial to the conclusion, reported because the brief requires discrepancies be reported and never silently adopted.

The Q1 2026 equity movement reconciles the buyback: 477.320 + 45.328 net income = 522.648 expected; actual 390.325; difference −$132.3m, before SBC credits — consistent with the $125.0m ASR plus $5.2m of open-market repurchases plus $0.7m of excise tax disclosed in Note 8.


4. Working-capital series (the accruals finding)

Quarter end Revenue $m AR $m DSO Inventory $m COGS $m DIO
2024-06-30 107.2 30.1 25.6 179.8 49.7 330
2024-09-30 119.8 50.1 38.2 171.8 60.2 260
2024-12-31 117.5 50.0 38.8 170.2 54.2 287
2025-03-31 114.8 99.4 79.0 172.2 53.7 293
2025-06-30 122.0 109.7 82.1 191.5 54.8 319
2025-09-30 134.2 137.7 93.6 196.7 58.6 306
2025-12-31 139.2 158.4 103.9 206.5 50.3 374
2026-03-31 114.5 135.9 108.3 222.1 33.7 601

DSO = AR ÷ quarterly revenue × 91.25. DIO = inventory ÷ quarterly COGS × 91.25.

DIO caveat: the level is not comparable to a conventional manufacturer. ADMA's own 10-K puts the collect-to-release cycle at 7 to 12 months, so several hundred days of inventory is structural. The Q1 2026 figure of 601 days is additionally distorted by COGS collapsing to $33.7m on the yield step. Only the direction is used — inventory +30% since Q4 2024 while revenue is flat.

Accruals ratio, FY2025: (146.930 − 50.4) / ((488.678 + 624.242)/2) = 96.53 / 556.46 = 17.3%.


5. ROIC

$m
TTM clean EBIT 206.835
× (1 − 20.7% Q1'26 effective tax rate) NOPAT 164.0
Total assets (2026-03-31) 665.184
less cash (138.153)
less non-debt liabilities (274.859 − 196.865) (77.994)
Invested capital 449.04
ROIC 36.5%

Against a WACC of 8.7% (CAPM) to 10.0% (base). ROIC clears WACC by a wide margin. The Quality Criteria failure is not about the return on capital — it is about the absence of a redeployment mechanism at that return, which criteria.md requires for a COMPOUNDER, combined with the accruals level.


6. WACC build

Risk-free 4.2%
Equity risk premium 5.5%
Beta vs SPY 0.88 (253 daily observations, 2025-07-25 → 2026-07-29)
Correlation to SPY 0.20
ADMA realised vol (annualised) 55.4%
SPY realised vol 12.7%
Cost of equity (CAPM) 9.1%
Cost of debt 6.17% (filed rate on the JPM facilities at 2026-03-31)
Tax rate 20.7% (Q1 2026 effective)
E / D $2,109m / $197m
WACC (CAPM) 8.70%
WACC used (base) 10.0%

Why 10.0% and not 8.70%. CAPM prices only market-correlated risk. ADMA's correlation to SPY is 0.20 — the 55.4% volatility is almost entirely idiosyncratic (single product, two customers, one manufacturing site, one regulator). CAPM therefore assigns it a discount rate below a diversified index fund's cost of capital, which is not a usable hurdle for a concentrated single-name book. 10.0% is used as the base and 8.7% and 12.0% are both shown in the sensitivity, so the choice does not hide the answer: at 8.7% the required CAGR is 11.9%, still above the guided high end of 9.8%.


7. Own-multiple history construction

data/adma_multiples.json — 1,903 daily observations, 2019-01-02 → 2026-07-29.

Method: for each trading day, EV = close × shares outstanding as known at that date + debt − cash as known at that date, divided by TTM revenue as known at that date. "As known" means each fundamental steps in on its SEC filing date, not its period end, so the series is never forward-looking. TTM windows were checked for consecutiveness; Q4 derived from FY minus nine-month.

Window n Current EV/Sales Percentile Median
2019-01-02 → 2026-07-29 1,903 4.07x 34th 4.69x
2024-01-01 → 645 4.07x 7th 8.53x
2026-05-07 → (post-guidance-cut) 57 4.07x ~55th 3.97x

EV/Sales by year (median): 2019 9.42x · 2020 4.31x · 2021 2.80x · 2022 3.97x · 2023 4.21x · 2024 9.04x · 2025 9.48x · 2026 4.72x.

EV/EBIT by year (median, defined only from Nov 2023): 2023 593x · 2024 54.79x · 2025 28.26x · 2026 12.59x. The 2023 figure is the artifact of EBIT crossing zero and is why the EV/EBIT own-history anchor is declared UNIDENTIFIED in ADMA_Valuation.md.


8. Reproduction

Script Produces
scripts/px.py Alpaca price/bar access (reads .env, never prints credentials)
scripts/adma_multiples.py as-known EV/Sales and EV/EBIT series → data/adma_multiples.json
scripts/wc.py working-capital, DSO/DIO and cash-flow series
scripts/wacc_beta.py beta, correlation, realised vol, WACC
scripts/rdcf_grid.py reverse-DCF sensitivity grid
scripts/target12m.py 12-month target grid and implied compression
scripts/peers.py, scripts/peer_ev.py growth-matched plasma comparator pull
scripts/mentions2.py mention-frequency → data/adma_mentions.json
scripts/events.py event-date price reactions
scripts/fetch8k.py 8-K exhibit retrieval

9. Known limitations of this model

  1. No Street consensus — Alpha Vantage quota exhausted 2026-07-29. All forward figures are company guidance or labelled house extrapolation.
  2. FY2027 revenue is a house extrapolation. No FY2027 guidance exists; it was withdrawn 2026-05-06.
  3. Kamada's current borrowings are unverified — last tagged at $3.8m (2021-12-31). Treated as effectively debt-free; the EV/EBIT of 12.7x would fall if material debt exists, which would make the base exit multiple lower, not higher, and would worsen the Valuation Criteria result.
  4. Grifols is excluded from the multiple anchor for lack of verifiable share count and borrowings in SEC XBRL. Its growth only is used, for the bracket test.
  5. Q4 figures are derived, not tagged.
  6. Mention-frequency uses earnings releases, not call transcripts — the Q&A is absent, and the method demonstrably missed the 4 May 2026 paediatric approval.
  7. No Excel workbook. Stated in the header; deliberate.