Financial Analysis

10. COMMITMENTS AND CONTINGENCIES General Legal Matters From time to time the Company is or may become subject to certain legal proceedings and claims arising in connection with the normal course of its business. Management does not expect that the outcome of any such claims or actions will have a material effect on the Companys liquidity, results of operations or financial condition. IT Systems Disruption On June 19, 2023, the Company experienced an IT systems disruption, which rendered certain of the Companys IT technology systems inaccessible for less than one week . The Companys investigation of the disruption was completed with the assistance of third-party consultants, and no definitive root cause was identified. At the time of the disruption, the Company was in production of two batches of BIVIGAM, and after a prolonged hold time, it was deemed to be a prudent GMP quality decision to discard these two in-process production batches as these batches were no longer viable for further production or had any alternative use. As a result, the Company recorded a one-time, non-recurring charge of $2.1 million in the second quarter of 2023 for this inventory, which is reflected in Cost of product revenue in the accompanying consolidated statement of operations for the year ended December 31, 2023. In addition, the Companys Plasma center operating expenses were adversely impacted by approximately $0.7 million due to the temporary closing of the Companys plasma collection centers …

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11. INCOME TAXES Income (loss) before provision for income taxes was as follows: Year Ended December 31, 2025 2024 2023 (in thousands) Domestic $ 182,656 $ 125,714 $ (28,239 ) Foreign - - - Income (loss) before income taxes $ 182,656 $ 125,714 $ (28,239 ) The components of the Companys income tax expense (benefit) are as follows: Year Ended December 31, 2025 2024 2023 (in thousands) Current: Federal $ 21,926 $ 10,434 $ - State 2,780 1,887 - Total current 24,706 12,321 - Deferred: Federal 9,383 (72,858 ) - State 1,637 (11,422 ) - Total deferred 11,020 (84,280 ) - Total income tax expense (benefit) $ 35,726 $ (71,959 ) $ - The following table is a reconciliation of the U.S. federal statutory rate to the Companys effective rate for the year ended December 31, 2025 in accordance with the guidance in ASU No. 2023-09: Amount Percent (in thousands) Tax expense at U.S. federal statutory rate $ 38,358 21.0 % State taxes, net of federal benefit (1) 3,834 2.1 % Nontaxable or Nondeductible Items Nondeductible executive compensation 2,799 1.5 % Excess tax benefits related to stock-based compensation (7,998 ) -4.3 % Tax credits (1,883 ) -1.0 % Change in valuation allowance - 0.0 % Other Adjustments Other 616 0.3 % Income tax expense $ 35,726 19.6 % (1) State taxes in Florida, Georgia, Illinois and North Carolina made up the majority (greater than 50%) of the tax effect in this category. The following table is a reconciliation of the U.S. federal statutory rate to the Companys effective rat …

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12. LEASE OBLIGATIONS The Company leases certain properties and equipment for its ADMA BioCenters and ADMA BioManufacturing subsidiaries, which leases provide the right to use the underlying assets and require lease payments through the respective lease terms which expire at various dates through 2033. The Companys lease agreements do not contain any material residual value guarantees or material restrictive covenants. Upon adoption of ASU No. 2016-02, Leases (Topic 842) effective January 1, 2019, the Company elected the package of practical expedients, which permits the Company to not reassess under the new standard its prior conclusions about lease identification, lease classification and initial direct costs. In addition, the Company elected the short-term lease recognition exemption for qualifying leases. The Company determines if an arrangement is an operating lease or a financing lease at inception. Leases with an initial term of 12 months or less are not recorded on the balance sheet and lease expense for such leases are recognized on a straight-line basis over the lease term. All other leases are recorded on the balance sheet with assets representing the right to use the underlying asset for the lease term and lease liabilities representing the obligation to make lease payments arising from the lease. Right-of-use assets and lease liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term and include opti …

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7. NOTES PAYABLE A summary of outstanding senior notes payable is as follows: December 31, 2025 December 31, 2024 (in thousands) Ares term loan $ - $ 32,500 Ares revolving credit facility - 42,500 JPM term loan 74,063 - Less: Debt discount and issuance costs (1,920 ) (2,663 ) Total debt 72,143 72,337 Less: current portion of long-term debt (2,813 ) - Long-term debt $ 69,330 $ 72,337 Ares Credit Agreement On December 18, 2023 (the Ares Closing Date), the Company and all of its subsidiaries entered into a new senior secured credit facility (the Ares Credit Agreement) with Ares Capital Corporation and certain credit funds affiliated with Ares Capital Corporation (collectively, Ares). The Ares Credit Agreement provided for a total of $135.0 million in senior secured credit facilities (the Ares Credit Facility) consisting of (i) a term loan in the aggregate principal amount of $62.5 million and (ii) a revolving credit facility in the aggregate principal amount of $72.5 million (collectively, the Ares Loans), both of which were fully drawn on the Ares Closing Date. The Ares Credit Facility had a maturity date of December 20, 2027 (the Ares Maturity Date). On the Ares Closing Date, the Company used the proceeds from the Ares Loans, along with a portion of its existing cash on hand, to terminate and pay in full all of the outstanding obligations under the Companys previous senior credit facility (the Hayfin Credit Facility) with Hayfin Services LLP (Hayfin) including the outstanding …

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Recent Accounting Pronouncements In December 2025, the FASB issued ASU 2025-10, Government Grants (Topic 832): Accounting for Government Grants Received by Business Entities , which establishes authoritative guidance on the recognition, measurement, presentation, and disclosure of government grants. Under ASU 2025-10, government grants are recognized when it is probable that the entity will both comply with the conditions of the grant and the grant will be received. The ASU provides specific accounting models for grants related to assets and grants related to income, including options to recognize government grants as deferred income or as a reduction of the assets cost basis. The ASU also requires enhanced disclosures regarding the nature of government grants, significant terms and conditions, accounting policies applied, and amounts recognized in the financial statements. ASU 2025-10 is effective for fiscal years beginning after December 15, 2028, including interim periods within those fiscal years, with early adoption permitted. No material impact is expected upon adoption of this authoritative guidance. In December 2025, the FASB issued ASU 2025-11, Interim Reporting (Topic 270): Narrow-Scope Improvements , which clarifies the guidance in Topic 270 to improve the consistency of interim financial reporting. The ASU provides a comprehensive list of required interim disclosures and introduces a disclosure principle requiring entities to disclose events since the end of the l …

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14. OTHER EMPLOYEE BENEFITS The Company sponsors a 401(k) savings plan. Under the plan, employees may make contributions which are eligible for a Company discretionary percentage contribution as defined in the plan and determined by the Board. The Company recognized $1.7 million, $1.5 million and $1.3 million of related compensation expense for the years ended December 31, 2025, 2024 and 2023, respectively.

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9. RELATED PARTY TRANSACTIONS The Company leases an office building and equipment from Areth, LLC (Areth) pursuant to an agreement for services effective as of January 1, 2016, as amended from time to time, and pays monthly rent on this facility in the amount of $10,000. On October 18, 2022, the Company amended the agreement to extend its term to December 31, 2026, with automatic successive one-year renewals thereafter. Either party may terminate the agreement by providing the other party with one years prior written notice. Rent expense for the years ended December 31, 2025, 2024 and 2023 amounted to $0.1 million. Areth is a company controlled by Dr. Jerrold B. Grossman, the Vice Chairman of the Board, and Adam S. Grossman, the Companys President and Chief Executive Officer. The Company also reimburses Areth for office, warehousing and building related (common area) expenses, equipment and certain other operational expenses, which were not material to the consolidated financial statements for the years ended December 31, 2025, 2024, 2023. During the years ended December 31, 2025, 2024 and 2023, the Company purchased certain specialized equipment and repair services used for the collection and processing of source plasma from GenesisBPS and its affiliates (Genesis) in the amount of $0.1 million, $0.2 million and $0.4 million, respectively. Genesis was owned by Dr. Grossman and Adam Grossman until September 30, 2025. On November 19, 2024, the Company entered into an agreement …

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13. SEGMENTS The Company is engaged in the manufacture, marketing and development of specialty plasma-derived biologics. The Companys ADMA BioManufacturing operating segment reflects the Companys immunoglobulin manufacturing, commercial and development operations in Boca Raton, FL. The Plasma Collection Centers operating segment consists of ten plasma collection facilities located throughout the United States, all of which are operational, collecting plasma and currently holding FDA licenses. The Company defines its operating segments as those business units whose operating results are regularly reviewed by the chief operating decision maker (CODM) to analyze performance and allocate resources. The Corporate information included in the reconciliations below generally consists of certain unallocated general and administrative overhead expenses and interest expense on the Companys senior debt (see Note 7). The Companys CODM is its President and Chief Executive Officer. For the Companys two operating segments, the CODM uses income/loss before taxes as the measure of segment profit to determine the allocation of resources for each segment. Transactions between the two operating segments consist solely of the transfer of raw material plasma inventory at cost from the Plasma Collection Centers segment to the ADMA BioManufacturing segment with no markup or intercompany profit. Income tax benefit/expense is recorded in the Corporate entity and is not allocated to the operating segmen …

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2. SIGNIFICANT ACCOUNTING POLICIES Principles of consolidation and basis of presentation The accompanying consolidated financial statements include the accounts of ADMA and its wholly owned subsidiaries and have been prepared in conformity with accounting principles generally accepted in the United States of America (U.S. GAAP) and in accordance with Article 3 of Regulation S-X of the Securities and Exchange Commission (the SEC). All intercompany balances have been eliminated in consolidation. Any reference in these notes to applicable guidance is meant to refer to U.S. GAAP as found in the Accounting Standards Codification (ASC) and Accounting Standards Updates (ASU) of the Financial Accounting Standards Board (the FASB). During the years ended December 31, 2025, 2024 and 2023, comprehensive income (loss) was equal to the net income (loss) amounts presented for the respective periods in the accompanying consolidated statements of operations. Use of estimates The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant estimates include estimates related to the Companys effective tax rate. In 2024, the Company engaged a third-party specialist to assist in t …

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8. STOCKHOLDERS EQUITY Treasury Stock In May 2025, the Companys board of directors (the Board) authorized a share repurchase program of up to $500.0 million of the Companys outstanding shares of common stock (the Repurchase Program). The Repurchase Program does not obligate the Company to acquire any particular amount of its common stock, and may be modified, suspended, or terminated at any time at the Companys discretion. The Repurchase Program has no expiration date. A summary of common stock repurchase activity under the Repurchase Program is as follows: Years ended December 31, 2025 2024 (In thousands) Shares repurchased 1,919 n/a Total cost of shares repurchased $ 32,090 n/a The repurchased shares are recorded at the repurchase cost in treasury stock in the Companys consolidated balance sheet and are available for reissuance. Preferred Stock The Company is currently authorized to issue up to 10 million shares of preferred stock, $0.0001 par value per share. There were no shares of preferred stock outstanding at December 31, 2025 and 2024. Common Stock As of December 31, 2025 and 2024, the Company was authorized to issue 300,000,000 shares of its common stock, $0.0001 par value per share, and 237,874,496 and 236,620,545 shares of common stock were outstanding as of December 31, 2025 and 2024, respectively. After giving effect to shares reserved for the issuance of warrants and for awards issued under the Companys equity incentive plans, 38,703,218 shares of common stock w …

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17. SUBSEQUENT EVENTS In February 2026, we completed the sale of the Maryville Center and the Knoxville Center. Closing of the remaining third center included in the Disposal Group, the Laurel Center, is expected to take place in the first quarter of 2026. We anticipate recognizing a gain of approximately $8.0 million upon the finalization of the sale of the Disposal Group. Refer to Note 5 for further information.

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