Adapti, Inc. Reports 86,537% Revenue Increase but $5.84 Million Net Loss Following Ballengee Acquisition

Adapti, Inc. reported significant financial changes in its latest 10-Q filing for the quarter ending December 31, 2025, reflecting a strategic shift following its acquisition of the Ballengee Group, a sports management agency. The company generated revenues of $3.66 million for the nine months ended December 31, 2025, a substantial increase of 86,537% compared to $4,222 for the same period in 2024. This surge in revenue is attributed primarily to the commissions earned from Major League Baseball (MLB) contracts negotiated by Ballengee, which represents approximately 150 professional athletes.

Despite the increase in revenue, Adapti reported a net loss of $5.84 million for the nine months ended December 31, 2025, compared to a loss of $715,946 for the same period in the previous year. The increase in losses is largely due to higher operating expenses, including general and administrative costs, which rose by 2,509% to $1.49 million, and amortization expenses of $1.6 million related to the intangible assets acquired from Ballengee. The company also incurred significant professional fees, which increased by 410% to $3.18 million, reflecting the costs associated with the acquisition and ongoing operations.

Operationally, Adapti has made notable strides, including the integration of Ballengee's operations and the development of its proprietary AI-driven platform, AdaptAI. This platform aims to optimize brand and influencer alignment, enhancing marketing effectiveness for athletes and brands alike. As of February 15, 2026, AdaptAI is in its beta phase, with plans for completion by December 31, 2026, pending sufficient capital. The company is also exploring further acquisitions to bolster its market position in the sports management sector.

As of December 31, 2025, Adapti's total assets amounted to $31.79 million, a significant increase from $1,212 in March 2025, primarily due to the acquisition of Ballengee. The company reported current liabilities of $5.69 million, up from $1.03 million in the previous fiscal period, largely driven by increased accounts payable and accrued liabilities. The company’s cash position improved to $32,767 from $572, indicating a need for ongoing capital to support operations and growth initiatives.

Looking ahead, Adapti's management acknowledges substantial doubt about the company's ability to continue as a going concern, given its accumulated deficit of approximately $15.35 million and the need for additional financing to sustain operations. The company plans to raise capital through the issuance of debt and equity securities to support its business strategy and operational needs.