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IRWD

Ironwood Pharmaceuticals, Inc.

IRWD

Ironwood Pharmaceuticals, Inc. • NASDAQ
$3.50 ▼ -9.33% (-0.36)
Market Cap $569.38 M
52w High $5.13
52w Low $0.53
Dividend Yield 0%
P/E 19.44
Volume 1.53M
Outstanding Shares 162.68M

Income Statement

Period Revenue Operating Expense Net Income Net Profit Margin Earnings Per Share EBITDA
Q3-2025 $122.06M ▲ $46.576M ▲ $40.08M ▲ 32.836% ▲ $0.25 ▲ $76.929M ▲
Q2-2025 $85.239M ▲ $39.918M ▼ $23.599M ▲ 27.686% ▲ $0.15 ▲ $46.645M ▲
Q1-2025 $41.143M ▼ $42.819M ▼ $-37.386M ▼ -90.868% ▼ $-0.23 ▼ $-10.07M ▼
Q4-2024 $90.545M ▼ $59.054M ▲ $2.256M ▼ 2.492% ▼ $0.014 ▼ $33.394M ▲
Q3-2024 $91.592M $36.129M $3.646M 3.981% $0.023 $27.295M

Balance Statement

Period Cash & Short-term Total Assets Total Liabilities Total Equity
Q3-2025 $140.407M ▲ $396.062M ▲ $452.507M ▼ $-56.445M ▲
Q2-2025 $92.852M ▼ $342.946M ▲ $651.108M ▼ $-308.162M ▲
Q1-2025 $108.481M ▲ $327.213M ▼ $661.266M ▲ $-334.053M ▼
Q4-2024 $88.559M ▲ $350.908M ▼ $652.243M ▼ $-301.335M ▲
Q3-2024 $88.211M $389.519M $700.853M $-311.334M

Cash Flow Statement

Period Net Income Cash From Operations Cash From Investing Cash From Financing Net Change Free Cash Flow
Q3-2025 $40.08M ▲ $47.583M ▲ $-2K $0 ▼ $47.555M ▲ $47.581M ▲
Q2-2025 $23.599M ▲ $-15.068M ▼ $-2K ▲ $88K ▲ $-15.629M ▼ $-15.07M ▼
Q1-2025 $-37.386M ▼ $19.954M ▲ $-31K ▼ $6K ▲ $19.922M ▲ $19.923M ▲
Q4-2024 $3.189M ▼ $15.214M ▲ $0 ▲ $-14.887M ▲ $348K ▲ $15.214M ▲
Q3-2024 $3.646M $9.885M $-16K $-27.156M $-17.313M $9.869M

Revenue by Products

Product Q4-2024Q1-2025Q2-2025Q3-2025
Collaborative arrangement collaboration and license agreements
Collaborative arrangement collaboration and license agreements
 $0 ▲$0 ▲$0 ▲$0 ▲
Collaborative arrangement other agreements
Collaborative arrangement other agreements
 $0 ▲$0 ▲$0 ▲$0 ▲
Royalty
Royalty
 $0 ▲$0 ▲$0 ▲$0 ▲
Collaborative arrangements revenue
Collaborative arrangements revenue
 $0 ▲$0 ▲$0 ▲$0 ▲

Five-Year Company Overview

Income Statement

Income Statement Ironwood’s income statement shows a business with fairly steady revenue but very bumpy profitability. The top line has hovered in a relatively tight range for several years, which suggests a mature core product rather than rapid expansion. Gross profit is very high relative to revenue, reflecting the typical strong margins of a specialty drug franchise. However, operating and net income swing sharply from year to year. The very large loss in 2023 stands out as an exception to otherwise mostly profitable results and likely reflects one‑time charges, pipeline costs, or restructuring rather than a collapse in the underlying business. Earnings per share have also been volatile, which tells you reported profits are sensitive to non‑recurring items and accounting adjustments. Overall, the income statement paints a picture of a high‑margin but concentrated business with meaningful earnings volatility.

Balance Sheet

Balance Sheet The balance sheet is more of a concern than the income statement. Total assets have shrunk since their peak, and the cash cushion is notably smaller than it was a few years ago. Debt has risen relative to the current asset base, and shareholder equity has flipped from positive to negative in recent years. A negative equity position can signal that past losses, buybacks, or write‑downs have eroded the company’s capital base, and it leaves less room for error if performance weakens. In simple terms, the company looks more leveraged and less financially cushioned today than it did a few years ago, even though its operations are still generating cash.

Cash Flow

Cash Flow Cash flow is a relative bright spot. Ironwood has produced consistent positive cash from operations over the last several years, and free cash flow closely matches operating cash flow because capital spending is minimal. This means the core business is converting its high accounting margins into real cash with little ongoing investment required in physical assets. That steady cash generation helps offset the weaker-looking balance sheet, but it also highlights how important it is for the company to sustain its core franchise; there is not a lot of slack if cash flow were to decline meaningfully.

Competitive Edge

Competitive Edge Ironwood’s competitive position rests heavily on LINZESS, a leading treatment in the gastrointestinal space. The drug has strong brand recognition among specialists, a long real‑world track record, and support from a powerful commercial partner in AbbVie. Intellectual property and legal settlements help delay full generic competition for key doses, extending the product’s protected life. The company’s narrow focus in GI disorders has built deep relationships with physicians and a clear understanding of patient needs, which is a differentiator versus more diversified peers. On the other hand, reliance on essentially one flagship product creates concentration risk, and there are alternative therapies in the same class and other classes competing for similar patients. Over time, patent expiry and pricing pressure are the main structural threats to this position.

Innovation and R&D

Innovation and R&D Ironwood’s innovation story is centered on extending its GI leadership and moving into adjacent serious conditions. Its pipeline includes apraglutide for short bowel syndrome, which targets a high‑need, specialty market with potential for meaningful value if successful. However, the need for an additional confirmatory Phase 3 trial introduces both delay and added cost, and raises execution risk. IW‑3300, aimed at difficult visceral pain conditions such as bladder pain syndrome and possibly endometriosis, reflects a novel use of the company’s GC‑C expertise, but it is still at a mid‑stage of development where probabilities of success are uncertain. Overall, the R&D portfolio is focused and strategically aligned with Ironwood’s strengths, but setbacks like the recent apraglutide issue highlight the inherent binary risk of a small biotech pipeline. The exploration of “strategic alternatives” underscores that management is actively reassessing how best to monetize its assets and pipeline.

Summary

Ironwood today looks like a high‑margin, cash‑generative GI franchise built around a single leading product, but with a more leveraged and thinner balance sheet than in the past and a pipeline that carries meaningful execution risk. Revenue has been steady rather than fast‑growing, profitability has been choppy due to one‑off items, yet cash flow remains solid. The company’s moat around LINZESS—patents, brand, and GI specialization—is real but time‑limited, and future value will depend heavily on how well it manages the transition from a single‑product story to a broader portfolio or strategic outcome. Investors watching IRWD typically focus on three hinges: durability of the LINZESS franchise, the timing and success of key pipeline programs like apraglutide and IW‑3300, and how the company addresses its capital structure and strategic options in light of these uncertainties.

NEWS

November 10, 2025 · 7:05 AM UTC

Ironwood Pharmaceuticals Reports Strong Third Quarter 2025 Results; Raises Full Year 2025 Financial Guidance

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October 24, 2025 · 8:10 AM UTC

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