Ardelyx (ARDX) AI Stock Analysis

• Market Cap: $1.47B
• Dividend Yield: N/A
• Average Volume (3M): 4.34M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.06
• Revenue Growth: 83.88%
• EPS Growth: 15.24%
• Country: US
• Employees: 395
• Sector: Healthcare
• Sector Strength: 47
• Industry: Biotechnology
• EPS (TTM): -0.08
• Shares Outstanding: 240,982,830
• 10 Day Avg. Volume: 4,003,308
• 30 Day Avg. Volume: 4,343,676
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.62
• Enterprise Value/Revenue: 2.35
• Enterprise Value/Gross Profit: 2.76
• Enterprise Value/Ebitda: -28.30
• 1Y Price Target: $11.33
• Price Target Upside: 85.43% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 9

• Rating: 59 Neutral
• Price Target: $5.50 ▼(-9.98% Downside)

Ardelyx's stock score is primarily influenced by its challenging financial performance, despite strong technical indicators and positive earnings call highlights. The company's profitability issues and leverage concerns weigh heavily on the score, though strong revenue growth and market momentum provide some optimism.

Positive Factors

Financial Performance

Ardelyx delivered a top-line beat with total revenue driven by strong Ibsrela performance and solid Xphozah execution.

Market Strategy

The prescription composition shift toward higher refill rates provides a more reliable predictor of revenue sustainability.

Product Potential

Ibsrela remains the only non-secretagogue on the market, likely making it the preferred second-line agent and appealing to a large number of refractory patients.

Negative Factors

Legal and Regulatory Risks

ARDX is arguing CMS does not have the authority to redefine Congress' definition of 'renal dialysis services' and Xphozah should not be included in that definition.

Regulatory Challenges

Medicare Part D no longer covers XPHOZAH and oral phosphate binders from January 1, 2025.

Revenue Variation

A small sequential retracement in overall Xphozah revenue is expected from the first quarter to the second quarter, with growth likely returning in the third quarter.

Ardelyx Business Overview & Revenue Model

Company Description

Ardelyx, Inc. is a biopharmaceutical company focused on developing innovative therapies for patients with gastrointestinal and renal diseases. The company operates primarily in the biotechnology sector and is known for its lead product, tenapanor, which is designed to treat conditions such as irritable bowel syndrome with constipation (IBS-C) and hyperphosphatemia in patients with chronic kidney disease on dialysis. Ardelyx is committed to addressing unmet medical needs through its proprietary platform that targets the gut and kidneys.

How the Company Makes Money

Ardelyx generates revenue primarily through the commercialization of its products, particularly tenapanor. The company earns money through direct sales of its therapies to healthcare providers and through partnerships with larger pharmaceutical firms that may involve milestone payments, royalties, or shared profits. Additionally, Ardelyx may receive funding through research grants, collaborations, or licensing agreements, which can provide supplementary revenue streams. The success of its products in the market, along with the establishment of strategic partnerships, is crucial for its financial growth.

Ardelyx Financial Statement Overview

Summary

Ardelyx shows a strong gross profit margin of 86.25%, but struggles with profitability, evidenced by a net profit margin of -14.60% and negative EBIT and EBITDA margins. The balance sheet indicates higher leverage with a debt-to-equity ratio of 1.48, and negative return on equity. Despite some improvement in free cash flow, overall cash flow remains negative.

Income Statement

Ardelyx shows a strong gross profit margin of 86.25% in TTM, indicating efficient cost management. However, the company struggles with profitability, as evidenced by a net profit margin of -14.60% and negative EBIT and EBITDA margins. Revenue growth is positive at 6.76% TTM, but the company remains unprofitable, which is a concern for long-term sustainability.

Balance Sheet

The debt-to-equity ratio has increased to 1.48 in TTM, indicating higher leverage and potential financial risk. The return on equity is negative at -36.57%, reflecting ongoing losses. The equity ratio is not provided, but the increasing debt levels suggest a weakening balance sheet position.

Cash Flow

Free cash flow has shown growth of 13.26% TTM, which is a positive sign. However, both operating and free cash flows remain negative, indicating cash flow challenges. The free cash flow to net income ratio is slightly above 1, suggesting that cash flow generation is somewhat aligned with net income, despite the negative figures.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	386.15M	333.62M	124.46M	52.16M	10.10M	7.57M
Gross Profit	329.79M	283.06M	106.66M	48.04M	9.10M	7.43M
EBITDA	-32.11M	-16.71M	-55.35M	-60.98M	-150.85M	-85.24M
Net Income	-56.39M	-39.14M	-66.07M	-67.21M	-158.16M	-94.31M
Balance Sheet
Total Assets	466.77M	435.75M	297.58M	190.07M	149.91M	201.56M
Cash, Cash Equivalents and Short-Term Investments	238.45M	250.10M	184.30M	123.91M	116.69M	186.48M
Total Debt	206.64M	153.44M	55.98M	36.46M	45.50M	53.32M
Total Liabilities	327.24M	262.46M	130.76M	91.74M	67.30M	75.45M
Stockholders Equity	139.53M	173.29M	166.82M	98.33M	82.62M	126.11M
Cash Flow
Free Cash Flow	-55.19M	-45.82M	-90.06M	-70.10M	-154.42M	-81.76M
Operating Cash Flow	-53.49M	-44.81M	-89.72M	-70.04M	-152.55M	-81.44M
Investing Cash Flow	-1.50M	-18.32M	-131.25M	18.41M	50.95M	-31.44M
Financing Cash Flow	103.15M	106.59M	146.29M	75.34M	83.00M	22.78M

Ardelyx Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 6.11
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ARDX, the sentiment is Positive. The current price of 6.11 is above the 20-day moving average (MA) of 5.25, above the 50-day MA of 4.57, and above the 200-day MA of 4.85, indicating a bullish trend. The MACD of 0.46 indicates Negative momentum. The RSI at 79.68 is Negative, neither overbought nor oversold. The STOCH value of 88.44 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ARDX.

Ardelyx Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MDXG	79 Outperform	$1.08B	33.89	16.62%	―	6.85%	-67.67%
AUPH	79 Outperform	$1.62B	28.70	17.33%	―	25.59%	―
ARDX	59 Neutral	$1.47B	―	-39.36%	―	83.88%	15.24%
OCUL	56 Neutral	$2.14B	―	-63.41%	―	-7.26%	-15.33%
LQDA	52 Neutral	$2.31B	―	-363.16%	―	30.20%	-7.22%
Sector *	51 Neutral	$7.88B	-0.12	-39.83%	2.18%	21.38%	-1.56%
CLDX	47 Neutral	$1.49B	―	-27.17%	―	-30.25%	-9.70%

Ardelyx Corporate Events

Ardelyx CFO Transition Announced Amid Strong Q2 Results

On August 4, 2025, Ardelyx announced that its Chief Financial and Operations Officer, Justin Renz, will transition out of his role by the end of the year, following a transition agreement that includes severance benefits. Additionally, the company reported strong financial results for the second quarter of 2025, with a 33% increase in total revenue year-over-year, driven by significant growth in sales of its products IBSRELA and XPHOZAH. The company raised its 2025 revenue expectations for IBSRELA, reflecting confidence in its commercial strategy and market positioning.

Ardelyx Secures $50 Million Loan Amendment

On June 30, 2025, Ardelyx, Inc. amended its Loan and Security Agreement, initially dated February 23, 2022, with SLR Investment Corp. and other lenders. The Fifth Amendment allowed Ardelyx to immediately draw $50 million and provided options for additional loans totaling $100 million. The loans have specific interest rates and maturity dates, with interest-only payments allowed until maturity. The amendment impacts Ardelyx’s financial strategy by securing significant funding options for future operations.

Ardelyx Stockholders Approve Equity Plan Amendment

On June 18, 2025, Ardelyx, Inc. held its Annual Meeting where stockholders approved an amendment to the 2014 Equity Incentive Award Plan. This amendment, initially approved by the Board on April 28, 2025, aims to enhance the company’s equity compensation framework. The meeting also saw the election of Class II directors, approval of the Say-On-Pay proposal, and ratification of Ernst & Young LLP as the independent registered public accounting firm for the fiscal year ending December 31, 2025.