Ardelyx (ARDX) AI Stock Analysis

• Market Cap: $1.48B
• Dividend Yield: N/A
• Average Volume (3M): 2.82M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.79
• Revenue Growth: 58.12%
• EPS Growth: 24.08%
• Country: US
• Employees: 395
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): 0.00
• Shares Outstanding: 242,974,300
• 10 Day Avg. Volume: 3,024,771
• 30 Day Avg. Volume: 2,818,602
• PEG Ratio: 0.70
• Price to Book (P/B): 6.88
• Price to Sales (P/S): 3.57
• P/FCF Ratio: -26.03
• Enterprise Value/Market Cap: 0.88
• Enterprise Value/Revenue: 3.26
• Enterprise Value/Gross Profit: 3.67
• Enterprise Value/Ebitda: -45.68
• 1Y Price Target: $11.00
• Price Target Upside: 97.84% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 55 Neutral
• Price Target: $6.00 ▲(7.91% Upside)

Ardelyx's strong revenue growth and strategic initiatives are promising, but profitability challenges and reliance on debt weigh on the score. Technical indicators suggest potential for a rebound, while the earnings call provides a positive outlook for future growth.

Positive Factors

Revenue Growth

The significant revenue growth from IBSRELA indicates strong market demand and effective commercialization strategies, supporting long-term financial stability.

Pipeline Development

The development of ARDX-10531 showcases Ardelyx's commitment to innovation and strengthens its product pipeline, potentially leading to future revenue streams.

Cash Position

A strong cash position provides Ardelyx with the financial flexibility to invest in growth opportunities and weather industry challenges, enhancing its long-term viability.

Negative Factors

Profitability Challenges

Ongoing net losses highlight profitability challenges that may hinder Ardelyx's ability to sustain operations without external funding, impacting long-term growth.

Leverage and Financial Risk

Increased leverage raises financial risk, potentially limiting Ardelyx's ability to invest in growth and increasing vulnerability to market fluctuations.

XPHOZAH Market Challenges

Market challenges for XPHOZAH could impede revenue growth and affect Ardelyx's ability to meet long-term financial targets, impacting investor confidence.

Ardelyx Business Overview & Revenue Model

Company Description

Ardelyx, Inc., a biopharmaceutical company, discovers, develops, and commercializes medicines to treat gastrointestinal and cardiorenal therapeutic areas in the United States and internationally. The company's lead product candidate is tenapanor, which has completed Phase III clinical trial for the treatment of patients with irritable bowel syndrome with constipation, as well as in Phase III clinical trial to control serum phosphorus in adult patients with chronic kidney disease (CKD)on dialysis, or hyperphosphatemia. It is also developing RDX013, a potassium secretagogue, for the treatment of elevated serum potassium, or hyperkalemia, a problem among certain patients with kidney and/or heart disease; and RDX020, an early-stage program in metabolic acidosis, a serious electrolyte disorder in patients with CKD. The company has agreements with Kyowa Kirin in Japan, Fosun Pharmaceutical Industrial Development Co. Ltd. in China, and Knight Therapeutics, Inc. in Canada for the development and commercialization of tenapanor in their respective territories. The company was formerly known as Nteryx, Inc. and changed its name to Ardelyx, Inc. in June 2008. Ardelyx, Inc. was incorporated in 2007 and is headquartered in Waltham, Massachusetts.

How the Company Makes Money

Ardelyx generates revenue primarily through the commercialization of its pharmaceutical products, including tenapanor, which is marketed for specific indications. The company earns money through direct sales to healthcare providers and pharmacies. Additionally, Ardelyx may also receive milestone payments and royalties from partnerships with larger pharmaceutical companies that help in the development and distribution of its products. These partnerships can provide significant financial support and facilitate market access for its therapies, contributing to its overall revenue stream.

Ardelyx Financial Statement Overview

Summary

Ardelyx shows positive revenue growth and strong gross profit margins, but faces challenges with profitability and increased reliance on debt. Negative net income and operating cash flow highlight the need for strategic adjustments.

Income Statement

Ardelyx has shown a positive revenue growth trend, with a TTM revenue growth rate of 3.13%. However, the company continues to face challenges with profitability, as indicated by negative net profit margins and EBIT margins. The gross profit margin remains strong at 89.47% TTM, suggesting efficient cost management relative to revenue. Despite these strengths, the persistent negative net income and EBIT margins highlight ongoing operational challenges.

Balance Sheet

The company's debt-to-equity ratio has increased to 1.35 TTM, indicating a higher reliance on debt financing, which could pose a risk if not managed properly. The return on equity is negative, reflecting the company's struggles to generate profit from shareholders' equity. However, the equity ratio remains stable, suggesting a balanced asset structure.

Cash Flow

Ardelyx's cash flow situation shows some improvement, with a positive free cash flow growth rate of 28.1% TTM. The free cash flow to net income ratio is above 1, indicating that the company is generating more cash than its net income suggests. However, the operating cash flow remains negative, which could impact the company's ability to fund operations without external financing.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	398.23M	333.62M	124.46M	52.16M	10.10M	7.57M
Gross Profit	353.94M	283.06M	106.66M	48.04M	9.10M	7.43M
EBITDA	-28.41M	-16.71M	-55.35M	-60.98M	-150.85M	-85.24M
Net Income	-56.55M	-39.14M	-66.07M	-67.21M	-158.16M	-94.31M
Balance Sheet
Total Assets	486.17M	435.75M	297.58M	190.07M	149.91M	201.56M
Cash, Cash Equivalents and Short-Term Investments	242.71M	250.10M	184.30M	123.91M	116.69M	186.48M
Total Debt	207.61M	153.44M	55.98M	36.46M	45.50M	55.44M
Total Liabilities	331.89M	262.46M	130.76M	91.74M	67.30M	75.45M
Stockholders Equity	154.28M	173.29M	166.82M	98.33M	82.62M	126.11M
Cash Flow
Free Cash Flow	-55.35M	-45.82M	-90.06M	-70.10M	-154.42M	-81.76M
Operating Cash Flow	-53.62M	-44.81M	-89.72M	-70.04M	-152.55M	-81.44M
Investing Cash Flow	-54.35M	-18.32M	-131.25M	18.41M	50.95M	-31.44M
Financing Cash Flow	103.27M	106.59M	146.29M	75.34M	83.00M	22.78M

Ardelyx Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 5.56
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ARDX, the sentiment is Negative. The current price of 5.56 is below the 20-day moving average (MA) of 5.88, below the 50-day MA of 5.74, and above the 200-day MA of 5.07, indicating a neutral trend. The MACD of 0.03 indicates Positive momentum. The RSI at 43.41 is Neutral, neither overbought nor oversold. The STOCH value of 43.27 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ARDX.

Ardelyx Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VCEL	71 Outperform	$1.88B	163.37	4.52%	―	14.05%	241.86%
DNTH	61 Neutral	$1.58B	-10.37	-28.57%	―	-42.64%	-39.78%
VRDN	60 Neutral	$2.88B	-8.69	-47.40%	―	23340.07%	18.06%
PHVS	56 Neutral	$1.59B	-7.47	-51.81%	―	―	-20.08%
ARDX	55 Neutral	$1.48B	-23.47	-36.18%	―	58.12%	24.08%
EWTX	55 Neutral	$2.50B	-14.54	-30.02%	―	―	-5.73%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Ardelyx Corporate Events

Ardelyx Announces Key Leadership Transitions

Ardelyx, Inc., a company operating in the pharmaceutical or healthcare sector, announced leadership transitions involving two key executives. On December 17, 2025, Elizabeth Grammer, Chief Legal and Administrative Officer, informed the company of her resignation effective December 31, 2025. Following this, she will continue to serve as General Counsel until a successor is appointed and later transition to a Senior Advisor role for two years. Her transition is structured under a detailed agreement that includes salary continuation, bonuses, and other benefits tailored to her role during the advisory period. Additionally, Edward Conner, M.D., Chief Medical Officer, also announced his resignation for personal reasons, effective December 31, 2025. Dr. Laura Williams will temporarily take over as interim Chief Medical Officer, ensuring continuity in the company’s clinical development programs.

The most recent analyst rating on (ARDX) stock is a Hold with a $6.00 price target. To see the full list of analyst forecasts on Ardelyx stock, see the ARDX Stock Forecast page.

Ardelyx Appoints New CFO Sue Hohenleitner

Ardelyx, Inc. has appointed Sue Hohenleitner as its new chief financial officer, effective November 4, 2025. Previously, Ms. Hohenleitner held various senior finance roles at Johnson & Johnson, including Vice President and CFO of J&J Innovative Medicine North America. Her appointment is accompanied by a comprehensive compensation package, including a base salary, bonus, stock options, and restricted stock units, reflecting Ardelyx’s strategic move to strengthen its financial leadership.

The most recent analyst rating on (ARDX) stock is a Hold with a $5.50 price target. To see the full list of analyst forecasts on Ardelyx stock, see the ARDX Stock Forecast page.