Ironwood Pharmaceuticals (IRWD)
NASDAQ:IRWD
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Ironwood Pharma
(NASDAQ:IRWD)
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Rating:58Neutral
Price Target:
$3.50
▼(-20.99% Downside)
Action:Reiterated
Date:06/19/26
The score is held back primarily by balance-sheet risk (negative equity) and weak technical momentum (below key moving averages, negative MACD). Offsetting factors include strong recent profitability/cash flow, constructive guidance and operating momentum from the latest earnings call, and attractive valuation (low P/E), with corporate events modestly improving near-term financing overhang via note repayment.
Positive Factors
Consistent Cash Generation
Sustained positive GAAP income and strong adjusted EBITDA guidance indicate durable cash generation ability. Reliable operating cash flows and targeted >$300M EBITDA provide financing capacity for operations, R&D and debt obligations, reducing reliance on external capital over the medium term.
Negative Factors
Weak Balance Sheet Cushion
Negative equity across recent periods signals limited capital buffer and unfavorable leverage metrics. This reduces the company's ability to absorb shocks, constrains borrowing capacity, and elevates financial risk versus peers, making operational setbacks or unexpected costs more consequential.
Read all positive and negative factors
Positive Factors
Negative Factors
Consistent Cash Generation
Sustained positive GAAP income and strong adjusted EBITDA guidance indicate durable cash generation ability. Reliable operating cash flows and targeted >$300M EBITDA provide financing capacity for operations, R&D and debt obligations, reducing reliance on external capital over the medium term.
Read all positive factors
Ironwood Pharma (IRWD) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$635.41M
Dividend YieldN/A
Average Volume (3M)2.45M
Price to Earnings (P/E)6.1
Beta (1Y)1.03
Revenue Growth13.80%
EPS GrowthN/A
CountryUS
Employees253
SectorHealthcare
Sector Strength45
IndustryDrug Manufacturers - Specialty & Generic
Share Statistics
EPS (TTM)0.64
Shares Outstanding164,613,400
10 Day Avg. Volume2,176,884
30 Day Avg. Volume2,445,435
Financial Highlights & Ratios
PEG Ratio<0.01
Price to Book (P/B)-2.09
Price to Sales (P/S)1.85
P/FCF Ratio4.30
Enterprise Value/Market Cap1.51
Enterprise Value/Revenue2.65
Enterprise Value/Gross Profit2.66
Enterprise Value/Ebitda4.62
Forecast
1Y Price Target
$5.00Price Target Upside12.87% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)1.37
Revenue Forecast (FY)$459.38M
Ironwood Pharma Business Overview & Revenue Model
Company Description
Ironwood Pharmaceuticals, Inc. operates as a healthcare enterprise primarily dedicated to discovering, developing, and commercializing therapeutic solutions for gastrointestinal (GI) conditions. Its flagship commercial product is linaclotide, a gu...
How the Company Makes Money
Ironwood primarily makes money from its role in the commercialization of LINZESS (linaclotide) in the United States. Its revenue is largely driven by (1) collaboration-based income tied to LINZESS sales, including a share of profits or other contr...
Ironwood Pharma Earnings Call Summary
Earnings Call Date:May 07, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 06, 2026
Earnings Call Sentiment Positive
The call conveys a predominantly positive outlook driven by strong LINZESS Q1 performance (97% YoY net sales growth), robust profitability (GAAP net income $40.8M; adjusted EBITDA $76.7M), healthy cash on hand, and clear progress toward initiating the STARS‑2 confirmatory trial for apraglutide with supportive efficacy and safety data. Key near‑term risks include the June convertible note maturity (reliance on receivable collection), anticipated R&D spend and enrollment risk for STARS‑2, and potential moderation of prescription growth later in 2026 (notably in Medicaid). Overall, the positive financial momentum and clinical progress outweigh the manageable execution and timing risks noted.Positive Updates
LINZESS Q1 U.S. Net Sales Surge
LINZESS U.S. net sales of $272.5M in Q1 2026, a 97% year‑over‑year increase, driven primarily by improved net price and 5% prescription demand growth; company expects to return LINZESS to blockbuster status and set a new all‑time high for annual U.S. net sales in 2026. FDA accepted sNDA for functional constipation in children 2–5 with a PDUFA date of May 24, 2026.
Negative Updates
Near‑Term Debt Maturity and Reliance on Collections
June 15, 2026 convertible note maturity requires cash repayment; company is relying on $105.8M accounts receivable collections and cash flows during 2026 to repay, creating near‑term refinancing/liquidity timing risk if collections or cash flows underperform expectations.
Read all updates
Q1-2026 Updates
Positive
Negative
LINZESS Q1 U.S. Net Sales Surge
LINZESS U.S. net sales of $272.5M in Q1 2026, a 97% year‑over‑year increase, driven primarily by improved net price and 5% prescription demand growth; company expects to return LINZESS to blockbuster status and set a new all‑time high for annual U.S. net sales in 2026. FDA accepted sNDA for functional constipation in children 2–5 with a PDUFA date of May 24, 2026.
Read all positive updates
Company Guidance
Ironwood reiterated 2026 guidance calling for LINZESS U.S. net sales of $1.125–1.175 billion, Ironwood revenues of $450–475 million and adjusted EBITDA greater than $300 million, with LINZESS prescription demand expected to grow in the low single digits and quarterly net sales to be more consistent than in 2025; Q1 results underpinning that guidance included LINZESS U.S. net sales of $272.5 million (up 97% year‑over‑year) driven by 5% prescription growth and improved net price, $104.2 million of U.S. brand collaboration revenue (up 169% year‑over‑year), total Q1 revenue of $106.5 million, GAAP net income of $40.8 million, Q1 adjusted EBITDA of $76.7 million, cash and cash equivalents of $220.5 million and $105.8 million of accounts receivable (expected collected before the June 15 convertible note maturity); management expects to repay the 2026 convertible note in cash and to finish 2026 with roughly $300 million of total debt (below 1x expected 2026 adjusted EBITDA), and says the guidance implies more than a 30% increase in net sales versus 2025.Ironwood Pharma Financial Statement Overview
Summary
Income Statement
64
Positive
Balance Sheet
38
Negative
Cash Flow
67
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 361.51M | 296.15M | 351.41M | 442.74M | 410.60M | 413.75M |
| Gross Profit | 360.13M | 296.15M | 343.86M | 436.59M | 409.18M | 343.35M |
| EBITDA | 207.13M | 104.65M | 97.73M | 197.41M | 261.44M | 233.74M |
| Net Income | 102.18M | 24.02M | 880.00K | -1.00B | 175.06M | 528.45M |
Balance Sheet | ||||||
| Total Assets | 434.57M | 396.90M | 350.91M | 471.07M | 1.10B | 1.13B |
| Cash, Cash Equivalents and Short-Term Investments | 220.47M | 215.46M | 88.56M | 92.15M | 656.20M | 620.13M |
| Total Debt | 597.36M | 597.80M | 599.48M | 715.54M | 415.92M | 475.80M |
| Total Liabilities | 651.71M | 658.74M | 652.24M | 817.37M | 448.14M | 521.02M |
| Stockholders Equity | -217.14M | -261.83M | -301.33M | -346.30M | 652.38M | 605.91M |
Cash Flow | ||||||
| Free Cash Flow | 112.21M | 127.01M | 103.41M | 183.15M | 273.63M | 261.63M |
| Operating Cash Flow | 112.21M | 127.04M | 103.55M | 183.43M | 273.76M | 261.89M |
| Investing Cash Flow | -3.00K | -34.00K | -142.00K | -1.03B | -136.00K | -265.00K |
| Financing Cash Flow | 210.00K | 216.00K | -106.97M | 277.16M | -237.55M | -4.55M |
Ironwood Pharma Technical Analysis
Positive
4.43
Price Trends
3.87
Positive
3.84
Positive
3.30
Positive
Market Momentum
<0.01
Negative
58.56
Neutral
88.80
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IRWD, the sentiment is Positive. The current price of 4.43 is above the 20-day moving average (MA) of 3.54, above the 50-day MA of 3.87, and above the 200-day MA of 3.30, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 58.56 is Neutral, neither overbought nor oversold. The STOCH value of 88.80 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IRWD.
Ironwood Pharma Risk Analysis
Ironwood Pharma disclosed 46 risk factors in its most recent earnings report. Ironwood Pharma reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Ironwood Pharma Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $1.89B | 20.13 | 17.32% | ― | 37.03% | ― | |
69 Neutral | $1.09B | 14.36 | 26.74% | ― | 19.88% | 73.61% | |
65 Neutral | $924.77M | 196.23 | 0.73% | ― | 4.57% | ― | |
58 Neutral | $635.41M | 6.15 | -38.88% | ― | 13.80% | ― | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
49 Neutral | $948.76M | -4.42 | -24.55% | ― | 2.13% | -1.13% |
* Healthcare Sector Average
IRWD
Ironwood Pharma
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402.57%
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Ironwood Pharma Corporate Events
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
Ironwood Pharma Shareholders Reaffirm Board and Governance Structure
Positive
Jun 18, 2026
At its June 16, 2026 annual meeting of stockholders, Ironwood Pharmaceuticals, Inc. saw shareholders elect eight director nominees to one-year terms, reaffirming the existing board’s oversight of the company. Investors also endorsed, on an a...
Business Operations and StrategyFinancial Disclosures
Ironwood Pharma Strengthens Balance Sheet With Note Repayment
Positive
Jun 15, 2026
On June 15, 2026, Ironwood Pharmaceuticals, Inc. fully repaid the $200 million principal on its 1.50% convertible senior notes due 2026 at scheduled maturity using available cash on hand. No noteholders chose to convert their securities into equit...
Executive/Board Changes
Ironwood Pharma Announces CFO Resignation and Interim Successor
Neutral
May 13, 2026
On May 8, 2026, Ironwood Pharmaceuticals said Senior Vice President and Chief Financial Officer Gregory Martini will resign effective May 15, 2026, with the company noting his departure is not related to any dispute over its financial reporting. T...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.