Ironwood Pharma (IRWD)
NASDAQ:IRWD
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Ironwood Pharma
(NASDAQ:IRWD)
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Rating:61Neutral
Price Target:
$3.00
▼(-1.96% Downside)
Action:ReiteratedDate:03/11/26
The score is primarily supported by strong cash generation and a 2025 profitability rebound, plus constructive 2026 guidance and deleveraging plans. It is held back by a strained balance sheet with negative equity and weakening revenue, and near-term technical indicators that point to soft momentum; valuation appears only moderate given these risks.
Positive Factors
Strong free cash flow generation
Ironwood produced a sharp free-cash-flow rebound in 2025 and cash from operations closely tracked earnings. Durable cash generation supports executing deleveraging plans, funding STARS II and other R&D, and covering liabilities without requiring near-term dilutive financing, provided LINZESS cash flows persist.
Negative Factors
Weakened balance sheet with negative equity
Negative equity indicates accumulated deficits and weaker capitalization despite falling nominal debt. This structural capital shortfall constrains flexibility for large investments, increases refinancing and covenant risk, and makes the company more dependent on strong operating cash flow to execute its deleveraging and clinical programs.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong free cash flow generation
Ironwood produced a sharp free-cash-flow rebound in 2025 and cash from operations closely tracked earnings. Durable cash generation supports executing deleveraging plans, funding STARS II and other R&D, and covering liabilities without requiring near-term dilutive financing, provided LINZESS cash flows persist.
Read all positive factors
Ironwood Pharma (IRWD) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$498.96M
Dividend YieldN/A
Average Volume (3M)3.47M
Price to Earnings (P/E)22.8
Beta (1Y)0.65
Revenue Growth-10.42%
EPS GrowthN/A
CountryUS
Employees253
SectorHealthcare
Sector Strength45
IndustryDrug Manufacturers - Specialty & Generic
Share Statistics
EPS (TTM)-0.01
Shares Outstanding163,058,320
10 Day Avg. Volume4,123,260
30 Day Avg. Volume3,468,148
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 Cap1.77
Enterprise Value/Revenue2.98
Enterprise Value/Gross Profit3.29
Enterprise Value/Ebitda7.21
Forecast
1Y Price Target
$7.50Price Target Upside145.10% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)0.87
Revenue Forecast (FY)$460.14M
Ironwood Pharma Business Overview & Revenue Model
Company Description
Ironwood Pharmaceuticals, Inc., a healthcare company, focuses on the development and commercialization of gastrointestinal (GI) products. It markets linaclotide, a guanylate cyclase type-C agonist for the treatment of adults suffering from irritab...
How the Company Makes Money
Ironwood primarily makes money from LINZESS (linaclotide) through a collaboration with AbbVie in the United States. Under this arrangement, LINZESS is commercialized in the U.S. and Ironwood earns revenue largely from its share of net profits (i.e...
Ironwood Pharma Earnings Call Summary
Earnings Call Date:Feb 25, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 30, 2026
Earnings Call Sentiment Positive
The call balanced meaningful commercial and clinical progress with clear financial targets and a path to deleveraging. Highlights include strong demand growth for LINZESS (11% prescription growth, 8% new-to-brand growth), a new pediatric indication, reiterated 2026 guidance with >30% LINZESS net sales growth expected, and advancing aproglutide into an FDA-aligned confirmatory Phase III (STARS II) with encouraging prior efficacy and extension data. Key negatives are net price erosion (full-year LINZESS net sales down 6% YoY), Q4 rebate/timing-driven volatility, the FDA requirement for a confirmatory trial (adding time and cost), potential competitive pressure (including a possible GATTEX generic), and a projected >30% increase in Medicaid mix for 2026. Overall, positives (strong guidance, clinical progress, improved adjusted EBITDA outlook and disciplined cost management) outweigh the lowlights, though risks remain around pricing, payer mix, and the need to successfully execute STARS II.Positive Updates
LINZESS Full-Year Net Sales and Demand Growth
LINZESS U.S. net sales for full-year 2025 were $865 million, supported by 11% prescription demand growth and 8% new-to-brand volume growth year over year. The brand surpassed ~5.7 million unique patients treated since launch and finished 2025 with roughly 45% market share.
Negative Updates
Full-Year Net Sales Decline Due to Net Price Erosion
Full-year LINZESS U.S. net sales decreased 6% year over year, primarily driven by net price erosion associated with the Medicare Part D redesign and other price headwinds.
Read all updates
Q4-2025 Updates
Positive
Negative
LINZESS Full-Year Net Sales and Demand Growth
LINZESS U.S. net sales for full-year 2025 were $865 million, supported by 11% prescription demand growth and 8% new-to-brand volume growth year over year. The brand surpassed ~5.7 million unique patients treated since launch and finished 2025 with roughly 45% market share.
Read all positive updates
Company Guidance
The company reiterated 2026 guidance calling for U.S. LINZESS net sales of $1.125–$1.175 billion (a >30% increase year‑over‑year driven by improved net price and low single‑digit prescription demand growth), Ironwood revenue of $450–$475 million, and greater than $300 million of adjusted EBITDA; they plan to begin STARS II site activation in Q2, repay 2026 convertible notes at maturity in June, use cash flow to reduce total debt to approximately $300 million by year‑end (targeting <1.0x 2026 adjusted EBITDA), and drive growth while managing expenses—building on 2025 comparatives of $865 million LINZESS U.S. net sales, 11% prescription demand growth, 8% new‑to‑brand volume growth, and $138 million adjusted EBITDA.Ironwood Pharma Financial Statement Overview
Summary
Income Statement
64
Positive
Balance Sheet
28
Negative
Cash Flow
78
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 296.15M | 351.41M | 442.74M | 410.60M | 413.75M |
| Gross Profit | 294.27M | 343.86M | 436.59M | 409.18M | 343.35M |
| EBITDA | 104.65M | 97.73M | 197.41M | 261.44M | 233.74M |
| Net Income | 24.02M | 880.00K | -1.00B | 175.06M | 528.45M |
Balance Sheet | |||||
| Total Assets | 396.90M | 350.91M | 471.07M | 1.10B | 1.13B |
| Cash, Cash Equivalents and Short-Term Investments | 215.46M | 88.56M | 92.15M | 656.20M | 620.13M |
| Total Debt | 597.80M | 599.48M | 715.54M | 415.92M | 475.80M |
| Total Liabilities | 658.74M | 652.24M | 817.37M | 448.14M | 521.02M |
| Stockholders Equity | -261.83M | -301.33M | -346.30M | 652.38M | 605.91M |
Cash Flow | |||||
| Free Cash Flow | 127.01M | 103.41M | 183.15M | 273.63M | 261.63M |
| Operating Cash Flow | 127.04M | 103.55M | 183.43M | 273.76M | 261.89M |
| Investing Cash Flow | -34.00K | -142.00K | -1.03B | -136.00K | -265.00K |
| Financing Cash Flow | 216.00K | -106.97M | 277.16M | -237.55M | -4.55M |
Ironwood Pharma Technical Analysis
Negative
3.06
Price Trends
4.09
Negative
3.73
Negative
2.42
Positive
Market Momentum
-0.25
Negative
37.75
Neutral
23.43
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IRWD, the sentiment is Negative. The current price of 3.06 is below the 20-day moving average (MA) of 3.38, below the 50-day MA of 4.09, and above the 200-day MA of 2.42, indicating a neutral trend. The MACD of -0.25 indicates Negative momentum. The RSI at 37.75 is Neutral, neither overbought nor oversold. The STOCH value of 23.43 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IRWD.
Ironwood Pharma Risk Analysis
Ironwood Pharma disclosed 45 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 3 New Risks
1.
We may be unable to successfully integrate the business and personnel of VectivBio, and may not realize the expected benefits and anticipated synergies of such acquisition. Q4, 2023
2.
We cannot give any assurance that apraglutide will be successful in clinical trials, and if successful, will receive regulatory approval, which is necessary before it can be commercialized. Q4, 2023
3.
We may be unable to maintain the benefits associated with orphan drug designation, including market exclusivity, which may harm our business. Q4, 2023
Ironwood Pharma Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
67 Neutral | $926.41M | 163.97 | 0.95% | ― | 3.14% | ― | |
67 Neutral | $1.63B | 14.40 | 15.55% | ― | 48.87% | ― | |
61 Neutral | $498.96M | 22.76 | -8.22% | ― | -10.42% | ― | |
57 Neutral | $1.03B | 21.64 | 24.11% | ― | 26.34% | -32.79% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
46 Neutral | $882.91M | -6.38 | -18.11% | ― | -1.19% | 5.06% |
* Healthcare Sector Average
IRWD
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Ironwood Pharma Corporate Events
Business Operations and StrategyPrivate Placements and Financing
Ironwood Pharma Maintains Revolving Credit Facility to 2028
Positive
Mar 11, 2026
On March 10, 2026, Ironwood Pharmaceuticals notified the administrative agent under its existing revolving credit agreement that it had satisfied the liquidity conditions specified in the contract’s definition of the maturity date. As a resu...
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.