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what it is
Ironwood sells and licenses a constipation drug, then hopes its short-bowel pipeline asset becomes the next act.
how it gets paid
Last year Ironwood Pharma made $296M in revenue.
why it's growing
Revenue grew 520.7% last year. The 47% revenue drop matters more than the EPS beat because one-product companies do not get many places to hide.
what just happened
Ironwood posted a last earnings surprise of 228.57%, but the harder fact is latest-quarter revenue still fell to $48 million.
At a glance
C balance sheet — red flag territory — real financial stress
10/100 earnings predictability — expect surprises
22.4x trailing p/e — priced about right
6.2% return on capital — nothing to write home about
$0.01 fy2024 eps est
xvary composite: 25/100 — weak
What they do
Ironwood sells and licenses a constipation drug, then hopes its short-bowel pipeline asset becomes the next act.
Ironwood wins because LINZESS is already on shelves and approved for adults and kids ages 6 to 17. That matters when the company has just 253 employees and still produced $296 million of trailing revenue. Your problem is the moat is really a product franchise, not a fortress.
How they make money
$296M
annual revenue · their business grew +520.7% last year
total revenue
$296M
+520.7%
The products that matter
gi drug commercialization
Linzess
$296M
it contributes $296M of the revenue shown on this page and remains the business that pays the bills.
current engine
late-stage pipeline candidate
Apraglutide
$0 current revenue
it is moving toward Phase 3 with no commercial sales yet, which means the valuation still depends on future proof rather than present cash flow.
next bet
Key numbers
$396M
long-term debt
Debt → money the company owes → so what: Ironwood owes $396 million, which is about 72% of its roughly $550 million market value.
22.4x
trailing p/e
P/E → stock price divided by profit → so what: the stock trades at 22.4 times earnings even though 2024 EPS is only $0.01, so the profit base is tiny.
27.8%
operating margin
Operating margin → profit left after running the business → so what: the core business can make money, but debt and volatility still dominate the story.
6.2%
return on capital
Return on capital → profit earned on money invested → so what: 6.2% is modest for a single-product biotech carrying $396 million of debt.
Financial health
C
strength
- balance sheet grade C — very weak — significant financial distress
- risk rank 5 — safer than 5% of stocks
- price stability 5 / 100
- long-term debt $396M (42% of capital)
C — balance sheet grade and long-term debt are flagged. this stock carries more risk than average.
Total return vs. market
Return history isn't available for IRWD right now.
source: institutional data · return history unavailable
What just happened
beat estimates
Ironwood posted a last earnings surprise of 228.57%, but the harder fact is latest-quarter revenue still fell to $48 million.
Latest-quarter revenue was $48 million, down 47% vs. prior year, and EPS was -$0.01. Consensus says the last reported quarter beat estimates at $0.23 versus $0.07, which is a nice headline on top of a shrinking revenue base.
$48M
revenue
-$0.01
eps
228.57%
eps surprise
the number that mattered
The 47% revenue drop matters more than the EPS beat because one-product companies do not get many places to hide.
source: EDGAR and Yahoo Finance consensus, latest quarter
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What could go wrong
the top risk is the linzess concentration and patent-cliff problem.
med
one drug still carries the story
this page shows $296M tied to Linzess against $351M total revenue. that's extreme concentration for a company with a $550M market cap and no margin for product slippage.
if Linzess stumbles, the current cash engine stumbles with it.
med
apraglutide is still a promise
the pipeline candidate is moving toward Phase 3, but it contributes $0 of revenue today. clinical disappointment would leave investors with the same one-drug setup, just later and weaker.
the diversification thesis disappears if the second asset never becomes a real asset.
med
the 2026 guide may simply be too aggressive
management is guiding to $450–$475M of revenue in 2026 after reporting $296M in 2025 revenue and $351M in the broader annual revenue figure shown elsewhere on this page. however you define the base, it is a large jump.
missing that step-up would likely keep the stock in penalty-box valuation territory.
100% of the current commercial narrative still starts with Linzess, long-term debt is $396M, and the turnaround case now rests on a move to $450–$475M of 2026 revenue.
source: institutional data · regulatory filings · risk analysis
Pay attention to
guidance
2026 revenue needs to start tracking toward $450–$475M
that target is far above the current revenue base shown on this page. if quarterly numbers do not start closing the gap quickly, the thesis weakens.
pipeline
Apraglutide Phase 3 progress
the market needs evidence that the only visible diversification asset is still moving forward. delay is not neutral here.
calendar
Q1 2026 earnings
the next report is the first reality check on whether the 2026 guide was ambitious or simply unrealistic.
balance sheet
Debt versus cash generation
with $396M of long-term debt and a C balance sheet grade, cash flow has to do more than exist. it has to de-risk the capital structure.
Analyst rankings
earnings predictability
10 / 100
in human-speak, analysts do not trust this business to print smooth quarterly numbers.
price stability
5 / 100
the stock is more air pocket than safe harbor. you should expect sharp moves when the news changes.
source: institutional data
Institutional activity
institutional ownership data for IRWD is being compiled.
source: institutional data
Price targets
3-5 year target range
n/a
n/a
$4
current price
n/a
target midpoint · n/a from current
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