Ironwood Pharmaceuticals Reports Fourth Quarter and Full Year 2025 Results; Achieves 2025 Financial Guidance and Reiterates Strong 2026 Outlook
Key Terms
adjusted EBITDA financial
short bowel syndrome medical
GLP-2 medical
parenteral support medical
Phase 3 clinical trial medical
NDA regulatory
Medicare Part D regulatory
collaboration revenue financial
– LINZESS® (linaclotide) EUTRx demand growth of
– 2025 Ironwood revenue of
– Continue to expect full-year 2026 LINZESS®
– Key elements of confirmatory Phase 3 clinical trial design of apraglutide in short bowel syndrome with intestinal failure (SBS-IF) have been finalized with site initiations expected to begin in the second quarter of 2026 –
“In 2025, LINZESS delivered
“As we enter 2026, we remain focused on our core priorities of maximizing LINZESS, advancing apraglutide and delivering sustained profits and cash flows. We believe our full-year 2026 financial guidance demonstrates the significant progress we’ve made across these priorities and our ability to drive increasing shareholder value. In 2026, we expect increased LINZESS
Fourth Quarter and Full Year 2025 Financial Highlights1
(in thousands, except for per share amounts)
|
Q4 2025 |
Q4 2024 |
FY 2025 |
FY 2024 |
Total revenue2 |
|
|
296,151 |
|
Total costs and expenses |
40,904 |
59,054 |
197,649 |
258,286 |
GAAP net income (loss)2 |
(2,276) |
2,256 |
24,017 |
880 |
GAAP net income (loss) – per share basic and diluted2 |
(0.01) |
0.01 |
0.15 |
0.01 |
Adjusted EBITDA2, 3 |
10,913 |
37,256 |
138,083 |
129,364 |
Non-GAAP net income (loss)2 |
(2,274) |
2,536 |
40,091 |
4,980 |
Non-GAAP net income (loss) per share – basic and diluted2 |
(0.01) |
0.01 |
0.25 |
0.04 |
| 1 Refer to the Reconciliation of GAAP Results to Non‐GAAP Financial Measures table and to the Reconciliation of GAAP Net Income (Loss) to Adjusted EBITDA table at the end of this press release. Refer to Non-GAAP Financial Measures for additional information. |
2 Figures presented for the fourth quarter of 2024 collaboration revenue to Ironwood includes a |
3 Adjusted EBITDA is calculated by subtracting restructuring expenses, net interest expense, income taxes, depreciation and amortization and stock-based compensation, from GAAP net income (loss). The exclusion of stock-based compensation from Adjusted EBITDA represents an update to our definition of Adjusted EBITDA, effective in the first quarter of 2025. For comparison purposes, fourth quarter and full year 2024 Adjusted EBITDA have also been updated to reflect this updated definition. |
Fourth Quarter and Full Year 2025 Corporate Highlights
Apraglutide
- Apraglutide is a once weekly, long-acting synthetic glucagon-like peptide-2 (“GLP-2”) analog with the potential to treat a range of rare gastrointestinal diseases where GLP-2 can play a central role in addressing disease pathophysiology.
- Ironwood is advancing apraglutide for short bowel syndrome (“SBS”) patients dependent on parenteral support (“PS”), a severe chronic malabsorptive condition. Ironwood believes apraglutide has the potential to improve the standard of care for adult patients with SBS who are dependent on PS as the first and only GLP-2 to achieve a statistically significant reduction in parenteral support volume with once-weekly administration.
-
Ironwood met with the
U.S. Food and Drug Administration (“FDA”) in the fourth quarter of 2025 and aligned on key design elements of a confirmatory Phase 3 clinical trial (“STARS-2”) for patients with SBS-IF. STARS-2 is planned to be a 24-week global, randomized, double-blind, placebo-controlled trial. The clinical trial will consist of a primary endpoint measuring relative change from baseline in actual weekly PS volume as well as additional key secondary endpoints. Site initiations are expected to begin in the second quarter of 2026.
- Label Expansion: In November, the FDA approved LINZESS for the treatment of irritable bowel syndrome with constipation (IBS-C) in patients aged 7 years of age and older. In addition to expanding its clinical utility, this new indication establishes LINZESS as the first and only prescription drug approved for the treatment of IBS-C in patients 7-17 years old.
-
Prescription Demand: Total LINZESS prescription demand in the fourth quarter of 2025 was 63 million LINZESS capsules, a
13% increase compared to the fourth quarter of 2024, per IQVIA. Total prescription demand was 234 million LINZESS capsules for the full year 2025, a11% increase compared to the full year 2024, per IQVIA. -
U.S. Brand Collaboration: LINZESSU.S. net sales are provided to Ironwood by itsU.S. partner, AbbVie Inc. (“AbbVie”). LINZESSU.S. net sales were$163.2 million 27% decrease compared to$223.0 million $864.5 million 6% decrease compared to$916.3 million U.S. brand collaboration profits.-
Fourth quarter 2025 LINZESS
U.S. net sales decrease year-over-year was driven by unfavorable quarterly phasing of gross-to-net rebate reserves and increased net pricing headwinds associated with Medicare Part D redesign. As a reminder, gross-to-net rebate reserves in 2025 are based on rebates owed for units dispensed by channel in each applicable quarter. In its first quarter 2025 results, Ironwood stated that it expects gross-to-net rebate reserves based on units dispensed to impact quarterly phasing of 2025 LINZESSU.S. net sales. -
LINZESS commercial margin was
54% in the fourth quarter of 2025, compared to64% in the fourth quarter of 2024. LINZESS commercial margin was66% for the full year in 2025 and66% for the full year in 2024. See theU.S. LINZESS Full Brand Collaboration table at the end of this press release. -
Net profit for the LINZESS
U.S. brand collaboration, net of commercial and research and development (“R&D”) expenses, was$81.5 million 40% decrease compared to$135.2 million U.S. brand collaboration, net of commercial and R&D expenses, was$545.4 million 4% decrease compared to$570.9 million U.S. LINZESS Full Brand Collaboration table at the end of this press release.
-
Fourth quarter 2025 LINZESS
-
Collaboration Revenue to Ironwood: Ironwood recorded
$45.2 million U.S. , a49% decrease compared to$88.4 million $7.2 million $289.3 million U.S. , a15% decrease compared to$340.4 million U.S. LINZESS Commercial Collaboration table at the end of the press release.
Corporate Updates
-
In December 2025, Ironwood, VectivBio AG and Ferring International Center S.A. (“Ferring”) entered into a license amendment and a settlement agreement and release pursuant to which the parties have settled all claims between the parties arising out of Ferring’s complaint filed in the
U.S. District Court in the Eastern District ofTexas . As part of the agreed-upon license amendment, Ironwood agreed to pay Ferring$12.5 million $7.5 million $5.0 million
Fourth Quarter and Full Year 2025 Financial Results
-
Total Revenue. Total revenue in the fourth quarter of 2025 was
$47.7 million $90.5 million $296.2 million $351.4 million -
Total revenue in the fourth quarter of 2025 consisted of
$45.2 million U.S. , and$2.5 million $88.4 million U.S. , and$2.1 million -
Total revenue for the full year 2025 consisted of
$289.3 million U.S. and$6.9 million $340.4 million U.S. and$11.0 million
-
Total revenue in the fourth quarter of 2025 consisted of
-
Total Costs and Expenses. Total costs and expenses in the fourth quarter of 2025 were
$40.9 million $59.1 million $197.6 million $258.3 million -
Total costs and expenses in the fourth quarter of 2025 consisted of
$19.3 million $21.9 million $0.3 million $33.6 million $25.4 million $0.1 million -
In connection with the Ferring settlement, Ironwood recorded a charge of
$5.0 million
-
In connection with the Ferring settlement, Ironwood recorded a charge of
-
Total costs and expenses for the full year 2025 consisted primarily of
$82.3 million $95.1 million $20.3 million $144.3 million $111.4 million $2.6 million -
In connection with the Ferring settlement, Ironwood recorded a charge of
$12.5 million
-
In connection with the Ferring settlement, Ironwood recorded a charge of
-
Total costs and expenses in the fourth quarter of 2025 consisted of
-
Interest Expense. Interest expense was
$7.9 million $32.7 million $8.9 million $33.0 million -
Interest and Investment Income. Interest and investment income was
$1.5 million $4.1 million $0.8 million $4.5 million -
Other. Other income was
$0.1 million $0.2 million $0.6 million -
Income Tax Expense. Ironwood recorded
$2.7 million $46.0 million $21.7 million $64.3 million -
GAAP Net Income (Loss). GAAP net loss was
$2.3 million $(0.01) $2.3 million $0.01 $24.0 million $0.15 $0.9 million $0.01 -
Non-GAAP Net Income (Loss). Non-GAAP net loss was
$2.3 million $(0.01) $2.5 million $0.01 $40.1 million $0.25 $5.0 million $0.04 - Non-GAAP net income excludes the impact of amortization of acquired intangible assets, restructuring expenses and acquisition-related costs, all net of tax effect. See Non-GAAP Financial Measures below.
-
Adjusted EBITDA. Adjusted EBITDA was
$10.9 million $37.3 million $138.1 million $129.4 million - Adjusted EBITDA is calculated by subtracting stock-based compensation, restructuring expenses, net interest expense, income taxes, depreciation and amortization, and acquisition-related costs, from GAAP net income (loss). See Non-GAAP Financial Measures below.
-
Cash Flow Highlights. Ironwood ended the fourth quarter of 2025 with
$215.5 million $88.6 million -
The outstanding principal balance on the revolving credit facility was
$385.0 million -
Ironwood generated
$74.6 million $15.2 million $127.0 million $103.5 million
-
The outstanding principal balance on the revolving credit facility was
- Ironwood 2026 Financial Guidance. Ironwood continues to expect:
|
2026 Guidance (February 2026) |
|
Driven by improved net price and low-single digit percentage demand growth |
Total Revenue1 |
|
Adjusted EBITDA2 |
> |
1 Ironwood’s |
2 Adjusted EBITDA is calculated by subtracting stock-based compensation, restructuring expenses, net interest expense, income taxes, and depreciation and amortization, from GAAP net income (loss). For purposes of this guidance, we have assumed that Ironwood will not incur material expenses related to business development activities in 2026. Ironwood does not provide guidance on GAAP net income or a reconciliation of expected adjusted EBITDA to expected GAAP net income because, without unreasonable efforts, it is unable to predict with reasonable certainty the non-GAAP adjustments used to calculate adjusted EBITDA. These adjustments are uncertain, depend on various factors and could have a material impact on GAAP net income for the guidance period. Management believes this non-GAAP information is useful for investors, taken in conjunction with Ironwood’s GAAP financial statements, because it provides greater transparency and period-over-period comparability with respect to Ironwood’s operating performance. These measures are also used by management to assess the performance of the business. Investors should consider these non-GAAP measures only as a supplement to, not as a substitute for or as superior to, measures of financial performance prepared in accordance with GAAP. In addition, these non-GAAP financial measures are unlikely to be comparable with non-GAAP information provided by other companies. |
Non-GAAP Financial Measures
Ironwood presents non-GAAP net income (loss) and non-GAAP net income (loss) per share to exclude amortization of acquired intangible assets, restructuring expenses, and acquisition-related costs, all net of tax effect. Non-GAAP adjustments are further detailed below:
- Amortization of acquired intangible assets are non-cash expenses arising in connection with the acquisition of VectivBio and are considered to be non-recurring.
- Restructuring expenses are considered to be a non-recurring event as they are associated with distinct operational decisions. Restructuring expenses include costs associated with exit and disposal activities.
- Acquisition-related costs in connection with the acquisition of VectivBio are considered to be non-recurring and include direct and incremental costs associated with the acquisition and integration of VectivBio to the extent such costs were not classified as capitalizable transaction costs attributed to the cost of net assets acquired through acquisition accounting.
Ironwood also presents adjusted EBITDA, a non-GAAP measure, as well as guidance on adjusted EBITDA. Adjusted EBITDA is calculated by subtracting stock-based compensation, restructuring expenses, net interest expense, income taxes, depreciation and amortization, and acquisition-related costs from GAAP net income. The adjustments are made on a similar basis as described above related to non-GAAP net income (loss), as applicable.
Management believes this non-GAAP information is useful for investors, taken in conjunction with Ironwood’s GAAP financial statements, because it provides greater transparency and period-over-period comparability with respect to Ironwood’s operating performance. These measures are also used by management to assess the performance of the business. Investors should consider these non-GAAP measures only as a supplement to, not as a substitute for or as superior to, measures of financial performance prepared in accordance with GAAP. In addition, these non-GAAP financial measures are unlikely to be comparable with non-GAAP information provided by other companies. For a reconciliation of non-GAAP net income (loss) and non-GAAP net income (loss) per share to GAAP net income (loss) and GAAP net income (loss) per share, respectively, and for a reconciliation of adjusted EBITDA to GAAP net income (loss), please refer to the tables at the end of this press release.
Ironwood does not provide guidance on GAAP net income or a reconciliation of expected adjusted EBITDA to expected GAAP net income because, without unreasonable efforts, it is unable to predict with reasonable certainty the non-GAAP adjustments used to calculate adjusted EBITDA. These adjustments are uncertain, depend on various factors and could have a material impact on GAAP net income for the guidance period.
Conference Call Information
Ironwood will host a conference call and webcast at 8:30 a.m. Eastern Time on Wednesday, February 25th, 2026 to discuss its fourth quarter and full year 2025 results and recent business activities. Individuals interested in participating in the call should dial (888) 596-4144 (
About Ironwood Pharmaceuticals
Ironwood Pharmaceuticals (Nasdaq: IRWD) is a biotechnology company developing and commercializing life-changing therapies for people living with gastrointestinal (GI) and rare diseases. Ironwood is advancing apraglutide, a next-generation, long-acting synthetic GLP-2 analog being developed for short bowel syndrome patients who are dependent on parenteral support. In addition, Ironwood has been a pioneer in the development of LINZESS® (linaclotide), the
Founded in 1998, Ironwood Pharmaceuticals is headquartered in
We routinely post information that may be important to investors on our website at www.ironwoodpharma.com. In addition, follow us on X and on LinkedIn.
About Short Bowel Syndrome (SBS)
SBS is a serious and chronic condition where there is diminished absorptive capacity for fluids and/or nutrients, sometimes requiring dependence on parenteral support to maintain health. SBS typically occurs because of extensive intestinal resection, and patients with SBS who are chronically dependent on parenteral support, also referred to as SBS with intestinal failure (SBS-IF), often experience significant quality of life impact and are at risk of severe complications such as infection. An estimated 18,000 adult patients suffer from SBS-IF in the
About LINZESS (Linaclotide)
LINZESS® is the #1 prescribed brand in the
LINZESS is not a laxative; it is the first medicine approved by the FDA in a class called GC-C agonists. LINZESS contains a peptide called linaclotide that activates the GC-C receptor in the intestine. Activation of GC-C is thought to result in increased intestinal fluid secretion and accelerated transit and a decrease in the activity of pain-sensing nerves in the intestine. The clinical relevance of the effect on pain fibers, which is based on nonclinical studies, has not been established.
In
LINZESS Important Safety Information
INDICATIONS AND USAGE
LINZESS® (linaclotide) is indicated for the treatment of irritable bowel syndrome with constipation (IBS-C) in adults and pediatric patients 7 years of age and older and for the treatment of chronic idiopathic constipation (CIC) in adults and for the treatment of functional constipation (FC) in children and adolescents 6 to 17 years of age.
IMPORTANT SAFETY INFORMATION
WARNING: RISK OF SERIOUS DEHYDRATION IN PEDIATRIC PATIENTS LESS THAN 2 YEARS OF AGE
LINZESS is contraindicated in patients less than 2 years of age. In nonclinical studies in neonatal mice, administration of a single, clinically relevant adult oral dose of linaclotide caused deaths due to dehydration. |
Contraindications
- LINZESS is contraindicated in patients less than 2 years of age due to the risk of serious dehydration.
- LINZESS is contraindicated in patients with known or suspected mechanical gastrointestinal obstruction.
Warnings and Precautions
- LINZESS is contraindicated in patients less than 2 years of age. In neonatal mice, linaclotide increased fluid secretion as a consequence of age-dependent elevated guanylate cyclase (GC-C) agonism, which was associated with increased mortality within the first 24 hours due to dehydration. There was no age dependent trend in GC-C intestinal expression in a clinical study of children 2 to less than 18 years of age; however, there are insufficient data available on GC-C intestinal expression in children less than 2 years of age to assess the risk of developing diarrhea and its potentially serious consequences in these patients.
Diarrhea
-
In adults, diarrhea was the most common adverse reaction in LINZESS-treated patients in the pooled IBS-C and CIC double-blind placebo-controlled trials. The incidence of diarrhea was similar in the IBS-C and CIC populations. Severe diarrhea was reported in
2% of 145 mcg and 290 mcg LINZESS-treated patients and in <1% of 72 mcg LINZESS-treated CIC patients. -
In pediatric patients, diarrhea was also the most common adverse reaction of LINZESS-treated patients in IBS-C and FC clinical trials. In two double-blind trials, diarrhea was reported in
4% of pediatric patients 6 to 17 years of age with FC treated with LINZESS 72 mcg once daily, and7% and8% of pediatric patients 7 to 17 years of age with IBS-C treated with LINZESS 145 mcg and 290 mcg once daily, respectively. In clinical trials, severe diarrhea was reported in one pediatric patient with FC treated with LINZESS 72 mcg once daily and in one pediatric patient with IBS-C treated with LINZESS at a dosage higher than the recommended 145 mcg once daily dosage for IBS-C.
Common Adverse Reactions (incidence ≥
- In IBS-C or CIC adult patients: diarrhea, abdominal pain, flatulence, and abdominal distension.
- Most common adverse reaction reported in pediatric patients with FC or IBS-C is diarrhea.
Please see full Prescribing Information including Boxed Warning: https://www.rxabbvie.com/pdf/linzess_pi.pdf
LINZESS® and CONSTELLA® are registered trademarks of Ironwood Pharmaceuticals, Inc. Any other trademarks referred to in this press release are the property of their respective owners. All rights reserved.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Investors are cautioned not to place undue reliance on these forward-looking statements, including statements about Ironwood’s ability to execute on its mission; Ironwood’s strategy, business, financial position and operations; Ironwood’s ability to drive growth and profitability; the commercial potential of LINZESS; Ironwood’s financial performance and results, and guidance and expectations related thereto; LINZESS
Condensed Consolidated Balance Sheets (In thousands) (unaudited) |
|||||||
|
|
December 31, 2025 |
December 31, 2024 |
||||
Assets |
|
|
|
||||
Cash and cash equivalents |
|
$ |
215,456 |
|
$ |
88,559 |
|
Accounts receivable, net |
|
|
46,745 |
|
|
81,886 |
|
Prepaid expenses and other current assets |
|
|
11,977 |
|
|
11,923 |
|
Total current assets |
|
|
274,178 |
|
|
182,368 |
|
Property and equipment, net |
|
|
3,408 |
|
|
4,495 |
|
Operating lease right-of-use assets |
|
|
9,340 |
|
|
11,028 |
|
Intangible assets, net |
|
|
2,040 |
|
|
2,860 |
|
Deferred tax assets |
|
|
103,433 |
|
|
144,234 |
|
Other assets |
|
|
4,502 |
|
|
5,923 |
|
Total assets |
|
$ |
396,901 |
|
$ |
350,908 |
|
Liabilities and stockholders’ equity |
|
|
|
||||
Accounts payable |
|
$ |
2,898 |
|
$ |
2,127 |
|
Accrued research and development costs |
|
|
3,149 |
|
|
6,681 |
|
Accrued expenses and other current liabilities |
|
|
33,239 |
|
|
26,849 |
|
Current portion of operating lease liabilities |
|
|
3,252 |
|
|
3,189 |
|
Current portion on convertible senior notes |
|
|
199,680 |
|
|
- |
|
Total current liabilities |
|
|
242,218 |
|
|
38,846 |
|
Operating lease liabilities, net of current portion |
|
|
9,870 |
|
|
12,304 |
|
Convertible senior notes, net of current portion |
|
|
- |
|
|
198,988 |
|
Revolving credit facility |
|
|
385,000 |
|
|
385,000 |
|
Other liabilities |
|
|
21,648 |
|
|
17,105 |
|
Total stockholders’ deficit |
|
|
(261,835 |
) |
|
(301,335 |
) |
Total liabilities and stockholders’ deficit |
|
$ |
396,901 |
|
$ |
350,908 |
|
Condensed Consolidated Statements of Income (Loss) (In thousands, except per share amounts) (unaudited) |
|||||||||||||||
|
Three Months Ended December 31, |
Twelve Months Ended December 31, |
|||||||||||||
|
|
2025 |
|
|
2024 |
|
|
2025 |
|
|
2024 |
|
|||
Total revenues1 |
$ |
47,709 |
|
$ |
90,545 |
|
$ |
296,151 |
|
$ |
351,410 |
|
|||
|
|
|
|
|
|||||||||||
Costs and expenses: |
|
|
|
|
|||||||||||
Research and development |
|
21,863 |
|
|
25,391 |
|
|
95,136 |
|
|
111,421 |
|
|||
Selling, general and administrative |
|
19,293 |
|
|
33,590 |
|
|
82,256 |
|
|
144,272 |
|
|||
Restructuring, net |
|
(252 |
) |
|
73 |
|
|
20,257 |
|
|
2,593 |
|
|||
Total costs and expenses |
|
40,904 |
|
|
59,054 |
|
|
197,649 |
|
|
258,286 |
|
|||
Income from operations |
|
6,805 |
|
|
31,491 |
|
|
98,502 |
|
|
93,124 |
|
|||
Other income (expense): |
|
|
|
|
|||||||||||
Interest expense and other financing costs |
|
(7,886 |
) |
|
(8,914 |
) |
|
(32,746 |
) |
|
(33,034 |
) |
|||
|
|
||||||||||||||
Interest and investment income |
|
1,459 |
|
778 |
|
|
4,076 |
|
|
4,468 |
|
||||
|
|
|
|
|
|||||||||||
Other |
|
77 |
|
|
640 |
|
|
193 |
|
|
640 |
|
|||
Other income (expense), net |
|
(6,350 |
) |
|
(7,496 |
) |
|
(28,477 |
) |
|
(27,926 |
) |
|||
Income before income taxes |
|
455 |
|
|
23,995 |
|
|
70,025 |
|
|
65,198 |
|
|||
Income tax expense |
|
(2,731 |
) |
|
(21,739 |
) |
|
(46,008 |
) |
|
(64,318 |
) |
|||
GAAP net income (loss) |
$ |
(2,276 |
) |
$ |
2,256 |
|
$ |
24,017 |
|
$ |
880 |
|
|||
|
|
|
|
|
|||||||||||
GAAP net income (loss) per share—basic and diluted |
$ |
(0.01 |
) |
$ |
0.01 |
|
$ |
0.15 |
|
$ |
0.01 |
|
|||
| ____________________ |
1 Figures presented for the fourth quarter of 2024 collaboration revenue to Ironwood includes a |
Reconciliation of GAAP Results to Non-GAAP Financial Measures (In thousands, except per share amounts) (unaudited) |
|||||||||||||||
A reconciliation between net income (loss) on a GAAP basis and on a non-GAAP basis is as follows: |
|||||||||||||||
|
|
Three Months Ended December 31, |
Twelve Months Ended December 31, |
||||||||||||
|
|
2025 |
|
|
|
2024 |
|
|
2025 |
|
|
|
2024 |
|
|
GAAP net income (loss) |
$ |
(2,276 |
) |
$ |
2,256 |
$ |
24,017 |
|
$ |
880 |
|
||||
Adjustments: |
|
|
|
||||||||||||
Amortization of acquired intangible assets |
|
207 |
|
|
207 |
|
820 |
|
|
822 |
|
||||
Restructuring expenses, net |
|
(252 |
) |
|
73 |
|
20,257 |
|
|
2,593 |
|
||||
Acquisition-related costs |
|
- |
|
|
- |
|
- |
|
|
1,146 |
|
||||
Tax effect of adjustments |
|
47 |
|
|
- |
|
(5,003 |
) |
|
(461 |
) |
||||
Non-GAAP net income (loss) |
$ |
(2,274 |
) |
$ |
2,536 |
$ |
40,091 |
|
$ |
4,980 |
|
||||
A reconciliation between basic net income (loss) per share on a GAAP basis and on a non-GAAP basis is as follows: |
||||||||||||
|
Three Months Ended December 31, |
Twelve Months Ended December 31, |
||||||||||
|
|
2025 |
|
2024 |
2025 |
2024 |
||||||
GAAP net income (loss) per share – basic |
$ |
(0.01 |
) |
$ |
0.01 |
$ |
0.15 |
$ |
0.01 |
|||
Plus: Net income (loss) per share – basic |
||||||||||||
Adjustments to GAAP net income (loss) per share
|
|
- |
|
|
- |
|
0.10 |
|
0.03 |
|||
Non-GAAP net income (loss) per share – basic |
$ |
(0.01 |
) |
$ |
0.01 |
$ |
0.25 |
$ |
0.04 |
|||
Weighted average number of common shares used to calculate net income (loss) per share — basic |
|
162,437 |
|
|
159,895 |
|
161,842 |
|
159,083 |
|||
A reconciliation between diluted net income (loss) per share on a GAAP basis and on a non-GAAP basis is as follows: |
||||||||||||
|
Three Months Ended December 31, |
Twelve Months Ended December 31, |
||||||||||
|
|
2025 |
|
|
2024 |
|
2025 |
|
2024 |
|||
GAAP net income (loss) per share – diluted |
$ |
(0.01 |
) |
$ |
0.01 |
$ |
0.15 |
$ |
0.01 |
|||
Plus: Net income (loss) per share – diluted |
||||||||||||
Adjustments to GAAP net income per share
|
|
- |
|
|
- |
|
0.10 |
|
0.03 |
|||
Non-GAAP net income (loss) per share – diluted |
$ |
(0.01 |
) |
$ |
0.01 |
$ |
0.25 |
$ |
0.04 |
|||
Weighted average number of common shares used to calculate net income (loss) per share — diluted |
162,437 |
160,419 |
162,983 |
160,084 |
||||||||
Reconciliation of GAAP Net Income (Loss) to Adjusted EBITDA (In thousands) (unaudited) |
||||||||||||||||
A reconciliation of GAAP net income (loss) to adjusted EBITDA: |
||||||||||||||||
|
|
Three Months Ended December 31, |
Twelve Months Ended December 31, |
|||||||||||||
|
|
2025 |
|
|
|
2024 |
|
|
|
2025 |
|
|
|
2024 |
|
|
GAAP net income (loss) |
$ |
(2,276 |
) |
$ |
2,256 |
|
$ |
24,017 |
|
$ |
880 |
|
||||
Adjustments: |
|
|
||||||||||||||
Stock-based compensation |
|
3,823 |
|
|
4,566 |
|
|
17,250 |
|
|
29,850 |
|
||||
Restructuring expenses, net |
|
(252 |
) |
|
73 |
|
|
20,257 |
|
|
2,593 |
|
||||
Interest expense |
|
7,886 |
|
|
8,915 |
|
|
32,746 |
|
|
33,034 |
|
||||
Interest and investment income |
|
(1,459 |
) |
|
(778 |
) |
|
(4,076 |
) |
|
(4,468 |
) |
||||
Income tax expense |
|
2,731 |
|
|
21,739 |
|
|
46,008 |
|
|
64,318 |
|
||||
Depreciation and amortization |
|
460 |
|
|
485 |
|
|
1,881 |
|
|
2,011 |
|
||||
Acquisition-related costs |
|
- |
|
|
- |
|
|
- |
|
|
1,146 |
|
||||
Adjusted EBITDA1 |
$ |
10,913 |
|
$ |
37,256 |
|
$ |
138,083 |
|
$ |
129,364 |
|
||||
| ____________________ |
1 Adjusted EBITDA is calculated by subtracting restructuring expenses, net interest expense, income taxes, depreciation and amortization and stock-based compensation, from GAAP net income. The exclusion of stock-based compensation from Adjusted EBITDA represents an update to our definition of Adjusted EBITDA, effective in the first quarter of 2025. For comparison purposes, Adjusted EBITDA for three months and twelve months ended December 31, 2024 have also been updated to reflect this updated definition. |
Revenue/Expense Calculation (In thousands) (unaudited) |
|||||||||||||||
|
|
|
|
|
|||||||||||
|
Three Months Ended December 31, |
Twelve Months Ended December 31, |
|||||||||||||
|
|
2025 |
|
|
|
2024 |
|
|
|
2025 |
|
|
|
2024 |
|
LINZESS |
$ |
163,173 |
|
$ |
222,961 |
|
$ |
864,507 |
|
$ |
916,281 |
|
|||
AbbVie & Ironwood commercial costs, expenses and other discounts3 |
|
74,468 |
|
|
80,527 |
|
|
294,087 |
|
|
313,338 |
|
|||
Commercial profit on sales of LINZESS |
$ |
88,705 |
|
$ |
142,434 |
|
$ |
570,421 |
|
$ |
602,943 |
|
|||
Commercial Margin4 |
|
54 |
% |
|
64 |
% |
|
66 |
% |
|
66 |
% |
|||
|
|
|
|
||||||||||||
|
|
|
|
||||||||||||
Ironwood’s share of net profit |
|
44,353 |
|
|
71,217 |
|
|
285,211 |
|
|
301,472 |
|
|||
Reimbursement for Ironwood’s commercial expenses |
|
866 |
|
|
9,961 |
|
|
4,105 |
|
|
38,922 |
|
|||
Adjustment for Ironwood’s estimate of LINZESS gross-to-net reserves |
|
- |
|
|
7,200 |
|
|
- |
|
|
- |
|
|||
Ironwood’s |
$ |
45,219 |
|
$ |
88,378 |
|
$ |
289,316 |
|
$ |
340,394 |
|
|||
| ____________________ |
1 The purpose of this table is to present calculations of Ironwood’s share of net profit (loss) generated from the sales of LINZESS in the |
2 LINZESS net sales are recognized using AbbVie’s revenue recognition accounting policies and reporting conventions. As a result, certain rebates and discounts are classified as LINZESS |
3 Includes certain discounts recognized and cost of goods sold incurred by AbbVie; also includes commercial costs incurred by AbbVie and Ironwood that are attributable to the cost-sharing arrangement between the parties. |
4 Commercial margin is defined as commercial profit on sales of LINZESS as a percent of total LINZESS |
5 Figures presented for the three months ended December 31, 2024 include a |
US LINZESS Full Brand Collaboration1 Revenue/Expense Calculation (In thousands) (unaudited) |
|||||||||||
|
Three Months Ended December 31, |
Twelve Months Ended December 31, |
|||||||||
|
2025 |
2024 |
2025 |
2024 |
|||||||
LINZESS |
$ |
163,173 |
$ |
222,961 |
$ |
864,507 |
$ |
916,281 |
|||
AbbVie & Ironwood commercial costs, expenses and other discounts3 |
|
74,468 |
|
80,527 |
|
294,087 |
|
313,338 |
|||
AbbVie & Ironwood R&D Expenses4 |
|
7,194 |
|
7,238 |
|
25,061 |
|
32,061 |
|||
Total net profit on sales of LINZESS |
$ |
81,511 |
$ |
135,196 |
$ |
545,359 |
$ |
570,882 |
|||
| ____________________ |
1 Ironwood collaborates with AbbVie on the development and commercialization of linaclotide in |
2 LINZESS net sales are recognized using AbbVie’s revenue recognition accounting policies and reporting conventions. As a result, certain rebates and discounts are classified as LINZESS |
3 Includes certain discounts recognized and cost of goods sold incurred by AbbVie; also includes commercial costs incurred by AbbVie and Ironwood that are attributable to the cost-sharing arrangement between the parties. |
4 Expenses related to LINZESS in the |
View source version on businesswire.com: https://www.businesswire.com/news/home/20260225567986/en/
Company contact:
Greg Martini
Chief Financial Officer
gmartini@ironwoodpharma.com
Investors:
Precision AQ (formerly Stern Investor Relations)
Stephanie Ascher
Stephanie.Ascher@precisionaq.com
Source: Ironwood Pharmaceuticals, Inc.
