Ironwood Pharmaceuticals Reports Fourth Quarter and Full Year 2025 Results; Achieves 2025 Financial Guidance and Reiterates Strong 2026 Outlook

BOSTON--( BUSINESS WIRE)-- Ironwood Pharmaceuticals, Inc. (Nasdaq: IRWD), a biotechnology company developing and commercializing life‑changing therapies for people living with gastrointestinal (GI) and rare diseases, today reported its fourth quarter and full‑year 2025 results and recent business performance.

“In 2025, LINZESS delivered 11% EUTRx demand growth year-over-year, continuing to strengthen its position as the prescription market leader for the treatment of IBS-C and CIC, surpassing 5.7 million unique patients treated since launch. Additionally, throughout 2025 our disciplined approach to expense management allowed us to navigate LINZESS pricing headwinds, deliver $24 million in GAAP net income and $138 million in adjusted EBITDA and generate $127 million in cash flow from operations,” said Tom McCourt, chief executive officer of Ironwood. “Importantly, we ended 2025 with $215 million in cash and cash equivalents, positioning Ironwood well for 2026.”

“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 U.S. Net Sales and disciplined expense management to drive greater than $300 million in adjusted EBITDA, enabling us to continue advancing apraglutide and reduce our debt to further strengthen our financial position. We believe apraglutide has the potential to redefine the standard of care for patients living with SBS-IF and look forward to initiating sites for the confirmatory Phase 3 clinical trial, STARS-2, in the second quarter of this year. With an improved financial position, we now have a clear path to execute our strategy, and we continue to evaluate all options to maximize shareholder value.”

Fourth Quarter and Full Year 2025 Financial Highlights 1

(in thousands, except for per share amounts)

Q4 2025

Q4 2024

FY 2025

FY 2024

Total revenue 2

$47,709

$90,545

296,151

$351,410

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 diluted 2

(0.01)

0.01

0.15

0.01

Adjusted EBITDA 2, 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 diluted 2

(0.01)

0.01

0.25

0.04

2 Figures presented for the fourth quarter of 2024 collaboration revenue to Ironwood includes a $7.2 million positive adjustment to reflect Ironwood’s estimate of LINZESS gross‑to‑net reserves as of December 31, 2024.

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

U.S. LINZESS

Corporate Updates

Fourth Quarter and Full Year 2025 Financial Results

2026 Guidance

(February 2026)

U.S. LINZESS Net Sales

$1.125 - $1.175 billion

Driven by improved net price and low-single digit percentage demand growth

Total Revenue 1

$450 - $475 million

Adjusted EBITDA 2

>$300 million

1 Ironwood’s U.S. collaborative arrangements revenue includes reimbursement from AbbVie for a portion of Ironwood’s commercial expenses related to sales of LINZESS in the U.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:

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 25 th, 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 (U.S. and Canada) or (646) 968-2525 (international) using conference ID number and event passcode 2530602. To access the webcast, please visit the Investors section of Ironwood’s website at www.ironwoodpharma.com. The call will be available for replay via telephone starting Wednesday, February 25 th, 2026, at approximately 11:30 a.m. Eastern Time, running through 11:59 p.m. Eastern Time on Wednesday, March 11, 2026. To listen to the replay, dial (800) 770-2030 (U.S. and Canada) or (609) 800-9909 (international) using conference ID number 2530602. The archived webcast will be available on Ironwood’s website for 1 year beginning approximately one hour after the call has completed.

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 U.S. branded prescription market leader for the treatment of irritable bowel syndrome with constipation (IBS-C) or chronic idiopathic constipation (CIC). Building upon our history of innovation, we keep patients at the heart of our R&D and commercialization efforts to reduce the burden of diseases and address significant unmet needs.

Founded in 1998, Ironwood Pharmaceuticals is headquartered in Boston, Massachusetts, with a site in Basel, Switzerland.

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 U.S., Europe and Japan, and have chronic dependence on PS, which significantly impacts quality of life and carries the risk of severe complications such as infection. Those with the most severe SBS-IF require PS infusions for up to 10 to 15 hours per day. SBS-IF is associated with frequent complications, significant morbidity and mortality, high economic burden and an impaired quality of life.

About LINZESS (Linaclotide)

LINZESS® is the #1 prescribed brand in the U.S. for the treatment of patients with irritable bowel syndrome with constipation (“IBS-C”) or chronic idiopathic constipation (“CIC”), based on IQVIA data. LINZESS is a once-daily capsule that helps relieve the abdominal pain and constipation, associated with IBS-C in adults and pediatric patients 7 years of age and older. LINZESS has also been shown to relieve constipation, infrequent stools, hard stools, straining, and incomplete evacuation associated with CIC in adult patients. LINZESS relieves constipation in children and adolescents aged 6 to 17 years with functional constipation.

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 the United States, Ironwood and AbbVie co-develop and co-commercialize LINZESS for the treatment of adults with IBS-C or CIC. In Europe, AbbVie markets linaclotide under the brand name CONSTELLA® for the treatment of adults with moderate to severe IBS-C. In Japan, Ironwood's partner, Astellas, markets linaclotide under the brand name LINZESS for the treatment of adults with IBS-C or CIC. Ironwood also has partnered with AstraZeneca for development and commercialization of LINZESS in China, and with AbbVie for development and commercialization of linaclotide in all other territories worldwide.

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

Warnings and Precautions

Diarrhea

Common Adverse Reactions (incidence ≥2% and greater than placebo)

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 U.S. net sales, total revenues and adjusted EBITDA in 2026; Ironwood’s belief that its full-year 2026 financial guidance demonstrates the significant progress it made to deliver on its key priorities and its ability to drive increase shareholder value; Ironwood’s expectation that the 2026 LINZESS U.S. net sales adjusted EBITDA goals will enable the company to continue advancing apraglutide and reduce debt to further strengthen its financial position; Ironwood’s plan to continue to evaluate all options to maximize shareholder value; the belief that apraglutide has the potential to redefine the standard of care for patients living with SBS-IF; and the expectation and timing of site initiations of the confirmatory Phase 3 clinical trial, STARS-2, for apraglutide. These forward-looking statements speak only as of the date of this press release, and Ironwood undertakes no obligation to update these forward-looking statements. Each forward-looking statement is subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied in such statements. Applicable risks and uncertainties include those related to the effectiveness of development and commercialization efforts by us and our partners; preclinical and clinical development, manufacturing and formulation development of linaclotide, apraglutide, and our other product candidates; the risk of uncertainty relating to pricing and reimbursement policies in the U.S., which, if not favorable for our products, could hinder or prevent our products’ commercial success; the risk that clinical programs and studies, including for linaclotide pediatric programs and apraglutide, may not progress or develop as anticipated, including that studies are delayed or discontinued for any reason, such as safety, tolerability, enrollment, manufacturing, economic or other reasons; the risk that findings from our completed nonclinical studies and clinical trials may not be replicated in later trials and earlier-stage clinical trials may not be predictive of the results we may obtain in later-stage clinical trials or of the likelihood of regulatory approval; the risk that apraglutide will not be approved by the FDA or other regulatory agencies; the risk of competition or that new products may emerge that provide different or better alternatives for treatment of the conditions that our products are approved to treat; the risk that we are unable to execute on our strategy to in-license externally developed products or product candidates; the risk that we are unable to successfully partner with other companies to develop and commercialize products or product candidates; the risk that healthcare reform and other governmental and private payor initiatives may have an adverse effect upon or prevent our products’ or product candidates’ commercial success; the efficacy, safety and tolerability of linaclotide and our product candidates; the risk that the commercial and therapeutic opportunities for LINZESS, apraglutide or our other product candidates are not as we expect; decisions by regulatory and judicial authorities; the risk we may never get additional patent protection for linaclotide, apraglutide and other product candidates, that patents for linaclotide, apraglutide or other products may not provide adequate protection from competition, or that we are not able to successfully protect such patents; the risk that we are unable to manage our expenses or cash use, or are unable to commercialize our products as expected; the risk that the development of any of our linaclotide pediatric programs and/or apraglutide is not successful or that any of our product candidates does not receive regulatory approval or is not successfully commercialized; outcomes in legal proceedings to protect or enforce the patents relating to our products and product candidates, including abbreviated new drug application litigation; the risk that financial and operating results may differ from our projections; developments in the intellectual property landscape; challenges from and rights of competitors or potential competitors; the risk that our planned investments do not have the anticipated effect on our company revenues; developments in accounting guidance or practice; Ironwood’s or AbbVie’s accounting practices, including reporting and settlement practices as between Ironwood and AbbVie; the risk that our indebtedness could adversely affect our financial condition or restrict our future operations; and the risks listed under the heading “Risk Factors” and elsewhere in our Annual Report on Form 10-K for the year ended December 31, 2024, and in our subsequent Securities and Exchange Commission filings.

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

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 revenues 1

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

)

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

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 $7.2 million positive adjustment to reflect Ironwood’s estimate of LINZESS gross‑to‑net reserves as of December 31, 2024.

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

820

822

Restructuring expenses, net

(252

)

20,257

2,593

Acquisition-related costs

1,146

Tax effect of adjustments

(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

(as detailed above)

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

(as detailed above)

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

)

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 EBITDA 1

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.

U.S. LINZESS Commercial Collaboration 1

Revenue/Expense Calculation

(In thousands)

(unaudited)

Three Months Ended

December 31,

Twelve Months Ended

December 31,

2025

2024

2025

2024

LINZESS U.S. net sales as reported by AbbVie 2

163,173

222,961

864,507

916,281

AbbVie & Ironwood commercial costs, expenses and other discounts 3

74,468

80,527

294,087

313,338

Commercial profit on sales of LINZESS

88,705

142,434

570,421

602,943

Commercial Margin 4

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 U.S. collaborative arrangements revenue 5

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 U.S. and Ironwood’s collaboration revenue/expense; however, the table does not present the research and development expenses related to LINZESS in the U.S. that are shared equally between the parties under the collaboration agreement. Please refer to the table at the end of this press release for net profit for the U.S. LINZESS brand collaboration with AbbVie.

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 U.S. commercial costs, expenses and other discounts within Ironwood’s calculation of collaborative arrangements revenue.

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 U.S. net sales.

5 Figures presented for the three months ended December 31, 2024 include a $7.2 million increase to collaborative arrangement revenues, as a result of an adjustment recorded for Ironwood’s estimate of LINZESS gross-to-net reserves as of December 31, 2024.

US LINZESS Full Brand Collaboration 1

Revenue/Expense Calculation

(In thousands)

(unaudited)

Three Months Ended

December 31,

Twelve Months Ended

December 31,

2025

2024

2025

2024

LINZESS U.S. net sales as reported by AbbVie 2

163,173

222,961

864,507

916,281

AbbVie & Ironwood commercial costs, expenses and other discounts 3

74,468

80,527

294,087

313,338

AbbVie & Ironwood R&D Expenses 4

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 North America. Under the terms of the collaboration agreement, Ironwood receives 50% of the net profits and bears 50% of the net losses from the commercial sale of LINZESS in the U.S. The purpose of this table is to present calculations of the total net profit (loss) generated from the sales of LINZESS in the U.S., including the commercial costs and expenses and the research and development expenses related to LINZESS in the U.S. that are shared equally between the parties under the collaboration agreement.

4 Expenses related to LINZESS in the U.S. are shared equally between Ironwood and AbbVie under the collaboration agreement.