Ironwood Pharmaceuticals Raises Full-Year 2026 Financial Guidance Driven by Continued LINZESS U.S. Net Sales Growth and Strong Third Quarter Financial Performance
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 third quarter 2026 results and recent business performance update.
“Ironwood delivered a third consecutive strong quarter as we continue focused execution of our three strategic priorities: maximize LINZESS, advance apraglutide and deliver sustained profits and cash flows. We believe LINZESS is on its way to returning to blockbuster status for 2026 with year-to-date U.S. net sales already surpassing total 2025 U.S. net sales, primarily driven by improved net price and mid-single-digit prescription demand growth. This gives us confidence to increase full-year 2026 financial guidance for the second consecutive quarter,” said Ironwood Chief Executive Officer Tom McCourt.
“In addition to driving strong financial performance, we are ramping up the STARS-2 confirmatory Phase 3 trial of apraglutide in people living with short bowel syndrome with intestinal failure. As we continue to add trial sites in the U.S., all of the planned clinical trial applications have been submitted to international health authorities and are now under review or already approved. Our current focus is on activating sites as quickly as possible to accelerate the trial as we work toward the goal of bringing apraglutide to patients,” McCourt continued.
Third Quarter 2026 Financial Highlights 1
(in thousands, except for per share amounts)
Q3 2026
Q3 2025
Total revenue
$
133,040
$
122,060
Total costs and expenses
39,906
46,576
GAAP net income
59,838
40,080
GAAP net income – per share basic
0.36
0.25
GAAP net income – per share diluted
0.36
0.23
Adjusted EBITDA 1
97,925
81,811
Non-GAAP net income
60,045
41,933
Non-GAAP net income per share – basic
0.36
0.26
Non-GAAP net income per share – diluted
0.36
0.24
Third Quarter Corporate Highlights
U.S. LINZESS
Apraglutide
Corporate Updates
Third Quarter 2026 Financial Results
Prior 2026 Guidance
(August 2026)
Updated 2026 Guidance
(November 2026)
U.S. LINZESS Net Sales
$1.15 - $1.20 billion
Driven by improved net price and mid-single digit percentage demand growth
$1.20 - $1.25 billion
Driven by improved net price and mid-single digit percentage demand growth
Total Revenue 1
$460 - $485 million
$485 - $510 million
Adjusted EBITDA 2
>$310 million
>$350 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, net restructuring expenses, net interest expense, income taxes, depreciation and amortization from GAAP net income. 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 and non-GAAP net income per share to exclude amortization of acquired intangible assets and net restructuring expenses, 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, net restructuring expenses, net interest expense, income taxes, depreciation and amortization from GAAP net income. The adjustments are made on a similar basis as described above related to non-GAAP net income, 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 and non-GAAP net income per share to GAAP net income and GAAP net income per share, respectively, and for a reconciliation of adjusted EBITDA to GAAP net income, 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 Thursday, November 5 th, 2026, to discuss its third quarter results and recent business activities. Individuals interested in participating in the call should dial (833) 461-5787 (U.S.) or (585) 542-9983 (international) using conference ID number and event passcode 496523279. 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 Thursday, November 5 th, 2026, at approximately 11:30 a.m. Eastern Time, running through 11:59 p.m. Eastern Time on Thursday, November 19 th, 2026. To listen to the replay, dial (833) 309-1852 (U.S.) or (929) 828-5978 (international) using conference ID number 496523279. Following the call, a replay of the webcast will be available on the Investors & Media section of the company’s website at: Ironwood Pharmaceuticals, Inc. - Events & Presentations. The archived webcast will be available on Ironwood’s website for 1 year.
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 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 2 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 IBS-C in adults and pediatric patients 7 years of age and older, CIC in adults and functional constipation (FC) in pediatric patients 2 years of age and older. 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 Grand Life Sciences (Beijing) Co. 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, chronic idiopathic constipation (CIC) in adults, and functional constipation (FC) in pediatric patients 2 years of age and older.
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
Risk of Serious Dehydration in Pediatric Patients Less Than 2 Years of Age
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 and deliver sustained profits and cash flows; the commercial potential of LINZESS including its potential to return to blockbuster status for 2026; Ironwood’s financial performance and results, and guidance and expectations related thereto, including its updated full-year 2026 guidance for LINZESS U.S. net sales, total revenue and adjusted EBITDA; LINZESS prescription demand growth, LINZESS U.S. net sales, total revenue and adjusted EBITDA in 2026; the conduct and progress of the ongoing confirmatory STARS‑2 Phase 3 clinical trial, including its design and endpoints, patient recruitment, planned site expansion and activation, and timing of filing for regulatory approval; apraglutide’s potential to treat a range of rare GI diseases and to be a best-in-class therapeutic that advances the standard of care for adult patients with SBS who are dependent on PS; and the planned leadership transition, including its planned effective date. 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 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 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 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, 2025, and in our subsequent Securities and Exchange Commission filings.
Condensed Consolidated Balance Sheets
(In thousands)
(unaudited)
September 30,
December 31,
2026
2025
Assets
Current assets:
Cash and cash equivalents
$
86,376
$
215,456
Accounts receivable, net
132,719
46,745
Prepaid expenses and other current assets
6,898
11,977
Total current assets
225,993
274,178
Property and equipment, net
2,660
3,408
Operating lease right-of-use assets
7,980
9,340
Intangible assets, net
1,427
2,040
Deferred tax assets
48,935
103,433
Other assets
3,597
4,502
Total assets
$
290,592
$
396,901
Liabilities and stockholders’ deficit
Current liabilities:
Accounts payable
$
3,616
$
2,898
Accrued research and development costs
4,093
3,149
Accrued expenses and other current liabilities
23,723
33,239
Current portion of operating lease liabilities
3,301
3,252
Current portion on convertible senior notes
—
199,680
Total current liabilities
34,733
242,218
Operating lease obligations, net of current portion
7,909
9,870
Revolving credit facility
325,000
385,000
Other liabilities
20,143
21,648
Total liabilities
387,785
658,736
Total stockholders’ deficit
(97,193
)
(261,835
)
Total liabilities and stockholders’ deficit
$
290,592
$
396,901
Condensed Consolidated Statements of Income
(In thousands, except per share amounts)
(unaudited)
Three Months Ended
Nine Months Ended
September 30,
September 30,
2026
2025
2026
2025
Total revenues
$
133,040
$
122,060
$
352,587
$
248,442
Costs and expenses:
Research and development
28,352
22,468
72,713
73,273
Selling, general and administrative
11,554
21,908
34,900
62,963
Restructuring, net
—
2,200
(40
)
20,509
Total costs and expenses
39,906
46,576
107,573
156,745
Income from operations
93,134
75,484
245,014
91,697
Other income (expense):
Interest expense and other financing costs
(6,198
)
(8,434
)
(22,542
)
(24,860
)
Interest and investment income
619
930
3,902
2,617
Other
41
40
125
116
Other income (expense), net
(5,538
)
(7,464
)
(18,515
)
(22,127
)
Income before income taxes
87,596
68,020
226,499
69,570
Income tax expense
(27,758
)
(27,940
)
(74,597
)
(43,277
)
GAAP net income
$
59,838
$
40,080
$
151,902
$
26,293
GAAP net income per share—basic
$
0.36
$
0.25
$
0.92
$
0.16
GAAP net income per share—diluted
$
0.36
$
0.23
$
0.91
$
0.16
Reconciliation of GAAP Results to Non-GAAP Financial Measures
(In thousands, except per share amounts)
(unaudited)
A reconciliation between net income on a GAAP basis and on a non-GAAP basis is as follows:
Three Months Ended
Nine Months Ended
September 30,
September 30,
2026
2025
2026
2025
GAAP net income
$
59,838
$
40,080
$
151,902
$
26,293
Adjustments:
Amortization of acquired intangible assets
207
207
613
613
Restructuring expenses, net
—
2,200
(40
)
20,509
Tax effect of adjustments
—
(554
)
10
(5,087
)
Non-GAAP net income
$
60,045
$
41,933
$
152,485
$
42,328
A reconciliation between basic net income per share on a GAAP basis and on a non-GAAP basis is as follows:
Three Months Ended
Nine Months Ended
September 30,
September 30,
2026
2025
2026
2025
GAAP net income per share – basic
$
0.36
$
0.25
$
0.92
$
0.16
Plus: Net income per share – basic
Adjustments to GAAP net income per share (as detailed above)
—
0.01
—
0.10
Non-GAAP net income per share – basic
$
0.36
$
0.26
$
0.92
$
0.26
Weighted average number of common shares used to calculate net income per share – basic
164,895
162,215
164,255
161,642
A reconciliation between diluted net income per share on a GAAP basis and on a non-GAAP basis is as follows:
Three Months Ended
Nine Months Ended
September 30,
September 30,
2026
2025
2026
2025
GAAP net income per share – diluted
$
0.36
$
0.23
$
0.91
$
0.16
Plus: Net income per share – diluted
Adjustments to GAAP net income per share (as detailed above)
—
0.01
—
0.09
Non-GAAP net income per share – diluted
$
0.36
$
0.24
$
0.91
$
0.25
Weighted average number of common shares used to calculate net income per share – diluted
168,177
177,764
167,530
177,057
Reconciliation of GAAP Net Income to Adjusted EBITDA
(In thousands)
(unaudited)
A reconciliation of GAAP net income to adjusted EBITDA:
Three Months Ended
Nine Months Ended
September 30,
September 30,
2026
2025
2026
2025
GAAP net income
$
59,838
$
40,080
$
151,902
$
26,293
Adjustments:
Stock-based compensation
4,291
3,612
11,180
13,427
Restructuring expenses, net
—
2,200
(40
)
20,509
Interest expense
6,198
8,434
22,542
24,860
Interest and investment income
(619
)
(930
)
(3,902
)
(2,617
)
Income tax expense
27,758
27,940
74,597
43,277
Depreciation and amortization
459
475
1,359
1,421
Adjusted EBITDA 1
$
97,925
$
81,811
$
257,638
$
127,170
U.S. LINZESS Commercial Collaboration 1
Revenue/Expense Calculation
(In thousands)
(unaudited)
Three Months Ended
Nine Months Ended
September 30,
September 30,
2026
2025
2026
2025
LINZESS U.S. net sales as reported by AbbVie 2
$
324,919
$
314,856
$
879,753
$
701,334
AbbVie & Ironwood commercial costs, expenses and other discounts 3
65,739
75,826
193,353
219,618
Commercial profit on sales of LINZESS
$
259,180
$
239,030
$
686,400
$
481,716
Commercial Margin 4
80
%
76
%
78
%
69
%
Ironwood’s share of net profit
129,590
119,515
343,200
240,858
Reimbursement for Ironwood’s commercial expenses 5
312
131
969
3,239
Ironwood’s U.S. collaborative arrangements revenue
$
129,902
$
119,646
$
344,169
$
244,097
US LINZESS Full Brand Collaboration 1
Revenue/Expense Calculation
(In thousands)
(unaudited)
Three Months Ended
Nine Months Ended
September 30,
September 30,
2026
2025
2026
2025
LINZESS U.S. net sales as reported by AbbVie 2
$
324,919
$
314,856
$
879,753
$
701,334
AbbVie & Ironwood commercial costs, expenses and other discounts 3
65,739
75,826
193,353
219,618
AbbVie & Ironwood R&D Expenses 4
3,314
5,949
11,199
17,868
Total net profit on sales of LINZESS
$
255,866
$
233,081
$
675,201
$
463,848