IRWD Beats on Q3 Earnings & Revenues, Raises 2025 View, Stock Soars

Ironwood Pharmaceuticals IRWD reported adjusted earnings of 24 cents per share for the third quarter of 2025, which comprehensively beat the Zacks Consensus Estimate of 9 cents. The company had reported earnings of 2 cents per share in the year-ago quarter.

Total revenues in the third quarter were $122.1 million, which also beat the Zacks Consensus Estimate of $68 million. Revenues increased by around 33.3% year over year.

Shares of Ironwood were up 31.8% on Nov. 10, owing to the better-than-expected results as well as an increased financial outlook for 2025.

Year to date, shares of Ironwood have declined 45.8% against the industry’s rise of 2.7%.

IRWD's Q3 Earnings in Detail

As reported by its partner AbbVie ABBV, Ironwood’s sole marketed product, Linzess (linaclotide), generated net sales of $314.9 million in the United States, up 40% year over year, owing to improved net pricing and strong demand growth.

Total prescription demand for Linzess increased 12% year over year.

Ironwood and ABBV equally share Linzess’ brand collaboration profits and losses.

Ironwood’s share of net profit from the sales of Linzess in the United States (included in collaborative revenues) totaled $119.6 million, reflecting an increase of 35% year over year.

Ironwood has agreements with two partners, Astellas Pharma and AstraZeneca AZN, related to the development and commercialization of Linzess in Japan and China, respectively.

Astellas and AstraZeneca have exclusive rights to develop and market the drug in their respective territories. Astellas and AZN are liable to pay royalties to Ironwood on net Linzess revenues earned in their regions.

Ironwood's royalties and other revenues were $2.5 million in the third quarter. In the year-ago quarter, the company recorded $2.7 million in royalties and other revenues.

Total cost and expenses (including research and development expenses, selling, general and administrative expenses and restructuring expenses) in the third quarter were $46.6 million, down 29.4% from the year-ago quarter.

Ironwood recorded adjusted EBITDA of $81.8 million in the third quarter, reflecting a significant increase year over year.

As of Sept. 30, 2025, Ironwood had cash and cash equivalents worth $140.4 million compared with $92.9 million as of June 30, 2025.

IRWD's 2025 Guidance Raised

Owing to the strong performance of Linzess during the third quarter, Ironwood raised its full-year 2025 revenue guidance.

The company now expects total revenues in the range of $290-$310 million for 2025, compared with the previous guidance of $260-$290 million.

U.S. sales of Linzess (to be recorded by AbbVie) are now expected to be in the range of $860-$890 million compared with the earlier projection of $800-$850 million.

The company now expects to deliver an adjusted EBITDA of more than $135 million (previously expected to be more than $105 million) in 2025.

IRWD's Recent Key Updates

Along with the earnings release, Ironwood announced that the FDA recently approved Linzess for the treatment of irritable bowel syndrome with constipation (IBS-C) in patients aged seven years and above. Following the nod, Linzess became the first and only drug to be approved for the treatment of IBS-C in the given patient population.

Linzess is already approved for the treatment of IBS-C in adults. The drug is also approved for treating functional constipation (FC) in children and adolescents aged six to 17 years.

Ironwood is developing its next-generation GLP-2 analog, apraglutide, for treating patients with short bowel syndrome (“SBS”) with intestinal failure (“IF”) who are dependent on parenteral support (PS).

Ironwood is now finalizing a confirmatory phase III study design for apraglutide for treating patients with SBS who are dependent on PS and plans to align with the FDA later in the fourth quarter of 2025.

Pending alignment with the FDA, the company expects to initiate a confirmatory phase III study in the first half of 2026 for apraglutide in patients with SBS who are dependent on PS.

Ironwood acquired the rights to develop and commercialize apraglutide following the acquisition of VectivBio in June 2023.

Ironwood Pharmaceuticals, Inc. Price, Consensus and EPS Surprise

Ironwood Pharmaceuticals, Inc. price-consensus-eps-surprise-chart | Ironwood Pharmaceuticals, Inc. Quote

IRWD's Zacks Rank & Stock to Consider

Ironwood currently carries a Zacks Rank #3 (Hold).

A better-ranked stock in the drug sector is Relay Therapeutics RLAY, carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

In the past 60 days, estimates for Relay Therapeutics’ loss per share have narrowed from $1.62 to $1.59 for 2025. During the same time, loss per share estimates for 2026 have narrowed from $1.56 to $1.52. Year to date, shares of RLAY have gained 49.5%.

Relay Therapeutics’ earnings beat estimates in three of the trailing four quarters, while missing the same on the remaining occasion, the average surprise being 8.78%.

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This article originally published on Zacks Investment Research (zacks.com).

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