Ironwood Pharma Q4 revenue misses analyst expectations due to pricing challenges

Ironwood Pharmaceuticals

25/02/2026 12:18

Overview

Biotechnology firm's Q4 revenue missed analyst expectations

Q4 adjusted EBITDA missed analyst estimates

Company finalized Phase 3 trial design for apraglutide, starting in Q2 2026

Outlook

Ironwood expects 2026 LINZESS U.S. net sales of $1.125 to $1.175 bln

Company sees 2026 total revenue between $450 mln and $475 mln

Ironwood anticipates adjusted EBITDA greater than $300 mln for 2026

Result Drivers

LINZESS DEMAND - LINZESS prescription demand increased 13% in Q4 2025 compared to Q4 2024, supporting revenue despite pricing challenges

EXPENSE MANAGEMENT - Disciplined approach to expense management helped navigate pricing headwinds, per CEO Tom McCourt

LABEL EXPANSION - FDA approved LINZESS for IBS-C treatment in patients aged 7 and older, expanding its clinical utility

Company press release: ID:nBw6FKX3ka

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Revenue
Miss
$47.71 mln
$50.93 mln (3 Analysts)
Q4 Adjusted Net Income
Miss
-$2.27 mln
$1.90 mln (2 Analysts)
Q4 Net Income
-$2.28 mln
Q4 Adjusted EBITDA
Miss
$10.91 mln
$13.85 mln (2 Analysts)
Q4 Basic EPS
-$0.01


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the pharmaceuticals peer group is "buy"

Wall Street's median 12-month price target for Ironwood Pharmaceuticals Inc is $5.35, about 41.2% above its February 24 closing price of $3.79

The stock recently traded at 4 times the next 12-month earnings vs. a P/E of 7 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)