The massive beat confirms strong LINZESS pricing recovery and demand growth. While guidance was maintained, the Q1 trajectory suggests potential upward revision later. Watch for the June convertible note maturity—strong operating cash flow should ease refinancing risk. The May 24 PDUFA for pediatric LINZESS could provide further upside.
Price Chart
Executive Summary
Ironwood Pharmaceuticals reported a massive Q1 2026 beat with GAAP EPS of $0.24 vs $0.07 consensus (+243%) and revenue of $106.5M, driven by a 97% surge in LINZESS U.S. net sales to $272.5M due to improved net pricing. Full-year 2026 guidance was maintained, with LINZESS net sales expected at $1.125-$1.175B and adjusted EBITDA >$300M. The strong cash generation positions the company for its June convertible note maturity.
Key Financial Metrics
Key Facts
- GAAP diluted EPS $0.24 vs consensus $0.07 (beat by 243%)
- Total revenue $106.5M, up 159% YoY from $41.1M
- LINZESS U.S. net sales $272.5M, up 97% YoY
- Collaboration revenue $104.2M, up 169% YoY
- GAAP net income $40.8M vs loss of $37.4M in Q1 2025
- Adjusted EBITDA $76.7M vs ($4.7M) in Q1 2025
- Full-year 2026 guidance maintained: LINZESS net sales $1.125-$1.175B, total revenue $450-$475M, adjusted EBITDA >$300M
- Cash and cash equivalents $220.5M, with $199.9M convertible notes maturing in June 2026
- sNDA for LINZESS in functional constipation (ages 2-5) granted priority review with PDUFA date May 24, 2026
Financial Impact
EPS beat of $0.17 vs consensus, revenue beat of ~$14M vs consensus, representing a 159% YoY revenue increase and swing to profitability
Risk Factors
- Full-year guidance maintained despite strong Q1, implying potential for lower revenue in later quarters
- Convertible note maturity of ~$200M in June 2026 requires cash or refinancing
- Apraglutide Phase 3 trial initiations carry execution and regulatory risk
- LINZESS faces potential generic competition and pricing pressure
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001104659-26-056656 |
| Document: tm267094d1_8k.htm | 0001104659-26-056656 |
| Document: 0001104659-26-056656-index-headers.html | 0001104659-26-056656 |
| Document: 0001104659-26-056656-index.html | 0001104659-26-056656 |
| Document: 0001104659-26-056656.txt | 0001104659-26-056656 |
| 8-K Data (Synthetic) | 0001104659-26-056656 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Aug 6, 2026 8w ago | 8-K | $4.26 $4.29 | ▲ +0.70% | ▲ +0.10% | $3.62 (−15.02%) |
May 13, 2026 20w ago | 8-K | $3.68 $3.63 | ▼ −1.36% | ▼ −0.75% | $3.62 (−1.63%) |
May 7, 2026 21w ago | 8-K | $4.17 $3.24 | ▼ −22.30% | ▼ −25.44% | $3.62 (−13.19%) |
Feb 25, 2026 31w ago | 8-K | $3.36 $3.19 | ▲ +5.06% | ▼ −0.18% | $3.62 (−7.74%) |
Feb 23, 2026 31w ago | Insider Cluster | $3.75 $3.29 | ▲ +12.27% | ▲ +8.32% | $3.62 (+3.47%) |
Feb 23, 2026 31w ago | Insider Cluster | $3.75 $3.29 | ▲ +12.27% | ▲ +8.32% | $3.62 (+3.47%) |
US Market Status
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