📊 IRWD Key Takeaways
Is Ironwood Pharmaceuticals Inc. (IRWD) a Good Investment?
Ironwood Pharmaceuticals exhibits strong profitability margins (68% operating margin) but faces severe structural challenges including negative stockholders' equity of -$217.1M, declining revenue (-15.7% YoY), and critically weak cash generation ($5.1M FCF vs. $40.8M net income indicates poor earnings quality). The $199.5M debt burden on a negative equity base creates solvency risk despite adequate short-term liquidity.
Ironwood Pharmaceuticals shows solid underlying profitability and unusually strong cash conversion, with high operating margins, positive net income, and free cash flow materially above reported earnings. However, the 15.7% revenue decline, negative stockholders' equity, and only modest liquidity weaken the quality of the fundamental profile and argue for a neutral stance until top-line stability improves.
Why Buy Ironwood Pharmaceuticals Inc. Stock? IRWD Key Strengths
- Exceptional operating margins of 68.1% and net margins of 38.3%
- Strong interest coverage ratio of 10.0x indicating debt servicing capability
- Adequate liquidity with current ratio of 1.41x and $220.5M cash position
- Strong profitability with a 33.3% operating margin and positive net income
- Excellent cash generation, with $127.01M of free cash flow and a 42.9% FCF margin
- Manageable debt servicing capacity, supported by 13.6x interest coverage and cash exceeding long-term debt
IRWD Stock Risks: Ironwood Pharmaceuticals Inc. Investment Risks
- Negative stockholders' equity of -$217.1M indicates balance sheet insolvency with liabilities exceeding assets
- Revenue declining 15.7% YoY with flat net income shows no growth and deteriorating fundamentals
- Severe cash flow weakness: $40.8M net income but only $5.1M operating cash flow suggests poor earnings quality and potential accounting adjustments
- Revenue declined 15.7% year over year, raising concern about durability of the earnings base
- Negative stockholders' equity indicates a weak balance sheet structure and makes some leverage metrics less meaningful
- Current and quick ratios of 1.13x suggest liquidity is adequate but not especially strong if operating conditions worsen
Key Metrics to Watch
- Operating cash flow trend and reconciliation to net income quality
- Revenue trajectory and pipeline sustainability
- Stockholders' equity trend and path to positive equity
- Revenue growth trend and ability to return to year-over-year top-line expansion
- Sustainability of free cash flow and progress toward improving balance sheet equity
Ironwood Pharmaceuticals Inc. (IRWD) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The relatively thin 4.8% FCF margin may limit capital allocation flexibility.
IRWD Profit Margin, ROE & Profitability Analysis
IRWD vs Healthcare Sector: How Ironwood Pharmaceuticals Inc. Compares
How Ironwood Pharmaceuticals Inc. compares to Healthcare sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Ironwood Pharmaceuticals Inc. Stock Overvalued? IRWD Valuation Analysis 2026
Based on fundamental analysis, Ironwood Pharmaceuticals Inc. has mixed fundamental signals relative to the Healthcare sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Ironwood Pharmaceuticals Inc. Balance Sheet: IRWD Debt, Cash & Liquidity
IRWD Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Ironwood Pharmaceuticals Inc.'s revenue has declined by 18% over the 5-year period, indicating business contraction. The most recent EPS of $-0.03 indicates the company is currently unprofitable.
IRWD Revenue Growth, EPS Growth & YoY Performance
IRWD Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $41.1M | -$37.4M | $-0.23 |
| Q3 2025 | $91.6M | -$1.4M | $-0.01 |
| Q2 2025 | $85.2M | -$860.0K | $-0.01 |
| Q1 2025 | $41.1M | -$4.2M | $-0.03 |
| Q3 2024 | $91.6M | -$1.4M | $-0.01 |
| Q2 2024 | $94.4M | -$860.0K | $-0.01 |
| Q1 2024 | $74.9M | -$4.2M | $-0.03 |
| Q3 2023 | $108.6M | $15.3M | $0.09 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Ironwood Pharmaceuticals Inc. Dividends, Buybacks & Capital Allocation
IRWD SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Ironwood Pharmaceuticals Inc. (CIK: 0001446847)
📋 Recent SEC Filings
❓ Frequently Asked Questions about IRWD
What is the AI rating for IRWD?
Ironwood Pharmaceuticals Inc. (IRWD) has a Combined AI Rating of SELL from Claude (SELL) and ChatGPT (HOLD) with 78% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are IRWD's key strengths?
Claude: Exceptional operating margins of 68.1% and net margins of 38.3%. Strong interest coverage ratio of 10.0x indicating debt servicing capability. ChatGPT: Strong profitability with a 33.3% operating margin and positive net income. Excellent cash generation, with $127.01M of free cash flow and a 42.9% FCF margin.
What are the risks of investing in IRWD?
Claude: Negative stockholders' equity of -$217.1M indicates balance sheet insolvency with liabilities exceeding assets. Revenue declining 15.7% YoY with flat net income shows no growth and deteriorating fundamentals. ChatGPT: Revenue declined 15.7% year over year, raising concern about durability of the earnings base. Negative stockholders' equity indicates a weak balance sheet structure and makes some leverage metrics less meaningful.
What is IRWD's revenue and growth?
Ironwood Pharmaceuticals Inc. reported revenue of $106.5M.
Does IRWD pay dividends?
Ironwood Pharmaceuticals Inc. does not currently pay dividends.
Where can I find IRWD SEC filings?
Official SEC filings for Ironwood Pharmaceuticals Inc. (CIK: 0001446847) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is IRWD's EPS?
Ironwood Pharmaceuticals Inc. has a diluted EPS of $0.24.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is IRWD a good stock to buy right now?
Based on our AI fundamental analysis in May 2026, Ironwood Pharmaceuticals Inc. has a SELL rating with 78% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is IRWD stock overvalued or undervalued?
Valuation metrics for IRWD: ROE of N/A (sector avg: 15%), net margin of 38.3% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy IRWD stock in 2026?
Our dual AI analysis gives Ironwood Pharmaceuticals Inc. a combined SELL rating for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is IRWD's free cash flow?
Ironwood Pharmaceuticals Inc.'s operating cash flow is $5.1M, with capital expenditures of $34.0K. FCF margin is 4.8%.
How does IRWD compare to other Healthcare stocks?
Vs Healthcare sector averages: Net margin 38.3% (avg: 12%), ROE N/A (avg: 15%), current ratio 1.41 (avg: 2).