Ironwood(IRWD) - 2025 Q3 - Quarterly Results

Sales Performance - LINZESS U.S. net sales reached $315 million in Q3 2025, a 40% increase year-over-year[2] - Full-year 2025 LINZESS U.S. net sales guidance raised to $860 - $890 million, total revenue guidance to $290 - $310 million, and adjusted EBITDA guidance to greater than $135 million[2][14] - Total LINZESS prescription demand in Q3 2025 was 60.5 million capsules, a 12% increase compared to Q3 2024[11] - Collaboration revenue from LINZESS sales in Q3 2025 was $119.6 million, a 35% increase from $88.9 million in Q3 2024[11] - Total revenues for Q3 2025 reached $122.06 million, a significant increase from $91.59 million in Q3 2024, representing a year-over-year growth of 33.2%[40] - LINZESS U.S. net sales reported by AbbVie for Q3 2025 were $314.86 million, compared to $225.54 million in Q3 2024, indicating a year-over-year increase of 39.5%[47] Financial Performance - GAAP net income for Q3 2025 was $40 million, compared to $3.6 million in Q3 2024, with adjusted EBITDA of $82 million[5] - Ironwood generated $47.6 million in cash from operations in Q3 2025, compared to $9.9 million in Q3 2024[16] - Ironwood ended Q3 2025 with $140 million in cash and cash equivalents, compared to $88.6 million at the end of 2024[16] - Non-GAAP net income for Q3 2025 was $41.93 million, up from $3.87 million in Q3 2024, reflecting a growth of 980%[42] - Adjusted EBITDA for Q3 2025 was $81.81 million, compared to $34.49 million in Q3 2024, representing a growth of 137.5%[44] - Total costs and expenses for Q3 2025 were $46.58 million, down from $65.96 million in Q3 2024, a decrease of 29.4%[40] Asset and Liability Management - Ironwood's total assets increased to $396,062,000 as of September 30, 2025, up from $350,908,000 at December 31, 2024, representing a growth of approximately 12.5%[38] - Cash and cash equivalents rose to $140,407,000, compared to $88,559,000 at the end of 2024, indicating a significant increase of 58.5%[38] - Total current liabilities surged to $242,503,000 from $38,846,000, reflecting a substantial increase due to the current portion of convertible senior notes[38] - Ironwood's stockholders' deficit improved to $(264,157,000) from $(301,335,000), showing a reduction of approximately 12.3%[38] Research and Development - Ironwood is finalizing a Phase 3 trial design for apraglutide and expects to initiate the trial in the first half of 2026[8] - Ironwood is advancing apraglutide, a next-generation therapy for short bowel syndrome, indicating ongoing innovation in product development[21] - Research and development expenses decreased to $22.47 million in Q3 2025 from $29.83 million in Q3 2024, a reduction of 24.7%[40] Market Position and Strategic Partnerships - LINZESS remains the 1 prescribed brand in the U.S. for treating IBS-C and CIC, based on IQVIA data, highlighting its market leadership[23] - LINZESS is co-developed and co-commercialized with AbbVie in the U.S., showcasing strategic partnerships for market expansion[26] - AbbVie and Ironwood share expenses related to LINZESS in the U.S. equally under their collaboration agreement[54] - The financial results include certain discounts recognized and cost of goods sold incurred by AbbVie[54] - Commercial costs incurred by AbbVie and Ironwood are attributable to the cost-sharing arrangement between the parties[54] Operational Efficiency - Ironwood's restructuring expenses and acquisition-related costs are considered non-recurring, indicating a focus on operational efficiency post-acquisition of VectivBio[20] - The company does not provide guidance on GAAP net income or a reconciliation of expected adjusted EBITDA to expected GAAP net income due to uncertainties in non-GAAP adjustments[19]