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Ironwood Pharmaceuticals

IRWD on Nasdaq. Ironwood Pharmaceuticals sells medicines for stomach and bowel diseases to patients and doctors. Market value $603m.

Watch this stockFree. We tell you when something changes.

Price checks use the past 12 months to June 2026. Some use the latest annual report instead, as marked. Quality checks use five annual reports, the latest for the year to December 2025.

We can't read total debt from the filing, so debt is left out.

Should I look at this?

Not a fit for our list right now

Why it could be worth it

What to watch out for

See Health care stocks that passed both tests

This is not advice. Check the numbers below.

Compare with another stock

Cash yield
annual report to December 2025
21.2%very high

For every $100 of what the whole company costs, it produced $21.17 of spare cash last year. A savings account pays about $4.

Price to profit
past 12 months to June 2026
n/a

The filings do not give us enough to work this out.

Return on capital
five annual reports to December 2025
n/a

The filings do not give us enough to work this out.

Quality score: 50 of 100. Price score: 83 of 100. Our list needs 70 on quality and 60 on price.

$3.63 a share, 157% above its 1-year low

Over the past year the price has ranged from $1.41 to $5.78.

Pays no dividend

Prices from Tuesday’s close (6 October).

Five years of cash, in billions

0.3
0.3
0.2
0.1
0.1
20212022202320242025
Revenue
$414m$411m$443m$351m$296m
Operating margin
56.1%61.0%-213.5%26.5%33.3%
Debt to equity
0.750.61n/an/an/a
Shares outstanding
0.15bn0.16bn0.16bn0.16bn0.17bn

Health checks

  • Free cash flow positive5 of 5 years
  • Accounting looks honest (Beneish)Not enough data
  • Financial strength (Piotroski)4 of 7 checks we could run
  • Profit backed by cash (accruals)No
  • DebtUnknown
  • Revenue growth, five yearsShrinking, 5.3% a year
  • Buying back its own sharesNo, 8% more shares since 2021

The quarter to June 2026

How the business did, compared with the same quarter a year earlier.

  • Sales: $113 million last quarter, up 33% on a year ago.
  • Profit: $51 million, up 117% on a year ago.
  • It keeps 60 cents of each $1 of sales as operating profit, up from 24 cents a year earlier.
  • 5% fewer shares than a year ago. Each share owns a bit more of the company.
  • Sales grew on a year ago in 3 of the last 4 quarters.
Sales by quarter
Sales by quarter
Quarter toAmount
September 2024$92m
December 2024$91m
March 2025$41m
June 2025$85m
September 2025$122m
December 2025$48m
March 2026$107m
June 2026$113m
Profit by quarter
Profit by quarter
Quarter toAmount
September 2024$4m
December 2024$2m
March 2025-$37m
June 2025$24m
September 2025$40m
December 2025-$2m
March 2026$41m
June 2026$51m

From the company's quarterly reports to the SEC.

Dates

Next results (estimated)
n/a
Last annual report (10-K)
26 February 2026
Next quarterly (estimated, 10-Q)
5 November 2026

Who owns it

3 long-term investors we follow own it, unchanged from 3 last quarter. 212 funds in all.

Jun '25
Dec '25
Jun '26

Sold out this quarter

Largest holders overall

From 13F filings for the quarter ended 30 June 2026.

Big holders and activists

6 investors own more than 5%; 1 of them is pushing for change.

From Schedule 13D and 13G filings: anyone owning more than 5% must file one.

What insiders did

No insider bought shares on the open market in the last 12 months. 8 sold $23m, $821,436 of it under preset trading plans.

  • Silver Ronald
    PFO & PAO
    Sold
    under a preset trading plan
    Date
    7 July 2026
    Shares
    127,890
    Price
    $4.52
    Value
    $578,063
  • McHugh Julie
    Director
    Sold
    under a preset trading plan
    Date
    16 June 2026
    Shares
    21,571
    Price
    $3.73
    Value
    $80,460
  • DENNER ALEXANDER J
    Director
    Sold
    Date
    17 March 2026
    Shares
    6,730,800
    Price
    $3.05
    Value
    $21m
  • Martini Gregory S.
    Chief Financial Officer
    Sold
    Date
    24 February 2026
    Shares
    11,457
    Price
    $3.66
    Value
    $41,933
  • John Minardo
    Chief Legal Officer
    Sold
    Date
    24 February 2026
    Shares
    19,053
    Price
    $3.66
    Value
    $69,734
  • Gaskins Tammi L
    Chief Commercial Officer
    Sold
    Date
    24 February 2026
    Shares
    11,239
    Price
    $3.66
    Value
    $41,135
  • MCCOURT Thomas A
    Chief Executive Officer, Director
    Sold
    Date
    24 February 2026
    Shares
    103,526
    Price
    $3.66
    Value
    $378,905
  • Silver Ronald
    Principal Accounting Officer
    Sold
    Date
    24 February 2026
    Shares
    12,621
    Price
    $3.66
    Value
    $46,193
  • Martini Gregory S.
    Chief Financial Officer
    Sold
    Date
    23 February 2026
    Shares
    10,487
    Price
    $3.81
    Value
    $39,955
  • John Minardo
    Chief Legal Officer
    Sold
    Date
    23 February 2026
    Shares
    17,439
    Price
    $3.81
    Value
    $66,443

From Form 4 filings: insiders must report trades in their own company's shares within two days.

Warning signs in its filings

Problems the company itself reported to the SEC, in its own words.

None of the serious warning signs we check for were found. 1 thing worth knowing.

We look for five warning signs: doubt it can keep going, weak checks on its own accounts, a notice that its past accounts can't be relied on, a change of auditor, and one customer bringing in a big share of sales. We don't check lawsuits, investigations or debt yet.

We checked the auditor's report, internal controls, restatement notices, auditor changes and big customers in the 10-K filed 26 Feb 2026, plus the 10-Q filed 6 Aug 2026 and 6 later 8-Ks.

  • Changed auditor

    Worth knowing

    The company changed its auditor (the firm that checks its books) in the last two years.

    “On July 3, 2025, the Audit Committee (the “Audit Committee”) of the Board of Directors of Ironwood Pharmaceuticals, Inc. (the “Company”) dismissed Ernst & Young LLP (“EY”) as the Company’s independent registered public accounting firm.”

    From an 8-K filed 10 July 2025: Change of auditor. Read it in the filing

A 10-K is the yearly report every US company files with the SEC. An 8-K is a short notice of a big event.

What could go wrong

  • Sales have shrunk: 5.3% a year.
  • It owes more than it owns on paper (negative equity). Often that's from borrowing to buy back shares.

Whether the price already reflects the risks is what the deep dive is for.

The deep dive

Everything above is arithmetic on public filings. The deep dive reads the last ten years of annual reports, the proxy statements, and the earnings calls, then argues the case the way Buffett, Klarman, and Hohn would, and checks every claim against the source.

  • What the business is worth, as a range, and the margin of safety at today’s price
  • Prices to start buying, buy, and buy hard
  • The three things that would make this a mistake
  • Every number footnoted to the filing it came from
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What a finished deep dive looks like

Not advice. Numbers on this page come from SEC filings and are updated each night; prices are updated again after the US market closes. The five-year figures are rounded.