IRWDIronwood Pharmaceuticals, Inc.
Is the business good?
A genuinely good business: earnings fully cash-backed (1.3×) and margins widening.
Operating profit is fully backed by cash. Conversion is improving vs a year ago.
Positive operating leverage, operating profit is growing faster than sales, so margins widen as the business scales.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is IRWD?
Ironwood Pharmaceuticals, Inc. keeps 60% of every revenue dollar as operating profit, against 9.5% for the median Drug Manufacturers - Specialty & Generic name.
Operating margin · Drug Manufacturers - Specialty & Generic median 9.5% · 12 months to Q2 2026
- Cash conversion
- 1.26×
Cash conversion · 0.52× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- −5.5%
Share count, year on year · bought back, each share owns more of the company
- R&D as % of revenue
- 23%
R&D as % of revenue
| Year | Operating margin |
|---|---|
| FY2020 | 37% |
| FY2021 | 56% |
| FY2022 | 61% |
| FY2023 | −214% |
| FY2024 | 27% |
| FY2025 | 33% |
Details›
- Operating margin12 months to Q2 2026
- 60%
- Net margin12 months to Q2 2026
- 33%
- R&D as % of revenue
- 23%
- Revenue, trailing twelve months
- $389M
- Net income, trailing twelve months
- $130M
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Customers and suppliers
Who buys from IRWD and who it buys from, as the companies report it.
- ABBVAbbVie100%
Share of revenue · FY2025 10-K
None disclosed.
A company has to disclose every customer behind 10% or more of its revenue. Each share comes from the latest annual report of the company that states it and shows on both companies’ pages; IRWD’s own figures are from its FY2025 10-K. Smaller customers and suppliers go unreported.
Drug Manufacturers, Specialty & Generic
Ranks #17 of 39 by RyuScore