Free cash flow generation is highly inconsistent, evidenced by a volatile FCF margin that fluctuated from a negative 17.7% in 2025Q2 to a peak of 156.3% in 2025Q4.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 |
|---|
| Cash from Operations | 112.21M | 127.04M | 103.55M | 183.43M | 273.76M | 261.89M | 168.84M | 10.72M | -70.88M | -99.56M | -25.43M | -106.93M | -155.57M | -273.36M | -69.63M | -75.24M | -67.9M | -4M | -28.2M | -6.76M |
| Operating CF Margin % | - | 42.9% | 29.47% | 41.43% | 66.67% | 63.3% | 43.34% | 2.5% | -20.45% | -33.38% | -9.28% | -71.5% | -203.53% | -1194.68% | -46.35% | -114.22% | -154.82% | -11.07% | -126.91% | -64.59% |
| Operating CF Growth % | 552.18% | 22.69% | -43.55% | -33% | 4.53% | 55.12% | 1474.23% | 115.13% | 28.81% | -291.47% | 76.21% | 31.27% | 43.09% | -292.57% | 7.45% | -10.81% | -1598.32% | 85.82% | -317.15% | - |
| Net Income | 102.18M | 24.02M | 880K | -1B | 175.06M | 528.45M | 106.18M | 21.5M | -282.37M | -116.94M | -81.71M | -142.67M | -189.62M | -272.81M | -72.62M | -64.85M | -56.41M | -73.31M | -55.03M | -53.16M |
| Depreciation & Amortization | 2.79M | 1.88M | 2.01M | 1.57M | 1.42M | 1.5M | 3.56M | 5.58M | 14.22M | 14.62M | 11.26M | 11.63M | 12.33M | 11.73M | 11.32M | 10M | 6.16M | 5.25M | 2.85M | 1.73M |
| Stock-Based Compensation | 20.09M | 17.25M | 29.85M | 32.01M | 27.05M | 22.28M | 31.18M | 31.28M | 43.98M | 33.82M | 29.22M | 25.47M | 26.18M | 19.83M | 17.57M | 11.73M | 7.5M | 5.24M | 2.79M | 1.15M |
| Deferred Taxes | 101.2M | 40.8M | 68.09M | 72.64M | 65.74M | -333.29M | 6.6M | 0 | 159.11M | 7.53M | -7.31M | 28.48M | 21.5M | 1.86M | 0 | 7K | -5.5M | 970K | -1K | -1K |
| Other Non-Cash Items | -107.5M | 3.44M | 1.98M | 1.07B | 1.67M | 25.23M | 22.26M | 52.35M | -13.44M | -16.81M | 28.12M | 8.4M | 4.14M | 1.72M | 1.18M | 2.23M | 1.62M | -360K | 532K | -1.72M |
| Working Capital Changes | -70.23M | 39.65M | 739K | 11.28M | 2.82M | 17.73M | -941K | -99.99M | 7.62M | -21.79M | -5.02M | -38.24M | -30.1M | -35.68M | -27.08M | -34.36M | -21.27M | 58.21M | 20.66M | 45.24M |
| Change in Receivables | -66.07M | 35.15M | 47.24M | 924K | 7.99M | 7.71M | 4.09M | -68.89M | 1.21M | -17.3M | -10.34M | -28.68M | -23.68M | -1.73M | -835K | 2.24M | 2.32M | -465K | 18.39M | -24.28M |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 0 | 648K | 0 | -806K | 346K | 1.27M | 3.65M | -3.08M | -11.91M | -6.7M | 1.29M | -9.26M | 1.71M | 0 | 0 |
| Change in Payables | -8.35M | 6.2M | -20.21M | 12.38M | -8.12M | -2.64M | -7.52M | -32.7M | 8.06M | -6.84M | 19.68M | -1.55M | 1.43M | -11.72M | 24.24M | 5.09M | 2.74M | 1.57M | 0 | 0 |
| Cash from Investing | -3K | -34K | -142K | -1.03B | -136K | -265K | -1.84M | -11.14M | 88.87M | 151.46M | -177.67M | -9.15M | -56.57M | -101.43M | 30.08M | 115.06M | -213.04M | 17.76M | -15.07M | -27.61M |
| Capital Expenditures | -7K | -34K | -142K | -273K | -136K | -265K | -1.84M | -7.19M | -8.62M | -4.21M | -104.21M | -4.05M | -3.54M | -9.59M | -13.98M | -9.68M | -17.22M | -4.04M | -22.93M | -2.65M |
| CapEx % of Revenue | 0% | 0.01% | 0.04% | 0.06% | 0.03% | 0.06% | 0.47% | 1.68% | 2.49% | 1.41% | 38.04% | 2.71% | 4.63% | 41.92% | 9.3% | 14.7% | 39.26% | 11.2% | 103.23% | 25.33% |
| Acquisitions | 0 | 0 | 0 | -1.03B | 0 | 0 | 0 | 0 | 1.56M | 135K | 100M | 147K | 0 | 0 | 0 | 0 | 9.5M | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 4K | 0 | 0 | 0 | 0 | 0 | 0 | -3.96M | 1.56M | 135K | -99.78M | 147K | -53.03M | -91.84M | 9K | 4K | 2K | 21K | 9K | 1K |
| Cash from Financing | 210K | 216K | -106.97M | 277.16M | -237.55M | -4.55M | 18.55M | -1.19M | 30.07M | 19.84M | -4.18M | 303.07M | 210.94M | 313.58M | 88.97M | 3.13M | 202.96M | 41.66M | 48.56M | 50.72M |
| Debt Issued (Net) | 0 | 0 | -115M | 300M | -120.7M | 0 | 0 | 19.43M | -1.82M | 8.76M | -28.77M | 321.67M | -2.23M | 174.23M | -275K | -260K | -1.96M | 1.14M | -1.22M | 720K |
| Equity Issued (Net) | 210K | 216K | 11.01M | 6.36M | -126.39M | -24.13M | 18.55M | 0 | 0 | 0 | 0 | 0 | 190.43M | 137.77M | 85.23M | 0 | 203.17M | 40.25M | 49.6M | 49.95M |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | -126.39M | -24.13M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 0 | 0 | -2.98M | -29.2M | 9.54M | 19.58M | 0 | -20.61M | 31.9M | 11.08M | 24.59M | -18.6M | 22.74M | 1.58M | 4.02M | 3.39M | 1.75M | 272K | 180K | 47K |
| Net Change in Cash | 111.99M | 126.9M | -3.6M | -565.78M | 36.07M | 257.08M | 185.54M | -1.6M | 48.06M | 71.73M | -207.28M | 186.99M | -1.19M | -61.21M | 49.42M | 42.96M | -77.98M | 55.42M | 5.29M | 16.35M |
| Free Cash Flow | 112.21M | 127.01M | 103.41M | 183.15M | 273.63M | 261.63M | 166.99M | 3.54M | -79.5M | -103.77M | -129.64M | -110.98M | -159.11M | -282.95M | -83.61M | -84.92M | -85.12M | -8.04M | -51.13M | -9.41M |
| FCF Margin % | 31.04% | 42.89% | 29.43% | 41.37% | 66.64% | 63.23% | 42.87% | 0.83% | -22.94% | -34.79% | -47.32% | -74.2% | -208.16% | -1236.6% | -55.65% | -128.92% | -194.08% | -22.28% | -230.14% | -89.93% |
| FCF Growth % | 43.1% | 22.83% | -43.54% | -33.06% | 4.59% | 56.67% | 4622.68% | 104.45% | 23.39% | 19.95% | -16.82% | 30.25% | 43.77% | -238.4% | 1.54% | 0.24% | -958.3% | 84.27% | -443.35% | - |
| FCF per Share | 0.67 | 0.71 | 0.65 | 1.18 | 1.47 | 1.59 | 1.04 | 0.02 | -0.52 | -0.70 | -0.89 | -0.78 | -1.16 | -2.44 | -0.79 | -0.85 | -0.95 | -0.12 | -0.73 | -0.12 |
| FCF Conversion (FCF/Net Income) | 1.10x | 5.29x | 117.67x | -0.18x | 1.56x | 0.50x | 1.59x | 0.50x | 0.25x | 0.85x | 0.31x | 0.75x | 0.82x | 1.00x | 0.96x | 1.16x | 1.28x | 0.06x | 0.52x | 0.13x |
| Interest Paid | 0 | 0 | 32.56M | 13.55M | 5.75M | 7.22M | 7.22M | 17.58M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -64K | 0 | 412K | 0 | 0 |
| Taxes Paid | 0 | 0 | 8.41M | 9.95M | 4.62M | 3.45M | 1.85M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -3K | 0 | 153K | 0 | 0 |
Single-product revenue concentration
As reported in financial statements, Ironwood's operating cash flow frequently diverges from net income, evidenced by a volatile OCF/NI ratio that reached a negative 32.77 in 2025Q4, suggesting that accounting accruals and collaboration profit-sharing mechanics significantly distort the company's underlying cash-generating capability on a quarterly basis.
The extreme variance between net income and operating cash flow indicates that reported earnings are not a reliable proxy for actual liquidity. Investors should monitor these fluctuations as they appear to be driven by the timing of collaboration payments and working capital adjustments rather than core operational performance.
Based on recent SEC filings, Ironwood's free cash flow trajectory remains highly erratic, with margins swinging from a negative 17.7% in 2025Q2 to a peak of 156.3% in 2025Q4, highlighting the inherent instability of a business model tethered to lumpy collaboration-based revenue streams and variable operating expenses.
The lack of a stable FCF trend suggests that the company's cash generation is highly sensitive to the timing of partnership settlements. This volatility complicates long-term valuation, as the business appears unable to maintain consistent cash conversion across consecutive reporting periods.
According to historical cash flow data, working capital changes have been a primary driver of liquidity swings, including a significant $73.5 million inflow in 2025Q4 followed by a $59.8 million outflow in 2026Q1, indicating that the company's cash position is heavily influenced by timing differences in receivables.
These sharp reversals in working capital suggest that the company's cash flow is subject to the payment cycles of its commercial partners. Such instability warrants further investigation into whether these movements represent structural shifts in collection efficiency or merely the episodic nature of profit-sharing distributions.
As disclosed in recent financial statements, Ironwood consistently utilizes stock-based compensation, with expenses reaching $12.0 million in 2025Q4, which effectively masks the true economic cost of operations by excluding these non-cash charges from the company's reported operating cash flow figures and overall profitability metrics.
The reliance on stock-based compensation suggests that the company may be managing its cash burn by substituting equity for cash-based incentives. Investors should consider the dilutive impact of these practices, as they represent a real cost to shareholders that is not fully captured in the headline cash flow statements.
Quick answers to the most common questions about buying IRWD stock.
Ironwood Pharmaceuticals, Inc. (IRWD) generated $127.0M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Ironwood Pharmaceuticals, Inc. (IRWD) generated $127.0M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Ironwood Pharmaceuticals, Inc. (IRWD) spent $0.0M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.