ARDX

Image source: The Motley Fool. Thursday, Aug. 6, 2026 at 4:30 p.m. ET Senior Vice President of Investor Relations and Corporate Communications - Lisa Caperelli President and Chief Executive Officer - Michael Raab Chief Commercial Officer - Eric Foster Chief Financial Officer - Sue Hohenleitner Operator: Welcome to the Ardelyx's Second Quarter 2026 Earnings Call. [Operator Instructions] I would now like to turn the conference over to Lisa Caperelli, Senior Vice President of Investor Relations and Corporate Communications. Lisa, you may begin. Lisa Caperelli: Thank you, Jen. Good afternoon, everyone, and welcome to our second quarter 2026 financial results and business update call. Earlier today, we issued our earnings release, which can be found on the investor section of our website at ardelyx.com. Slides that accompany today's call will also be found on our website. On today's call, I am joined by Mike Raab, President and CEO of Ardelyx; Eric Foster, Chief Commercial Officer; and Sue Hohenleitner, our Chief Financial Officer. Before we begin, I'd like to remind you that some of the statements made during the call today are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements involve a number of risks and uncertainties that may cause our actual results to differ materially from those expressed or implied, including those described in our annual report on Form 10-K, our quarterly report on Form 10-Q, which was filed today, and from time to time in other documents filed with the SEC. These forward-looking statements speak only as of today's date, and while we may elect to update these forward-looking statements in the future, we specifically disclaim any obligation to do so, even if our views change. I will now pass the call over to Mike. Michael Raab: Thank you, Lisa. Good afternoon, everyone, and thank you for joining us today. This afternoon, we issued a press release announcing our Q2 financial results and a revision to our guidance. I'd like to share my perspectives on our release, drivers of those results, and how we're positioning the business for future growth before I turn the call over to Eric and Sue to cover the performance in detail. In Q2, IBSRELA and XPHOZAH generated a combined revenue of $118 million, up 31% year-over-year, the largest quarterly revenue in our company's history. This is a meaningful milestone and it is important to acknowledge. Growth in the second quarter was robust and yet performance fell short of our expectations. To be clear, IBSRELA demand is strong, physician confidence remains, and our view of the long-term opportunity has not wavered, including achieving $1 billion in revenue. As we anticipated with the establishment of the IBSRELA Pharmacy Network, our investment in the field reimbursement team, and with IBSRELA's continued success, payers have implemented significant hurdles that impacted new patient starts and access to IBSRELA. Eric will provide further details in his commentary. The fundamentals of the IBSRELA business remain strong, and by staying focused on execution, improving patient access, and partnering closely with providers, we are positioned to drive continued adoption and create meaningful value for both patients and shareholders. The team had an excellent quarter. Growth continues to be driven by patient need, physician adoption, and a differentiated clinical profile. As you know, on June 26, the D.C. Circuit Court of Appeals affirmed the district court's dismissal of our lawsuit against CMS. As a result, oral-only phosphate-lowering drugs remain in the bundle. With this decision, we have determined that we will no longer pursue further litigation on this matter. Now, while our strategy remains, we recognize the market dynamics ahead of us present challenges to navigate. As we have always done, we remain committed to ensuring patients in need have access to XPHOZAH. Now, taking a step back, we operate in a complex business with significant external pressures and with new ones that emerge almost daily. Even so, we are in an enviable position. We have 2 first-in-class commercial products, both differentiated, growing quarter-over-quarter and year-over-year. Our strengthening balance sheet is driven by top-line growth, disciplined expense management, and a thoughtful capital allocation strategy. We have built a solid foundation, are investing in our future by advancing tenapanor, our next-generation NHE3 inhibitor, and we are continuing business development activities to further expand our pipeline. We are building a robust patent estate for tenapanor, anchored by multiple Orange Book-listed patents, including our '299 patent. We are a well-funded, self-sustaining, high-growth company on the path to sustained profitability in 2027 and beyond. Our enthusiasm and belief in our business, our competitive position, our strategy, and the long-term value we are creating has not changed. Now, with that, I'll turn the call over to Eric. Eric. Eric Foster: Thank you, Mike. IBSRELA revenue grew 33% year-over-year, and as Mike noted, we experienced significant payer hurdles that had a direct impact on access to IBSRELA. While new patient starts have been slowed by these hurdles, we continue to see strong growth in refills and total prescriptions, reaching our highest demand quarter to date. We understand the ongoing market dynamics IBSRELA is facing and are confident that the following 4 actions will position IBSRELA for future growth by addressing increasing payer hurdles and accelerating IBSRELA demand. 1, leveraging our dedicated field reimbursement team, which we doubled in size in the first half of this year, and we've all been in the field as of July 1, to help navigate HCPs' cumbersome paperwork and burdensome steps. 2, reinforcing our continued efforts to drive more prescriptions through the IBSRELA Pharmacy Network, or IPN, to increase fulfillment rates and improve adherence. We deployed additional resources along with our FRMs and sales force to provide patient-focused, high-touch support that improves the patient experience. Our data shows that when a prescription goes through the IPN, it results in higher fulfillment rates, faster fills, and in 1 additional refill per patient on an annual basis. 3, increasing the frequency of engagement with our target HCPs is one of the most important drivers of demand. In Q2, we implemented initiatives to expand our sales organization to 144 representatives to increase the frequency of engagement with our targeted high-writing HCPs. With this expanded sales force, along with our FRMs, we expect to see continued direct and measurable impact. And while early, we are encouraged by the results. 4, we are expanding our patient awareness and engagement initiatives. Alongside our partnership with the LPGA and ongoing omnichannel and digital efforts, we are initiating new direct-to-consumer activities during the second half of the year. Our consumer-facing messaging is expected to increase brand awareness among our targeted patient population, leading to important conversations with healthcare providers, which our experience tells us leads to an IBSRELA prescription. The unmet need remains high for IBS-C patients and highlights the important role IBSRELA plays for patients seeking treatment options. Last year, nearly 7 million prescriptions were written for IBS-C-indicated drugs, reflecting both the large number of patients seeking relief despite existing therapies and the significant patient burden that still exists. While multiple treatment options are available, our internal research indicates that as many as 77% of patients on a secretagogue continue to experience persistent symptoms. The patient need is demonstrated by record highs in Q2 demand, total writers, total prescriptions per writer, and market share since launch, and further supports our conviction in IBSRELA reaching $1 billion in revenue. As we continue to work to execute on the 4 initiatives I just outlined, I am confident that these efforts will address the barriers identified, accelerate adoption, and enable more patients to receive the treatment they need. Moving on to XPHOZAH. We are impressed by the resilience of XPHOZAH as we saw strong momentum in Q2. With more than 550,000 adult patients with CKD on dialysis in the U.S., approximately 80% are treated with phosphate-lowering therapies in an effort to achieve and maintain target phosphorus levels. As the number of patients treated with XPHOZAH grows, our conviction in its value is reinforced. Our priority remains clear, ensuring XPHOZAH is available to patients who need it. In Q2, XPHOZAH generated 27% revenue growth year-over-year. We saw solid growth across key metrics with notable increases in total dispenses of 33% and in paid prescriptions of 25% compared to the same quarter in 2025. In addition, XPHOZAH reached its highest total writers and prescriptions per writer since Q1 2025. While we are encouraged by XPHOZAH performance, we continue to recognize and assess the challenges ahead of us. Our focus remains on enhancing the effectiveness of our commercial approach by refining sales force deployment and strengthening engagement with healthcare providers and dialysis organizations. These initiatives are designed to ensure we're reaching the physicians treating the patients most likely to benefit from XPHOZAH while continuing to build awareness across the nephrology community. I'm confident in the team's ability to drive demand for both medicines by overcoming the access challenges for IBSRELA and maintaining disciplined execution with XPHOZAH in the second half of this year. Patients need our differentiated products as indicated by the growing demand for both IBSRELA and XPHOZAH, and helping more patients with our medicine is our top priority. I will now turn it over to Sue. Sue. Sue Hohenleitner: Thank you, Eric. Our second quarter 2026 financial results reflect the ongoing transformation of Ardelyx into a financially strong organization that allows us to leverage our revenue base to fund both our current commercial operations and our advancing pipeline. This quarter, we maintained our focus of turning disciplined capital allocation into a clear strategic advantage. In the second quarter, our total product revenue was $118 million compared to $90 million in the same period last year, representing 31% growth and demonstrating the need for our differentiated products. IBSRELA is our primary growth engine. Our Q2 2026 revenues of $86.2 million increased 33% compared to Q2 of 2025. We are expecting sequential revenue growth in the second half of 2026, with the fourth quarter delivering the highest revenue of the year. XPHOZAH continues to demonstrate resilience. Revenues for XPHOZAH during the quarter was $31.9 million, an increase of 27% compared to the second quarter of 2025, driven by strong demand. Our financial strategy remains focused on driving towards sustainable profitability, which we are now projecting in 2027. We are a well-funded company investing in our growth accelerators, our commercial operations, and our pipeline, all of which require high-impact investments in R&D and SG&A. R&D expenses for the quarter were $26.1 million compared to $15.7 million for the same period in 2025. This increase primarily reflects development activities and patient enrollment costs for the ongoing ACCEL Phase III clinical trial in CIC. SG&A expenses were $101.4 million for the quarter compared to $84 million for the same period in 2025. This increase reflects deliberate investments to address the access barriers and drive future adoption of IBSRELA. Net loss for the quarter was $16.7 million, compared to a net loss of $19.1 million for the same period in 2025. The net loss for Q2 2026 includes $15.3 million for non-cash expenses from share-based compensation compared to $11.7 million for the same period in 2025. We ended the second quarter with $281.8 million in cash, cash equivalents, and short-term investments, and our liquidity remains robust. As previously announced, during the second quarter, we drew down $50 million from our existing arrangement with SLR for general corporate purposes and to enhance flexibility to support our ongoing strategic initiatives, all in line with our capital allocation strategy. Now turning to guidance. We issue guidance based on a high degree of confidence and our ability to deliver. And if things meaningfully change, we are committed to updating those projections. Starting with 2026, for IBSRELA, taking into consideration the current environment and our proactive initiatives to increase access and fulfillment, we have made the prudent decision to lower our full-year 2026 guidance for IBSRELA to a range of $350 million to $370 million. This revised guidance represents annual growth of more than 30% at the midpoint. This would suggest back-half sales would be roughly 60% of the full year, acknowledging increased sequential revenue growth in the upcoming quarters and in line with prior year's growth patterns. Now turning to XPHOZAH. We are reiterating our full-year 2026 revenue guidance to be between $110 million and $120 million. Now moving on to OPEX. With the decision to modify our guidance for IBSRELA revenue, we have proactively taken additional efforts to manage spending and are revising our 2026 OPEX guidance to be below $500 million. We are managing the business with discipline as evidenced by these actions. Moving on to our longer-term guidance. A few things first. Let me be clear. We are still on a path to achieve $1 billion in revenue for IBSRELA. However, with the 2026 revenue revision, we are evaluating the evolving market dynamics and the impact on the timing of this achievement. For XPHOZAH, we have been assessing market dynamics as well as future growth projections in a period of uncertainty. Therefore, it is prudent to revisit our internal assumptions and pull our $750 million revenue guidance. We believe these are the right decisions and at this time are the right actions to take to ensure that any forward view we provide reflects the current reality. As we are on the cusp of profitability and transition into a more steady and measurable cash flow positivity in the near future, our financial strategy is guided by our 3 capital allocation priorities, which remain unchanged. Accelerating IBSRELA growth, actively progressing our pipeline, and maintaining financial strength. In closing, we are funding our own operations and pipeline from our revenue base, and we remain disciplined in our spending, aggressive in our commercial pursuits, and committed to delivering value for both patients and shareholders. With that, I will hand it back to Mike. Michael Raab: Thank you, Sue. The demand for our medicines is evident. We do understand the challenges that we are facing and we've taken decisive action to address them. We remain focused on executing on our 2026 priorities, including growing IBSRELA demand by improving patient access, maintaining XPHOZAH's momentum, building and expanding our pipeline, and delivering strong financial results. I have tremendous confidence in our team, our strategy, and our ability to execute. We are committed to our patients and creating long-term value for our shareholders and thank you for your continued support. With that, we'll open the call for questions. Operator. Operator: [Operator Instructions] And our first question today will come from Roanna Ruiz with Leerink Partners. Unknown Analyst: Ryan on for Roanna. Maybe can you just talk about the underlying demand metrics that you guys are tracking as you exit Q2 and through July and how that gives you confidence heading into your revised full-year guidance, and then maybe just quickly, can you also just talk about the pushes and pulls that are baked into this new guidance for IBSRELA? Michael Raab: Sure. And so it's all for IBSRELA and not XPHOZAH, correct? Unknown Analyst: Yes. Correct. Michael Raab: Eric. Eric Foster: Yes. Hey, Ryan. Thanks for those questions. So as we look at performance right now, as we've talked about, you know, we continue to see really strong refills and total prescriptions. So we'll continue to take a look at that. Clearly we're excited about the highest demand quarter that we've had to date. So we're going to continue to make sure that we focus on that as well as prescriptions going into the IBSRELA Pharmacy Network. We know when that happens, we get higher fulfillment rates, faster fills, and on average, 1 more refill on an annual basis per patient. So those are key metrics for us that are giving us confidence as we look into the back half of this year, that we'll continue to be able to have that controlled growth that we expect. Sue Hohenleitner: Yes, and the only thing I would add, Ryan, is that, you know, the pushes and pulls that we talked about have all been factored in. So, we've seen the current performance in the first half of the year. We know the friction that we've seen, and we have baked that into the guidance that we have for IBSRELA. Operator: And we'll move next to Dennis Ding with Jefferies. Yuchen Ding: I had 2 on IBSRELA. So #1, it sounds like demand is fine, but access is getting more difficult. I think that's really the new piece of info for me. Can you give more color on what those hurdles are? Are these scripts still getting filled, but it's taking longer? Are they just getting completely blocked or they're more step edits or what's going on there exactly? And then #2, you guys have called out many times the favorable impact from these specialty pharmacies. It's been around 9 months since that got implemented and you guys have sounded confident the last few months. So is it possible to share a few quantitative metrics on things like how often are scripts being written as a sign of underlying demand but then actually how many of them are actually getting filled over the last few quarters and I'm assuming that portion or that percentage is getting better over time? Michael Raab: Yes, Dennis, thanks for the questions. I'll ask Eric to address most of that. One comment though is, I think what was important as we talked about is starting the IPN back at the end of last year. As Eric has mentioned on every call that we do see better fulfillment rates and on average 1 additional prescription that goes through the IPN and the special network that we've established, and incredibly fortunate that we started it then. I think as I said in my comments and Eric reiterated, it is the extent of the step edits that have been put in place was not something that one would anticipate with this product. We're clearly getting attention given its growth and success, but you hit the nail on the head. The demand is still there. It is just harder for patients to get through, and that's with the work that Eric and the team are doing with the FRMs and IPN. Eric Foster: Yes, Dennis, so to give you a little bit more color on that. So 2 things that we were seeing, so 1, we're seeing more step edits and 2, more stringent prior authorizations. So you're exactly right, what we're seeing is more of a slowing of the new patient starts, so not blocking but a slowing due to those 2 things. So we feel confident around those 4 actions that we've put in place that we'll be able to accelerate demand as well as improve pull-through as we go through the back half of this year. And again, you're right, we were, as I just said, excited about first quarter being the highest, sorry, our second quarter about the highest demand quarter that we've had to date. So we know that those measures can work and are encouraged about some early signs that we're seeing there. Operator: We'll move next to Chris Raymond with Raymond James. Unknown Analyst: Hey, this is [ Daniel Chon ] for Chris Raymond. You guys have had pretty active business development efforts for a bit of time now. Can you talk about your view on the current environment for finding assets and opportunities in light of all the recent M&A activity going on in the industry? And, you know, as the business has evolved and the markets changed? Has your thoughts or strategy shifted at all over time? Michael Raab: Thank you for the question. We are looking at opportunities every day, and a substantial number of them. It certainly doesn't lack for opportunity. I think we said in previous calls, you kiss a lot of frogs before you find those things that you're going to bring in. So the team is actively looking at a number of things. We prosecuted a number of them and have not gotten over other things that we find as part of the due diligence process, that's what we do. I'm very optimistic that we're going to be able to build this pipeline, certainly as generating the cash that we are. It's an exciting next step for the company. And certainly with what we have with tenapanor, particularly the '299 patent, gives us runway with tenapanor alone that's really quite significant that my guess is not fully appreciated through 2042. And the 531 program as well, if it bears fruit, is yet another leg on the stool that I think is critical for that effort. Operator: Our next question will come from Matthew Caufield with H.C. Wainwright. Matthew Caufield: Just focusing on the discussed access challenges for IBSRELA, appreciated the color in the comments there so far. But are these factors something that's gotten worse over the past couple quarters? Or in other words, what, if anything, has changed for the access challenges over the past 12 months, for example? Michael Raab: Yes, I'll ask Eric to comment on that. The thing, if you recall, when we talked about how we approach market access is we have taken a position that we wouldn't rebate, negotiate, and discount until there was a need to. And I think what we're seeing here in terms of the step edits and the hurdles that patients are being forced to go through, which is frustrating for everyone, merits the kind of discussions that we're going to begin having and having already with the payer community. This is their business. That's what they do. They put step edits and hurdles in place for patients, and ultimately you look to the manufacturer to offset those things. It's a tough business, but ultimately what we have put in place with the FRMs, IPN, and the team that Eric has built gets us through those hurdles that exist. That's why we structure it and do it the way we do. Eric Foster: Yes, I would just add that when you have the success that we've had really over the past couple of years, one of the things I think that there's a key takeaway here is that payers certainly are paying attention to that. And the speed and the extent to which these more stringent PAs and step edits were put in place and the impact of those, you know, we're not really anticipating that it would be as quickly as it was. But with that, we feel confident about the things that we started to put in motion late last year and early this year, and are pleased right now that we've got the additional field reimbursement managers in the field to be able to work with physicians and patients to navigate those hurdles. And then that's what we are considering as we've looked at the updated guidance that has given us confidence for the back end of this year. Operator: And we'll move next to Laura Chico with Wedbush Securities. Laura Chico: I guess 1, just follow up there, Eric. If I'm doing the math right, I think the new guidance for IBSRELA implies about a 30% increase in the second half over the first half. So, what you're saying is that the deployment of these new people is going to help you facilitate the appeals process and kind of get more of these scripts recovered? Or is it more of a matter, more of a function of getting new starts through the queue or just finding new patients? And then the second question just relates to the comments around IP that you made, Mike. Can you confirm if there've been any ANDA challengers thus far? And I guess, as you're expanding the patent portfolio, I'm just curious if there's other barriers to generic competition entry that we might be, that we should be considering. Michael Raab: Yes, thanks Laura. Just a quick comment on we'll get to the second question first. We won't go into specifics as to whether or not we've gotten challenges at this point, but you can imagine for a product that's growing this aggressively that there's going to be interest. That's something that we certainly anticipate. What's interesting is remember this is a non-absorbed drug, so it is not the PK/PD traditional way that you would use it that you see generic drugs getting approved. And there's product-specific guidance that you can find from the FDA on what it takes ultimately for those approvals. So that is a barrier in and of itself. Our '299 patent, as we talked about, is a critically important patent, albeit a formulation patent. These are complex molecules that we've designed, not as straightforward as simple formulation. The formulation that we use matters. And other IP that we're building around this is exactly to bolster that even further. So we have great confidence in the '299 estate and the others that are coming and that we already have to strengthen that position through 2042 and potentially beyond. Eric Foster: Yes, and Laura, I would add in terms of the focus for the field reimbursement managers, it's really both. It's new patients as well as those patients that were previously identified that are working through the process. So if we think about the field reimbursement managers and they're able to focus on approval rates as well as resubmission rates, it really can address any of those hurdles if it's a new patient or someone previously identified working through the process. Operator: Our next question will come from Yigal with Citi. Yigal Nochomovitz: I'm just wondering, are you seeing this payer pushback dynamic broadly across the IBS-C categories, so with some of the competitive products as well? And also, is it restricted to just certain plans, you know, like an Aetna or Blue Cross or CVS? Or are you seeing it kind of broadly across all of the payers? And then on XPHOZAH, could you just elaborate a little bit as to why you decided to, just withdraw the $750 million as opposed to revise it down to something that you are more comfortable with? Michael Raab: Sure, let me address that first, Yigal. And we're coming to the end of the TDAPA period at the end of this year. And that is certainly part of it. You look at the PPS that had come out that's currently in comment stage where they're putting in place a quality measure, referred to as a QIP EQIP. And it's the first time certainly that I've seen in my career that there's a phosphorus QIP there. We need to understand the implications of that QIP as well as this post-TDAPA period, how the DOs are reacting to that. There are some binders in development, obviously with some that are currently at the agency. We really want to see how that settles in. And we just thought it was a prudent approach to take a step back from the $750 million. We may come back with that, but I think it's going to be better informed with what we're going to see in the ensuing months with these transitions. Sue Hohenleitner: Yes, and the only thing I would add is, again, as I stated in my remarks, when we're looking at this guidance, we need a high degree of confidence in our ability to deliver that. So, I think it was the prudent thing to do while we're looking at this, as Mike discussed. Eric Foster: Yes, and then with regards to are we seeing this across the IBS-C category? So, just remembering that our strategy is a bit different from the others. And so, just focusing on us, you know, what we've seen is just more stringent prior authorization criteria and ensuring that HCPs are adherent to that criteria. We've seen a bit of a shift there, as well as the step edits. And then in terms of how many payers we're seeing this across, it certainly is a meaningful amount to be able to influence the commercial landscape. And so for us, it was really important to dig into that to see what is the real impact to the business, do we understand it, and what are the actions we can put in place to be able to move forward and feel really good about what the team has been able to put together there and certainly leading to the revised guidance and our plan for the back half of this year. Operator: Our next question will come from Julian Harrison with BTIG. Julian Harrison: First, with the updated guide, I'm wondering if you have any updated thoughts on the timeline to profitability. How should we be thinking about that? And then second, on CIC, I know we're around a year from top-line Phase 3 data, but would appreciate if you could help us start framing expectations for that data then? What would maybe be a win in your mind? And does CIC addressable with your current sales force? Or are you maybe expanding into a broader call point there if the data are supportive? Michael Raab: Yes, I think just a little bit on the second part of the question, and I'll ask Sue to address the '27 guide that we've just given. Certainly, there is great synergy with the sales force that we currently have, right? Those physicians see both IBS-C and CIC patients. So that makes good sense. If there's a need to optimize the sales force as Eric has done historically, that's certainly something that we will consider. As we've talked about, all sites are up and running, enrollment's going great, and we're on track to deliver data and read that out in the timeframe that you just articulated. Sue Hohenleitner: And in terms of the profitability guide, as I have been continuing to say throughout the year, profitability is right around the corner. And when I think about the revenue growth expected, not only through the rest of this year, but as we continue into '27, we know that our cost structure will level out or begin to level out. So our top line will continue to grow faster than OPEX, and that's why I'm very confident in saying that we will be income positive next year. The other thing I would note is even through this year, as sales continue to grow, we are narrowing our losses in the path towards this profitability. Our Q1 loss, if you recall, was about $38 million. This quarter it's $16 million. It's less than it was this time last year. So we're really continuing to narrow that, you can really see that path to profitability. Operator: And our next question will come from Caroline Palomeque with Ladenburg. Caroline Palomeque: So when thinking about coupons or discounting for product, if you implement that, what kind of impact do you anticipate it will have on GTN, or does the current guidance on GTN still stand? Sue Hohenleitner: Yes, so our guidance on GTN, you know, we did take that into account in our total year guide. What I've been saying throughout the year is, you know, low to mid-30s, and that still continues to be the case. So we've taken, you know, all of the impacts into account. And, you know, when you really think about our GTN, it's impacted by mix certainly between government and commercial as well as the IRA inflation rebates and then our co-pay and our distribution discounts and things like that. All taken into account, Caroline. Operator: This does conclude today's conference call. Thank you for joining. You may now disconnect. Before you buy stock in Ardelyx, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Ardelyx wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. 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As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool recommends Ardelyx. The Motley Fool has a disclosure policy. Ardelyx (ARDX) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

This article first appeared on GuruFocus. Total Product Revenue: $118 million in Q2 2026, up 31% year-over-year. Ibsrela Revenue: $86.2 million in Q2 2026, up 33% year-over-year. Xphozah Revenue: $31.9 million in Q2 2026, up 27% year-over-year. R&D Expenses: $26.1 million in Q2 2026, compared to $15.7 million in Q2 2025. SG&A Expenses: $101.4 million in Q2 2026, compared to $84 million in Q2 2025. Net Loss: $16.7 million in Q2 2026, compared to a net loss of $19.1 million in Q2 2025. Cash and Investments: $281.8 million at end of Q2 2026. 2026 Ibsrela Revenue Guidance: Lowered to $350 million to $370 million. 2026 Xphozah Revenue Guidance: Reiterated at $110 million to $120 million. 2026 OpEx Guidance: Revised to below $500 million. Warning! GuruFocus has detected 6 Warning Signs with ARDX. Is ARDX fairly valued? Test your thesis with our free DCF calculator. Release Date: August 06, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Ardelyx Inc (NASDAQ:ARDX) achieved record quarterly revenue of $118 million in Q2 2026, up 31% year-over-year, driven by strong demand for both Ibsrela and Xphozah. Ibsrela revenue grew 33% year-over-year to $86.2 million, with record-high demand, total prescriptions, and market share since launch, reinforcing confidence in the $1 billion revenue potential. Xphozah demonstrated resilience with 27% year-over-year revenue growth to $31.9 million, driven by strong demand and increased total dispenses and paid prescriptions. The company is well-funded with $281.8 million in cash and short-term investments, and is on track to achieve sustainable profitability in 2027, with net losses narrowing to $16.7 million in Q2. Ardelyx is advancing its pipeline, including tenapanor and the next-generation NHE3 inhibitor, and has built a robust patent estate for tenapanor with protection through 2042. The company is taking proactive measures to address payer hurdles, including doubling its field reimbursement team, expanding its sales force to 144 representatives, and enhancing the Ibsrela Pharmacy Network to improve fulfillment rates and adherence. Ardelyx Inc (NASDAQ:ARDX) lowered its full-year 2026 Ibsrela revenue guidance to $350-$370 million due to significant payer-imposed hurdles, including more stringent step edits and prior authorizations, which have slowed new patient starts. The company withdrew its $750 million revenue guidance for Xphozah due to market uncertainty, including the end of the TDAPA period and the implementation of a new phosphorus quality incentive program, which could impact future growth. The DC Circuit Court of Appeals affirmed the dismissal of the lawsuit against CMS, keeping oral phosphate-lowering drugs in the bundle, which presents ongoing challenges for Xphozah's market access. Operating expenses increased significantly, with SG&A expenses rising to $101.4 million in Q2 2026, reflecting deliberate investments to address access barriers, which may pressure near-term profitability. The company drew down $50 million from its SLR arrangement for general corporate purposes, increasing debt and potentially impacting financial flexibility. The revised guidance implies a need for significant sequential revenue growth in the second half of 2026, which may be challenging given the persistent payer hurdles and market dynamics. Q: Can you provide more color on the payer hurdles impacting Ibsrela? Are prescriptions being filled but taking longer, or are they being completely blocked? And can you share quantitative metrics on how often scripts are written versus filled?A: Eric Foster (Chief Commercial Officer) explained that the company is seeing more step edits and more stringent prior authorizations, which are slowing new patient starts rather than completely blocking them. Mike Raab (President and CEO) added that the extent of step edits was not anticipated given the product's growth and success, but demand remains strong. The company is leveraging its field reimbursement team (doubled in size) and the Ibsrela Pharmacy Network (IPN) to navigate these hurdles, with data showing that prescriptions going through the IPN result in higher fulfillment rates, faster fills, and one additional refill per patient annually. Q: What are the pushes and pulls baked into the revised full-year guidance for Ibsrela, and what underlying demand metrics give you confidence heading into the second half?A: Eric Foster (Chief Commercial Officer) highlighted record-high demand in Q2, including total prescriptions and prescriptions per prescriber, as key confidence drivers. Sue Hohenleitner (Chief Financial Officer) confirmed that all current performance and friction points have been factored into the revised guidance of $350 million to $370 million for Ibsrela, which still represents over 30% annual growth at the midpoint. The company expects sequential revenue growth in the second half, with Q4 delivering the highest revenue of the year. Q: Why did you decide to withdraw the $750 million revenue guidance for Xphozah rather than revising it down to a more comfortable level?A: Mike Raab (President and CEO) explained that the decision was driven by the end of the TDAPA period at the end of 2026 and the need to understand the implications of a new phosphorus quality incentive program (QIP) from CMS, as well as how dialysis organizations will react post-TDAPA. Sue Hohenleitner (CFO) added that guidance requires a high degree of confidence in delivery, making it prudent to pull the guidance while assessing these evolving market dynamics. The company may revisit the guidance in the future once these transitions settle. Q: Are the payer pushback dynamics for Ibsrela being seen broadly across the IBS-C category, and is it restricted to certain plans or widespread?A: Eric Foster (Chief Commercial Officer) noted that while the company's strategy differs from competitors, they are seeing more stringent prior authorization criteria and step edits across a meaningful number of payers that can influence the commercial landscape. The company conducted a deep analysis to understand the real impact on the business and developed actions to address it, leading to the revised guidance and a plan for the back half of the year. Q: With the updated guidance, what are your updated thoughts on the timeline to profitability? And on the CIC program, what would constitute a win in the Phase 3 data readout?A: Sue Hohenleitner (CFO) reaffirmed that profitability is expected in 2027, noting that revenue growth will outpace OpEx growth as the cost structure levels out. She highlighted the narrowing net loss from $38 million in Q1 to $16.7 million in Q2 as evidence of the path to profitability. Mike Raab (CEO) noted that the CIC program has great synergy with the existing sales force since physicians treat both IBS-C and CIC patients, and enrollment is on track for data readout in the expected timeframe. Q: Have there been any ANDA challengers to your patent estate for tenapanor, and what other barriers to generic competition exist?A: Mike Raab (President and CEO) declined to comment on specific challenges but acknowledged that a product growing this aggressively will attract interest. He emphasized that tenapanor is a non-absorbed drug, making it different from traditional PK/PD generic approvals, and noted the FDA has product-specific guidance. The company's '299 patent, a formulation patent, is critically important, and the complex molecule design plus ongoing IP building strengthens their position through 2042 and potentially beyond. Q: If you implement coupons or discounting for Ibsrela, what impact would that have on gross-to-net (GTN), and does the current GTN guidance still stand?A: Sue Hohenleitner (CFO) confirmed that the full-year GTN guidance of low-to-mid 30s still stands and has been factored into the revised revenue guidance. She noted that GTN is impacted by mix between government and commercial business, IRA inflation rebates, co-pay assistance, and distribution discounts, all of which have been taken into account in the updated projections. Q: Can you discuss the current environment for business development and finding assets, and has your strategy shifted given recent M&A activity in the industry?A: Mike Raab (President and CEO) stated that the team is actively looking at opportunities daily and prosecuting a substantial number of deals, though many don't pass diligence. He expressed optimism about building the pipeline, especially with the cash generation capabilities of the business. He highlighted the runway provided by the tenapanor '299 patent through 2042 and the potential of the 531 program as additional legs on the stool for pipeline expansion. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Interested in Ardelyx, Inc.? Here are five stocks we like better. Second-quarter product revenue reached a record $118 million, up 31% year over year, but Ardelyx lowered its 2026 IBSRELA revenue forecast to $350 million–$370 million because stricter payer requirements are slowing new patient starts. XPHOZAH revenue rose 27% to $31.9 million, and its 2026 outlook remains $110 million–$120 million. However, Ardelyx withdrew its longer-term $750 million revenue target amid uncertainty around reimbursement changes, market dynamics and competing phosphate binders. Ardelyx increased commercial and research spending to improve access and fund pipeline development, while reporting a $16.7 million quarterly net loss and $281.8 million in cash and short-term investments. Management expects operating expenses below $500 million in 2026 and sustainable profitability in 2027. 3 mid-caps under $20 that Wall Street loves Ardelyx (NASDAQ:ARDX) reported second-quarter product revenue of $118 million, up 31% from a year earlier and representing the company’s largest quarterly revenue total to date. The company lowered its 2026 revenue outlook for IBSRELA while maintaining its forecast for XPHOZAH, citing increased payer restrictions affecting patient access to IBSRELA. “Growth in the second quarter was robust, yet performance fell short of our expectations,” President and CEO Mike Raab said. He said IBSRELA demand remains strong and that the company’s view of the product’s long-term opportunity, including its potential to reach $1 billion in revenue, has not changed. → 3 Drone Stocks That Should Soar After the Summer Slump Is Ardelyx is A Buy After Slip in Early 2022 IBSRELA generated $86.2 million in second-quarter revenue, a 33% increase from the comparable quarter of 2025. However, Ardelyx reduced its full-year IBSRELA revenue guidance to $350 million to $370 million. At the midpoint, the revised forecast would still represent annual growth of more than 30%. Chief Commercial Officer Eric Foster said the company has encountered more step-edit requirements and more stringent prior authorization criteria from payers. These barriers have slowed new patient starts, though Foster said they have not completely blocked access. The company reported its highest quarterly IBSRELA demand to date, including growth in refills, total prescriptions, total prescribers and prescriptions per prescriber. → Meta’s Earnings Drop Shows Wall Street Wants More Than Ad Growth To address access challenges, Ardelyx has doubled its field reimbursement team, with all added personnel in the field as of July 1. The company also expanded its sales organization to 144 representatives during the second quarter and is directing more prescriptions through the IBSRELA Pharmacy Network. According to Foster, prescriptions processed through the pharmacy network have higher fulfillment rates, faster fills and an average of one additional refill per patient annually. Ardelyx also plans to expand direct-to-consumer activities in the second half, alongside its existing LPGA partnership and digital outreach efforts. → Jersey Mike's Serves Fresh Gains After IPO Stumble Management expects IBSRELA revenue to increase sequentially in the second half of 2026, with the fourth quarter expected to be the year’s highest-revenue quarter. Chief Financial Officer Sue Hohenleitner said the revised guidance incorporates the payer friction observed in the first half as well as the company’s planned access initiatives. XPHOZAH produced $31.9 million in second-quarter revenue, up 27% year over year. Ardelyx reiterated its 2026 XPHOZAH revenue guidance of $110 million to $120 million. Foster said total XPHOZAH dispenses rose 33% year over year during the quarter, while paid prescriptions increased 25%. The product also reached its highest levels of total prescribers and prescriptions per prescriber since the first quarter of 2025. Ardelyx said it will not pursue further litigation following the June 26 ruling by the U.S. Court of Appeals for the D.C. Circuit affirming dismissal of the company’s lawsuit against the Centers for Medicare & Medicaid Services. The decision leaves oral phosphate-lowering drugs in the dialysis payment bundle. The company withdrew its prior $750 million XPHOZAH revenue target, saying it is reassessing market dynamics and growth assumptions amid uncertainty. Raab said the end of the TDAPA period this year, as well as a proposed phosphorus-related quality measure in the Medicare payment system, are among the factors Ardelyx is evaluating. The company also cited phosphate binders in development as part of the evolving market landscape. Research and development expense totaled $26.1 million in the second quarter, compared with $15.7 million a year earlier. Ardelyx attributed the increase primarily to development activities and patient enrollment costs for its ongoing ACCEL Phase 3 trial in chronic idiopathic constipation. Selling, general and administrative expense increased to $101.4 million from $84 million in the prior-year period, reflecting investments intended to address IBSRELA access barriers and support future adoption. Ardelyx reported a net loss of $16.7 million, narrowing from a $19.1 million loss in the second quarter of 2025. The latest quarter included $15.3 million in non-cash share-based compensation expense, compared with $11.7 million a year earlier. The company ended the quarter with $281.8 million in cash equivalents and short-term investments. During the quarter, Ardelyx drew $50 million under its existing arrangement with SLR for general corporate purposes and strategic flexibility. Ardelyx lowered its 2026 operating expense guidance to below $500 million after revising its IBSRELA outlook. Hohenleitner said the company remains on track to achieve sustainable profitability in 2027, as management expects revenue growth to outpace operating expense growth. Raab said Ardelyx continues to advance tenapanor and a next-generation NHE3 inhibitor while evaluating business-development opportunities to expand its pipeline. He also pointed to the company’s patent portfolio, including its Orange Book-listed 299 patent, as part of its strategy to support tenapanor’s commercial runway. “The demand for our medicines is evident,” Raab said. “We do understand the challenges that we are facing, and we’ve taken decisive action to address them.” Ardelyx, Inc (NASDAQ: ARDX) is a clinical‐stage biopharmaceutical company focused on discovering, developing and commercializing targeted small molecule drugs for cardio‐renal and gastrointestinal diseases. The company's lead marketed product, tenapanor (sold under the brand name XPHOZAH in the United States), is approved for the treatment of hyperphosphatemia in patients with chronic kidney disease on dialysis. Ardelyx's proprietary approach targets epithelial transporters in the gastrointestinal tract, offering localized activity with limited systemic exposure. Beyond tenapanor, Ardelyx's development pipeline includes treatments designed to address other complications in kidney disease and related metabolic disorders. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Ardelyx Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Q2 2026 total product revenue of $118.1 million, reflecting 31% growth year-over-year IBSRELA Q2 2026 revenue growth of 33% year-over-year to $86.2 million XPHOZAH Q2 2026 revenue growth of 27% year-over-year to $31.9 million Strong financial position with $281.8 million in cash, cash equivalents and investments as of June 30, 2026 Revising FY 2026 and long-term guidance Conference call scheduled for 4:30 PM Eastern Time WALTHAM, Mass., Aug. 06, 2026 (GLOBE NEWSWIRE) -- Ardelyx Inc. (Nasdaq: ARDX), (“Ardelyx” or the “Company”) a commercial-stage biopharmaceutical company focused on the development and commercialization of innovative medicines that meet significant unmet medical needs, today reported financial results for the second quarter ended June 30, 2026, and provided a business update. “In the second quarter of 2026, we delivered combined revenue of $118 million, up 31% year over year, the largest quarterly revenue in our Company’s history,” said Mike Raab, President and Chief Executive Officer of Ardelyx. “XPHOZAH had an excellent quarter, reinforcing the strength of our commercial foundation. The demand for IBSRELA was strong despite revenues below our expectations resulting from significantly increased utilization management processes from payors that we are actively addressing. The underlying fundamentals of our business remain robust and considering the recent market dynamics, we are updating our full year and future growth outlook. We are generating significant revenue, and we are moving towards profitability in 2027. We are a high-growth company with the demonstrated ability to effectively manage through external challenges, and I have full confidence in our team’s ability to execute. Our commitment to patients and to creating long-term shareholder value remains steadfast.” Product RevenueRevenue for IBSRELA® (tenapanor) during the second quarter of 2026 was $86.2 million, reflecting year-over-year growth of 33%. The growth was driven by increases in refills and total prescriptions, reaching the highest demand quarter to date. Revenue for XPHOZAH® (tenapanor) during the second quarter of 2026 was $31.9 million, reflecting year-over-year growth of 27%. The growth was driven by a strong increase in total writers, new and refill prescriptions, and total prescriptions. Updated Financial Guidance and Outlook Full-year 2026 revenue guidance for IBSRELA revised to be between $350 and $370 million. Full-year 2026 revenue guidance for XPHOZAH reiterated to be between $110 and $120 million. OPEX guidance revised to be below $500 million. IBSRELA long-term guidance of achieving $1B in revenue remains, and the Company is evaluating the evolving market dynamics and their impact on the timing of this achievement. XPHOZAH long-term guidance is being pulled as the Company assesses evolving market dynamics and growth rates, which have the potential to reshape the long-term market opportunity. Advancing a Pipeline of Important Medicines IBSRELA is being evaluated for the treatment of chronic idiopathic constipation (CIC) in adults in a Phase 3 clinical trial, ACCEL. The Company is on track to complete enrollment by the end of 2026 and to announce top-line data in the second half of 2027. IBSRELA is also being evaluated in multiple pediatric clinical trials which could potentially provide six months of additional patent life for tenapanor. RDX10531, the Company’s next-generation NHE3 inhibitor is currently being tested in IND-enabling studies. If successful, RDX10531 has potential for broad applications across multiple therapeutic areas. Corporate Developments On June 29, 2026, the Company drew $50 million from its existing financing arrangement with SLR Investment Corp. for general corporate purposes and to enhance flexibility to support its ongoing strategic initiatives in line with its capital allocation strategy. On June 26, 2026, the U.S. Court of Appeals for the D.C. Circuit affirmed the district court’s dismissal of our lawsuit against CMS related to CMS reimbursement classification of XPHOZAH and we will not pursue further litigation on this matter. Second Quarter 2026 Financial Results Cash Position: As of June 30, 2026, the Company had total cash, cash equivalents and short-term investments of $281.8 million, compared to total cash, cash equivalents and short-term investments of $264.7 million as of December 31, 2025. Revenues: Total product revenue for the quarter ended June 30, 2026 was $118.1 million, compared to $90.1 million for the quarter ended June 30, 2025, reflecting 31% growth, driven by increased demand. R&D Expenses: Research and development expenses were $26.1 million for the quarter ended June 30, 2026, compared to $15.7 million for the quarter ended June 30, 2025. The increase was primarily related to investments in the ACCEL Phase 3 trial for CIC. SG&A Expenses: Selling, general and administrative expenses were $101.4 million for the quarter ended June 30, 2026, compared to $84.0 million for the quarter ended June 30, 2025. The increase was related to deliberate investments to address the access barriers and drive future adoption of IBSRELA. Net Loss: Net loss for the quarter ended June 30, 2026 was $16.7 million, or $(0.07) per share, compared to net loss of $19.1 million, or $(0.08) per share, for the quarter ended June 30, 2025. The net loss for the second quarter of 2026 included share-based compensation expense of $15.3 million. Conference Call DetailsThe company will host a conference call today, August 6, 2026, at 4:30 PM ET to discuss today’s announcement. To participate in the conference call, please dial (877) 346-6112 (domestic) or +1 (848) 280-6350 (international) and ask to be joined into the Ardelyx call. A webcast of the call can also be accessed by visiting the Investor page of the company’s website, https://ardelyx.com/, and will be available on the website following the call. IMPORTANT SAFETY INFORMATION (IBSRELA) CONTRAINDICATIONS IBSRELA is contraindicated in patients less than 6 years of age due to the risk of serious dehydration. IBSRELA is contraindicated in patients with known or suspected mechanical gastrointestinal obstruction. WARNINGS AND PRECAUTIONSRisk of Serious Dehydration in Pediatric Patients IBSRELA is contraindicated in patients below 6 years of age. The safety and effectiveness of IBSRELA in patients less than 18 years of age have not been established. In young juvenile rats (less than 1 week old; approximate human age equivalent of less than 2 years of age), decreased body weight and deaths occurred, presumed to be due to dehydration, following oral administration of tenapanor. There are no data available in older juvenile rats (human age equivalent 2 years to less than 12 years). Avoid the use of IBSRELA in patients 6 years to less than 12 years of age. Although there are no data in older juvenile rats, given the deaths in younger rats and the lack of clinical safety and efficacy data in pediatric patients, avoid the use of IBSRELA in patients 6 years to less than 12 years of age. Diarrhea Diarrhea was the most common adverse reaction in two randomized, double-blind, placebo-controlled trials of IBS-C. Severe diarrhea was reported in 2.5% of IBSRELA-treated patients. If severe diarrhea occurs, suspend dosing and rehydrate patient. MOST COMMON ADVERSE REACTIONS The most common adverse reactions in IBSRELA-treated patients (incidence ≥2% and greater than placebo) were: diarrhea (16% vs 4% placebo), abdominal distension (3% vs <1%), flatulence (3% vs 1%) and dizziness (2% vs <1%). INDICATION IBSRELA (tenapanor) is indicated for the treatment of Irritable Bowel Syndrome with Constipation (IBS-C) in adults. Please see full Prescribing Information, including Boxed Warning, for additional risk information. IMPORTANT SAFETY INFORMATION (XPHOZAH) CONTRAINDICATIONSXPHOZAH is contraindicated in: Pediatric patients under 6 years of age Patients with known or suspected mechanical gastrointestinal obstruction WARNINGS AND PRECAUTIONSDiarrhea Patients may experience severe diarrhea. Treatment with XPHOZAH should be discontinued in patients who develop severe diarrhea. MOST COMMON ADVERSE REACTIONS Diarrhea, which occurred in 43-53% of patients, was the only adverse reaction reported in at least 5% of XPHOZAH-treated patients with CKD on dialysis across trials. The majority of diarrhea events in the XPHOZAH-treated patients were reported to be mild-to-moderate in severity and resolved over time, or with dose reduction. Diarrhea was typically reported soon after initiation but could occur at any time during treatment with XPHOZAH. Severe diarrhea was reported in 5% of XPHOZAH-treated patients in these trials. INDICATION XPHOZAH (tenapanor), 30 mg BID, is indicated to reduce serum phosphorus in adults with chronic kidney disease (CKD) on dialysis as add-on therapy in patients who have an inadequate response to phosphate binders or who are intolerant of any dose of phosphate binder therapy. For additional safety information, please see full Prescribing Information. About ArdelyxArdelyx is a commercial-stage biopharmaceutical company focused on the development and commercialization of innovative medicines that meet significant unmet medical needs. Ardelyx has two commercial products approved in the United States, IBSRELA® (tenapanor) and XPHOZAH® (tenapanor). The company’s pipeline includes the Phase 3 development of IBSRELA for chronic idiopathic constipation (CIC) and RDX10531, a next-generation NHE3 inhibitor with potential application across multiple therapeutic areas. Ardelyx works with partners to develop and commercialize our products outside of the United States. For more information, please visit https://ardelyx.com/ and connect with us on X (formerly known as Twitter), LinkedIn and Facebook. Forward Looking Statements To the extent that statements contained in this press release are not descriptions of historical facts regarding Ardelyx, they are forward-looking statements reflecting the current beliefs and expectations of management made pursuant to the safe harbor of the Private Securities Reform Act of 1995, including Ardelyx’s current expectations regarding: the long term potential for Ardelyx’s existing commercial products; our anticipated move towards profitability in 2027; opportunities for continued IBSRELA growth, including our expectation for achieving one billion in revenue; our U.S. net product sales revenue and OPEX guidance for full year 2026; and our expectations and timing regarding pipeline development activities, including enrollment in and expected topline readout of the Phase 3 ACCEL trial, the potential for additional patent life for IBSRELA as a result of ongoing pediatric clinical trials and RDX10531’s potential for broad applications across multiple therapeutic areas. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that are in some cases beyond our control, that could cause actual outcomes or results to differ materially from those expressed or implied by the forward-looking statements. Such risks and uncertainties include, among others, uncertainties associated with the development of, regulatory process for, and commercialization of drugs in the U.S. and internationally. Ardelyx undertakes no obligation to update or revise any forward-looking statements. For a further description of the risks and uncertainties that could cause actual results to differ from those expressed in these forward-looking statements, as well as risks relating to Ardelyx’s business in general, please refer to Ardelyx’s Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission on August 6, 2026, and its future current and periodic reports to be filed with the Securities and Exchange Commission. Investor Contact: Lisa [email protected]

Indivior Pharmaceuticals Inc. (INDV) came out with quarterly earnings of $1.15 per share, beating the Zacks Consensus Estimate of $0.97 per share. This compares to earnings of $0.51 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +18.56%. A quarter ago, it was expected that this company would post earnings of $0.64 per share when it actually produced earnings of $0.96, delivering a surprise of +50%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Indivior Pharmaceuticals Inc., which belongs to the Zacks Medical - Drugs industry, posted revenues of $343 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 11.36%. This compares to year-ago revenues of $302 million. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Indivior Pharmaceuticals Inc. shares have added about 11.5% since the beginning of the year versus the S&P 500's gain of 9.4%. While Indivior Pharmaceuticals Inc. has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Indivior Pharmaceuticals Inc. was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.03 on $313.35 million in revenues for the coming quarter and $4.05 on $1.26 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Medical - Drugs is currently in the bottom 44% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, Ardelyx (ARDX), is yet to report results for the quarter ended June 2026. The results are expected to be released on August 6. This biotechnology company is expected to post quarterly loss of $0.05 per share in its upcoming report, which represents a year-over-year change of +37.5%. The consensus EPS estimate for the quarter has been revised 14.3% lower over the last 30 days to the current level. Ardelyx's revenues are expected to be $123.69 million, up 26.7% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Indivior Pharmaceuticals Inc. (INDV) : Free Stock Analysis Report Ardelyx, Inc. (ARDX) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Ardelyx (ARDX) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended June 2026. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price. The earnings report, which is expected to be released on August 6, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower. While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise. This biotechnology company is expected to post quarterly loss of $0.05 per share in its upcoming report, which represents a year-over-year change of +37.5%. Revenues are expected to be $123.69 million, up 26.7% from the year-ago quarter. The consensus EPS estimate for the quarter has been revised 14.29% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period. Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change. Price, Consensus and EPS Surprise Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core. The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only. A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP. Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell). For Ardelyx, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -14.29%. On the other hand, the stock currently carries a Zacks Rank of #4. So, this combination makes it difficult to conclusively predict that Ardelyx will beat the consensus EPS estimate. Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number. For the last reported quarter, it was expected that Ardelyx would post a loss of$0.13 per share when it actually produced a loss of -$0.15, delivering a surprise of -15.38%. Over the last four quarters, the company has beaten consensus EPS estimates two times. An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss. That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported. Ardelyx doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release. Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Ardelyx, Inc. (ARDX) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Never miss an important update on your stock portfolio and cut through the noise. Over 7 million investors trust Simply Wall St to stay informed where it matters for FREE. Ardelyx (ARDX) reported first quarter 2026 results, with revenue of US$94.47 million and a net loss of US$37.61 million, and reiterated full-year revenue guidance for IBSRELA and XPHOZAH. See our latest analysis for Ardelyx. Ardelyx’s latest earnings release and guidance update come after a strong 1 year total shareholder return of 91.89%, while the 30 day share price return of 18.93% suggests momentum has picked up again around US$7.10. If this earnings driven move has you looking beyond Ardelyx, it could be a good moment to broaden your search and check out 19 top founder-led companies With Ardelyx guiding to hundreds of millions in IBSRELA and XPHOZAH revenue and the stock already up sharply over 1 year, you have to ask whether there is still a buying opportunity here or whether the market is already pricing in future growth. Analysts following Ardelyx see a fair value of about $16.33 per share versus the last close at $7.10, with that gap hinging on long term growth and margin assumptions. Read the complete narrative. Want to see what kind of revenue ramp, margin lift, and valuation multiple are baked into this view? The narrative sets a precise roadmap without showing every number up front. Result: Fair Value of $16.33 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, this depends on Ardelyx remaining heavily dependent on IBSRELA and XPHOZAH, as well as on future Medicare and reimbursement outcomes that are still uncertain. Find out about the key risks to this Ardelyx narrative. With sentiment leaning positive, this is a moment to move quickly, review the underlying data, and decide where you stand by checking the 4 key rewards. Do not stop with one stock when there are entire groups of companies that match the kind of opportunities you are searching for today. Target dependable income by reviewing 12 dividend fortresses that can help anchor the more volatile parts of your portfolio. Spot potential bargains early by scanning screener containing 23 high quality undiscovered gems before wider attention catches up. Dial down portfolio stress by focusing on 74 resilient stocks with low risk scores that may offer a smoother ride through market swings. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include ARDX. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

It's been a pretty great week for Ardelyx, Inc. (NASDAQ:ARDX) shareholders, with its shares surging 16% to US$6.88 in the week since its latest quarterly results. Revenues were a bright spot, with US$94m in revenue arriving 2.5% ahead of expectations, although statutory earnings didn't fare nearly so well, recording a loss of US$0.15, some 2.3% below consensus predictions. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results. We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. Taking into account the latest results, the most recent consensus for Ardelyx from ten analysts is for revenues of US$550.6m in 2026. If met, it would imply a substantial 29% increase on its revenue over the past 12 months. Earnings are expected to improve, with Ardelyx forecast to report a statutory profit of US$0.02 per share. In the lead-up to this report, the analysts had been modelling revenues of US$549.3m and earnings per share (EPS) of US$0.039 in 2026. So there's definitely been a decline in sentiment after the latest results, noting the large cut to new EPS forecasts. See our latest analysis for Ardelyx The consensus price target held steady at US$16.44, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on Ardelyx, with the most bullish analyst valuing it at US$19.00 and the most bearish at US$13.00 per share. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view. Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. It's pretty clear that there is an expectation that Ardelyx's revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 40% growth on an annualised basis. This is compared to a historical growth rate of 60% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 21% per year. So it's pretty clear that, while Ardelyx's revenue growth is expected to slow, it's still expected to grow faster than the industry itself. The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates. Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have forecasts for Ardelyx going out to 2028, and you can see them free on our platform here. Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months on our platform, here. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.