Executive Summary

Ardelyx delivered a clear beat and a “raise” quarter: Q3 revenue was $110.3M vs S&P Global consensus $100.5M, and EPS was $0.00 vs -$0.07 consensus; management raised 2025 IBSRELA revenue guidance to $270–$275M (from $250–$260M), citing sustained demand and improved pull-through . Q3 consensus values marked with * and sourced from S&P Global.
Product mix remains the story: IBSRELA ($78.2M, +20% q/q, +92% y/y) offset headwinds in XPHOZAH ($27.4M, +9% q/q), where loss of Medicare Part D coverage continues to pressure y/y comps, though sequential momentum remains positive .
Operating leverage inflected: EBIT turned positive to $4.7M (EBIT margin ~4.2%), SG&A remained consistent with Q2 while revenue grew, and cash/cash equivalents and ST investments increased to $242.7M at quarter-end .
Pipeline catalyst added: the company unveiled RDX10531, a next-generation NHE3 inhibitor, targeting an IND in 2026; management highlighted its potency/solubility and multi-therapeutic potential, reinforcing long-term optionality .

What Went Well and What Went Wrong

What Went Well
- IBSRELA outperformance: “IBSRELA continues to outperform,” with $78.2M revenue in Q3 (+92% y/y), driven by broad-based demand and better pull-through, and FY25 guidance raised to $270–$275M .
- XPHOZAH sequential growth: $27.4M in Q3 (+9% q/q) with the second consecutive quarter of growth in non‑Medicare segments; management cites improving access and pull-through (“more patients have access to XPHOZAH today than ever before”) .
- Profitability progress: Positive operating income ($4.7M) with revenue growth outpacing opex; Q3 net loss narrowed to ~$1.0M (less than a penny per share) and quarter saw positive cash flow .
What Went Wrong
- XPHOZAH y/y comp still pressured: Q3 XPHOZAH revenue declined y/y due to the January 1 shift eliminating Medicare Part D coverage; management continues to avoid providing full‑year guidance for the product .
- Elevated opex to support growth: SG&A at $83.6M (+28% y/y) remained high to fund commercial scale (consistent with Q2), pressuring bottom line despite revenue strength .
- Royalty/interest headwinds persist: Non‑cash interest expense ($2.2M) related to future royalties and ongoing interest expense ($5.8M) remained notable, partly offset by non‑cash royalty/milestone revenue ($4.8M) .

Financial Results

Metric	Q3 2024	Q2 2025	Q3 2025
Total Revenue ($M)	$98.241	$97.662	$110.329
Net Loss per Share (Basic/Diluted)	$(0.00)	$(0.08)	$(0.00)
Income (Loss) from Operations ($M)	$2.233	$(14.395)	$4.668
EBIT Margin %	2.3% (calc)	-14.7% (calc)	4.2% (calc)

Notes: EBIT Margin % calculated as Income (loss) from operations / Total Revenue, using cited figures.

Segment breakdown (net product revenue):

Metric	Q3 2024	Q2 2025	Q3 2025
IBSRELA Revenue ($M)	$40.638	$65.045	$78.158
XPHOZAH Revenue ($M)	$51.452	$25.032	$27.357
Product Supply Revenue ($M)	$5.322	$6.185	$—
Licensing Revenue ($M)	$0.020	$0.020	$0.025
Non‑cash Royalty/Milestone Revenue ($M)	$0.809	$1.380	$4.789

KPIs and operating metrics:

KPI	Q1 2025	Q2 2025	Q3 2025
IBSRELA Gross‑to‑Net (%)	34.8%	32.2%	~31%
XPHOZAH Gross‑to‑Net (%)	~32% (ex-returns); 18% reported with reserve release	~29%	~29%
Cash, Cash Equivalents & ST Investments ($M)	$214 (3/31/25)	$238.5 (6/30/25)	$242.7 (9/30/25)

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
IBSRELA Revenue	FY 2025	$250–$260M	$270–$275M	Raised
XPHOZAH Revenue	FY 2025	Not provided	Not provided	Maintained (no guidance)
SG&A Run‑Rate	2H 2025	~$90M/quarter with incremental increases	No update; Q3 SG&A consistent with Q2	Maintained commentary

Other: Company introduced RDX10531 (next‑gen NHE3 inhibitor), with IND targeting 2026 .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q1 & Q2 2025)	Current Period (Q3 2025)	Trend
IBSRELA commercial execution & pull‑through	Q1: Strong demand despite market contraction; expanding field access team to improve pull‑through . Q2: Record IBSRELA revenue; salesforce hitting stride; raised FY IBSRELA to $250–$260M .	Record IBSRELA quarter; continued gains in new/total writers, refills; raised FY guidance to $270–$275M .	Improving
XPHOZAH access strategy post‑Medicare change	Q1: Strategy focused on ArdelyxAssist and non‑Medicare growth; avoided guidance; mix shifting . Q2: Sequential growth; non‑Medicare momentum; GtN ~29% .	+9% q/q revenue growth; second consecutive quarter of non‑Medicare growth; “more patients have access… than ever” .	Improving sequentially; y/y still pressured
Gross‑to‑Net dynamics	Q1: IBSRELA 34.8%; XPHOZAH ~32% ex‑reserve . Q2: IBSRELA ~32.2%; XPHOZAH ~29% .	IBSRELA ~31%; XPHOZAH ~29% .	Stabilizing
Pipeline/BD	Q1–Q2: Exploring BD; building team (CBO) .	Announced RDX10531; IND planned 2026; highlights potency/solubility .	Emerging pipeline
Capital allocation & balance sheet	Q2: Drew $50M debt; optionality for additional $100M; cash $238.5M .	Positive operating cash flow; cash $242.7M; CFO transition announced/effective Nov 4 .	Strengthening

Management Commentary

“IBSRELA continues to outperform, driven by sustained demand… Our strategy translated into expanded patient adoption, accelerated revenue growth and increased conviction for the long‑term value of this franchise.” — Mike Raab, CEO .
“In Q3… revenue was $78.2 million… We delivered record highs in new writers and total writers… increased rates of prior authorization approvals and resubmission approvals.” — Eric Foster, CCO .
“XPHOZAH delivered another solid quarter… $27.4 million… Our gross‑to‑net deduction of approximately 29% was consistent with the second quarter.” — Justin Renz, CFO/COO .
On RDX10531: “Highly potent, highly soluble… could open development opportunities across a broad range of therapeutic areas… [IND] in 2026.” — Mike Raab .

Q&A Highlights

IBSRELA trajectory and first‑line use: Management emphasized organic first‑line growth while core strategy focuses on second/third‑line positioning due to payer dynamics; confident in path to >$1B peak sales .
XPHOZAH access model: Prescriptions adjudicated via ArdelyxAssist; non‑Medicare growth continued; on Medicare side, access fulfilled via patient assistance; “more patients have access… than ever before” .
Gross‑to‑Net: Q3 GtN ~31% (IBSRELA) and ~29% (XPHOZAH); expected to remain broadly consistent into Q4 .
Capital deployment: Balance sheet supports pipeline investment; BD remains opportunistic; RDX10531 prioritized as internal program .
Guidance posture: IBSRELA guidance raised; management remains conservative on XPHOZAH guidance pending continued consistency in trends .

Estimates Context

Actual vs S&P Global consensus (Q3 2025):

Metric	Consensus*	Actual
Revenue ($M)	$100.544*	$110.329
Primary EPS ($)	-0.0675*	0.000

Surprise: Revenue +$9.8M; EPS +$0.07 vs consensus (beat). Q4 2025 consensus: Revenue $118.809M*, EPS $0.008* (as of latest S&P Global pull). Values marked with * are retrieved from S&P Global.

Key Takeaways for Investors

Beat-and-raise quarter anchored by IBSRELA; sustained execution supports higher FY25 revenue guide to $270–$275M and positive operating leverage (trading implications: upward estimate revisions and potential multiple support) .
XPHOZAH sequential recovery continuing despite Medicare headwinds; non‑Medicare momentum and stable GtN underpin improving run‑rate into Q4 (watch for ongoing access indicators) .
Margin trajectory improving: EBIT positive (~4.2% margin) with SG&A steady vs Q2; continued revenue growth could drive incremental operating margin expansion .
Balance sheet healthy ($242.7M cash/ST investments) and generating positive Q3 cash flow; provides optionality for targeted pipeline/BD investments .
New pipeline program (RDX10531) adds medium‑term optionality; IND in 2026 is a potential narrative catalyst for diversified growth beyond IBSRELA/XPHOZAH .
Near‑term focus: monitor IBSRELA script momentum and pull‑through, XPHOZAH non‑Medicare growth cadence, GtN stability, and any updates on XPHOZAH guidance as trends persist .
Additional supportive datapoints post‑quarter: real‑world XPHOZAH evidence at ASN Kidney Week showed meaningful serum phosphate reductions, adding clinical conviction to the access‑driven strategy .

Additional Press Releases and Context (Q3 timeframe)

Executive leadership changes announced Aug 4, 2025; CFO transition update reiterated in Q3 materials .
Post‑quarter, Ardelyx presented first real‑world XPHOZAH effectiveness data at ASN Kidney Week (Nov 7), supporting clinical value and patient satisfaction under current access dynamics .

S&P Global disclaimer: All values marked with * are retrieved from S&P Global.

ARDELYX, INC. (ARDX)·Q3 2025 Earnings Summary