Ardelyx (NASDAQ:ARDX) Trading Down 10.4% on Disappointing Earnings

Ardelyx, Inc. (NASDAQ:ARDX) shares were down 10.4% during mid-day trading on Friday following a dissappointing earnings announcement. The company traded as low as $5.90 and last traded at $6.0380. Approximately 1,633,732 shares changed hands during trading, a decline of 69% from the average daily volume of 5,216,605 shares. The stock had previously closed at $6.74.

The biopharmaceutical company reported ($0.01) earnings per share (EPS) for the quarter, missing the consensus estimate of $0.02 by ($0.03). Ardelyx had a negative return on equity of 42.05% and a negative net margin of 15.12%.The firm had revenue of $125.22 million during the quarter, compared to the consensus estimate of $118.04 million. During the same quarter in the previous year, the company posted $0.02 EPS. The firm’s revenue was up 7.8% on a year-over-year basis.

Ardelyx News Roundup

Here are the key news stories impacting Ardelyx this week:

• Positive Sentiment: Strong commercial growth — IBSRELA revenue grew 73% in 2025 to $274.2M and total revenues reached $407.3M, demonstrating meaningful top-line momentum that supports future cash flow potential. Ardelyx Reports Fourth Quarter and Full Year 2025 Financial Results and Provides Business Update
• Positive Sentiment: Revenue beat — Q4 revenue of $125.2M topped analyst estimates (~$118M), showing continued commercial execution even as EPS missed. MarketBeat Q4 results summary
• Positive Sentiment: Bullish analyst support — BTIG reaffirmed a buy rating and set a $17 price target, and at least one firm reportedly raised its target sharply (~+80%), showing divergent analyst views and potential upside if sentiment improves. Benzinga note on BTIG rating
• Neutral Sentiment: Earnings call and disclosures — the full Q4 earnings call transcript is available; management reiterated the XPHOZAH access strategy and said the company is well-capitalized to pursue growth and development programs. Investors will parse the call for guidance on margins and R&D spend. Q4 2025 Earnings Call Transcript
• Neutral Sentiment: Data noise on short interest — several data feeds reported large short-interest “increases” but with zero shares and NaN changes, indicating erroneous/unclear short-interest reporting rather than a meaningful squeeze or piling on. Investors should treat those items cautiously.
• Negative Sentiment: EPS miss and margin concerns — Ardelyx reported EPS of ($0.01) vs. consensus $0.02, and commentary showed heavy operational spend that clouds near-term profitability; that miss is the primary near-term driver of selling pressure. Zacks Q4 EPS coverage
• Negative Sentiment: Mixed investor reaction to outlook — post-earnings commentary and coverage highlighted concerns about the IBSRELA outlook and high operating expenses, which prompted the stock decline despite strong sales numbers. Seeking Alpha: Strong IBSRELA Growth, But Heavy Operational Spend Clouds Profitability

Analysts Set New Price Targets

ARDX has been the subject of a number of analyst reports. Weiss Ratings reiterated a “sell (d-)” rating on shares of Ardelyx in a research note on Wednesday, January 21st. Citigroup lifted their target price on Ardelyx from $11.00 to $14.00 and gave the company a “buy” rating in a research report on Friday, January 9th. BTIG Research reissued a “buy” rating and issued a $17.00 price target on shares of Ardelyx in a research report on Friday. Jefferies Financial Group reaffirmed a “buy” rating and set a $15.00 price objective on shares of Ardelyx in a report on Tuesday, January 27th. Finally, Wedbush upped their target price on shares of Ardelyx from $16.00 to $19.00 and gave the stock an “outperform” rating in a research note on Wednesday, January 21st. Two equities research analysts have rated the stock with a Strong Buy rating, nine have given a Buy rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the stock has an average rating of “Buy” and an average target price of $15.09.

Insider Buying and Selling at Ardelyx

In related news, insider Laura A. Williams sold 50,000 shares of the stock in a transaction dated Thursday, January 8th. The shares were sold at an average price of $6.98, for a total transaction of $349,000.00. Following the completion of the transaction, the insider owned 361,563 shares in the company, valued at approximately $2,523,709.74. This represents a 12.15% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Company insiders own 4.80% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Marshall Wace LLP increased its stake in shares of Ardelyx by 34.2% during the 2nd quarter. Marshall Wace LLP now owns 11,250,652 shares of the biopharmaceutical company’s stock worth $44,103,000 after purchasing an additional 2,866,843 shares during the last quarter. Bank of America Corp DE grew its holdings in Ardelyx by 88.8% during the second quarter. Bank of America Corp DE now owns 5,527,988 shares of the biopharmaceutical company’s stock valued at $21,670,000 after purchasing an additional 2,600,080 shares during the period. Vanguard Group Inc. increased its position in Ardelyx by 14.6% in the third quarter. Vanguard Group Inc. now owns 18,369,321 shares of the biopharmaceutical company’s stock worth $101,215,000 after buying an additional 2,337,672 shares during the last quarter. State Street Corp raised its stake in shares of Ardelyx by 22.6% in the fourth quarter. State Street Corp now owns 11,912,339 shares of the biopharmaceutical company’s stock valued at $69,449,000 after buying an additional 2,193,649 shares during the period. Finally, J. Goldman & Co LP raised its stake in shares of Ardelyx by 1,034.8% in the fourth quarter. J. Goldman & Co LP now owns 1,622,736 shares of the biopharmaceutical company’s stock valued at $9,461,000 after buying an additional 1,479,736 shares during the period. 58.92% of the stock is currently owned by hedge funds and other institutional investors.

Ardelyx Price Performance

The company has a current ratio of 4.41, a quick ratio of 4.11 and a debt-to-equity ratio of 1.31. The stock has a market cap of $1.39 billion, a PE ratio of -22.92 and a beta of 0.57. The business has a 50-day moving average price of $6.77 and a 200 day moving average price of $6.11.

About Ardelyx

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.