ARDELYX, INC. 10-Q

ITEM 1. FINANCIAL STATEMENTS ARDELYX, INC. CONDENSED BALANCE SHEETS (Unaudited) (in thousands, except share and per share amounts) June 30, 2026 December 31, 2025 Assets Current assets Cash and cash equivalents $ 97,191 $ 67,999 Short-term investments 184,639 196,690 Accounts receivable 100,352 71,848 Inventory 25,858 17,735 Prepaid commercial manufacturing 14,697 14,479 Prepaid expenses and other current assets 19,189 13,566 Total current assets 441,926 382,317 Property and equipment, net 1,781 2,184 Inventory, non-current 113,127 105,372 Prepaid commercial manufacturing, non-current 8,494 — Right-of-use assets 4,065 4,795 Other assets 6,501 6,936 Total assets $ 575,894 $ 501,604 Liabilities and stockholders’ equity Current liabilities Accounts payable $ 38,410 $ 19,235 Accrued compensation and benefits 14,564 19,108 Current portion of operating lease liability 1,545 1,479 Deferred revenue 6,738 1,206 Accrued expenses and other current liabilities 70,963 47,577 Total current liabilities 132,220 88,605 Operating lease liability, net of current portion 2,822 3,641 Long-term debt 251,823 202,834 Deferred revenue, non-current 13,699 13,699 Deferred royalty obligation related to the sale of future royalties 26,317 25,876 Total liabilities 426,881 334,655 Commitments and contingencies (Note 14) Stockholders’ equity Common stock, $ 0.0001 par value per share; 500,000,000 shares authorized; 249,147,061 and 244,351,501 shares issued and outstanding as of June 30, 2026 and December 31, 2025, respectively 25 24 Additional paid-in capital 1,150,446 1,113,666 Accumulated deficit ( 1,001,265 ) ( 946,939 ) Accumulated other comprehensive (loss) income ( 193 ) 198 Total stockholders’ equity 149,013 166,949 Total liabilities and stockholders’ equity $ 575,894 $ 501,604 The accompanying notes are an integral part of these condensed financial statements. 2 Table of Content s ARDELYX, INC. CONDENSED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (Unaudited) (in thousands, except share and per share amounts) Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Revenues Product sales, net $ 118,129 $ 90,077 $ 211,502 $ 157,891 Product supply revenue 1,976 6,185 2,330 6,439 Licensing revenue 96 20 147 5,040 Non-cash royalty revenue related to the sale of future royalties 676 1,380 1,371 2,406 Total revenues 120,877 97,662 215,350 171,776 Costs and operating expenses Cost of sales 5,759 12,403 10,570 24,706 Research and development 26,103 15,666 46,291 30,604 Selling, general and administrative 101,440 83,988 203,707 167,210 Total costs and operating expenses 133,302 112,057 260,568 222,520 Loss from operations ( 12,425 ) ( 14,395 ) ( 45,218 ) ( 50,744 ) Interest expense ( 4,957 ) ( 4,356 ) ( 10,556 ) ( 8,547 ) Non-cash interest expense related to the sale of future royalties ( 1,267 ) ( 2,219 ) ( 2,584 ) ( 4,290 ) Other income, net 2,038 1,892 4,150 4,218 Loss before provision for income taxes ( 16,611 ) ( 19,078 ) ( 54,208 ) ( 59,363 ) Provision for income taxes 110 1 118 860 Net loss $ ( 16,721 ) $ ( 19,079 ) $ ( 54,326 ) $ ( 60,223 ) Net loss per share of common stock - basic and diluted $ ( 0.07 ) $ ( 0.08 ) $ ( 0.22 ) $ ( 0.25 ) Shares used in computing net loss per share - basic and diluted 248,067,253 239,928,570 246,967,275 239,279,962 Comprehensive loss Net loss $ ( 16,721 ) $ ( 19,079 ) $ ( 54,326 ) $ ( 60,223 ) Unrealized losses on available-for-sale securities ( 69 ) ( 56 ) ( 391 ) ( 95 ) Comprehensive loss $ ( 16,790 ) $ ( 19,135 ) $ ( 54,717 ) $ ( 60,318 ) The accompanying notes are an integral part of these condensed financial statements. 3 Table of Content s ARDELYX, INC. CONDENSED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY (Unaudited) (in thousands, except share amounts) Three Months Ended June 30, 2026 Common Stock Additional Paid-In Capital Accumulated Deficit Accumulated Other Comprehensive Loss Total Stockholders’ Equity Shares Amount Balance as of March 31, 2026 246,973,414 $ 25 $ 1,133,265 $ ( 984,544 ) $ ( 124 ) $ 148,622 Issuance of common stock for services 32,627 — 185 — — 185 Issuance of common stock upon exercise of options 789,428 — 1,680 — — 1,680 Issuance of common stock upon vesting of restricted stock units 1,351,592 — — — — — Stock-based compensation — — 15,316 — — 15,316 Unrealized losses on available-for-sale securities — — — — ( 69 ) ( 69 ) Net loss — — — ( 16,721 ) — ( 16,721 ) Balance as of June 30, 2026 249,147,061 $ 25 $ 1,150,446 $ ( 1,001,265 ) $ ( 193 ) $ 149,013 Six Months Ended June 30, 2026 Common Stock Additional Paid-In Capital Accumulated Deficit Accumulated Other Comprehensive Income (Loss) Total Stockholders’ Equity Shares Amount Balance as of December 31, 2025 244,351,501 $ 24 $ 1,113,666 $ ( 946,939 ) $ 198 $ 166,949 Issuance of common stock under employee stock purchase plan 136,480 — 742 — — 742 Issuance of common stock for services 32,627 — 185 — — 185 Issuance of common stock upon exercise of options 1,889,734 1 6,379 — — 6,380 Issuance of common stock upon vesting of restricted stock units 2,736,719 — — — — — Stock-based compensation — — 29,474 — — 29,474 Unrealized losses on available-for-sale securities — — — — ( 391 ) ( 391 ) Net loss — — — ( 54,326 ) — ( 54,326 ) Balance as of June 30, 2026 249,147,061 $ 25 $ 1,150,446 $ ( 1,001,265 ) $ ( 193 ) $ 149,013 4 Table of Content s Three Months Ended June 30, 2025 Common Stock Additional Paid-In Capital Accumulated Deficit Accumulated Other Comprehensive Income (Loss) Total Stockholders’ Equity Shares Amount Balance as of March 31, 2025 239,201,256 $ 24 $ 1,072,118 $ ( 926,484 ) $ 18 $ 145,676 Issuance of common stock for services 87,256 — 315 — — 315 Issuance of common stock upon exercise of options 391,027 — 988 — — 988 Issuance of common stock upon vesting of restricted stock units 1,085,977 — — — — — Stock-based compensation — — 11,687 — — 11,687 Unrealized losses on available-for-sale securities — — — — ( 56 ) ( 56 ) Net loss — — — ( 19,079 ) — ( 19,079 ) Balance as of June 30, 2025 240,765,516 $ 24 $ 1,085,108 $ ( 945,563 ) $ ( 38 ) $ 139,531 Six Months Ended June 30, 2025 Common Stock Additional Paid-In Capital Accumulated Deficit Accumulated Other Comprehensive Income (Loss) Total Stockholders’ Equity Shares Amount Balance as of December 31, 2024 238,015,825 $ 24 $ 1,058,548 $ ( 885,340 ) $ 57 $ 173,289 Issuance of common stock under employee stock purchase plan 222,734 — 1,015 — — 1,015 Issuance of common stock for services 87,256 — 315 — — 315 Issuance of common stock upon exercise of options 780,990 — 1,455 — — 1,455 Issuance of common stock upon vesting of restricted stock units 1,658,711 — — — — — Stock-based compensation — — 23,775 — — 23,775 Unrealized losses on available-for-sale securities — — — — ( 95 ) ( 95 ) Net loss — — — ( 60,223 ) — ( 60,223 ) Balance as of June 30, 2025 240,765,516 $ 24 $ 1,085,108 $ ( 945,563 ) $ ( 38 ) $ 139,531 The accompanying notes are an integral part of these condensed financial statements. 5 Table of Content s ARDELYX, INC. CONDENSED STATEMENTS OF CASH FLOWS (Unaudited) (in thousands) Six Months Ended June 30, 2026 2025 Operating activities Net loss $ ( 54,326 ) $ ( 60,223 ) Adjustments to reconcile net loss to net cash used in operating activities Depreciation and amortization expense 1,519 1,233 Non-cash lease expense 730 1,254 Stock-based compensation 29,474 23,775 Non-cash interest expense 3,150 4,425 Non-cash royalty revenue related to the sale of future royalties ( 1,371 ) ( 2,406 ) Other, net ( 1,088 ) ( 2,083 ) Changes in operating assets and liabilities Accounts receivable ( 28,504 ) ( 4,848 ) Inventory ( 15,878 ) ( 32,075 ) Prepaid commercial manufacturing ( 8,712 ) 3,638 Prepaid expenses and other assets ( 5,486 ) ( 5,917 ) Accounts payable 19,175 5,685 Accrued compensation and benefits ( 4,544 ) ( 3,126 ) Operating lease liabilities ( 753 ) ( 1,268 ) Accrued and other liabilities 22,446 7,480 Deferred revenue 5,532 657 Net cash used in operating activities ( 38,636 ) ( 63,799 ) Investing activities Proceeds from maturities and redemptions of investments 94,510 93,110 Purchases of investments ( 81,762 ) ( 54,361 ) Purchases of property and equipment ( 82 ) ( 975 ) Net cash provided by investing activities 12,666 37,774 Financing activities Proceeds from Loan Agreement, net of costs 81,871 48,668 Repayment of Loan Agreement, including fees ( 33,831 ) — Proceeds from issuance of common stock under equity incentive plans 7,122 2,470 Net cash provided by financing activities 55,162 51,138 Net increase in cash and cash equivalents 29,192 25,113 Cash and cash equivalents at beginning of period 67,999 64,932 Cash and cash equivalents at end of period $ 97,191 $ 90,045 Supplemental disclosure of cash flow information Cash paid for interest $ 7,745 $ 6,280 Cash paid for income taxes $ 101 $ 440 Supplemental disclosure of non-cash activities Right-of-use assets obtained in exchange for lease obligations $ — $ 3,880 Issuance of common stock for services $ 185 $ 315 The accompanying notes are an integral part of these condensed financial statements. 6 Table of Content s ARDELYX, INC . NOTES TO CONDENSED FINANCIAL STATEMENTS (Unaudited) NOTE 1. NATURE OF OPERATIONS We are a commercial-stage biopharmaceutical company focused on the development and commercialization of innovative medicines that meet significant unmet medical needs. We currently market two therapies from the active ingredient tenapanor, a sodium/hydrogen exchanger (NHE3) inhibitor that was discovered and developed by Ardelyx. NHE3 is an antiporter expressed on the apical surface of the small and large intestines. Tenapanor is a minimally absorbed, small molecule therapy. In addition, we are building a pipeline which is currently focused on expanding the commercial footprint of tenapanor. Tenapanor, branded as IBSRELA ® , is approved in the U.S. for the treatment of adults with irritable bowel syndrome with constipation (IBS-C). We are seeking to further expand the IBSRELA eligible patient population to include patients with chronic idiopathic constipation (CIC), and have initiated a Phase 3 clinical trial evaluating tenapanor in adults with CIC. Tenapanor, branded as XPHOZAH ® , is approved in the U.S. 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. We are also developing a next-generation NHE3 inhibitor, RDX10531, which is currently in IND-enabling studies and has demonstrated in preclinical models to have improved solubility and potency compared to tenapanor. We believe that RDX10531 can have application across multiple therapeutic areas. We operate in one business segment, which is the development and commercialization of biopharmaceutical products. Refer to Note 12. Segment Reporting for further segment reporting information. Basis of Presentation These condensed financial statements have been prepared in accordance with U.S. GAAP and pursuant to the requirements of the SEC for interim reporting. As permitted under those rules and regulations, certain footnotes or other financial information that are normally required by U.S. GAAP have been condensed or omitted. These condensed financial statements have been prepared on the same basis as our most recent annual financial statements and, in the opinion of management, reflect all normal and recurring adjustments necessary to present fairly our financial position, results of operations, changes in stockholders’ equity and cash flows for the interim periods presented. Certain prior year amounts have been reclassified to conform to the current year presentation on the condensed statements of operations and comprehensive loss to include the “cost of product sales” and the “other cost of revenue” captions within the “cost of sales” caption. Certain prior year amounts have also been reclassified to conform to the current year presentation in Note 12. Segment Reporting . These reclassifications had no effect on the previously reported results of operations. The accompanying condensed financial statements and related financial information should be read in conjunction with the audited financial statements and the related notes thereto included in our 2025 Form 10-K. The results for the three and six months ended June 30, 2026 are not necessarily indicative of results to be expected for the entire year ending December 31, 2026, or for any other interim period or future year. Refer to the Summary of Abbreviated Terms at the end of this Quarterly Report on Form 10-Q for definitions of terms used throughout the document. Use of Estimates The preparation of financial statements requires management to make estimates, judgments and assumptions. The most significant assumptions are estimates used in our revenue gross-to-net accruals. Management bases its estimates on historical experience and on various other market-specific and relevant assumptions that management believes to be reasonable under the circumstances. Actual results could materially differ from those estimates. Concentration of Credit Risk Financial instruments that potentially subject us to significant concentrations of credit risk consist primarily of cash, cash equivalents, short-term investments and accounts receivable. We are exposed to credit risks in the event of default by the counterparties to the extent of the amount recorded in our condensed balance sheets. Cash, cash equivalents and short-term investments are invested through banks and other financial institutions in the U.S. 7 Table of Content s Recent Accounting Pronouncements Recent Accounting Pronouncement Not Yet Adopted In November 2024, the FASB issued ASU No. 2024-03, Income Statement (Topic 220) - Reporting Comprehensive Income - Expense Disaggregation Disclosures, Disaggregation of Income Statement Expenses , which requires public companies to disclose, in interim and annual reporting periods, additional information about certain expenses in the financial statements. The new disclosure requirements are effective for the Company’s annual periods beginning January 1, 2027, and interim periods beginning January 1, 2028, with early adoption permitted, and may be applied either prospectively or retrospectively. The Company is in the process of evaluating the impact of this new guidance on its disclosures. NOTE 2. CASH, CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS The following table summarizes our cash, cash equivalents and short-term investments: June 30, 2026 December 31, 2025 Amortized Cost Gross Unrealized Fair Value Amortized Cost Gross Unrealized Fair Value (in thousands) Gains Losses Gains Losses Cash and cash equivalents Cash $ 7,086 $ — $ — $ 7,086 $ 18,569 $ — $ — $ 18,569 Money market funds 90,105 — — 90,105 49,430 — — 49,430 Total cash and cash equivalents 97,191 — — 97,191 67,999 — — 67,999 Short-term investments U.S. treasury securities $ 88,142 $ — $ ( 75 ) $ 88,067 $ 95,052 $ 105 $ — $ 95,157 Commercial paper 46,918 3 ( 66 ) 46,855 46,421 32 ( 3 ) 46,450 U.S. government-sponsored agency bonds 23,452 — ( 30 ) 23,422 27,330 36 — 27,366 Corporate bonds 21,229 — ( 23 ) 21,206 22,557 25 — 22,582 Yankee bonds 5,091 — ( 2 ) 5,089 5,132 3 — 5,135 Total short-term investments 184,832 3 ( 196 ) 184,639 196,492 201 ( 3 ) 196,690 Total cash, cash equivalents and investments $ 282,023 $ 3 $ ( 196 ) $ 281,830 $ 264,491 $ 201 $ ( 3 ) $ 264,689 Realized gains or losses have not been significant and are included in other income, net in our condensed statements of operations and comprehensive loss. Unrealized losses as of June 30, 2026 and December 31, 2025 were not material. All of the short-term available-for-sale securities held as of June 30, 2026 and December 31, 2025 had contractual maturities of less than one year, and no investment was in a continuous unrealized loss position for more than one year. Therefore, we believe that it is more likely than not that the investments will be held until maturity or a forecasted recovery of fair value. Based on our procedures under the expected credit loss model, including an assessment of unrealized losses in our portfolio, we concluded that any unrealized losses on our marketable securities were not attributable to credit and, therefore, we have not recorded an allowance for credit losses for these securities as of June 30, 2026 and December 31, 2025. See “Cash Equivalents” and “Short-Term Investments” captions of Note 2. Summary of Significant Accounting Policies of our 2025 Form 10-K for more information on our accounting policies for cash equivalents and short-term investments. 8 Table of Content s NOTE 3. FAIR VALUE MEASUREMENTS Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. The three-level hierarchy for the inputs to valuation techniques is briefly summarized as follows: Level 1 – Valuations based on unadjusted quoted prices in active markets for identical assets or liabilities that we have the ability to access at the reporting date. Level 2 – Valuations based on inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 – Valuations based on unobservable inputs for which there is little or no market data, which require us to develop our own assumptions. The following table sets forth the fair value of our financial assets that are measured or disclosed on a recurring basis by level within the fair value hierarchy: June 30, 2026 December 31, 2025 (in thousands) Total Fair Value Level 1 Level 2 Level 3 Total Fair Value Level 1 Level 2 Level 3 Assets Money market funds $ 90,105 $ 90,105 $ — $ — $ 49,430 $ 49,430 $ — $ — U.S. treasury securities 88,067 — 88,067 — 95,157 — 95,157 — Commercial paper 46,855 — 46,855 — 46,450 — 46,450 — U.S. government-sponsored agency bonds 23,422 — 23,422 — 27,366 — 27,366 — Corporate bonds 21,206 — 21,206 — 22,582 — 22,582 — Yankee bonds 5,089 — 5,089 — 5,135 — 5,135 — Total $ 274,744 $ 90,105 $ 184,639 $ — $ 246,120 $ 49,430 $ 196,690 $ — Fair Value of Debt The outstanding principal under our Loan Agreement is subject to a variable interest rate based on the one-month SOFR, a readily observable market data (Level 2 input). Therefore, we believe the carrying amount of the term loan facility approximated its fair value as of June 30, 2026 and December 31, 2025. See Note 8. Borrowing for more information. The carrying value of the deferred royalty obligation related to the sale of future royalties approximated its fair value as of June 30, 2026 and December 31, 2025, and is based on our current estimates of future royalties and commercialization milestones expected to be received by HCR over the life of the HCR Agreement. See Note 7. Deferred Royalty Obligation Related to the Sale of Future Royalties for more information. NOTE 4. INVENTORY Inventory consisted of the following: (in thousands) June 30, 2026 December 31, 2025 Raw materials $ 38,554 $ 28,009 Work in process 87,037 88,259 Finished goods 13,394 6,839 Total $ 138,985 $ 123,107 Reported as Inventory $ 25,858 $ 17,735 Inventory, non-current 113,127 105,372 Total $ 138,985 $ 123,107 9 Table of Content s Prepaid commercial manufacturing with third-party CMOs not included in inventory was $ 23.2 million and $ 14.5 million as of June 30, 2026 and December 31, 2025, respectively. There were $ 8.5 million prepayments expected to be converted into inventory after 12 months as of June 30, 2026, compared to none as of December 31, 2025. NOTE 5. REVENUE Disaggregation of total revenues by nature is as follows: Three Months Ended June 30, Six Months Ended June 30, (in thousands) 2026 2025 2026 2025 Product sales, net $ 118,129 $ 90,077 $ 211,502 $ 157,891 Product supply revenue 1,976 6,185 2,330 6,439 Licensing revenue 96 20 147 5,040 Non-cash royalty revenue related to the sale of future royalties 676 1,380 1,371 2,406 Total revenues $ 120,877 $ 97,662 $ 215,350 $ 171,776 Product Sales, Net Total product sales, net was as follows: Three Months Ended June 30, Six Months Ended June 30, (in thousands) 2026 2025 2026 2025 Product sales, net IBSRELA $ 86,243 $ 65,045 $ 156,317 $ 109,448 XPHOZAH 31,886 25,032 55,185 48,443 Total product sales, net $ 118,129 $ 90,077 $ 211,502 $ 157,891 Product sales, net as a percentage of total revenues 97.7 % 92.2 % 98.2 % 91.9 % Concentrations Gross product sales from Customers accounting for more than 10% of total revenues were as follows: Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Customers (1) BioRidge Pharma, LLC 76.3 % 61.1 % 80.3 % 62.2 % Cencora, Inc. 16.0 % 20.5 % 16.5 % 19.5 % McKesson Corporation 14.4 % 20.7 % 15.0 % 19.1 % Cardinal Health, Inc. 14.4 % 23.4 % 13.7 % 22.8 % Caremark, LLC 13.4 % — % 12.8 % — % (1) The total of the above percentages exceeds 100% as the numerators used in the calculations represent gross product sales for each Customer, as opposed to product sales, net as presented in our condensed statements of operations and comprehensive loss. 10 Table of Content s GTN Adjustments The activities and ending reserve balances for each significant category of GTN adjustments on product sales, net, which constitute variable consideration, were as follows: (in thousands) Discounts and Chargebacks Rebates, Wholesaler and GPO Fees Copay Assistance and Returns Total Balance as of December 31, 2025 $ 1,693 $ 34,456 $ 9,274 $ 45,423 Provisions (1) 17,983 70,766 25,383 114,132 Credits/payments ( 16,957 ) ( 58,732 ) ( 24,495 ) ( 100,184 ) Balance as of June 30, 2026 $ 2,719 $ 46,490 $ 10,162 $ 59,371 (1) Adjustments to prior period provisions recorded in the current period were not material. NOTE 6. COLLABORATION AND LICENSING AGREEMENTS We have out-licensed to external partners for the development and commercialization of tenapanor outside of the U.S. We recognize revenue from our collaboration partnerships as licensing revenue, product supply revenue or non-cash royalty revenue related to the sale of future royalties. See Note 7. Collaboration and Licensing Agreements and “Collaboration and Licensing Revenue” caption of Note 2. Summary of Significant Accounting Policies of our 2025 Form 10-K for more information on the nature, purpose, significant rights and obligations of the parties, as well as our accounting policies for such revenue streams. The following table summarizes total revenues by collaboration partner: Three Months Ended June 30, Six Months Ended June 30, (in thousands) 2026 2025 2026 2025 Licensing revenue Fosun Pharma $ 95 $ — $ 115 $ 5,000 Knight 1 20 32 40 Total licensing revenue $ 96 $ 20 $ 147 $ 5,040 Product supply revenue Fosun Pharma $ 1,976 $ — $ 2,328 $ — Kyowa Kirin — 6,185 2 6,185 Knight — — — 254 Total supply revenue $ 1,976 $ 6,185 $ 2,330 $ 6,439 Non-cash royalty revenue related to the sale of future royalties Kyowa Kirin $ 676 $ 1,380 $ 1,371 $ 2,406 The following table presents changes in our current deferred revenue balances by collaboration partner: 2026 2025 (in thousands) Current Kyowa Kirin Fosun Pharma Total Kyowa Kirin Fosun Pharma Total Deferred revenue balance as of January 1, $ — $ 1,206 $ 1,206 $ 10,686 $ — $ 10,686 Prepaid product supply — 7,529 7,529 227 — 227 Product supply delivered — ( 1,997 ) ( 1,997 ) ( 4,633 ) — ( 4,633 ) Reclassify amounts to be recognized in the next 12 months — — — — — — Deferred revenue balance as of June 30, $ — $ 6,738 $ 6,738 $ 6,280 $ — $ 6,280 11 Table of Content s The following table presents changes in our non-current deferred revenue balances by collaboration partner: 2026 2025 (in thousands) Non-current Kyowa Kirin Fosun Pharma Total Kyowa Kirin Fosun Pharma Total Deferred revenue balance as of January 1, $ 13,699 $ — $ 13,699 $ 7,232 $ — $ 7,232 Prepaid product supply — — — 5,063 — 5,063 Product supply delivered — — — — — — Reclassify amounts to be recognized in the next 12 months — — — — — — Deferred revenue balance as of June 30, $ 13,699 $ — $ 13,699 $ 12,295 $ — $ 12,295 Significant developments and updates related to our collaboration partnerships in the six months ended June 30, 2026 and 2025 are discussed below. Fosun Pharma In March 2026, Fosun Pharma reported the first commercial sales of tenapanor, marketed under the Chinese trade name Wan Ti Le, for patients with CKD on hemodialysis with hyperphosphatemia in China. Pursuant to the terms of the license and manufacturing services agreements with Fosun Pharma, we are eligible to receive reimbursement of cost plus a reasonable overhead for the supply of product and tiered royalties on net sales ranging from the mid-teens to 20 %. In February 2025, we announced the NDA approval by China’s Center for Drug Evaluation of the NMPA for tenapanor in the control of serum phosphorus in adult patients with CKD on hemodialysis. This approval triggered a $ 5.0 million milestone to us, which was recorded as licensing revenue in our condensed statements of operations and comprehensive loss in the 2025 first quarter. Knight - Former Collaboration Partner Effective as of March 13, 2026, we entered into a termination agreement with Knight, pursuant to which we and Knight agreed to mutually terminate our exclusive license agreement for the development, commercialization and distribution of tenapanor in Canada for hyperphosphatemia and IBS-C. The decision was not related to any concerns regarding the safety, efficacy or quality of the product. Sales of IBSRELA in Canada were discontinued effective March 31, 2026. The termination did not have a material effect on our operations or financial results, and we do not expect it to adversely impact our operations or financial results in the future. AstraZeneca In connection with the AstraZeneca Termination Agreement, we recognized royalty expense as cost of sales in our condensed statements of operations and comprehensive loss of $ 3.8 million and $ 12.7 million in the three and six months ended June 30, 2025, respectively. As of the end of the 2025 second quarter, we had fully recognized the maximum $ 75.0 million royalty obligation, which had been fully remitted as of the end of the 2025 third quarter. NOTE 7. DEFERRED ROYALTY OBLIGATION RELATED TO THE SALE OF FUTURE ROYALTIES We and HCR have an agreement in which HCR paid $ 15.0 million in exchange for royalty and commercialization milestone payments that we may receive under our Kyowa Kirin Agreement. See Note 8. Deferred Royalty Obligation Related to the Sale of Future Royalties of our 2025 Form 10-K for further discussion on the nature, purpose, significant rights and obligations of the parties, as well as our accounting policies regarding the HCR Agreement. Payments received from HCR are recorded as a deferred royalty obligation on our condensed balance sheets, which is being amortized as non-cash interest expense over the life of the HCR Agreement using the effective interest method. The deferred royalty obligation will be effectively repaid over the life of the HCR Agreement as we remit to HCR royalties and commercialization milestones paid to us by Kyowa Kirin. We periodically assess the estimated amounts and timing of future royalties and commercialization milestone payments from Kyowa Kirin and, to the extent that the amount or timing of such payments is materially different than our original estimates, we prospectively adjust the imputed interest rate and the related amortization of the deferred royalty obligation. 12 Table of Content s A summary of financial information related to the HCR Agreement is as follows: Three Months Ended June 30, Six Months Ended June 30, (in thousands) 2026 2025 2026 2025 Non-cash interest expense related to the sale of future royalties $ ( 1,267 ) $ ( 2,219 ) $ ( 2,584 ) $ ( 4,290 ) ($ in thousands) 2026 2025 Deferred royalty obligation balance as of January 1, $ 25,876 $ 25,527 Non-cash interest expense related to the sale of future royalties 2,584 4,290 Royalty and commercialization milestone payments remitted to HCR ( 2,143 ) ( 2,056 ) Deferred royalty obligation balance as of June 30, $ 26,317 $ 27,761 Effective interest rate as of June 30, 19.6 % 33.5 % NOTE 8. BORROWING The following table presents our outstanding term loans under the Loan Agreement: (in thousands) June 30, 2026 December 31, 2025 Principal (1) Term A Loan $ 14,371 $ 27,500 Term B Loan 11,758 22,500 Term C Loan 41,940 50,000 Term D Loan 50,000 50,000 Term E Loan 50,000 50,000 Term F Loan 50,000 — Term H Loan 31,931 — Total principal 250,000 200,000 Adjustments to principal value Unamortized discount and debt issuance costs ( 3,021 ) ( 1,127 ) Accreted value of final fee 4,844 3,961 Total long-term debt 251,823 202,834 Less: Current portion of long-term debt — — Long-term debt, net of current portion $ 251,823 $ 202,834 (1) The outstanding term loans bear an interest rate at the sum of 4.55 % plus the greater of (a) the one-month SOFR or (b) 3.50 %, and mature on July 1, 2030. On April 28, 2026, we entered into an amendment to our Loan Agreement (the Sixth Amendment), by and among us, as borrower, SLR, as collateral agent and the lenders party thereto. Pursuant to the Sixth Amendment, among other things, (i) a portion of $ 200.0 million in outstanding principal previously allocated among the Term A through C Loans (collectively, the Revised Loans) was refinanced with a new Term H Loan; (ii) the maturity date for the Revised Loans, the Term D Loan and the Term E Loan was extended from July 1, 2028 to July 1, 2030 (the New Maturity Date), which is the maturity date for each other term loan; (iii) the interest-only payment period for the Revised Loans, the Term D Loan and the Term E Loan was extended until the New Maturity Date, which is the interest-only payment period for each other term loan; (iv) the interest rate for each term loan will have a collectively reduced interest rate, at the sum of 4.55 % plus the greater of (a) the one-month SOFR reference rate or (b) 3.50 %; (v) we retained the option to draw the Term F and Term G Loans, each in the amount of $ 50.0 million, at our election by June 30, 2026 and December 20, 2026, respectively; and (vi) we amended certain negative covenants and other conditions to provide additional flexibility to us. We concluded that the Sixth Amendment was a modification to the Loan Agreement and we accounted for it accordingly. On the closing date of the Sixth Amendment, we paid approximately $ 1.9 million in final fees and prepayment premium in connection with the partial repayment of the Term A through C Loans. 13 Table of Content s We are obligated to pay a final fee with respect to each of the outstanding amounts under each of the term loans, upon the earliest to occur of (i) the New Maturity Date, (ii) the acceleration of the applicable term loan or (iii) the prepayment, refinancing, substitution or replacement of the applicable term loan. This final fee is 4.95 % for the Term A through E Loans, 3.45 % for the Term F and Term G Loans and 2.50 % for the Term H Loan. The total unaccreted final fee was $ 6.0 million and $ 5.9 million as of June 30, 2026 and December 31, 2025, respectively. We may voluntarily prepay all amounts outstanding under the Revised Loans, the Term D Loan, the Term E Loan and the Term H Loan, subject to a prepayment premium of (i) three percent of the outstanding principal amount of the applicable term loan if prepaid on or after April 28, 2026 through and including April 28, 2027, (ii) two percent of the outstanding principal amount of the applicable term loan if prepaid on or after April 29, 2027 through and including April 28, 2028 or (iii) one percent of the outstanding principal amount of the applicable term loan if prepaid after April 28, 2028 and prior to July 1, 2030. We may voluntarily prepay all amounts outstanding under the Term F and Term G Loans, subject to a prepayment premium of (i) two percent of the outstanding principal amount of the applicable term loan if prepaid on or after July 1, 2026 through and including June 30, 2027 or (ii) one percent of the outstanding principal amount of the applicable term loan if prepaid after June 30, 2027 and prior to July 1, 2030. The Loan Agreement contains certain covenants, including a single financial covenant that the sum of our net product revenue, calculated on a trailing six-month basis, plus unrestricted cash and cash equivalents that are subject to a first-priority perfected lien in favor of SLR, shall be greater than or equal to 100 % of the principal amount outstanding under the Loan Agreement. The outstanding term loans are secured by substantially all of our assets, except for our intellectual property and certain other customary exclusions. In addition, the Loan Agreement contains subjective clauses to accelerate the maturity of outstanding principal amount in the event that a material adverse change has occurred within our business, operations or financial condition. On June 29, 2026, we received $ 50.0 million of funding as a result of our draw down of the Term F Loan. We elected to draw down the Term F Loan for general corporate purposes and to enhance flexibility to support our ongoing strategic initiatives, in line with our capital allocation strategy. As of June 30, 2026, our total future payment obligation related to the outstanding term loans, excluding interest payments, was $ 260.8 million, which is due on July 1, 2030. NOTE 9. LEASES The following table provides additional details of our facility leases presented in our condensed balance sheets: ($ in thousands) Facilities June 30, 2026 December 31, 2025 Right-of-use assets $ 4,065 $ 4,795 Current portion of lease liabilities $ 1,545 $ 1,479 Operating lease liability, net of current portion 2,822 3,641 Total lease liabilities $ 4,367 $ 5,120 Weighted-average remaining term (in years) 2.7 3.1 Weighted-average discount rate 5.6 % 5.6 % The following table presents the lease costs, which are included in our condensed statements of operations and comprehensive loss, and the supplemental cash flow information related to the leases: Three Months Ended June 30, Six Months Ended June 30, (in thousands) 2026 2025 2026 2025 Operating lease expense $ 432 $ 393 $ 864 $ 1,370 Cash paid for operating leases $ 446 $ 340 $ 888 $ 1,387 14 Table of Content s The following table summarizes our undiscounted cash payment obligations for our operating lease liabilities as of June 30, 2026: (in thousands) Operating Leases Remainder of 2026 $ 897 2027 1,836 2028 1,402 2029 575 Thereafter — Total undiscounted operating lease payments 4,710 Imputed interest expenses ( 343 ) Total operating lease liabilities 4,367 Less: Current portion of operating lease liability ( 1,545 ) Operating lease liability, net of current portion $ 2,822 NOTE 10. STOCKHOLDERS’ EQUITY In November 2025, we filed an automatic shelf registration statement on Form S-3ASR, which became effective upon filing, containing (i) a base prospectus, which covers the offering, issuance and sale from time to time in one or more offerings of our common stock, preferred stock, debt securities, warrants and/or units; and (ii) a prospectus supplement for the offering, issuance and sale of up to a maximum aggregate offering price of $ 100.0 million of our common stock that may be issued and sold from time to time under the 2025 Open Market Sales Agreement, deemed to be “at-the-market offerings.” Pursuant to the 2025 Open Market Sales Agreement, Jefferies, as sales agent, may receive a commission of up to three percent of the gross sales price for shares of our common stock sold under the 2025 Open Market Sales Agreement. As of June 30, 2026, there have been no sales of our common stock under the 2025 Open Market Sales Agreement. NOTE 11. EQUITY INCENTIVE PLANS Stock-Based Compensation Expense Stock-based compensation expense for stock options, RSUs and our ESPP included in our condensed statements of operations and comprehensive loss was as follows: Three Months Ended June 30, Six Months Ended June 30, (in thousands) 2026 2025 2026 2025 Selling, general and administrative $ 12,408 $ 9,273 $ 23,964 $ 17,757 Research and development 2,908 2,414 5,510 6,018 Total $ 15,316 $ 11,687 $ 29,474 $ 23,775 A summary of our total unrecognized stock-based compensation expense, net of estimated forfeitures, as of June 30, 2026 is as follows: Unrecognized Compensation Expense (in thousands) Average Remaining Vesting Period (in years) Stock option grants $ 52,092 2.6 RSU grants $ 91,005 2.9 ESPP $ 129 0.2 15 Table of Content s Stock Options A summary of our stock option activity and related information for the six months ended June 30, 2026 is as follows: Number of Shares (in thousands) Weighted-Average Exercise Price per Share Outstanding as of December 31, 2025 28,977 $ 5.54 Granted 3,968 $ 7.29 Exercised ( 1,890 ) $ 3.38 Forfeited or cancelled ( 1,780 ) $ 8.12 Outstanding as of June 30, 2026 29,275 $ 5.76 Exercisable as of June 30, 2026 18,078 $ 5.44 Restricted Stock Units A summary of our RSU activity and related information for the six months ended June 30, 2026 is as follows: Number of RSUs (in thousands) Weighted-Average Grant Date Fair Value per Share Unvested as of December 31, 2025 12,583 $ 5.71 Granted 6,858 $ 7.24 Vested ( 2,769 ) $ 6.09 Forfeited or cancelled ( 1,353 ) $ 6.32 Unvested as of June 30, 2026 15,319 $ 6.27 Employee Stock Purchase Plan During the six months ended June 30, 2026, we issued approximately 0.1 million shares of our common stock under the ESPP. The shares were purchased by employees at an average purchase price of $ 5.44 per share, resulting in proceeds to us of approximately $ 0.7 million. Issuance of Common Stock for Services During the six months ended June 30, 2026, we issued approximately 33 thousand shares of our common stock to members of the board of directors who elected to receive stock in lieu of their cash fees under our Non-Employee Director Compensation Program. NOTE 12. SEGMENT REPORTING We operate in a single reportable segment. The Chief Executive Officer is our Chief Operating Decision Maker, who primarily uses aggregated net loss as reported on the condensed statements of operations and comprehensive loss to measure segment loss, supplemented by certain additional significant expense details reflected in the table below. There have been no changes in the determination of segmentation or the measurements used to determine reported segment loss discussed in our 2025 Form 10-K. See Note 17. Segment Reporting of our 2025 Form 10-K for more discussion on our segment reporting. 16 Table of Content s Detailed information regarding our single operating segment’s significant revenues, expenses and operating loss is as follows: Three Months Ended June 30, Six Months Ended June 30, (in thousands) 2026 2025 2026 2025 Revenues Product sales, net $ 118,129 $ 90,077 $ 211,502 $ 157,891 Other revenues (1) 2,748 7,585 3,848 13,885 Total revenues 120,877 97,662 215,350 171,776 Less Cost of product sales (2) 3,689 3,245 6,564 5,585 Other cost of revenue (3) 2,070 9,158 4,006 19,121 Research and development (4) 23,195 13,251 40,781 24,586 Selling (4) 66,949 57,952 134,344 114,752 General and administrative (4) 22,083 16,764 45,399 34,701 Stock-based compensation 15,316 11,687 29,474 23,775 Loss from operations ( 12,425 ) ( 14,395 ) ( 45,218 ) ( 50,744 ) Other reconciliation items (5) ( 4,296 ) ( 4,684 ) ( 9,108 ) ( 9,479 ) Net loss $ ( 16,721 ) $ ( 19,079 ) $ ( 54,326 ) $ ( 60,223 ) (1) Other revenues includes revenues from our collaboration partnerships, including licensing revenue, product supply revenue and non-cash royalty revenue related to the sale of future royalties. (2) Cost of product sales includes the cost of commercial goods sold to our Customers, such as the cost of materials, third-party contract manufacturing, third-party packaging services, freight, labor costs for personnel involved in the manufacturing process and indirect overhead costs. (3) Other cost of revenue includes the cost of materials sold to our collaboration partners under product supply agreements, certain costs related to capacity expansion at current and future CMOs and payments due to AstraZeneca. As of the end of the 2025 second quarter, the maximum $ 75.0 million royalty obligation under the AstraZeneca Termination Agreement had been fully recognized. (4) Research and development, selling and general and administrative expenses herein do not include stock-based compensation expenses. (5) Other reconciliation items includes interest expense, non-cash interest expense related to the sale of future royalties, provision for income taxes and other income, net. NOTE 13. NET LOSS PER SHARE Basic net loss per share is calculated by dividing net loss by the weighted-average number of common shares outstanding during the period and excludes any dilutive effect of stock-based awards. Diluted net loss per common share is computed giving effect to all potential dilutive common shares, including common stock issuable upon exercise of stock options, unvested restricted stock units and ESPP shares issuable pursuant to the current purchase period. As we had net losses for the six months ended June 30, 2026 and 2025, all potential common shares were determined to be anti-dilutive during those periods. The following table sets forth the computation of net loss per common share: Three Months Ended June 30, Six Months Ended June 30, (in thousands, except per share amounts) 2026 2025 2026 2025 Numerator Net loss $ ( 16,721 ) $ ( 19,079 ) $ ( 54,326 ) $ ( 60,223 ) Denominator Weighted average common shares outstanding - basic and diluted 248,067 239,929 246,967 239,280 Net loss per share of common stock - basic and diluted $ ( 0.07 ) $ ( 0.08 ) $ ( 0.22 ) $ ( 0.25 ) 17 Table of Content s The total numbers of securities that could potentially dilute net income per share in the future that were not considered in the diluted net loss per share calculations because the effect would have been anti-dilutive were as follows: Three Months Ended June 30, Six Months Ended June 30, (in thousands) 2026 2025 2026 2025 Options to purchase common stock 29,725 30,618 29,717 29,878 Restricted stock units 15,734 13,600 15,601 11,993 ESPP shares issuable 161 188 152 199 Total 45,620 44,406 45,470 42,070 NOTE 14. COMMITMENTS AND CONTINGENCIES On December 7, 2021 and March 29, 2022, two verified shareholder derivative lawsuits were filed in the U.S. District Court for the Northern District of California purportedly on behalf of Ardelyx against certain of Ardelyx’s executive officers and members of our board of directors, captioned Go v. Raab, et al., Case No. 4:21-cv-09455-HSG, and Morris v. Raab, et al., Case No. 4:22-cv-01988-JSC (together, the Go and Morris actions). The complaints alleged that the defendants’ violations of Section 14(a) of the Exchange Act, breaches of fiduciary duties, unjust enrichment, abuse of control, gross mismanagement, and waste of corporate assets led to personally making and/or caused Ardelyx to make materially false and misleading statements regarding the Company’s business, operations and prospects. The complaint seeks contribution under Sections 10(b) and 21D of the Exchange Act from two executive officers. On January 19, 2022 and April 27, 2022, the court granted the parties’ stipulation to stay the Go and Morris actions, respectively, until resolution of the motion(s) to dismiss in the lawsuits captioned Strezsak v. Ardelyx, Inc., et al., Case No. 4:21-cv-05868-HSG and Siegel v. Ardelyx, Inc., et al., Case No. 5:21-cv-06228-HSG (together, the Securities Class Actions). On October 25, 2022, the parties filed a stipulation to consolidate and stay the Go and Morris actions, and on October 27, 2022, the court consolidated the Go and Morris actions and stayed the consolidated action pending resolution of the anticipated motion(s) to dismiss in the Securities Class Action. The Securities Class Actions were voluntarily dismissed on March 5, 2025. The court dismissed the Go and Morris actions on April 30, 2025. On July 17, 2024, in partnership with the AAKP and the NMQF, we filed a lawsuit in the U.S. District Court for the District of Columbia against CMS, claiming that CMS has violated its statutory and regulatory authority under MIPPA, which established the ESRD PPS bundled payment system for dialysis services in 2008. Specifically, the lawsuit claims that moving XPHOZAH, along with all oral-only drugs, into the ESRD PPS is inconsistent with MIPPA’s statutory provision, and contradicts CMS’s own regulations. XPHOZAH and other oral-only drugs are not administered by dialysis providers and cannot be taken during the delivery of maintenance dialysis. On November 8, 2024, the U.S. District Court for the District of Columbia granted defendants’ Motion to Dismiss and denied plaintiffs’ Motion for Preliminary Injunction, or in the Alternative, for Expedited Summary Judgment. Following the District Court’s denial of plaintiffs’ Motion to Alter or Amend the Judgment, or in the Alternative, for an Injunction Pending Appeal, plaintiffs filed an Emergency Motion for an Administrative Stay and Injunction Pending Appeal, which was denied by the United States Court of Appeals for the District of Columbia Circuit. Appellants filed an initial brief in the appeal on February 4, 2025; Appellees filed an initial brief on March 6, 2025; and Appellants filed a reply brief on March 27, 2025. Both Appellees and Appellants filed a final brief on April 10, 2025. Oral argument in the case was heard on September 25, 2025. On June 26, 2026, the United States Court of Appeals affirmed the District Court’s dismissal. We are not pursuing further litigation on this matter. On August 16, 2024, a complaint was filed against us in the U.S. District Court of Massachusetts, captioned Yarborough v. Ardelyx, Inc., et al., No. 24-cv-12119 (D. Mass.). The complaint names the Company, Michael Raab, and Justin Renz as defendants and alleges violations of Sections 10(b) and 20(a) of the Exchange Act and Rule 10b-5 promulgated thereunder, related to our announcement on July 2, 2024 that it had chosen not to file an application for Transitional Drug Add-on Payment Adjustment for XPHOZAH (the Yarborough Action). The plaintiffs seek damages and interest, and an award of costs, including attorneys’ fees. The Court appointed Tate Wood as lead plaintiff on October 30, 2024. The lead plaintiff filed an amended complaint on January 13, 2025, in which he added Susan Rodriguez, Laura Williams and Elizabeth Grammer as additional defendants and removed Justin Renz as a defendant. The lead plaintiff purports to bring claims on behalf of all those who acquired Ardelyx common stock between February 22, 2024 and July 1, 2024. Defendants filed a motion to dismiss the amended complaint on March 14, 2025. Plaintiffs filed a response on May 13, 2025. Defendants filed a reply in support of their motion to dismiss on June 23, 2025. A hearing on the motion to dismiss was held on September 25, 2025, and on December 24, 2025, the Court granted defendants’ motion to dismiss and issued an order dismissing the case with prejudice. On January 21, 2026, Plaintiffs appealed the District Court’s decisions to the United States Court of Appeals for the First Circuit. On March 26, 2026, the Court granted the Parties’ stipulated voluntary dismissal of Plaintiffs’ appeal. On September 6 and 13, 2024, certain Ardelyx shareholders filed two verified derivative complaints purportedly on behalf of the Company in the United States District Court for the District of Massachusetts alleging violations of Sections 10(b) and/or 18 Table of Content s 14(a) of the Exchange Act, breaches of fiduciary duty, unjust enrichment, waste, and aiding and abetting breaches of fiduciary duty against certain members of our board of directors and management based on substantially the same factual allegations in the Yarborough Action. The complaints seek unspecified damages and corporate governance reforms, as well as costs and attorneys’ fees. On September 25, 2024, the Court consolidated the two derivative actions into the case In re Ardelyx, Inc. Stockholder Derivative Litigation, Case No. 1:24-cv-12302-LTS (D. Mass.). On November 7, 2024, the Court stayed the consolidated derivative action pending resolution of any and all motion(s) to dismiss in the Yarborough Action. On April 9, 2026, the Court dismissed the consolidated derivative action pursuant to the parties’ stipulation of dismissal. From time to time, we may be involved in legal proceedings arising in the ordinary course of business. As of June 30, 2026, there is no litigation pending that would reasonably be expected to have a material adverse effect on our results of operations and financial condition.