Financial Analysis

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 Ardelyxs 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 allege 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 for personally making and/or causing Ardelyx to make materially false and misleading statements regarding the Companys 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 th …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

BORROWING The following table presents our outstanding term loans under the 2022 Loan Agreement: (in thousands) March 31, 2026 December 31, 2025 Interest Rates Principal Term A Loan $ 27,500 $ 27,500 7.95% + 0.022% + SOFR (subject to a floor of 1.0%) Term B Loan 22,500 22,500 7.95% + 0.022% + SOFR (subject to a floor of 1.0%) Term C Loan 50,000 50,000 4.25% + 0.022% + SOFR (subject to a floor of 4.7%) Term D Loan 50,000 50,000 4.00% + 0.022% + SOFR (subject to a floor of 4.7%) Term E Loan 50,000 50,000 4.00% + 0.022% + SOFR (subject to a floor of 4.7%) Total principal 200,000 200,000 Adjustments to principal value Unamortized discount and debt issuance costs (1,029) (1,127) Accreted value of final fee 4,546 3,961 Total long-term debt 203,517 202,834 Less: Current portion of long-term debt Long-term debt, net of current portion $ 203,517 $ 202,834 The total unaccreted final fee was $5.4 million and $5.9 million as of March 31, 2026 and December 31, 2025, respectively. As of March 31, 2026, our total future payment obligation related to the outstanding balance of the term loans, excluding interest payments, was $209.9 million, which is due on July 1, 2028. As of March 31, 2026, there have been no changes to the principal, maturity, interest rates, interest payment terms and debt covenants since December 31, 2025. See Note 9. Borrowing of our 2025 Form 10-K for additional information regarding our 2022 Loan Agreement. Effective as of April 28, 2026, we entered into the Sixth Ame …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

Disaggregation of total revenues by nature is as follows: Three Months Ended March 31, (in thousands) 2026 2025 Product sales, net $ 93,373 $ 67,814 Product supply revenue 354 254 Licensing revenue 51 5,020 Non-cash royalty revenue related to the sale of future royalties 695 1,026 Total revenues $ 94,473 $ 74,114 Total product sales, net was as follows: Three Months Ended March 31, (in thousands) 2026 2025 Product sales, net IBSRELA $ 70,074 $ 44,403 XPHOZAH 23,299 23,411 Total product sales, net $ 93,373 $ 67,814 Product sales, net as a percentage of total revenues 98.8 % 91.5 % The following table summarizes total revenues by collaboration partner: Three Months Ended March 31, (in thousands) 2026 2025 Licensing revenue Knight $ 31 $ 20 Fosun Pharma 20 5,000 Total licensing revenue $ 51 $ 5,020 Product supply revenue Fosun Pharma $ 352 $ Kyowa Kirin 2 Knight 254 Total supply revenue $ 354 $ 254 Non-cash royalty revenue related to the sale of future royalties Kyowa Kirin $ 695 $ 1,026 …

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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 March 31, (in thousands) 2026 2025 Selling, general and administrative $ 11,556 $ 8,484 Research and development 2,602 3,604 Total $ 14,158 $ 12,088 A summary of our total unrecognized stock-based compensation expense, net of estimated forfeitures, as of March 31, 2026 is as follows: Unrecognized Compensation Expense (in thousands) Average Remaining Vesting Period (in years) Stock option grants $ 56,408 2.7 RSU grants $ 95,632 3.0 ESPP $ 318 0.4 Stock Options A summary of our stock option activity and related information for the three months ended March 31, 2026 is as follows: Number of Shares (in thousands) Weighted-Average Exercise Price per Share Balance as of December 31, 2025 28,977 $ 5.54 Options granted 2,948 $ 7.71 Options exercised (1,100) $ 4.27 Options forfeited or canceled (1,014) $ 9.03 Balance as of March 31, 2026 29,811 $ 5.69 Exercisable as of March 31, 2026 17,718 $ 5.31 Restricted Stock Units A summary of our RSU activity and related information for the three months ended March 31, 2026 is as follows: Number of RSUs (in thousands) Weighted-Average Grant Date Fair Value per Share Non-vested restricted stock units as of December 31, 2025 12,583 $ 5.71 Granted 5,274 $ 7.59 Vested (1,385) $ 6.16 Forfeited (540) $ 6.10 Non-vested re …

DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock · excerpt; the full note is in the filing

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 are based on quoted prices in active markets for identical assets or liabilities and readily accessible by us 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: March 31, 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 $ 21,666 $ 21,666 $ $ $ 49,430 $ 49,430 $ $ U.S. treasury securities 94,352 94,352 95,157 95,157 Commercial paper 48,893 48,893 46,450 46,450 U.S. government-sponsored agency bonds 35,253 35,253 27,366 27,366 Corporate bonds 23,262 23,262 22,582 22,582 Yankee bonds 5,105 …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

LEASES The following table provides additional details of our facility leases presented in our condensed balance sheets: ($ in thousands) Facilities March 31, 2026 December 31, 2025 Right-of-use assets $ 4,433 $ 4,795 Current portion of lease liabilities $ 1,510 $ 1,479 Operating lease liability, net of current portion 3,237 3,641 Total lease liabilities $ 4,747 $ 5,120 Weighted-average remaining term (in years) 2.9 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 March 31, (in thousands) 2026 2025 Operating lease expense $ 432 $ 977 Cash paid for operating leases $ 442 $ 1,047 The following table summarizes our undiscounted cash payment obligations for our operating lease liabilities as of March 31, 2026: (in thousands) Operating Leases Remainder of 2026 $ 1,342 2027 1,836 2028 1,402 2029 575 Thereafter Total undiscounted operating lease payments 5,155 Imputed interest expenses (408) Total operating lease liabilities 4,747 Less: Current portion of operating lease liability (1,510) Operating lease liability, net of current portion $ 3,237 …

LesseeOperatingLeasesTextBlock · excerpt; the full note is in the filing

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 Companys 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. …

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REVENUE Disaggregation of total revenues by nature is as follows: Three Months Ended March 31, (in thousands) 2026 2025 Product sales, net $ 93,373 $ 67,814 Product supply revenue 354 254 Licensing revenue 51 5,020 Non-cash royalty revenue related to the sale of future royalties 695 1,026 Total revenues $ 94,473 $ 74,114 Product Sales, Net Total product sales, net was as follows: Three Months Ended March 31, (in thousands) 2026 2025 Product sales, net IBSRELA $ 70,074 $ 44,403 XPHOZAH 23,299 23,411 Total product sales, net $ 93,373 $ 67,814 Product sales, net as a percentage of total revenues 98.8 % 91.5 % Concentrations Gross product sales from Customers accounting for more than 10% of total revenues were as follows: Three Months Ended March 31, 2026 2025 Customers (1) BioRidge Pharma, LLC 85.5 % 63.8 % Cencora, Inc. 17.2 % 18.2 % McKesson Corporation 15.7 % 16.9 % Cardinal Health, Inc. 12.8 % 22.2 % Caremark, LLC 12.1 % % (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. 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 …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

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. Detailed information regarding our single operating segments significant revenues, expenses and operating loss is as follows: Three Months Ended March 31, (in thousands) 2026 2025 Revenues Product sales, net $ 93,373 $ 67,814 Other revenues (1) 1,100 6,300 Total revenues 94,473 74,114 Less Cost of product sales (2) 2,875 2,340 Other cost of revenue (3) 1,936 9,963 Research and development (4) 17,586 11,335 Selling (4) 67,395 56,800 General and administrative (4) 23,316 17,937 Stock-based compensation 14,158 12,088 Total costs and operating expenses 127,266 110,463 Consolidated loss from operations (32,793) (36,349) Other reconciliation items (5) (4,812) (4,795) Consolidated net loss $ (37,605) $ (41,144) (1) Other revenues includes revenues from our collaboration partnerships, including licensing revenue, product supply revenue and non-cash royalty revenue related to th …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

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 March 31, 2026, there have been no sales of our common stock under the 2025 Open Market Sales Agreement. …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing

SUBSEQUENT EVENTS On April 28, 2026, we entered into an amendment to our 2022 Loan Agreement (the Sixth Amendment), by and among the Company, 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 outstanding 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 has been extended from July 1, 2028 to July 1, 2030 (the New Maturity Date), which is the maturity date applicable for each other term loan; (iii) the interest-only payment period for the Revised Loans has been extended until the New Maturity Date; (iv) the interest rates for the Revised Loans, the Term H Loan, and the Term F and Term G Loans will have a collectively reduced interest rate, at the sum of 4.55% plus the greater of (a) the 1-month SOFR reference rate or (b) 3.5%; (v) the Company will retain the option to draw the Term F and Term G Loans, each in the amount of $50.0 million, at the Companys election by June 30, 2026 and December 20, 2026, respectively; and (vi) certain negative covenants and other conditions were amended to provide additional flexibility to the Company. On the closing date of the Sixth Amendment, the Company paid approximately $1.9 million in final fees and prepayment fees in connection with the partial paydown of the Term A through C Loans. The Compa …

SubsequentEventsTextBlock · excerpt; the full note is in the filing