Arrowhead Pharma Financials
This page shows Arrowhead Pharma (ARWR) financial statements, including the income statement, balance sheet, cash flow statement, and key financial ratios. View 16 years of annual fundamentals and quarterly data, with year-over-year growth rates and compound annual growth rates (CAGR). All figures are derived from SEC filings (10-K and 10-Q reports).
Arrowhead’s event-driven revenue sits on a large recurring R&D base, so reported earnings can swing far faster than underlying spending.
Cash conversion improved alongside operations: operating cash flow swung to$179.6M from-$462.9M in FY2024. Net income did not follow, staying at-$1.6M because interest expense reached$89.4M , so financing costs absorbed much of the operating rebound even as the core business stopped consuming cash.
The jump to positive free cash flow was also a capital intensity shift: capital spending fell to
Near-term liquidity looks comfortable with a current ratio of 4.9x and cash of
Financial Health Signals
Based on FY2025 annual data, averaged across the last 3 years for performance metrics (most-recent year weighted highest). How this score is calculated →
Health score ≠ stock price. This rates the quality of Arrowhead Pharma's business: profitability, growth, balance sheet strength. It doesn't tell you whether the stock is a good buy at today's price. Not financial advice. Use it alongside valuation analysis and your own research.
Arrowhead Pharma has an operating margin of 11.9%, meaning the company retains $12 of operating profit per $100 of revenue. This below-average margin results in a low score of 0/100, suggesting thin profitability after operating expenses. This is up from -16927.1% the prior year.
Arrowhead Pharma's revenue surged 23258.2% year-over-year to $829.4M, reflecting rapid business expansion. This strong growth earns a score of 100/100.
Arrowhead Pharma has a moderate D/E ratio of 1.97. This balance of debt and equity financing earns a leverage score of 62/100.
With a current ratio of 4.86, Arrowhead Pharma holds $4.86 in current assets for every $1 of short-term obligations. This comfortable liquidity earns a score of 97/100.
Arrowhead Pharma's free cash flow margin of 18.9% results in a low score of 0/100. Capital expenditures of $22.7M absorb a large share of operating cash flow.
Arrowhead Pharma generates a -0.4% ROE, indicating limited profit relative to shareholders' investment. This results in a returns score of 0/100. This is up from -323.3% the prior year.
Arrowhead Pharma scores 6.97, well above the 2.99 safe threshold. The score is driven primarily by a large market capitalization ($10.9B) relative to total liabilities ($919.2M). This indicates low bankruptcy risk based on profitability, leverage, and asset efficiency.
Arrowhead Pharma passes 4 of 9 financial strength tests. 3 of 4 profitability signals pass, no leverage/liquidity signals pass (rising debt, declining liquidity, or share dilution), both operating efficiency signals pass.
For every $1 of reported earnings, Arrowhead Pharma generates $-110.09 in operating cash flow ($179.6M OCF vs -$1.6M net income). This mixed ratio suggests some earnings may rely on non-cash accounting items.
Arrowhead Pharma earns $1.1 in operating income for every $1 of interest expense ($98.3M vs $89.4M). This narrow margin raises concern about the company's ability to service its debt if operating income declines.
Key Financial Metrics
Earnings & Revenue
Arrowhead Pharma generated $829.4M in revenue in fiscal year 2025. This represents an increase of 23258.2% from the prior year.
Arrowhead Pharma's EBITDA was $120.5M in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization. This represents an increase of 120.6% from the prior year.
Arrowhead Pharma reported -$1.6M in net income in fiscal year 2025. This represents an increase of 99.7% from the prior year.
Arrowhead Pharma earned $-0.01 per diluted share (EPS) in fiscal year 2025. This represents an increase of 99.8% from the prior year.
Cash & Balance Sheet
Arrowhead Pharma generated $156.9M in free cash flow in fiscal year 2025, representing cash available after capex. This represents an increase of 126.0% from the prior year.
Arrowhead Pharma held $226.5M in cash against $0 in long-term debt as of fiscal year 2025.
Arrowhead Pharma had 136M shares outstanding in fiscal year 2025. This represents an increase of 9.1% from the prior year.
Margins & Returns
Arrowhead Pharma's operating margin was 11.9% in fiscal year 2025, reflecting core business profitability. This is up 16938.9 percentage points from the prior year.
Arrowhead Pharma's net profit margin was -0.2% in fiscal year 2025, showing the share of revenue converted to profit. This is up 16882.2 percentage points from the prior year.
Arrowhead Pharma's ROE was -0.4% in fiscal year 2025, measuring profit generated per dollar of shareholder equity. This is up 322.9 percentage points from the prior year.
Capital Allocation
Arrowhead Pharma invested $607.2M in research and development in fiscal year 2025. This represents an increase of 20.0% from the prior year.
Arrowhead Pharma invested $22.7M in capex in fiscal year 2025, funding long-term assets and infrastructure. This represents a decrease of 84.0% from the prior year.
ARWR Income Statement
| Metric | Q2'26 | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 |
|---|---|---|---|---|---|---|---|---|
| Revenue | $73.7M-72.1% | $264.0M+2.9% | $256.5M+823.7% | $27.8M-94.9% | $542.7M+21608.4% | $2.5M | N/A | $0 |
| Cost of Revenue | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Gross Profit | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| R&D Expenses | $173.3M-2.2% | $177.2M+1.4% | $174.7M+7.6% | $162.4M+22.0% | $133.1M-2.8% | $137.0M | N/A | $152.4M |
| SG&A Expenses | $41.7M-9.3% | $46.0M+22.1% | $37.7M+21.7% | $30.9M+9.0% | $28.4M+5.6% | $26.9M | N/A | $23.7M |
| Operating Income | -$141.3M-446.1% | $40.8M-7.5% | $44.1M+126.6% | -$165.6M-143.4% | $381.2M+336.2% | -$161.4M | N/A | -$176.1M |
| Interest Expense | $23.8M+6.0% | $22.5M+3.7% | $21.7M-11.0% | $24.4M+12.7% | $21.6M0.0% | $21.6M | N/A | $5.1M |
| Income Tax | $7K-75.9% | $29K-99.9% | $20.0M+4676.7% | -$437K-124.9% | $1.8M+1601.9% | $103K | N/A | $0 |
| Net Income | -$132.7M-530.8% | $30.8M+229.7% | -$23.8M+86.4% | -$175.2M-147.3% | $370.4M+314.0% | -$173.1M | N/A | -$170.8M |
| EPS (Diluted) | $-0.93-522.7% | $0.22 | N/A | $-1.26-145.8% | $2.75+297.8% | $-1.39 | N/A | $-1.38 |
ARWR Balance Sheet
| Metric | Q2'26 | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 |
|---|---|---|---|---|---|---|---|---|
| Total Assets | $2.3B+41.4% | $1.6B+15.8% | $1.4B+0.3% | $1.4B-12.3% | $1.6B+55.2% | $1.0B-11.1% | $1.1B+29.0% | $883.8M |
| Current Assets | $1.8B+56.7% | $1.2B+23.5% | $950.6M+0.4% | $946.9M-16.6% | $1.1B+99.0% | $570.5M-18.0% | $695.5M+54.5% | $450.1M |
| Cash & Equivalents | $188.5M-6.5% | $201.6M-11.0% | $226.5M+74.5% | $129.8M-30.1% | $185.7M+244.6% | $53.9M-47.5% | $102.7M+48.0% | $69.4M |
| Inventory | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Accounts Receivable | $15.7M-92.8% | $218.9M+3107.4% | $6.8M-29.6% | $9.7M+310.1% | $2.4M-5.4% | $2.5M | $0 | $0 |
| Goodwill | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Total Liabilities | $1.7B+59.7% | $1.0B+12.7% | $919.2M+7.1% | $858.3M-3.6% | $890.2M-7.4% | $961.1M+0.7% | $954.4M+72.5% | $553.2M |
| Current Liabilities | $295.2M-15.0% | $347.4M+77.7% | $195.5M+0.5% | $194.5M-11.8% | $220.5M+135.2% | $93.8M-9.1% | $103.2M+6.7% | $96.7M |
| Long-Term Debt | $159.6M | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Total Equity | $614.0M+8.0% | $568.4M+22.0% | $466.1M-10.8% | $522.3M-23.6% | $683.3M+1199.4% | $52.6M-71.6% | $185.4M-43.9% | $330.5M |
| Retained Earnings | -$1.7B-8.3% | -$1.6B+1.9% | -$1.6B-1.5% | -$1.6B-12.3% | -$1.4B+20.6% | -$1.8B-10.6% | -$1.6B-11.7% | -$1.5B |
ARWR Cash Flow Statement
| Metric | Q2'26 | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 |
|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | $84.4M+526.4% | $13.5M-34.2% | $20.5M+113.2% | -$154.7M-133.6% | $460.1M+414.5% | -$146.3M-6.6% | -$137.2M-18.9% | -$115.4M |
| Capital Expenditures | $2.6M+19.4% | $2.1M-71.3% | $7.5M+216.8% | $2.4M-55.4% | $5.3M-29.5% | $7.5M-69.1% | $24.3M+68.1% | $14.4M |
| Free Cash Flow | $81.9M+622.5% | $11.3M-12.8% | $13.0M+108.3% | -$157.1M-134.5% | $454.8M+395.7% | -$153.8M+4.8% | -$161.5M-24.4% | -$129.9M |
| Investing Cash Flow | -$894.3M-3666.7% | -$23.7M-132.7% | $72.6M-48.6% | $141.4M+133.6% | -$420.2M-646.4% | $76.9M+134.5% | -$222.9M-3308.0% | $6.9M |
| Financing Cash Flow | $795.7M+5494.7% | -$14.8M-502.0% | $3.7M+108.6% | -$42.7M-146.2% | $92.4M+347.7% | $20.6M-94.7% | $389.1M+672.2% | $50.4M |
| Dividends Paid | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Share Buybacks | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
ARWR Financial Ratios
| Metric | Q2'26 | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 |
|---|---|---|---|---|---|---|---|---|
| Gross Margin | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Operating Margin | -191.6%-207.0pp | 15.5%-1.7pp | 17.2%+613.4pp | -596.2%-666.5pp | 70.2%+6526.7pp | -6456.5% | N/A | N/A |
| Net Margin | -180.0%-191.7pp | 11.7%+20.9pp | -9.3%+621.9pp | -631.1%-699.4pp | 68.3%+6991.7pp | -6923.4% | N/A | N/A |
| Return on Equity | -21.6%-27.0pp | 5.4%+10.5pp | -5.1%+28.5pp | -33.6%-87.8pp | 54.2%+383.3pp | -329.1% | N/A | -51.7% |
| Return on Assets | -5.9%-7.8pp | 1.9%+3.6pp | -1.7%+11.0pp | -12.7%-36.2pp | 23.5%+40.6pp | -17.1% | N/A | -19.3% |
| Current Ratio | 6.23+2.9 | 3.38-1.5 | 4.860.0 | 4.87-0.3 | 5.15-0.9 | 6.09-0.7 | 6.74+2.1 | 4.65 |
| Debt-to-Equity | 2.69+0.9 | 1.82-0.2 | 1.97+0.3 | 1.64+0.3 | 1.30-17.0 | 18.28+13.1 | 5.15+3.5 | 1.67 |
| FCF Margin | 111.0%+106.8pp | 4.3%-0.8pp | 5.1%+570.8pp | -565.7%-649.5pp | 83.8%+6235.3pp | -6151.5% | N/A | N/A |
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Frequently Asked Questions
What is Arrowhead Pharma's annual revenue?
Arrowhead Pharma (ARWR) reported $829.4M in total revenue for fiscal year 2025. This represents a 23258.2% change compared to the previous fiscal year. Revenue measures the total income earned from the company's primary business operations before any expenses are deducted.
How fast is Arrowhead Pharma's revenue growing?
Arrowhead Pharma (ARWR) revenue grew by 23258.2% year-over-year, from $3.6M to $829.4M in fiscal year 2025.
Is Arrowhead Pharma profitable?
No, Arrowhead Pharma (ARWR) reported a net income of -$1.6M in fiscal year 2025, with a net profit margin of -0.2%.
What is Arrowhead Pharma's EBITDA?
Arrowhead Pharma (ARWR) had EBITDA of $120.5M in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization.
What is Arrowhead Pharma's operating margin?
Arrowhead Pharma (ARWR) had an operating margin of 11.9% in fiscal year 2025, reflecting the profitability of core business operations before interest and taxes.
What is Arrowhead Pharma's net profit margin?
Arrowhead Pharma (ARWR) had a net profit margin of -0.2% in fiscal year 2025, representing the share of revenue converted into profit after all expenses.
What is Arrowhead Pharma's return on equity (ROE)?
Arrowhead Pharma (ARWR) has a return on equity of -0.4% for fiscal year 2025, measuring how efficiently the company generates profit from shareholder equity.
What is Arrowhead Pharma's free cash flow?
Arrowhead Pharma (ARWR) generated $156.9M in free cash flow during fiscal year 2025. This represents a 126.0% change compared to the previous fiscal year. Free cash flow represents the cash a company generates after accounting for capital expenditures, and is widely used to assess financial flexibility and shareholder value.
What is Arrowhead Pharma's operating cash flow?
Arrowhead Pharma (ARWR) generated $179.6M in operating cash flow during fiscal year 2025, representing cash generated from core business activities.
What are Arrowhead Pharma's total assets?
Arrowhead Pharma (ARWR) had $1.4B in total assets as of fiscal year 2025, including both current and long-term assets.
What are Arrowhead Pharma's capital expenditures?
Arrowhead Pharma (ARWR) invested $22.7M in capital expenditures during fiscal year 2025, funding long-term assets and infrastructure.
How much does Arrowhead Pharma spend on research and development?
Arrowhead Pharma (ARWR) invested $607.2M in research and development during fiscal year 2025.
What is Arrowhead Pharma's current ratio?
Arrowhead Pharma (ARWR) had a current ratio of 4.86 as of fiscal year 2025, which is generally considered healthy.
What is Arrowhead Pharma's debt-to-equity ratio?
Arrowhead Pharma (ARWR) had a debt-to-equity ratio of 1.97 as of fiscal year 2025, measuring the company's financial leverage by comparing total debt to shareholder equity.
What is Arrowhead Pharma's return on assets (ROA)?
Arrowhead Pharma (ARWR) had a return on assets of -0.1% for fiscal year 2025, measuring how efficiently the company uses its assets to generate profit.
What is Arrowhead Pharma's Altman Z-Score?
Arrowhead Pharma (ARWR) has an Altman Z-Score of 6.97, placing it in the Safe Zone (low bankruptcy risk). The Z-Score combines five financial ratios (working capital, retained earnings, EBIT, market capitalization, and revenue relative to total assets) to predict the likelihood of bankruptcy. Scores above 2.99 indicate financial safety while scores below 1.81 suggest financial distress. Learn more in our complete guide to financial health indicators.
What is Arrowhead Pharma's Piotroski F-Score?
Arrowhead Pharma (ARWR) has a Piotroski F-Score of 4 out of 9, indicating neutral financial health. The F-Score evaluates nine binary signals across profitability (positive ROA, positive cash flow, improving ROA, earnings quality), leverage (decreasing debt, improving liquidity, no share dilution), and operating efficiency (improving gross margin, improving asset turnover). Scores of 7 to 9 indicate strong and improving fundamentals. Learn more in our complete guide to financial health indicators.
Are Arrowhead Pharma's earnings high quality?
Arrowhead Pharma (ARWR) has an earnings quality ratio of -110.09x, considered mixed quality. This ratio compares operating cash flow to net income. A ratio above 1.0x means the company generates more cash than its reported earnings, indicating sustainable, cash-backed profits. Ratios below 1.0x suggest earnings rely on accounting accruals rather than actual cash generation. Learn more in our complete guide to financial health indicators.
Can Arrowhead Pharma cover its interest payments?
Arrowhead Pharma (ARWR) has an interest coverage ratio of 1.1x, meaning it can struggle to cover its interest obligations. This ratio divides operating income by interest expense. Ratios above 5x indicate strong debt-servicing ability, while ratios below 2x suggest the company may face difficulty meeting interest payments if earnings decline. Learn more in our complete guide to financial health indicators.
How financially healthy is Arrowhead Pharma?
Arrowhead Pharma (ARWR) scores 43 out of 100 on our Financial Profile, indicating moderate overall financial health. This composite score evaluates six dimensions: profitability (operating margin), revenue growth, leverage (debt-to-equity), liquidity (current ratio), cash flow quality (free cash flow margin), and shareholder returns (return on equity). Each dimension is normalized against standard financial benchmarks. Learn more in our complete guide to financial health indicators.