Arrowhead Pharmaceuticals

ARWR · Nasdaq · Health Care · Financials, fiscal 2016 to 2025

ARWR · Last close · October 26, 2026

$58.98

Value Arrowhead Pharmaceuticals yourself

Arrowhead Pharmaceuticals' revenue rose 23258.2% to $829 million in fiscal 2025. Its operating margin was 11.9%, up from −16,927.1% a year earlier. Free cash flow was $157 million. The diluted share count rose 11.7%.

ARROWHEAD PHARMACEUTICALS, INC. Latest fiscal year ended September 30, 2025 10-K filed November 25, 2025 · 0000879407-25-000029 Updated October 14, 2026

Revenue

$829M

23258.2%

Operating margin

11.9%

16938.9 pts

Net income

−$2M

Free cash flow

$157M

Return on equity

−0.5%

262.0 pts

Market cap

$8.5B

Oct 26 close

P/E

—

Loss: no P/E

Operating margin is operating income as a share of revenue. Free cash flow is cash from operations minus capital spending. Return on equity is net income as a share of shareholders' equity. Market cap is the last closing share price times the latest diluted share count, so it is approximate. P/E is the last close divided by diluted earnings per share over the last four quarters, or the latest fiscal year where the quarters aren't available; there is none when the company made a loss.

About these figures. Debt is Arrowhead's loan from Sixth Street, taken out in August 2024 and tagged as a credit line (its current and long-term parts); Arrowhead had no borrowings from fiscal 2019 until then, so debt is zero in those years.

Charts show fiscal years, from the 10-K filings.

Revenue and margins

Revenue

US$ billions, fiscal years

Margins

Percent of revenue

GrossOperatingNetFree cash flow

Net income and earnings per share

Arrowhead Pharmaceuticals lost money in fiscal 2025: a net loss of $2 million.

Net income

US$ billions, fiscal years; loss years in red.

Diluted earnings per share

US$ per share, fiscal years, restated for any stock splits; loss years in red.

Returns on capital

Return on capital and on equity

Percent. Return on capital is after-tax operating income over the money invested in the business (debt plus equity, minus cash); return on equity is net income over shareholders' equity. Both use the average of opening and closing balances.

Return on capitalReturn on equity

Cash flow

Free cash flow

US$ billions. Cash from operations minus capital expenditure; negative years in red.

Payouts and share count

Dividends and buybacks

US$ billions, cash paid in each fiscal year

DividendsShare buybacks

Diluted share count

Weighted-average diluted shares, millions

Valuation

Two ways to value Arrowhead Pharmaceuticals yourself, both starting from its filings: a discounted cash flow model and the price-to-earnings method.

Discounted cash flow (DCF)

A discounted cash flow (DCF) model values a business as the cash it may generate in future, discounted back to today. The starting figures come from Arrowhead Pharmaceuticals' 10-K (or, for net cash and shares, its latest 10-Q) and the assumptions are yours: start from one of three example scenarios, then change any figure to see what it implies for a share, and how that compares with the last share price.

Value per share on three example scenarios, from Arrowhead Pharmaceuticals' fiscal 2025 free cash flow of $157M, net cash of $664M at September 30, 2025 and 134 million diluted shares, from its filings. The scenarios are fitted to Arrowhead Pharmaceuticals: the base scenario's growth in years 1 to 5 is its revenue growth over the last 3 years, 50.5% a year, kept between 0% and 20%; the cautious and optimistic ones are lower and higher, and growth in years 6 to 10 is halfway to the long-run rate. The base scenario's discount rate is 13%: 11% for a cyclical or higher-risk business (Biotechnology), plus 1 point as a smaller company, worth $8.5B, plus 1 point for unsteady results (a loss in fiscal 2025); the cautious and optimistic ones use a point more and a point less. Select one to load it into the calculator. These are the model's arithmetic on those assumptions, not a forecast or a price target.

From the filings

Starting free cash flow, US$ millions

Cash from operations minus capital spending in fiscal 2025.

Net cash, US$ millions

Cash and short-term investments minus debt and finance leases at September 30, 2025. Negative means net debt.

Diluted shares, millions

Weighted-average diluted shares in fiscal 2025.

Your assumptions

Start from

Fitted to Arrowhead Pharmaceuticals's own revenue growth, as above. Cautious: growth of 10% then 6% a year, 2% after year 10, a 14% discount rate. Base: growth of 20% then 11% a year, 2.5% after year 10, a 13% discount rate. Optimistic: growth of 25% then 14% a year, 3% after year 10, a 12% discount rate.

Free cash flow growth, years 1 to 5 (% a year)

Free cash flow growth, years 6 to 10 (% a year)

Growth after year 10 (% a year)Long-run growth forever after year 10. Usually close to inflation, and always below the discount rate.

Discount rate (% a year)The yearly return an investor wants for the risk. A higher rate gives a lower value.

Value per share on these assumptions

—

Last close, October 26, 2026: $58.98
Value on these assumptions, against the last close: —

Cash flows in years 1 to 10, valued today: —
Everything after year 10, valued today: —
Plus net cash: —
Share of value from after year 10: —

Projected free cash flow

US$ billions. Each column is one year's projected free cash flow, split into what it is worth today and the part removed by discounting.

Value todayRemoved by discounting

How the value changes with two assumptions

Value per share in US$, with the growth rates above. The highlighted cell matches the current assumptions.

How the model works. Free cash flow grows at the first rate for five years and the second rate for five more, and each year is discounted at the discount rate. Everything after year 10 is valued as year-10 cash flow × (1 + growth after year 10) ÷ (discount rate − growth after year 10), discounted back ten years. Net cash is added and the total is divided by diluted shares. The result depends entirely on the assumptions. It is not a forecast, a price target or a recommendation. The last close is the consolidated US closing price, from Databento.

Price-to-earnings (P/E) method

Another common way to value a company is to multiply its earnings per share by a price-to-earnings (P/E) multiple: the number of years of today's earnings an investor pays for a share. A higher multiple usually means investors expect earnings to grow. Choose a multiple, for example from similar companies, to see the value it gives.

The P/E method needs positive earnings, and Arrowhead Pharmaceuticals' latest diluted earnings per share were negative or zero.

Balance sheet

Fiscal year end	FY21	FY22	FY23	FY24	FY25
Cash and short-term investments	311	108	404	681	919
Debt incl. finance leases	0	0	0	393	255
Net debt (negative means net cash)	−311	−108	−404	−288	−664
Net debt to EBITDA	—	—	—	—	−5.5x
Debt to equity	0.0x	0.0x	0.0x	2.1x	0.6x
Interest coverage	—	—	−11.2x	−18.6x	1.1x
Current ratio	2.6x	2.9x	4.0x	6.7x	4.9x
Quick ratio	2.6x	2.9x	4.0x	6.7x	4.9x

US$ millions unless stated, at each fiscal year end. Net debt to EBITDA is debt minus cash, divided by operating income before depreciation and amortization: roughly how many years of those earnings the net debt equals. Debt to equity is debt as a multiple of shareholders' equity. Interest coverage is operating income divided by interest expense. The current ratio is current assets over current liabilities; the quick ratio leaves out inventory.

Insider trades

Over the 12 months between October 27, 2025 and October 26, 2026, no insider bought Arrowhead Pharmaceuticals shares on the open market, and 10 insiders sold $37.3 million, $16.9 million of it under trading plans set up in advance.

Date	Insider	Trade	Shares	Price	Value	Filing
Aug 18, 2026	Michael S PerryDirector	Sold	11,600	$87.30	$1.0 million	Form 4
Aug 18, 2026	Adeoye Y OlukotunDirector	Sold	2,000	$86.96	$173,920	Form 4
May 12, 2026	Hongbo LuDirector	Sold plan	2,970	$76.88	$228,334	Form 4
Apr 23, 2026	James C HamiltonChief Medical Officer	Sold plan	10,000	$75.00	$750,000	Form 4
Apr 22, 2026	Daniel Joseph ApelChief Financial Officer	Sold plan	13,095	$71.35	$934,285	Form 4
Mar 5, 2026	James C HamiltonChief Medical Officer	Sold plan	10,000	$64.19	$641,900	Form 4
Jan 5, 2026	Patrick O'BrienCOO	Sold plan	49,493	$63.11	$3.1 million	Form 4
Jan 5, 2026	James C HamiltonChief Medical Officer	Sold plan	40,164	$63.11	$2.5 million	Form 4
Jan 2, 2026	Christopher Richard AnzaloneChief Executive Officer, Director	Sold plan	13,187	$66.10	$871,703	Form 4
Dec 29, 2025	Christopher Richard AnzaloneChief Executive Officer, Director	Sold plan	51,726	$69.13	$3.6 million	Form 4
Dec 26, 2025	Mauro FerrariDirector	Sold plan	7,530	$70.00	$527,100	Form 4
Dec 22, 2025	Christopher Richard AnzaloneChief Executive Officer, Director	Sold plan	12,586	$68.44	$861,340	Form 4

The latest 12 of 21 trades. Open-market purchases and sales by officers, directors and 10% owners, from their Form 4 filings with the SEC: one row per person, day and filing, at the day's average price. Grants, option exercises and shares withheld for tax aren't counted. Insiders buy and sell for many reasons, such as taxes, spreading their savings or a plan set up months earlier, so a trade on its own says little about where a company is heading. For information only, not investment advice. Insider trades at all companies

Piotroski F-score

The F-score counts how many of nine simple tests of profitability, funding and efficiency a company passed in a year (Piotroski, 2000). The more tests passed, the stronger the year: 8 or 9 is strong, 0 to 2 weak. Companies that report no gross profit are scored on the other eight.

Test	FY23	FY24	FY25
Net income is positive	Fail	Fail	Fail
Cash from operations is positive	Fail	Fail	Pass
Return on assets rose	Fail	Fail	Pass
Cash from operations exceeds net income	Pass	Pass	Pass
Debt fell relative to assets	Fail	Fail	Pass
Current ratio rose	Pass	Pass	Fail
Share count didn't rise	Fail	Fail	Fail
Gross margin rose	—	—	—
Revenue rose relative to assets	Pass	Fail	Pass
F-score	3 of 8	2 of 8	5 of 8
Accruals ratio	−7.0%	−14.3%	−14.3%

The accruals ratio is net income minus cash from operations, over average total assets.

Compare

Put Arrowhead Pharmaceuticals side by side with any other company we cover: revenue, growth, margins, cash flow and returns, with ten years of charts.

Similar companies

Company	Year	Revenue growth	Operating margin	Free cash flow margin	Return on capital	Net debt to EBITDA	F-score	Compare
Arrowhead Pharmaceuticals	FY25	23,258.2%	11.9%	18.9%	—	−5.5x	5
Harmony Biosciences	FY25	21.5%	24.0%	40.1%	48.9%	—	5	Compare
Repligen	FY25	16.4%	7.5%	12.7%	2.4%	−1.7x	—	Compare
ADMA Biologics	FY25	19.6%	37.5%	5.5%	39.5%	−0.1x	5	Compare
Halozyme	FY25	37.5%	33.6%	46.1%	19.2%	4.2x	5	Compare

Each company's latest fiscal year. Fiscal years end in different months, so the periods don't line up exactly. Free cash flow margin is free cash flow as a share of revenue. Net debt to EBITDA is explained under the balance sheet, and the F-score above.

10 years of figures

Fiscal year	FY16	FY17	FY18	FY19	FY20	FY21	FY22	FY23	FY24	FY25
Income statement
Revenue	0	31	16	169	88	138	243	241	4	829
Revenue growth	−58.5%	19,736.5%	−48.6%	945.7%	−47.9%	57.2%	75.9%	−1.0%	−98.5%	23,258.2%
Gross profit	—	—	—	—	—	—	—	—	—	—
Research and development	62	51	53	81	129	206	297	353	506	607
Operating income	−82	−37	−56	61	−93	−149	−178	−205	−601	98
Net income	−82	−34	−54	68	−85	−141	−176	−205	−600	−2
Diluted EPS (US$)	−1.34	−0.47	−0.65	0.69	−0.84	−1.36	−1.67	−1.92	−5.00	−0.01
Diluted shares (millions)	61	74	84	99	101	104	105	107	120	134
Cash flow
Cash from operations	−64	−24	−47	173	−96	171	−136	−154	−463	180
Capital expenditure	4	8	1	12	12	24	53	177	142	23
Free cash flow	−68	−32	−49	161	−108	148	−189	−331	−604	157
Dividends paid	0	0	0	0	0	0	0	0	0	0
Share buybacks	0	0	0	0	0	0	0	0	0	0
Acquisitions	0	0	0	0	0	0	0	0	0	0
Stock-based compensation	12	8	8	12	43	77	121	78	74	63
Balance sheet at fiscal year end
Cash and short-term investments	85	25	30	222	229	311	108	404	681	919
Debt incl. finance leases	3	2	2	0	0	0	0	0	393	255
Total assets	128	104	112	350	522	710	692	766	1,140	1,385
Total liabilities	33	23	16	106	61	301	274	478	949	882
Shareholders' equity	96	81	96	245	462	409	398	271	185	466
Margins and ratios
Gross margin	—	—	—	—	—	—	—	—	—	—
Operating margin	−51,627.1%	−117.8%	−346.5%	36.2%	−105.9%	−107.8%	−73.4%	−85.2%	−16,927.1%	11.9%
Net margin	−51,614.6%	−109.5%	−337.3%	40.3%	−96.1%	−101.8%	−72.4%	−85.3%	−16,882.4%	−0.2%
Free cash flow margin	−43,129.2%	−101.4%	−301.4%	95.4%	−122.5%	106.8%	−77.7%	−137.3%	−17,018.3%	18.9%
Return on capital	—	−82.4%	−70.2%	136.1%	−57.6%	−71.2%	−69.1%	−167.1%	—	—
Return on equity	−79.4%	−38.9%	−61.5%	39.9%	−23.9%	−32.4%	−43.6%	−61.3%	−262.5%	−0.5%
Return on assets	−62.8%	−29.6%	−50.5%	29.5%	−19.4%	−22.9%	−25.1%	−28.2%	−62.9%	−0.1%
Net debt to EBITDA	—	—	—	−3.5x	—	—	—	—	—	−5.5x

US$ millions unless stated. Where a later 10-K restated a year, the latest filed figure is shown. Download all figures (CSV, US$ millions)

Source: Arrowhead Pharmaceuticals' Form 10-K filings, from SEC EDGAR. For information only, not investment advice. The Filing Desk is not affiliated with Arrowhead Pharmaceuticals.