Arrowhead Pharmaceuticals, Inc.ARWR
NasdaqGS•Healthcare•Biotechnology
Arrowhead Pharmaceuticals, Inc. develops medicines for the treatment of intractable diseases in the United States. Its pipeline includes Plozasiran to reduce production of apolipoprotein C-III in Phase 3 studies; Zodasiran to reduce production of angiopoietin-like protein 3 in Phase 3 clinical trials; ARO-DIMER-PA, a dual functional RNAi molecule in a Phase 1/2a clinical trials; and ARO-PNPLA3, an investigational RNAi therapeutic in Phase 1 clinical trials. The company also develops ARO-INHBE, to reduce the hepatic expression of the INHBE gene and its secreted gene product, Activin E in Phase 1/2a clinical trials; ARO-ALK7 to silence adipocyte expression of the ACVR1C gene in Phase 1/2a clinical trials; ARO-RAGE to reduce production of the receptor for advanced glycation end products in Phase 1/2a clinical trials; and ARO-MAPT, an investigational RNAi-based therapy. In addition, it is developing ARO-C3 to reduce production of C3 in Phase 1/2a clinical trials; and ARO-CFB to reduce hepatic expression of CFB in a Phase 1/2a clinical trials. The company has collaboration and license Agreements with Glaxosmithkline Intellectual Property (No. 3) Limited; Takeda Pharmaceutical Company Limited; Amgen Inc.; and Sarepta Therapeutics, Inc. Arrowhead Pharmaceuticals, Inc. was founded in 2003 and is headquartered in Pasadena, California.
Arrowhead Pharmaceuticals, Inc. (ARWR) reported trailing twelve months revenue of $622.01M as of March 2026, a 14.1% increase year-over-year. Quarterly revenue reached $73.74M, reflecting continued top-line momentum.
Arrowhead Pharmaceuticals, Inc. reported a TTM net loss of $300.91M, with quarterly EBITDA of $-135.36M. The operating margin contracted from 70.2% to -191.6%, suggesting rising cost pressures or pricing headwinds.
The spread between operating margin (-191.6%) and net margin (-180.0%) indicates tight cost control with minimal non-operating drag. Net margin has narrowed from 68.3% a year ago, reflecting increased costs or interest expense.
ARWR trades at a P/S of 13.2x. The price-to-book ratio of 13.7x indicates a significant premium over book value.
The company generated $81.88M in free cash flow over the trailing twelve months, a 82.0% decrease year-over-year, indicating strong cash generation ability. The balance sheet shows $2.27B in total assets with $681.94M in long-term debt against $598.92M in stockholders equity for a debt-to-equity ratio of 1.1. Data based on the most recent quarterly reports.
Competitive analysis based on 21 quarters of fundamental data
Operating margins are under pressure, averaging -4229300892.7%. The business may lack pricing power or face rising costs.'
ROE is low or negative, suggesting limited competitive advantage or capital allocation challenges.
Only 4 of the last 8 quarters had positive FCF — the business may require external capital to sustain operations.
Revenue shows resilience with 4 of 7 quarters posting growth — demand is generally stable but has seen some soft patches.
Data-driven red flags and warnings across 21 quarters
The company posted negative operating margins in recent quarters — core operations are unprofitable.
Free cash flow has been negative in 4 of the last 8 quarters — earnings are not translating to cash.
Limited debt-to-equity data available.
Revenue is stable or growing over recent quarters — demand appears durable.
4 of the last 8 quarters had negative FCF — inconsistent cash generation raises sustainability concerns.
Shares outstanding increased 14.7% — significant dilution, likely from stock compensation or capital raises.