# Arrowhead Pharmaceuticals (ARWR.US)

Canonical: https://gigainvestors.com/s/ARWR

Analysis as of: 2026-10-16T07:26:36.005Z. Financial observations: FY2003–FY2026.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: fail; earnings resilience is evidence only). Published buy qualification: no.

Share price: $58.50 per share; close as of 2026-10-15.

## Checklist

### understandable: fail

- 5 revenue declines in the last 10 years (informational)

- more than 2 net loss years

- negative average operating margin

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 5

- Years with a net loss: 9

- Operating margin variation: 2.85×

Chart: Operating margin; fiscal year observations.

- FY2017: -1.18×

- FY2018: -3.47×

- FY2019: 0.36×

- FY2020: -1.06×

- FY2021: -1.08×

- FY2022: -0.73×

- FY2023: -0.85×

- FY2024: -169.27×

- FY2025: 0.12×

- LTM to Jun 2026: -0.34×

### moat: fail

- Years with nonpositive invested capital use equity plus debt and leases; positive earnings with no positive capital are shown above 100%.

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- Recent gross margin fell 5.2pp below the typical margin (limit 4pp)

- ROIC, median of available years: -65.1%

- ROIC, second-lowest year: -176.8%

- Typical minus recent gross margin: 5.2 pp

- Typical gross margin (annual median): 100.0%

- Recent gross margin (lower of latest and 3-year median): 94.8%

- Years with nonpositive capital: 4

- Capital spending / revenue: 19.4%

- ROIC including acquisitions, ten-year median: -181.2%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: -65.7%

- FY2017: -34.8%

- FY2018: -1564.9%

- FY2019: 23.8%

- FY2020: -48.4%

- FY2021: -176.8%

- FY2022: -136.0%

- FY2023: -64.5%

- FY2024: -133.2%

- FY2025: 7.7%

### economics: fail

- owner earnings cash conversion below threshold

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: -$1.4B

- Net income, five-year total: -$1.1B

- Return on incremental invested capital: 39.7%

- Working capital / revenue, annual change: 360.8 pp

- Working capital / revenue, change between three-year averages: 2181.5 pp

- Working capital / revenue, final three-year average: -112.3%

Chart: Owner earnings · five years; fiscal year observations.

- FY2021: -$141M

- FY2022: -$176M

- FY2023: -$370M

- FY2024: -$722M

- FY2025: -$369K

### management: fail

- Historical market-dollar context (not the management verdict): 2017 to 2025 (8 years)

- potential debt-funded buybacks (informational)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: -65.7% vs -64.5%

- Per-share earnings: -1.34 to -1.92 (three-year endpoint medians)

- per-share value declined or ends nonpositive

- five-year and ten-year diluted share growth both above threshold

- acquired goodwill and intangibles (proxy) exceeds half of ten-year net income with low and deteriorating ROIC

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 8.8%

- Ordinary dilution, 5-year annual growth: 5.8%

- Market cap gain: $4.4B

- Cumulative retained earnings: -$1.2B

- Diluted shares, 10-year annual growth: 8.8%

- Diluted shares, 5-year annual growth: 5.8%

- $1 test, starting fiscal year: FY2017

- $1 test, ending fiscal year: FY2025

- Per-share value change: -$0.58

- Per-share value, starting three-year median: -$1.34

- Per-share value, ending three-year median: -$1.92

- Buybacks concentrated in cheaper years (correlation): -1.00

- Average buyback yield: 0.1%

- Buyback history: 2 years

- Debt-funded buybacks: Yes

- Acquisition spending: $0

- Cumulative net income, 10 years: -$1.3B

- ROIC, first three-year median: -65.7%

- ROIC, last three-year median: -64.5%

Chart: Earnings per share; fiscal year observations.

- FY2016: -$1.34

- FY2017: -$0.47

- FY2018: -$0.65

- FY2019: $0.69

- FY2020: -$0.84

- FY2021: -$1.36

- FY2022: -$1.67

- FY2023: -$1.92

- FY2024: -$5.00

- FY2025: -$0.01

### accounting: pass

- stock compensation exceeds 15% of operating cash flow

- Sloan accruals: -13.1%

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 35.3%

- Earnings backed by cash: Yes

- Accounting red flags: 1

- Goodwill and intangibles / equity: 0.01×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -13.5%

- FY2017: -10.0%

- FY2018: -6.5%

- FY2019: -30.0%

- FY2020: 2.2%

- FY2021: -44.0%

- FY2022: -5.8%

- FY2023: -6.7%

- FY2024: -12.0%

- FY2025: -13.1%

## Holders

- [Dan Davidowitz](https://gigainvestors.com/pcm): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Down 31% since Jul 2026 · "However, its earnings per share (EPS) of -$1.26 fell short of the estimated -$1.05." (chartmill.com, Aug 2025) · sales -19.3%

Story as of 2026-10-16T09:58:19.738Z; price observation 2026-10-15.

- 2025-08-18: Arrowhead (ARWR) Climbs 24.9% on $100-Million Licensing Revenue ([finance.yahoo.com](https://finance.yahoo.com/news/arrowhead-arwr-climbs-24-9-163154134.html))

- 2025-09-02: Arrowhead Pharma Jumps After Inking A Deal Worth Up To $2.2 Billion ([finance.yahoo.com](https://finance.yahoo.com/m/1254da15-920f-3c3f-a2dc-50ecb7f146a1/arrowhead-pharma-jumps-after.html))

- 2025-11-24: Arrowhead Pharmaceuticals Earns $200 Million Milestone Payment from Sarepta Therapeutics ([finance.yahoo.com](https://finance.yahoo.com/news/arrowhead-pharmaceuticals-earns-200-million-123000656.html))

- 2026-01-05: Arrowhead Pharmaceuticals Says Health Canada Issues 'Notice of Compliance' for Redemplo for Triglyceride Disorder ([finance.yahoo.com](https://finance.yahoo.com/news/arrowhead-pharmaceuticals-says-health-canada-143550396.html))

- 2026-07-22: Arrowhead (ARWR) Soars to New High as Plozasiran Nears Expanded Commercialization ([finance.yahoo.com](https://finance.yahoo.com/healthcare/articles/arrowhead-arwr-soars-high-plozasiran-190548574.html))

### Sales · FY2025–2026

sales -19.3%; source https://www.sec.gov/Archives/edgar/data/879407/000087940725000029/arwr-20250930.htm; observed 2025-11-25.

- FY2017: $31M 

- FY2018: $16M 

- FY2019: $169M 

- FY2020: $88M 

- FY2021: $138M 

- FY2022: $243M 

- FY2023: $241M 

- FY2024: $3.6M 

- FY2025: $829M 

- FY2026: $669M 

### Gross margin · FY2023

gross margin 94.8%; source https://www.sec.gov/Archives/edgar/data/879407/000087940725000029/arwr-20250930.htm; observed 2025-11-25.

- FY2019: 100.0% 

- FY2023: 94.8% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in biotechnology; annual sales are USD 829.4 million.

- Source: https://www.sec.gov/Archives/edgar/data/879407/000087940725000029/arwr-20250930.htm (filed 2025-11-25); FY2025: revenue 829448000; grossProfit 829448000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); ARWR.US: 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.

### Why customers stay

It lost 65.1% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-25); FY2023: grossProfit / revenue = 94.8%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-25); FY2024: grossProfit / revenue = -423.7%.

- Source: https://www.sec.gov/Archives/edgar/data/879407/000087940725000029/arwr-20250930.htm (filed 2025-11-25); FY2025: grossProfit / revenue = 100%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-25); 10-year return on capital observations [[2016,-0.6568872438372071],[2017,-0.3481205866548421],[2018,-15.648948388134038],[2019,0.23820675287211024],[2020,-0.4839848698620223],[2021,-1.7684286100513684],[2022,-1.3598893924783029],[2023,-0.6446757744393227],[2024,-1.3323752230664767],[2025,0.07680179638991945]]; median -0.6507815091382649. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid no dividends in 10 years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-25); FY2019: growth capex 7562000; upkeep 4439000; owner earnings 67975000. Growth capex / owner earnings = 0.11124678190511217.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-25); Dividend observations: [[2016,0],[2017,0],[2018,0],[2019,0],[2020,0],[2021,0],[2022,0],[2023,0],[2024,0],[2025,0]]. Zero only counted when supported by a complete cash-flow statement.

### Are managers owners

Insiders own 3.7% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); ARWR.US SharesStats.PercentInsiders = 3.657 percentage points; cache date 2026-10-16.

### What the price says

The price is 9.4 times annual sales; cash earnings are negative.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-25); Closing price 58.5 USD; reporting-to-trading FX 1; FY2025 annual sales per share 6.201109466349676; price multiple 9.433795729207858. FY2025 cash earnings/share -0.0027587134975104294. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $5.80 per share

- 2016-11: $1.44 per share

- 2016-12: $1.55 per share

- 2017-01: $1.94 per share

- 2017-02: $2.26 per share

- 2017-03: $1.85 per share

- 2017-04: $1.55 per share

- 2017-05: $1.44 per share

- 2017-06: $1.62 per share

- 2017-07: $1.76 per share

- 2017-08: $2.80 per share

- 2017-09: $4.33 per share

- 2017-10: $3.64 per share

- 2017-11: $3.57 per share

- 2017-12: $3.68 per share

- 2018-01: $6.18 per share

- 2018-02: $6.48 per share

- 2018-03: $7.21 per share

- 2018-04: $6.42 per share

- 2018-05: $10.72 per share

- 2018-06: $13.60 per share

- 2018-07: $14.57 per share

- 2018-08: $14.76 per share

- 2018-09: $19.17 per share

- 2018-10: $12.72 per share

- 2018-11: $14.52 per share

- 2018-12: $12.42 per share

- 2019-01: $14.12 per share

- 2019-02: $19.52 per share

- 2019-03: $18.35 per share

- 2019-04: $17.98 per share

- 2019-05: $23.71 per share

- 2019-06: $26.50 per share

- 2019-07: $29.06 per share

- 2019-08: $34.17 per share

- 2019-09: $28.18 per share

- 2019-10: $40.05 per share

- 2019-11: $73.01 per share

- 2019-12: $63.43 per share

- 2020-01: $41.91 per share

- 2020-02: $35.36 per share

- 2020-03: $28.77 per share

- 2020-04: $34.43 per share

- 2020-05: $32.24 per share

- 2020-06: $43.19 per share

- 2020-07: $43.07 per share

- 2020-08: $42.24 per share

- 2020-09: $43.06 per share

- 2020-10: $57.30 per share

- 2020-11: $62.53 per share

- 2020-12: $76.73 per share

- 2021-01: $77.17 per share

- 2021-02: $79.66 per share

- 2021-03: $66.31 per share

- 2021-04: $72.76 per share

- 2021-05: $72.60 per share

- 2021-06: $82.82 per share

- 2021-07: $69.29 per share

- 2021-08: $67.12 per share

- 2021-09: $62.43 per share

- 2021-10: $63.82 per share

- 2021-11: $70.05 per share

- 2021-12: $66.30 per share

- 2022-01: $52.76 per share

- 2022-02: $44.00 per share

- 2022-03: $45.99 per share

- 2022-04: $41.11 per share

- 2022-05: $33.36 per share

- 2022-06: $35.21 per share

- 2022-07: $42.53 per share

- 2022-08: $39.71 per share

- 2022-09: $33.05 per share

- 2022-10: $34.81 per share

- 2022-11: $32.20 per share

- 2022-12: $40.56 per share

- 2023-01: $34.99 per share

- 2023-02: $32.30 per share

- 2023-03: $25.40 per share

- 2023-04: $35.41 per share

- 2023-05: $34.41 per share

- 2023-06: $35.66 per share

- 2023-07: $34.52 per share

- 2023-08: $27.64 per share

- 2023-09: $26.87 per share

- 2023-10: $24.59 per share

- 2023-11: $21.20 per share

- 2023-12: $30.60 per share

- 2024-01: $32.10 per share

- 2024-02: $32.10 per share

- 2024-03: $28.60 per share

- 2024-04: $22.62 per share

- 2024-05: $22.95 per share

- 2024-06: $25.99 per share

- 2024-07: $28.56 per share

- 2024-08: $23.83 per share

- 2024-09: $19.37 per share

- 2024-10: $19.23 per share

- 2024-11: $26.03 per share

- 2024-12: $18.80 per share

- 2025-01: $19.88 per share

- 2025-02: $18.91 per share

- 2025-03: $12.74 per share

- 2025-04: $13.89 per share

- 2025-05: $16.07 per share

- 2025-06: $15.80 per share

- 2025-07: $15.80 per share

- 2025-08: $22.03 per share

- 2025-09: $34.49 per share

- 2025-10: $42.39 per share

- 2025-11: $52.70 per share

- 2025-12: $66.39 per share

- 2026-01: $69.33 per share

- 2026-02: $63.27 per share

- 2026-03: $62.70 per share

- 2026-04: $73.48 per share

- 2026-05: $77.91 per share

- 2026-06: $81.51 per share

- 2026-07: $84.65 per share

- 2026-08: $82.39 per share

- 2026-09: $65.45 per share

- 2026-10: $58.50 per share

## Annual estimated value (USD per share)

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/879407/000087940725000029/arwr-20250930.htm); period 2025-09-30, filed 2025-11-25.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.