📊 ARWR Key Takeaways
Is Arrowhead Pharmaceuticals, Inc.. (ARWR) a Good Investment?
Arrowhead Pharmaceuticals demonstrates exceptional revenue growth (+23258% YoY) with positive net income of $30.8M and strong liquidity (3.38x current ratio), indicating successful commercialization or major milestone. However, the dramatic YoY revenue surge masks concerning operational efficiency issues, with net income declining 105.4% YoY despite higher revenues, and weak free cash flow conversion (4.3% FCF margin) suggests cash generation challenges.
Arrowhead Pharmaceuticals shows a materially improved near-term fundamental profile, with sharp revenue growth, positive operating income, and positive free cash flow alongside a very strong liquidity position and minimal leverage. However, growth quality appears uneven because profitability conversion remains modest relative to the revenue spike, returns on assets and equity are still low, and the reported revenue surge may reflect lumpier biotech economics rather than a fully durable operating trend.
Why Buy Arrowhead Pharmaceuticals, Inc.. Stock? ARWR Key Strengths
- Exceptional revenue growth of 23,258% YoY indicating major commercial breakthrough or significant milestone achievement
- Strong balance sheet with $201.6M cash, minimal debt ($1.0M long-term), and 0.00x debt-to-equity ratio providing financial flexibility
- Robust liquidity position with 3.38x current and quick ratios, indicating strong ability to meet short-term obligations
- Positive operating margin of 15.5% and net margin of 11.7% demonstrating profitability in latest period
- Strong liquidity with 3.38x current and quick ratios plus over $200M in cash
- Near-zero leverage with only about $1M in long-term debt, limiting balance-sheet risk
- Positive operating income, net income, and free cash flow indicate improved near-term operating performance
ARWR Stock Risks: Arrowhead Pharmaceuticals, Inc.. Investment Risks
- Net income declined 105.4% YoY despite massive revenue growth, signaling deteriorating operational leverage and cost control issues
- Very weak free cash flow margin of 4.3% indicates majority of revenue is not converting to cash, raising sustainability concerns
- Extremely volatile YoY comparisons suggest potential one-time revenue event, milestone payment, or accounting treatment change rather than sustainable business momentum
- Low ROE of 5.4% and ROA of 1.9% indicate inefficient asset utilization and poor returns on shareholder capital
- Operating cash flow of only $13.5M against $264M revenue suggests significant working capital management issues or non-cash revenue recognition
- Revenue growth may be low quality or non-recurring given the extreme YoY spike typical of milestone-driven biotech revenue
- Profitability remains fragile with only 11.7% net margin, 4.3% FCF margin, and 3.2x interest coverage
- Low ROA and ROE suggest the company is not yet generating strong returns from its asset and equity base
Key Metrics to Watch
- Recurring revenue quality and sustainability - determine if 23,258% growth reflects genuine ongoing business or one-time milestone
- Free cash flow conversion and operating cash flow trend - critical to assess if company can sustain operations and fund R&D
- Gross margin when disclosed - currently unavailable but essential to understand product profitability and manufacturing efficiency
- R&D spending levels and pipeline progress - crucial for pharmaceutical company to justify investment thesis
- Debt trajectory and covenant compliance - monitor for potential dilution or financing needs given weak cash generation
- Operating cash flow and free cash flow consistency
- Revenue durability and operating margin sustainability
Arrowhead Pharmaceuticals, Inc.. (ARWR) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The relatively thin 4.3% FCF margin may limit capital allocation flexibility. Strong liquidity with a 3.38x current ratio provides a solid financial cushion.
ARWR Profit Margin, ROE & Profitability Analysis
ARWR vs Healthcare Sector: How Arrowhead Pharmaceuticals, Inc.. Compares
How Arrowhead Pharmaceuticals, Inc.. compares to Healthcare sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Arrowhead Pharmaceuticals, Inc.. Stock Overvalued? ARWR Valuation Analysis 2026
Based on fundamental analysis, Arrowhead Pharmaceuticals, Inc.. has mixed fundamental signals relative to the Healthcare sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Arrowhead Pharmaceuticals, Inc.. Balance Sheet: ARWR Debt, Cash & Liquidity
ARWR Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Arrowhead Pharmaceuticals, Inc..'s revenue has grown significantly by 391% over the 5-year period, indicating strong business expansion. The most recent EPS of $-1.92 indicates the company is currently unprofitable.
ARWR Revenue Growth, EPS Growth & YoY Performance
ARWR Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $2.5M | $30.8M | $0.22 |
| Q3 2025 | N/A | $22.1M | $0.17 |
| Q2 2025 | N/A | -$125.3M | $-1.02 |
| Q1 2025 | $2.5M | -$132.9M | $-1.24 |
| Q3 2024 | N/A | -$95.6M | $-0.90 |
| Q2 2024 | N/A | $7.4M | $0.07 |
| Q1 2024 | $3.6M | -$41.3M | $-0.39 |
| Q3 2023 | $15.8M | -$41.3M | $-0.68 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Arrowhead Pharmaceuticals, Inc.. Dividends, Buybacks & Capital Allocation
ARWR SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Arrowhead Pharmaceuticals, Inc.. (CIK: 0000879407)
📋 Recent SEC Filings
❓ Frequently Asked Questions about ARWR
What is the AI rating for ARWR?
Arrowhead Pharmaceuticals, Inc.. (ARWR) has a Combined AI Rating of HOLD from Claude (HOLD) and ChatGPT (HOLD) with 68% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are ARWR's key strengths?
Claude: Exceptional revenue growth of 23,258% YoY indicating major commercial breakthrough or significant milestone achievement. Strong balance sheet with $201.6M cash, minimal debt ($1.0M long-term), and 0.00x debt-to-equity ratio providing financial flexibility. ChatGPT: Strong liquidity with 3.38x current and quick ratios plus over $200M in cash. Near-zero leverage with only about $1M in long-term debt, limiting balance-sheet risk.
What are the risks of investing in ARWR?
Claude: Net income declined 105.4% YoY despite massive revenue growth, signaling deteriorating operational leverage and cost control issues. Very weak free cash flow margin of 4.3% indicates majority of revenue is not converting to cash, raising sustainability concerns. ChatGPT: Revenue growth may be low quality or non-recurring given the extreme YoY spike typical of milestone-driven biotech revenue. Profitability remains fragile with only 11.7% net margin, 4.3% FCF margin, and 3.2x interest coverage.
What is ARWR's revenue and growth?
Arrowhead Pharmaceuticals, Inc.. reported revenue of $264.0M.
Does ARWR pay dividends?
Arrowhead Pharmaceuticals, Inc.. does not currently pay dividends.
Where can I find ARWR SEC filings?
Official SEC filings for Arrowhead Pharmaceuticals, Inc.. (CIK: 0000879407) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is ARWR's EPS?
Arrowhead Pharmaceuticals, Inc.. has a diluted EPS of $0.22.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is ARWR a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Arrowhead Pharmaceuticals, Inc.. has a HOLD rating with 68% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is ARWR stock overvalued or undervalued?
Valuation metrics for ARWR: ROE of 5.4% (sector avg: 15%), net margin of 11.7% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy ARWR stock in 2026?
Our dual AI analysis gives Arrowhead Pharmaceuticals, Inc.. a combined HOLD rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is ARWR's free cash flow?
Arrowhead Pharmaceuticals, Inc..'s operating cash flow is $13.5M, with capital expenditures of $2.1M. FCF margin is 4.3%.
How does ARWR compare to other Healthcare stocks?
Vs Healthcare sector averages: Net margin 11.7% (avg: 12%), ROE 5.4% (avg: 15%), current ratio 3.38 (avg: 2).