ARWR earnings analysis
What we found in ARWR's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Arrowhead delivered Q3 FY2026 revenue of $75.253 million, up $47.486 million year over year and slightly above Q2's $74 million, but its loss widened to $1.36 per share from $1.26 a year earlier as clinical-development and commercial-launch expenses increased. The operating loss reached $170.093 million, producing an approximately -226.0% operating margin, compared with an approximately -191.6% margin in Q2. Capital raises increased cash plus available-for-sale securities to $1.602 billion, although operating cash flow was a $79.546 million nine-month outflow and the company added $700.0 million of convertible notes.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue up $47.5M year over year
- Q3 revenue rose to $75.253 million from $27.767 million a year earlier, a $47.486 million increase, led by $72.868 million of collaboration and license revenue. Revenue also increased modestly from $74 million in Q2 FY2026.
- Multiple partners supported Q3 revenue
- Madrigal contributed a $25.000 million upfront-license revenue recognition in Q3, while Sarepta and Novartis contributed $26.395 million and $20.232 million, respectively.
- Capital raises expanded investment liquidity
- Liquidity was materially strengthened: cash plus available-for-sale securities totaled $1.602 billion at June 30, 2026, versus $919.3 million at September 30, 2025. The company raised $930.0 million in gross proceeds from convertibles, common stock and pre-funded warrants during the first nine months.
- REDEMPLO regulatory and clinical progress
- REDEMPLO received approvals in Australia, the European Union, Canada and China during FY2026 developments. In Phase 3 PALISADE, 25 mg REDEMPLO achieved an -80% median triglyceride change versus -17% for pooled placebo.
- Positive subsequent plozasiran Phase 3 data
- Subsequent Phase 3 SHASTA results showed median triglyceride reductions of 79% and 81% in SHASTA-3 and SHASTA-4, with a 78% reduction in acute-pancreatitis events versus placebo across the study population.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Quarterly loss and operating margin worsened
- Losses widened despite revenue growth: Q3 net loss was $194.280 million, or $1.36 per diluted share, versus a $175.241 million loss, or $1.26 per share, a year earlier. The operating loss was $170.093 million and operating margin was approximately -226.0%.
- Pipeline and launch spending accelerated
- R&D expense increased $35.855 million, or 22%, year over year to $198.223 million, led by a $31.588 million, or 33%, rise in candidate costs as programs advanced through trials. SG&A rose $16.174 million, or 52%, to $47.123 million as REDEMPLO launch spending increased.
- Cash balance declined and financing reliance rose
- Cash, cash equivalents and restricted cash fell to $54.759 million at June 30, 2026 from $226.477 million at September 30, 2025. The company also issued $700.0 million principal amount of 0.00% convertible notes due 2032, while nine-month operating cash flow turned to a $79.546 million outflow from a $159.061 million inflow.
- Revenue remains collaboration-dependent
- Revenue concentration remains substantial: $72.868 million of $75.253 million Q3 revenue came from collaboration and license agreements, including $26.395 million from Sarepta, $25.000 million from Madrigal and $20.232 million from Novartis.
- No new formal risk-factor updates
- The filing reports no material changes to risk factors from the FY2025 10-K. Nonetheless, management states R&D and commercialization are expected to require significant cash expenditure as the pipeline expands and matures into later-stage trials.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $-1.36
- Gross margin
- 100.0%
- Operating margin
- -226.0%
- Segment
- Collaboration and license revenue: $72.868 million (Sarepta $26.395 million; Madrigal $25.000 million; Novartis $20.232 million; Sanofi $1.241 million)
- Segment
- Commercial REDEMPLO revenue and other revenue: $2.385 million (implied from $75.253 million total revenue less $72.868 million collaboration/license revenue)
What they said about what is next.
The 10-Q does not provide quantitative FY2026 revenue or EPS guidance. Management states it expects current cash and investment resources to fund operations for at least the next 12 months; it anticipates the Phase 3 YOSEMITE trial will complete in mid-2027 and intends to seek approvals thereafter if results are successful.
The filing reads about the same as the one before it.
What came before.
- 10-Q · May 7, 2026
- Arrowhead Pharmaceuticals reported Q2 2026 revenues of $73.74 million, which exceeded the estimated revenue of $69.27 million, and an EPS loss of $0.93, better than the anticipated loss of $1.14. The company has revised…
- 10-Q · May 12, 2025
- Arrowhead Pharmaceuticals reported a substantial revenue increase in Q2 FY2025, reaching $542.7 million compared to just $3 million in Q1 and no revenue in the same period last year. The company experienced a…
- 10-Q · August 8, 2024
- Arrowhead reported no revenue for the quarter (Revenue $0) and a wider GAAP loss as R&D spend accelerated; net loss attributable to Arrowhead was $(170,793) for the quarter, or $(1.38) per share, compared with…
- 10-Q · February 6, 2024
- Arrowhead reported Q1 (three months ended December 31, 2023) revenue of $3.55M versus $62.55M a year ago, driven primarily by GSK ($2.685M) and Takeda ($0.866M). Losses widened as operating expenses increased (R&D…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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