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…
Earnings analysis · 10-Q
ARWR earnings analysis
Filed August 4, 2026 · Our reading of the company's report
The latest report
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…
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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.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $-1.36
What stood out
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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.
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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.
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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.
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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.
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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.
What to watch
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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%.
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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.
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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.
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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.
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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.
Management's outlook
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.
Earlier filings 4
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 itself. Analysis can contain errors; check the source document for full context.