Arrowhead Pharmaceuticals 2025 Q4 Earnings FDA Approval and Net Loss of $2M

Arrowhead Pharmaceuticals (ARWR) reported fiscal 2025 Q4 earnings on November 25, 2025, with revenue and net income figures aligning with expectations. The company’s stock surged 5.72% following the release, driven by the FDA approval of its first commercial drug, REDEMPLO, and a $200 million milestone payment from Sarepta Therapeutics.

Revenue

Arrowhead Pharmaceuticals reported total revenue of $829.45 million for Q4 2025, exceeding projections by $72.01 million. The revenue was driven entirely by licensing and collaboration agreements with Sarepta, Sanofi, and GSK. This marked a significant improvement from the previous year’s $599 million net loss, reflecting the company’s transition to a commercial-stage entity.

Earnings/Net Income

The company recorded a net loss of $2 million ($0.01 per share) for Q4 2025, a stark improvement from a $599 million loss in fiscal 2024. While the EPS of -$0.01 met expectations, the net loss, though minimal, underscores ongoing operational challenges despite revenue growth.

Post-Earnings Price Action Review

The strategy of buying Arrowhead shares on the date of its quarterly earnings release and holding for 30 days yielded a 14.5% average return over the past three years. Historical data from 2021 to 2023 showed consistent returns, with the lowest quarter (9.8% in Q3 2022) attributed to delayed data readouts. Investors who purchased shares on earnings dates historically benefited from an average 14.5% return, suggesting the strategy remains viable.

CEO Commentary

Dr. Christopher Anzalone highlighted the FDA approval of REDEMPLO as a transformative milestone, emphasizing its once-every-3-month dosing and lack of contraindications. Strategic priorities include advancing cardiometabolic programs (zodasiran for HoFH, ARO-DIMER-PA for mixed hyperlipidemia), CNS innovation (ARO-MAPT for tauopathies), and business development, including $200M+ milestones from Sarepta and a $200M upfront payment from Novartis.

Guidance

Arrowhead expects to receive a $200 million milestone payment from Sarepta in January 2026 and anticipates top-line data from SHASTA-3/4 trials in Q3 2026. The company’s cash runway extends into fiscal 2028, with no immediate need for additional capital.

Additional News

1. $200M Milestone from Sarepta: Arrowhead secured a $200 million payment following progress in the ARO-DM1 (SRP-1003) trial for type 1 myotonic dystrophy.

2. $200M Upfront from Novartis: A new collaboration for ARO-SNCA generated a $200 million upfront payment and potential $2 billion in milestones.

3. $500M Credit Facility: The company secured a $500 million credit facility to bolster liquidity, supporting ongoing operations and pipeline development.

Arrowhead Pharmaceuticals continues to strengthen its financial position through strategic collaborations and licensing agreements, with REDEMPLO’s commercial launch and upcoming data readouts poised to drive future growth. The company’s robust cash reserves and extended runway provide flexibility to advance its pipeline and expand its RNAi therapeutics platform.