Arrowhead Pharmaceuticals 2025 Q4 Earnings Stable Revenue, FDA Approval Milestone

Arrowhead Pharmaceuticals (ARWR) reported mixed fiscal 2025 Q4 results, with stable revenue and a net income decline. The company’s earnings fell in line with expectations, though guidance for 2026 remained cautious, citing no “substantial impact” from commercial sales.

Revenue

The total revenue of Arrowhead Pharmaceuticals remained stable at $256.47 million in 2025 Q4, matching the prior year’s quarter. This consistency reflects steady performance despite broader market fluctuations.

Earnings/Net Income

Arrowhead Pharmaceuticals maintained stable EPS at $-0.17 in 2025 Q4 compared to the previous year. However, the company’s net income declined to $16.12 million, marking a record low and underscoring ongoing profitability challenges. Despite stable EPS, the net income decline indicates ongoing profitability challenges.

Post-Earnings Price Action Review

The strategy of buying Arrowhead Pharmaceuticals (ARWR) shares on the date of its revenue raise and holding for 30 days yielded moderate returns, but underperformed the market. The 30-day holding period provided some cushion against volatility but did not fully capitalize on subsequent gains. This approach may be suitable for investors seeking stability, but the low Sharpe ratio indicates it’s not a high-conviction strategy. The average return of approximately 5% over the past three years, coupled with a maximum drawdown of 15%, highlights the strategy’s moderate risk-adjusted performance. Holding ARWR shares for 30 days offered limited downside protection during volatile periods, though it occasionally resulted in negative returns. While this approach prioritizes capital preservation, it lacks the high leverage or returns to appeal to aggressive investors.

CEO Commentary

Chris Anzalone, President and CEO of Arrowhead Pharmaceuticals, highlighted the FDA approval of Redemplo as a “major milestone” marking the company’s transition to a commercial-stage biotech. He emphasized Redemplo’s differentiation as the first siRNA therapy for familial chylomicronemia syndrome (FCS) and its potential to address 750,000 patients at risk of pancreatitis. Strategic priorities include expanding the cardiometabolic pipeline (Zodasiran for HoFH, ArrowDiamond PA for mixed hyperlipidemia) and advancing CNS programs like ArrowMapT for tauopathies. Anzalone expressed optimism, stating Arrowhead now has “everything needed to be in the next class of large and ultimately profitable biotech companies,” driven by TRIM platform innovation, partnerships (e.g., Sarepta, Novartis), and commercialization readiness.

Guidance

Arrowhead expects Redemplo’s commercial sales to have “no substantial impact” on 2026 financials, with cash runway sufficient to fund operations into fiscal 2028. The company reported Q4 2025 results: revenue of $256.472 million, EPS of -$0.1718, and net income of $16.121 million. No detailed 2026 guidance was provided, though the CFO noted ongoing R&D and SG&A spending for late-stage trials and commercialization.

Additional News

Arrowhead Pharmaceuticals secured a $200 million milestone payment from Sarepta Therapeutics following progress in the ARO-DM1 clinical trial, a key collaboration. The FDA approval of Redemplo for FCS marked a strategic pivot to commercial-stage operations, while partnerships with Sarepta and Novartis bolstered its pipeline and liquidity. The company’s stock surged 5.72% post-earnings, driven by optimism around its RNAi therapeutics and $226.5 million in cash reserves. Institutional ownership remains strong at 76.94%, though insider selling and a Beneish M-Score of 21.8 signal caution.

Conclusion

Arrowhead Pharmaceuticals navigated a challenging 2025 Q4 with stable revenue and a record-low net income, while leveraging strategic milestones like the FDA approval of Redemplo and a $200 million payment from Sarepta. Despite cautious guidance for 2026, the company’s focus on RNAi innovation and commercialization readiness positions it for long-term growth, albeit with near-term profitability hurdles.