Operating margins remain structurally absent, swinging from a 70.2% peak in 2025Q2 to a negative 191.6% in 2026Q2 due to the lumpy, milestone-dependent nature of revenue recognition.
| Metric | TTM | Sep'25 | Sep'24 | Sep'23 | Sep'22 | Sep'21 | Sep'20 | Sep'19 | Sep'18 | Sep'17 | Sep'16 | Sep'15 | Sep'14 | Sep'13 | Sep'12 | Sep'11 | Sep'10 | Sep'09 | Sep'08 | Sep'07 | Sep'06 | Sep'05 | Sep'04 | Sep'03 | Sep'02 | Sep'01 | Sep'00 | Sep'99 | Sep'98 | Sep'97 |
|---|
| Sales/Revenue | 622.01M | 829.45M | 3.55M | 240.74M | 243.23M | 138.29M | 87.99M | 168.8M | 16.14M | 31.41M | 158.33K | 382K | 175K | 290.27K | 146.88K | 296.14K | 620.1K | 3.76M | 1.3M | 1.21M | 595.46K | 590.68K | 196.31K | 0 | 2.27K | 9.31K | 24.88K | 37K | 60.38K | 76.59K |
| Revenue Growth % | 14.09% | 23258.15% | -98.52% | -1.03% | 75.89% | 57.16% | -47.87% | 945.67% | -48.6% | 19736.49% | -58.55% | 118.29% | -39.71% | 97.63% | -50.4% | -52.24% | -83.5% | 188.38% | 7.88% | 102.87% | 0.81% | 200.9% | - | -100% | -75.67% | -62.57% | -32.76% | -38.72% | -21.17% | - |
| Cost of Goods Sold | 6.37M | 0 | 18.59M | 12.49M | 10.42M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 1.75M | 267.98K | 4.95M | 9.03M | 14.85M | 11.78M | 7.36M | 644.01K | 74.74K | 0 | 87 | 6.3K | 2.09K | 2.85K | 6.67K | 36.97K |
| COGS % of Revenue | - | - | 523.66% | 5.19% | 4.28% | - | - | - | - | - | - | - | - | - | 1190.79% | 90.49% | 798.68% | 240.31% | 1139.8% | 974.84% | 1235.71% | 109.03% | 38.07% | - | 3.84% | 67.62% | 8.42% | 7.71% | 11.05% | 48.27% |
| Gross Profit | 615.64M | 829.45M | -15.04M | 228.24M | 232.81M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -1.6M | 28.16K | -4.33M | -5.26M | -13.55M | -10.57M | -6.76M | -53.32K | 121.57K | 0 | 2.18K | 3.02K | 22.78K | 34.15K | 53.71K | 39.62K |
| Gross Margin % | 98.98% | 100% | -423.66% | 94.81% | 95.72% | - | - | - | - | - | - | - | - | - | -1090.79% | 9.51% | -698.68% | -139.91% | -1039.8% | -874.84% | -1135.71% | -9.03% | 61.93% | - | 96.16% | 32.38% | 91.58% | 92.29% | 88.95% | 51.73% |
| Gross Profit Growth % | - | 5613.48% | -106.59% | -1.96% | - | - | - | - | - | - | - | - | - | 100% | -5788.87% | 100.65% | 17.6% | 61.2% | -28.22% | -56.27% | -12582.46% | -143.86% | - | -100% | -27.73% | -86.77% | -33.27% | -36.42% | 35.56% | - |
| Operating Expenses | 837.54M | 731.1M | 586.04M | 433.24M | 411.32M | 279.06M | 175.21M | 103.17M | 67.38M | 63.71M | 82.45M | 81.99M | 47.47M | 20.4M | 19.49M | 9.86M | 4.47M | 12.18M | 18.18M | 17.78M | 13.72M | 9.31M | 2.89M | 94.44K | 1.42M | 109.28K | 132.02K | 90.36K | 78K | 198.24K |
| OpEx % of Revenue | - | 88.14% | 16503.41% | 179.97% | 169.11% | 201.8% | 199.12% | 61.12% | 417.41% | 202.86% | 52075.47% | 21462.16% | 27126.05% | 7027.5% | 13267.82% | 3328.99% | 720.78% | 324.06% | 1394.71% | 1472.07% | 2304.23% | 1576.05% | 1472.42% | - | 62594.57% | 1173.54% | 530.67% | 244.23% | 129.19% | 258.83% |
| Selling, General & Admin | 154.38M | 121.92M | 96.82M | 90.93M | 122.82M | 80.08M | 51.66M | 26.54M | 19.08M | 17.46M | 41M | 34.72M | 24.33M | 11.69M | 14.1M | 6.58M | 3.1M | 5.97M | 9.87M | 6.85M | 5.14M | 5.52M | 2.1M | 91.06K | 143.8K | 109.28K | 132.02K | 90.36K | 78K | 89.76K |
| SG&A % of Revenue | - | 14.7% | 2726.56% | 37.77% | 50.49% | 57.91% | 58.72% | 15.72% | 118.22% | 55.6% | 25893.66% | 9088.51% | 13904.31% | 4028.31% | 9597.04% | 2222.16% | 499.61% | 158.9% | 757.08% | 566.82% | 862.98% | 933.84% | 1068.28% | - | 6345.98% | 1173.54% | 530.67% | 244.23% | 129.19% | 117.19% |
| Research & Development | 681.64M | 607.16M | 489.22M | 342.31M | 288.5M | 198.98M | 123.54M | 76.63M | 48.3M | 46.25M | 41.45M | 47.27M | 23.14M | 8.71M | 5.39M | 3.28M | 857.41K | 6.21M | 8.31M | 10.94M | 8.58M | 3.79M | 793.35K | 3.38K | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | 73.2% | 13776.85% | 142.19% | 118.61% | 143.89% | 140.4% | 45.4% | 299.19% | 147.26% | 26181.81% | 12373.65% | 13221.74% | 2999.19% | 3670.78% | 1106.83% | 138.27% | 165.17% | 637.63% | 905.25% | 1441.25% | 642.2% | 404.14% | - | - | - | - | - | - | - |
| Other Operating Expenses | 1.51M | 2.03M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 514.04K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 1.27M | 0 | 0 | 0 | 0 | 108.48K |
| Operating Income | -221.9M | 98.35M | -601.08M | -205M | -178.51M | -149.04M | -93.16M | 61.19M | -55.94M | -37M | -81.74M | -95.97M | -53.28M | -24.59M | -21.09M | -9.83M | -8.8M | -19.56M | -35M | -37.95M | -20.48M | -9.59M | -2.69M | -94.44K | -1.42M | -106.27K | -109.23K | -56.22K | -24.3K | -158.62K |
| Operating Margin % | -35.67% | 11.86% | -16927.06% | -85.16% | -73.39% | -107.77% | -105.87% | 36.25% | -346.52% | -117.79% | -51627.09% | -25124.08% | -30443.59% | -8471.29% | -14358.61% | -3319.48% | -1419.46% | -520.47% | -2685.89% | -3141.43% | -3439.94% | -1624.03% | -1370.73% | - | -62498.41% | -1141.16% | -439.08% | -151.94% | -40.24% | -207.1% |
| Operating Income Growth % | - | 116.36% | -193.21% | -14.84% | -19.77% | -59.98% | -252.24% | 209.39% | -51.2% | 54.74% | 14.83% | -80.14% | -116.66% | -16.6% | -114.53% | -11.68% | 55% | 44.12% | 7.76% | -85.27% | -113.53% | -256.5% | -2749.31% | 93.33% | -1232.72% | 2.72% | -94.31% | -131.35% | 84.68% | - |
| EBITDA | -196.53M | 122.27M | -582.49M | -192.51M | -168.09M | -140.77M | -87.22M | 65.63M | -51.24M | -32.31M | -78.48M | -93.64M | -51.93M | -22.84M | -19.34M | -9.56M | -8.15M | -18.57M | -33.87M | -36.95M | -19.6M | -8.95M | -2.62M | -94.35K | -1.41M | -102.74K | -101.61K | -48.1K | -15.11K | -54.83K |
| EBITDA Margin % | -31.6% | 14.74% | -16403.41% | -79.97% | -69.11% | -101.79% | -99.12% | 38.88% | -317.41% | -102.86% | -49568.11% | -24512.5% | -29674.65% | -7867.91% | -13167.82% | -3228.99% | -1313.88% | -494% | -2598.92% | -3058.33% | -3290.98% | -1515% | -1332.66% | - | -62097.79% | -1103.3% | -408.45% | -130% | -25.03% | -71.59% |
| EBITDA Growth % | -101.72% | 120.99% | -202.58% | -14.53% | -19.41% | -61.4% | -232.89% | 228.09% | -58.6% | 58.84% | 16.18% | -80.31% | -127.39% | -18.08% | -102.26% | -17.37% | 56.12% | 45.18% | 8.33% | -88.53% | -118.98% | -242.07% | -2672.81% | 93.29% | -1269.62% | -1.11% | -111.27% | -218.28% | 72.44% | - |
| D&A (Non-Cash Add-back) | 25.37M | 23.93M | 18.59M | 12.49M | 10.42M | 8.27M | 5.94M | 4.44M | 4.7M | 4.69M | 3.26M | 2.34M | 1.35M | 1.75M | 1.75M | 267.98K | 654.69K | 994.6K | 1.13M | 1M | 886.96K | 644.01K | 74.74K | 90 | 9.08K | 3.53K | 7.62K | 8.12K | 9.19K | 103.79K |
| EBIT | -187.38M | 140.89M | -580.11M | -188.16M | -172.71M | -140.85M | -93.16M | 61.19M | -55.94M | -37M | -79.69M | -95.97M | -51.1M | -23.28M | -21.09M | -9.83M | 0 | -19.56M | -35M | -37.95M | -20.48M | -9.59M | -2.69M | -94.44K | -1.42M | -106.27K | -109.23K | -56.22K | -24.3K | -158.62K |
| Net Interest Income | -45.8M | -52.07M | -9.63M | -3.03M | 5.03M | 6.12M | 9.19M | 6.96M | 1.05M | 415.13K | 265.79K | 729.16K | 645.49K | -97.91K | 35.97K | 86.53K | 0 | -155.56K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 46.63M | 37.29M | 22.72M | 15.3M | 5.03M | 6.12M | 9.19M | 6.96M | 1.05M | 415.13K | 265.79K | 729.16K | 645.49K | 0 | 35.97K | 86.53K | 0 | -4.67K | 736.34M | 0 | 0 | 151.05K | 33.14K | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 92.43M | 89.36M | 32.35M | 18.33M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 97.91K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | -30.37M | -46.81M | -11.38M | -1.49M | 5.8M | 8.19M | 8.61M | 6.96M | 1.49M | 2.62M | 22.12K | 4.04M | -5.44M | -7.11M | -1.02M | 1.05M | 1.47M | 19.56M | 35M | 37.95M | 20.48M | 9.59M | 194.69K | 0 | 1.17M | -79.56K | -28.32K | -312.24K | -140.73K | 158.62K |
| Pretax Income | -252.26M | 51.53M | -612.46M | -206.49M | -172.71M | -140.85M | -84.55M | 68.15M | -54.45M | -34.38M | -81.72M | -91.94M | -58.72M | -31.7M | -22.11M | -8.79M | 0 | 0 | 0 | 0 | 0 | 0 | -2.5M | -94.44K | -246.21K | -185.82K | -137.55K | -368.46K | -165.03K | 0 |
| Pretax Margin % | -40.56% | 6.21% | -17247.54% | -85.78% | -71.01% | -101.85% | -96.09% | 40.37% | -337.3% | -109.46% | -51613.12% | -24067.67% | -33554.35% | -10922.08% | -15054.05% | -2966.51% | - | - | - | - | - | - | -1271.56% | - | -10865.27% | -1995.5% | -552.91% | -995.89% | -273.32% | - |
| Income Tax | 19.6M | 21.42M | -2.77M | 2.78M | 3.79M | 2K | 2K | 174K | 2.4K | 2.4K | 2.4K | 2.4K | 5.3K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 800 | 800 | 0 | 0 | 0 | 0 | 0 | 0 |
| Effective Tax Rate % | -7.77% | 41.56% | 0.45% | -1.35% | -2.19% | -0% | -0% | 0.26% | -0% | -0.01% | -0% | -0% | -0.01% | 0% | 0% | 0% | - | - | - | - | - | - | -0.03% | -0.85% | 0% | 0% | 0% | 0% | 0% | - |
| Net Income | -300.91M | -1.63M | -599.49M | -205.28M | -176.06M | -140.85M | -84.55M | 67.97M | -54.45M | -34.38M | -81.72M | -91.94M | -58.63M | -31.14M | -21.13M | -3.13M | -5.77M | -19.31M | -27.09M | -29.93M | -19M | -6.85M | -2.53M | -95.24K | -246.21K | -185.82K | -137.55K | 593K | -165.03K | -854.53K |
| Net Margin % | -48.38% | -0.2% | -16882.37% | -85.27% | -72.39% | -101.85% | -96.09% | 40.27% | -337.31% | -109.46% | -51614.63% | -24068.29% | -33502.97% | -10729.22% | -14383.61% | -1056.56% | -931.15% | -513.77% | -2078.65% | -2477.7% | -3190.35% | -1160.51% | -1287.86% | - | -10865.27% | -1995.5% | -552.91% | 1602.8% | -273.32% | -1115.73% |
| Net Income Growth % | -109.01% | 99.73% | -192.04% | -16.59% | -25% | -66.58% | -224.39% | 224.84% | -58.38% | 57.93% | 11.11% | -56.81% | -88.26% | -47.42% | -575.19% | 45.81% | 70.1% | 28.72% | 9.5% | -57.56% | -177.13% | -171.14% | -2554.56% | 61.32% | -32.5% | -35.09% | -123.2% | 459.34% | 80.69% | - |
| Net Income (Continuing) | -271.86M | 30.11M | -609.69M | -209.28M | -176.49M | -140.85M | -84.55M | 67.97M | -54.45M | -34.38M | -81.72M | -91.94M | -58.73M | -31.7M | -22.11M | -8.79M | 0 | -19.14M | -26.94M | -29.93M | -19M | -5.55M | -2.42M | -95.24K | -246.21K | -185.82K | -137.55K | -368.46K | -165.03K | -854.53K |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | -15.06M | 37.36M | 5.62M | 15.82M | 19.82M | 0 | 0 | -555.19K | -555.19K | -555.19K | -555.19K | -555.19K | -555.19K | -1.76M | -1.2M | -226.94K | -967.41K | 0 | 0 | 152.61K | 934.44K | 1.89M | 1.78M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -2.11 | -0.01 | -5.00 | -1.92 | -1.67 | -1.36 | -0.84 | 0.69 | -0.65 | -0.47 | -1.34 | -1.60 | -1.25 | -1.30 | -1.90 | -0.44 | -0.90 | -4.27 | -6.91 | -8.35 | -5.95 | -2.61 | -1.88 | -11.78 | -32.47 | -25.97 | -19.48 | 59.30 | -5.16 | -85.45 |
| EPS Growth % | -50.7% | 99.76% | -160.42% | -14.97% | -22.79% | -61.9% | -221.74% | 206.15% | -38.3% | 64.93% | 16.25% | -28% | 3.85% | 31.58% | -331.82% | 51.11% | 78.92% | 38.21% | 17.25% | -40.34% | -127.97% | -38.83% | 84.04% | 63.72% | -25.03% | -33.32% | -132.85% | 1249.22% | 93.96% | - |
| EPS (Basic) | - | -0.01 | -5.00 | -1.91 | -1.67 | -1.36 | -0.84 | 0.72 | -0.65 | -0.47 | -1.34 | -1.60 | -1.25 | -1.30 | -1.90 | -0.44 | -0.90 | -4.27 | -6.91 | -8.35 | -5.95 | -2.61 | -1.88 | -11.78 | -32.47 | -25.97 | -19.48 | 59.30 | -5.16 | -85.45 |
| Diluted Shares Outstanding | 142.42M | 133.76M | 119.78M | 106.75M | 105.43M | 103.75M | 100.72M | 98.61M | 83.64M | 73.9M | 61.05M | 57.36M | 46.93M | 24M | 11.13M | 7.18M | 6.43M | 4.52M | 3.92M | 3.59M | 3.2M | 2.54M | 1.33M | 8.09K | 7.58K | 7.15K | 7.06K | 10K | 10K | 10K |
| Basic Shares Outstanding | 142.42M | 133.76M | 119.78M | 107.31M | 105.43M | 103.75M | 100.72M | 93.86M | 83.64M | 73.15M | 60.99M | 57.36M | 46.9M | 23.96M | 11.12M | 7.18M | 6.43M | 4.52M | 3.92M | 3.59M | 3.2M | 2.54M | 1.33M | 8.09K | 7.58K | 7.15K | 7.06K | 10K | 10K | 10K |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
Lumpy milestone-dependent revenue volatility
As indicated by the company's historical financial statements, revenue growth remains highly erratic, characterized by extreme quarterly fluctuations such as the 104.6% year-over-year surge in 2026Q1 followed by an 86.4% decline in 2026Q2, reflecting the non-recurring nature of milestone-based licensing payments rather than sustainable commercial product demand.
The top-line trajectory is entirely dependent on the timing of partner-driven milestone recognition, which obscures underlying operational momentum. Investors should interpret these revenue spikes as validation of the TRiM platform's R&D progress rather than evidence of a predictable, recurring commercial revenue stream.
Based on reported figures, R&D expenditures have consistently remained elevated, averaging over $150 million per quarter throughout 2026, which highlights the significant capital intensity required to advance the company's pipeline toward late-stage clinical trials without the benefit of a stable, recurring revenue base to offset these costs.
The company's cost structure is dominated by R&D, which shows little sign of moderation as assets move into more expensive Phase 3 development. This persistent burn rate suggests that management is prioritizing pipeline breadth over near-term expense discipline, leaving the firm highly sensitive to the timing of external funding events.
According to recent SEC filings, the company's operating margin has swung violently from a peak of 70.2% in 2025Q2 to a negative 191.6% in 2026Q2, demonstrating that the business lacks the structural operating leverage necessary to maintain profitability outside of isolated, high-value milestone recognition events.
The absence of a commercial product means that operating income is tethered to the lumpy nature of licensing deals rather than economies of scale. Consequently, the firm remains in a perpetual state of operational vulnerability where SG&A and R&D costs must be funded through dilutive capital or sporadic partner payments.
As reported in financial statements, the company's reliance on milestone payments creates a precarious financial profile, as evidenced by the 2026Q2 net loss of $132.7 million, which underscores the risk that the current R&D-heavy strategy may exhaust liquidity before achieving a self-sustaining commercial product launch.
Short-term observers may focus on the occasional profitable quarter as a sign of maturity, but this view ignores the underlying cash burn required to sustain the platform. The lack of a clear path to recurring revenue suggests that the current valuation may be overly optimistic regarding the timing and magnitude of future partnership inflows.
Quick answers to the most common questions about buying ARWR stock.
For fiscal year 2025, Arrowhead Pharmaceuticals, Inc. (ARWR) reported total revenue of $829.4M. This represents a 1082871.7% increase compared to $0.1M in 1997.
Arrowhead Pharmaceuticals, Inc. (ARWR) reported a net loss of $1.6M for the fiscal year ending 2025.
Arrowhead Pharmaceuticals, Inc. (ARWR) reported an operating income of $98.3M, resulting in an operating profit margin of 11.9%. This margin reflects the operational efficiency of the business before interest and taxes.
Arrowhead Pharmaceuticals, Inc. (ARWR) generated $829.4M in gross profit for the year, representing a gross profit margin of 100.0%. This demonstrates the company's core pricing power and production efficiency.