arwr-20251231

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

_____________________________________

FORM 10-Q

_____________________________________

(Mark One)


x			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended December 31, 2025


o			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission file number 001-38042

_____________________________________

ARROWHEAD PHARMACEUTICALS, INC.

(Exact name of registrant as specified in its charter)

_____________________________________


Delaware						46-0408024
(State or other jurisdiction of incorporation or organization)						(I.R.S. Employer Identification No.)

177 E. Colorado Blvd, Suite 700

Pasadena, California 91105

(626) 304-3400

(Address and telephone number of principal executive offices)

Former name, former address, and former fiscal year, if changed since last report: N/A

_____________________________________

Securities registered pursuant to Section 12(b) of the Exchange Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common Stock, par value $0.001 per share

ARWR

The Nasdaq Global Select Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No o

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes x No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


Large Accelerated Filer	x	Accelerated Filer	o

Non-Accelerated Filer	o	Smaller Reporting Company	o

Emerging Growth Company	o

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes o No x

The number of shares of the registrant’s common stock outstanding as of January 30, 2026 was 140,032,190.


			Page(s)
PART I — FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS			1

Consolidated Balance Sheets			1

Consolidated Statements of Operations and Comprehensive Income (Loss)			2

Consolidated Statements of Stockholders’ Equity			3

Consolidated Statements of Cash Flows			4

Notes to Consolidated Financial Statements			5

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS			32

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK			39

ITEM 4. CONTROLS AND PROCEDURES			39

PART II — OTHER INFORMATION			40

ITEM 1. LEGAL PROCEEDINGS			40

ITEM 1A. RISK FACTORS			40

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS			40

ITEM 3. DEFAULTS UPON SENIOR SECURITIES			40

ITEM 4. MINE SAFETY DISCLOSURES			40

ITEM 5. OTHER INFORMATION			40

ITEM 6. EXHIBITS			41

SIGNATURE			42

PART I. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

Arrowhead Pharmaceuticals, Inc.

Consolidated Balance Sheets

(in thousands, except per share amounts)


	December 31, 2025		September 30, 2025
	(unaudited)
ASSETS
Current assets:
Cash, cash equivalents and restricted cash	$	71,370	$	88,706
Cash at variable interest entity	130,273		137,842
Accounts receivable	218,871		6,824
Available-for-sale securities, at fair value and short-term investments	714,967		692,818
Prepaid expenses	16,053		10,933
Other current assets	22,855		13,516
Total current assets	1,174,389		950,639
Property, plant and equipment, net	378,584		382,515
Intangible assets, net	6,436		6,861
Right-of-use assets	43,361		43,891
Other assets	1,411		1,389
Total Assets	$	1,604,181	$	1,385,295
LIABILITIES, NONCONTROLLING INTEREST AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	32,937	$	17,674
Accrued expenses	130,081		90,419
Accrued payroll and benefits	14,270		26,895
Lease liabilities	7,529		7,289
Deferred revenue	111,933		2,399
Credit facility	40,000		40,000
Other liabilities	10,675		10,811
Total current liabilities	347,425		195,487
Long-term liabilities:
Lease liabilities, net of current portion	102,129		104,112
Deferred revenue, net of current portion	53,825		—
Liability related to the sale of future royalties	374,997		367,397
Credit facility, net of current portion	163,108		214,883
Total long-term liabilities	694,059		686,392
Commitments and contingencies (Note 7)
Noncontrolling interest and stockholders’ equity:
Common stock, $0.001 par value: Authorized 290,000 shares; 140,052 shares issued and 137,391 outstanding as of December 31, 2025 and 138,363 shares issued and 135,702 outstanding as of September 30, 2025	233		231
Additional paid-in capital	2,211,026		2,139,725
Accumulated other comprehensive income	6,699		6,443
Accumulated deficit	(1,596,343)		(1,627,154)
Treasury stock; at cost; 2,661 shares of common stock at December 31, 2025 and September 30, 2025	(53,193)		(53,193)
Stockholders’ equity	568,422		466,052
Noncontrolling interest	(5,725)		37,364
Total noncontrolling interest and stockholders’ equity	562,697		503,416
Total Liabilities, Noncontrolling Interest and Stockholders’ Equity	$	1,604,181	$	1,385,295

The accompanying notes are an integral part of these unaudited consolidated financial statements.

Arrowhead Pharmaceuticals, Inc.

Consolidated Statements of Operations and Comprehensive Income (Loss)

(in thousands, except per share amounts)

SEC Form 10-Q filed by Arrowhead Pharmaceuticals Inc.