Arrowhead Pharmaceuticals Inc (NASDAQ:ARWR) Reports Mixed Q3 2025 Results with Revenue Beat but Wider-Than-Expected Loss

Arrowhead Pharmaceuticals Inc (NASDAQ:ARWR) reported its fiscal 2025 third-quarter results, delivering mixed financial performance relative to analyst expectations. The company posted revenue of $27.77 million, surpassing the consensus estimate of $24.19 million. However, its earnings per share (EPS) of -$1.26 fell short of the estimated -$1.05. Following the earnings release, the stock declined by approximately 5.3% in after-hours trading, reflecting investor concerns over the wider-than-expected loss.

Key Financial Highlights

• Revenue: $27.77M (vs. $24.19M estimate) – beat by 14.8%
• EPS: -$1.26 (vs. -$1.05 estimate) – miss by 20%
• Operating Loss: $165.55M (vs. $176.14M in Q3 2024)
• Cash Position: Total cash resources stood at $900.37M, up from $680.96M in the previous fiscal year.

The revenue beat was driven by milestone payments, including a $100M payment from Sarepta Therapeutics related to the ARO-DM1 clinical program and a $130M upfront payment from Sanofi for licensing rights to plozasiran in Greater China. Despite the revenue outperformance, higher R&D expenses ($162.37M, up from $152.43M YoY) and increased G&A costs ($30.95M vs. $23.71M YoY) contributed to the deeper EPS loss.

Market Reaction & Investor Sentiment

The after-hours decline suggests that investors were more focused on the widening losses than the revenue beat. The miss on EPS, combined with rising operating expenses, may have raised concerns about the company’s path to profitability. Additionally, while Arrowhead has a strong cash position, the market may be weighing the sustainability of its high R&D burn rate against upcoming clinical milestones.

Pipeline & Business Developments

The earnings release highlighted several key developments in Arrowhead’s clinical pipeline:

• Plozasiran (cardiometabolic candidate): Submitted NDA with FDA PDUFA date set for November 18, 2025. Phase 3 studies (SHASTA-3, SHASTA-4, MUIR-3) are fully enrolled, with topline data expected in mid-2026.
• Zodasiran (HoFH treatment): Dosed first patient in Phase 3 YOSEMITE trial.
• ARO-ALK7 (obesity treatment): Initiated Phase 1/2a trial, with plans to explore combination therapies with tirzepatide.
• ARO-DM1 (myotonic dystrophy): Achieved first enrollment milestone, triggering $100M payment from Sarepta; expects an additional $200M upon hitting the next enrollment target by year-end.

Outlook & Analyst Estimates

While Arrowhead did not provide explicit forward guidance, analysts project full-year 2025 revenue at $798.44M, with Q4 estimates at $212.72M. The company’s ability to meet these projections will depend on further milestone achievements and regulatory progress, particularly for plozasiran.

For a deeper dive into earnings estimates and future projections, see Arrowhead’s earnings estimates here.

Conclusion

Arrowhead’s Q3 results reflect a company in heavy investment mode, with significant clinical progress but persistent losses. The market’s negative reaction underscores investor caution around profitability timelines, even as the company advances multiple late-stage candidates. The upcoming FDA decision on plozasiran and further clinical readouts will be critical for sentiment moving forward.

Disclaimer: This article is not investment advice. Investors should conduct their own research or consult a financial advisor before making decisions.