$ARWR

ARROWHEAD RESEARCH CORP

CIK:0000879407|SEC Filings

Consolidated Statements of Operations and Comprehensive (Loss) Income - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
Income Statement [Abstract]
Revenue	$ 75,253	$ 27,767	$ 413,023	$ 572,976
Operating expenses:
Research and development	198,223	162,368	548,679	432,472
Selling, general and administrative	47,123	30,949	134,888	86,264
Total operating expenses	245,346	193,317	683,567	518,736
Operating (loss) income	(170,093)	(165,550)	(270,544)	54,240
Other income (expense):
Interest income	16,935	11,019	43,496	28,236
Interest expense	(24,562)	(24,382)	(70,913)	(67,667)
Loss on equity method investment	(2,470)	0	(9,190)	0
Gain on VIE's sale of IPR&D assets	0	0	19,000	0
Other, net	1,285	(176)	(52)	603
Total other (expense) income	(8,812)	(13,539)	(17,659)	(38,828)
(Loss) income before income tax expense (benefit) and noncontrolling interest	(178,905)	(179,089)	(288,203)	15,412
Income tax expense (benefit)	11	(437)	46	1,419
Net (loss) income including noncontrolling interest	(178,916)	(178,652)	(288,249)	13,993
Net income (loss) attributable to noncontrolling interest, net of tax	15,364	(3,411)	7,956	(8,126)
Net (loss) income attributable to Arrowhead Pharmaceuticals, Inc.	$ (194,280)	$ (175,241)	$ (296,205)	$ 22,119
Net (loss) income per share attributable to Arrowhead Pharmaceuticals, Inc.:
Basic (in dollars per share)	$ (1.36)	$ (1.26)	$ (2.10)	$ 0.17
Diluted (in dollars per share)	$ (1.36)	$ (1.26)	$ (2.10)	$ 0.17
Weighted-average shares used in calculating
Basic (in shares)	143,378	139,039	141,331	132,385
Diluted (in shares)	143,378	139,039	141,331	133,352
Comprehensive (loss) income:
Net (loss) income including noncontrolling interest	$ (178,916)	$ (178,652)	$ (288,249)	$ 13,993
Other comprehensive (loss) income, net of tax:
Unrealized gains (losses) on available-for-sale securities, net	(2,254)	876	(9,042)	1,022
Foreign currency translation adjustments	487	91	1,588	(415)
Total other comprehensive income (loss)	(1,767)	967	(7,454)	607
Comprehensive (loss) income	(180,683)	(177,685)	(295,703)	14,600
Comprehensive income (loss) attributable to noncontrolling interest	15,573	(3,411)	8,609	(8,126)
Comprehensive (loss) income attributable to Arrowhead Pharmaceuticals, Inc.	$ (196,256)	$ (174,274)	$ (304,312)	$ 22,726

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
CASH FLOWS FROM OPERATING ACTIVITIES:
Net (loss) income	$ (288,249)	$ 13,993
Adjustments to reconcile net (loss) income to net cash flow from operating activities
Stock-based compensation	50,913	44,279
Depreciation and amortization	19,417	17,542
Accretion of available-for-sale securities premiums/discounts	(4,122)	(4,545)
Amortization of convertible notes issuance costs	1,423	0
Realized gain on investments	(36)	0
Non-cash interest expense on liability related to the sale of future royalties	25,115	18,893
Non-cash interest expense on credit facility	44,374	48,774
Loss on equity method investment	9,190	0
Gain on VIE's sale of IPR&D assets	(19,000)	0
Non-cash transfer of property and equipment to affiliate	579	0
Changes in operating assets and liabilities:
Accounts receivable	(1,907)	(9,841)
Prepaid expenses and other current assets	(29,940)	(22,342)
Accounts payable	9,980	21,662
Accrued expenses	(15,214)	7,956
Deferred revenue	123,940	22,979
Operating lease, net	(3,556)	(3,417)
Other	(2,453)	3,128
Net cash (used in) provided by operating activities	(79,546)	159,061
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property, plant and equipment	(8,567)	(15,177)
Purchases of available-for-sale securities	(1,138,714)	(774,616)
Proceeds from sales of available-for-sale securities	48,788	0
Proceeds from maturities of available-for-sale securities	224,152	587,880
Net cash used in investing activities	(874,341)	(201,913)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from the exercises of stock options	12,763	3,476
Proceeds from issuance of warrants	99,998	25,000
Proceeds from issuance of convertible notes	700,000	0
Payments of debt issuance costs	(18,716)	(5,000)
Purchase of capped calls	(47,880)	0
Repayments of credit facility	(117,891)	(201,625)
Proceeds from Visirna credit agreement	0	7,098
Dividends paid by variable interest entity to noncontrolling shareholders	(38,434)	0
Net cash provided by financing activities	780,518	70,337
Net (decrease) increase in cash, cash equivalents and restricted cash	(173,369)	27,485
Effect of exchange rate on cash, cash equivalents and restricted cash	1,580	(377)
CASH, CASH EQUIVALENTS AND RESTRICTED CASH:
BEGINNING OF PERIOD	226,548	102,685
END OF PERIOD	54,759	129,793
Supplemental disclosure of cash flows:
Interest paid	0	(19)
Income taxes paid	(21,587)	(81)
Supplemental disclosure of non-cash investing activities:
Capital expenditures included in accrued expenses	1,084	346
Supplemental disclosure of non-cash financing activities:
ROU assets obtained in exchange for new lease liabilities	13,410	0
ATM Agreement
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of common stock	76,109	241,388
Payments of issuance costs of common stock	(2,038)	0
Underwriting Public Offering
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of common stock	130,000	0
Payments of issuance costs of common stock	$ (13,393)	$ 0

Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2026	Sep. 30, 2025
Current assets:
Cash, cash equivalents and restricted cash	$ 54,759	$ 226,548
Accounts receivable	8,556	6,824
Available-for-sale securities, at fair value	1,547,201	692,818
Prepaid expenses	25,373	10,933
Other current assets	35,522	13,516
Total current assets	1,671,411	950,639
Property, plant and equipment, net	373,301	382,515
Intangible assets, net	5,586	6,861
Right-of-use assets	55,667	43,891
Other assets	6,048	1,389
Total Assets	2,112,013	1,385,295
Current liabilities:
Accounts payable	27,776	17,674
Accrued expenses	86,174	90,419
Accrued payroll and benefits	23,455	26,895
Lease liabilities	5,322	7,289
Deferred revenue	94,596	2,399
Credit facility	40,000	40,000
Other liabilities	6,023	10,811
Total current liabilities	283,346	195,487
Long-term liabilities:
Lease liabilities, net of current portion	114,298	104,112
Deferred revenue, net of current portion	31,743	0
Liability related to the sale of future royalties	392,512	367,397
Credit facility, net of current portion	141,366	214,883
Convertible Notes, Net	682,707	0
Total long-term liabilities	1,362,626	686,392
Commitments and contingencies (Note 7)
Noncontrolling interest and stockholders’ equity:
Common stock, $0.001 par value: Authorized 290,000 shares; 143,796 shares issued and 141,135 outstanding as of June 30, 2026 and 138,363 shares issued and 135,702 outstanding as of September 30, 2025	237	231
Additional paid-in capital	2,443,074	2,139,725
Accumulated other comprehensive (loss) income	(1,234)	6,443
Accumulated deficit	(1,923,355)	(1,627,154)
Treasury stock; at cost; 2,661 shares of common stock at June 30, 2026 and September 30, 2025	(53,193)	(53,193)
Stockholders’ equity	465,529	466,052
Noncontrolling interest	512	37,364
Total noncontrolling interest and stockholders’ equity	466,041	503,416
Total Liabilities, Noncontrolling Interest and Stockholders’ Equity	2,112,013	1,385,295
Consolidated Entity Excluding Variable Interest Entities (VIE)
Current assets:
Cash, cash equivalents and restricted cash	19,685	88,706
Variable Interest Entity, Primary Beneficiary
Current assets:
Cash, cash equivalents and restricted cash	$ 35,074	$ 137,842