Forensic Analysis · Healthcare / Pharmaceuticals / Biotech · as of Aug 10, 2026
Arrowhead Pharmaceuticals, Inc. (ARWR)
A forensic read on Arrowhead Pharmaceuticals, Inc. built from its complete SEC filings — financial-health screens, earnings quality, red flags and a price-aware rating. Reproducible math, not opinion.
D · Weak — demands caution
Forensic grade
Safe
Financial health
12.8
Distress distance
Clean
Earnings quality
4
Forensic signals
-38.8
P / E (ttm)
-0.3%
ROE
$12.4B
Market cap
0.00%
Dividend yield
23258.2%
Revenue growth
This free snapshot doesn't read filing or proxy text, so the auditor-quality and governance checks that can lower a grade were not evaluated (red flags, auditor quality, say on pay, board independence). Those checks only ever lower a grade, so the full analysis can land below the grade above but never above it — treat it as the most favourable reading, not the settled one.
Arrowhead Pharmaceuticals, Inc. earns a D (Weak — demands caution) forensic quality grade, and its balance-sheet distress test reads 12.8, placing it in the Safe zone. 4 forensic signals were flagged in its latest SEC filings, led by return on invested capital.
What the filings flag
5.4%
FY2025
Return on invested capital.Return on invested capital is 5.4% in the latest fiscal year and rising from -25% — well below its ~10% cost of capital, so reinvested dollars may be destroying value, not building it.
+8.3%/yr
FY2022–FY2025
Share-count dilution.Diluted share count changed +27% over the last 3 years to FY2025 (+8.3%/yr). The count is growing: more stock was issued than repurchased over this window, so aggregate results grew faster than their per-share equivalents. That's ~8.3% shaved off per-share growth every year — total profit has to grow that much just to keep earnings-per-share flat, and a stake held since FY2022 has been diluted ~21%.
8% of rev
FY2025
Stock-based comp load.Stock-based compensation ran 8% of revenue and 40% of free cash flow in FY2025 — about $0.47 per diluted share. The cost of it is not in the cash flow — no cash left the business — it is in the count: holders gave up about 8.4% of the company a year, and that rate is not falling. That is the figure to weigh, not the share of free cash flow.
+86.1%
FY2024→FY2025
Accruals ratio (% of NOA).Net operating assets grew +86.1% relative to their own average in FY2025 — scaled by NOA itself, not total assets (see the Forensic Screens card's differently-scaled Sloan Accrual Ratio for that read). Accruals are building sharply, and much of it is accounted for. That build tracks a +23258% revenue year: net operating assets grew +151%, so the balance sheet is carrying more volume rather than getting heavier per dollar of sales — the accrual build is funding demand the company is shipping, not earnings running ahead of collection. The cash-flow cross-check is more mixed: reported earnings ran behind operating cash by 56% of net operating assets, diverging from the balance-sheet accrual read.
Key fundamentals
Latest Revenue$829.4M
Revenue Growth YoY+23258.2%
Revenue CAGR (3yr)+50.5%
Net Margin-0.2%
Free Cash Flow$156.9M
Return on Equity-0.3%
The forensic grade and screens above are free — no account needed. Want the AI investment read on top — the 0–100 rating, thesis, bull-vs-bear, red flags and the 12-month scenario, written from Arrowhead Pharmaceuticals, Inc.'s actual 10-K/10-Q/8-K filings?