Forensic Analysis · Healthcare / Pharmaceuticals / Biotech · as of Jun 27, 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.
C · Mixed — selective
Forensic grade
Distress
Financial health
0.8
Altman Z-score
Clean
Earnings quality
4
Forensic signals
-55.5%
ROE
$11.1B
Market cap
ARROWHEAD PHARMACEUTICALS, INC. earns a C (Mixed — selective) forensic quality grade, and its Altman Z-score is 0.8, placing it in the Distress zone. 4 forensic signals were flagged in its latest SEC filings, led by accruals ratio.
What the filings flag
+86.1%Accruals ratio.Net operating assets grew +86.1% relative to their average in FY2025 — the accrual component of earnings. Accruals are building sharply — a large slice of profit sits in operating assets, not cash; Richardson/Sloan link high accruals to weaker future returns as they reverse. The cash-flow cross-check agrees: reported earnings ran behind operating cash by -56% of net operating assets.
5%Return on invested capital.Return on invested capital is 5% and rising from -25% — well below its ~10% cost of capital, so reinvested dollars may be destroying value, not building it.
+9.0%/yrShare-count dilution.Diluted share count changed +27% over the last 3 years to FY2025 (+9.0%/yr). The count is GROWING — existing holders are being diluted. That's ~9.0% 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 ~27%.
8% of revStock-based comp load.Stock-based compensation ran 8% of revenue and 40% of free cash flow in FY2025 — about $0.47 per diluted share. Heavy — a large slice of 'free cash flow' is really being paid out in stock, so the true owner cash per share is well below the headline.
Key fundamentals
Net Margin-0.2%
Free Cash Flow$156.9M
Latest Revenue$829.4M
Return on Equity-0.3%
Revenue Growth YoY+23258.2%
Go deeper — free with an account
The forensic grade and screens above are free — no account needed. An account adds the full interactive deep-dive on ARROWHEAD PHARMACEUTICALS, INC.:
🔒The written investment read — what the numbers mean, in plain English
🔒Ask anything about ARWR's filings — AI Q&A across the 10-K, 10-Qs & 8-Ks
🔒Interactive valuation — reverse-DCF sliders, Monte Carlo & scenario stress
🔒Calibrated 12-month price forecast, with the math shown