Arrowhead Pharmaceuticals (ARWR) Q2 2025 earnings summary

Executive summary

• Achieved net income of $370.4 million for Q2 FY2025, reversing a net loss of $125.3 million in Q2 FY2024, driven by $542.7 million in revenue from the Sarepta collaboration and milestone payments from GSK.

• Transitioned from development to commercial stage with anticipated launch of plozasiran for FCS in late 2025, pending regulatory approval (PDUFA November 18, 2025).

• Entered a major global licensing and collaboration agreement with Sarepta, including $500 million upfront, $325 million equity investment, and eligibility for up to $10 billion in future milestones.

• Advanced multiple late-stage and partnered programs, including SHTG, HoFH, AAT liver disease, CNS/obesity assets, and complement-mediated disease candidates.

• Strong financial position with $1.1 billion in cash and investments, funded into 2028 and through several key milestones.

Financial highlights

• Revenue for Q2 FY2025 was $542.7 million, up from $0 in Q2 FY2024, mainly from Sarepta and GSK agreements.

• Net income for Q2 FY2025 was $370.4 million ($2.75/share), compared to a net loss of $125.3 million ($1.02/share) in Q2 FY2024.

• Operating expenses rose to $161.5 million from $126.2 million year-over-year, reflecting pipeline advancement and higher R&D and G&A costs.

• Cash, cash equivalents, and investments totaled $1.1 billion as of March 31, 2025.

• Net cash provided by operating activities was $460.1 million, up from net cash used of $92.4 million in the prior year.

Outlook and guidance

• Plozasiran launch for FCS expected late 2025, with SHTG phase 3 enrollment completing summer 2025 and potential sNDA in 2026.

• No current need for further cash infusions or equity raises, with funding expected to last into 2028.

• Anticipates multiple commercial launches of both wholly owned and partnered programs during the funding period.

• Expects additional capital inflows from business development outside core commercial focus.

• Expects to recognize remaining Sarepta-related revenue as performance obligations are satisfied through 2031.