F

Arrowhead Pharmaceuticals, Inc. — Earnings Quality Grade F

ARWR · Healthcare

Major red flags

Revenue
$829M
2025
Net Income
-$2M
2025
Gross Margin
Free Cash Flow
$157M
01

Screening Summary

8
Passed
3
Watch
1
Failed
M-Score

Management Signals

No recent CEO, CFO, board, or accounting leadership signals found in SEC 8-K filings.
02

Financial Trends

Revenue & Net Income ($B)

Margins (%)

03

18-Point Screening

01

Revenue Quality

A1DSO Change

Insufficient data

A2AR vs Revenue Growth

Insufficient data

!
A3Revenue vs CFFO

Revenue grew 23258.2% but CFFO only 138.8%

02

Expense Quality

B1Inventory vs COGS

No material inventory

B2CapEx vs Revenue

CapEx growth -84.0% vs revenue 23258.2%. Normal

B3SG&A Ratio

Insufficient data

B4Gross Margin

Insufficient data

03

Cash Flow Quality

C1CFFO vs Net Income

CFFO < Net Income for 3 consecutive years

C2Free Cash Flow

FCF $0.2B, FCF/NI = -96.19

C3Accruals Ratio

Accruals ratio = -13.1%. Low accruals

C4Cash vs Debt

Cash $0.9B covers debt $0.4B

04

Balance Sheet Health

D1Goodwill + Intangibles

Goodwill+Intangibles $0.0B = 1% of equity. Manageable

!
D2Leverage

Interest coverage = 1.1x (<2x). Financial stress

D3Soft Asset Growth

Other assets -69.0% vs revenue 23258.2%. Normal

D4Asset Impairment

No write-off data

05

Acquisition Risk

!
E1Serial Acquirer FCF

FCF after acquisitions negative for 2/3 years

E2Goodwill Surge

Goodwill+Intangibles change -20% YoY. Normal

06

Manipulation Score

F1Beneish M-Score

Insufficient data

Portfolio monitoring

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05

Altman Z-Score

0.99
Distress Zone
0 Distress1.102.605.0+ Safe
0.5451
Liquidity
-1.1746
Cumulative profit
0.1017
Operating efficiency
0.5285
Leverage

Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-25