Arrowhead Pharmaceuticals (NASDAQ: ARWR) saw its stock price plummet 5.35% in after-hours trading on Thursday following the release of its fiscal 2025 third-quarter financial results. The biotechnology company reported a wider-than-expected loss, overshadowing its revenue beat and pipeline progress.

For the quarter ended June 30, 2025, Arrowhead reported a loss of $1.26 per share, significantly missing the analyst consensus estimate of $0.89 per share. This represented a 41.57% larger loss than expected. Despite the disappointing bottom line, the company's quarterly revenue of $27.767 million surpassed analyst expectations of $23.711 million by 17.11%.

While Arrowhead highlighted its strong execution in discovery, clinical, and regulatory activities, investors seemed focused on the company's widening losses. The company reported a net loss attributable to Arrowhead of $175.2 million for the quarter, compared to a $170.8 million loss in the same period last year. On a positive note, Arrowhead maintained a strong balance sheet with $129.8 million in cash and cash equivalents, and $770.6 million in available-for-sale securities. The company also noted progress in its pipeline, with four candidates now in pivotal Phase 3 studies, including plozasiran and zodasiran. Additionally, Arrowhead earned a $100 million milestone payment from Sarepta for meeting enrollment targets in the ARO-DM1 study. Despite these advancements, the larger-than-anticipated loss appears to have spooked investors, leading to the after-hours sell-off.