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Arcus Biosciences
(NYSE:RCUS)
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Rating:56Neutral
Price Target:
$27.00
▼(-5.00% Downside)
Action:Reiterated
Date:06/28/26
The score is held back primarily by weak financial performance, driven by sustained large losses and significant cash burn despite a reasonably capitalized balance sheet. Technicals provide meaningful support with a strong uptrend, though overbought readings add near-term risk. Earnings call commentary is constructive on liquidity runway, spend discipline, and cascadifan catalysts, but late-stage program discontinuation and high R&D intensity remain notable risks. Valuation is constrained by negative earnings and no dividend support.
Positive Factors
Strong cash runway
An $876M cash position and runway into at least 2028 materially reduces near‑term financing pressure and gives management time to complete registrational trials. This sustained liquidity supports multi-year execution of pivotal readouts and strategic prioritization without immediate dilution risk.
Negative Factors
High structural cash burn
Sustained negative operating and free cash flow (TTM ~ -$488M/-$489M) reflects structural cash burn. Even with current liquidity, continued high outflows will require future financing, partnerships, or milestone monetization, which can dilute shareholders and constrain strategic flexibility if timelines or costs worsen.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash runway
An $876M cash position and runway into at least 2028 materially reduces near‑term financing pressure and gives management time to complete registrational trials. This sustained liquidity supports multi-year execution of pivotal readouts and strategic prioritization without immediate dilution risk.
Read all positive factors
Arcus Biosciences Key Performance Indicators (KPIs)
Any
Revenue by Segment
Breaks down revenue by different business units or product lines, highlighting which areas are driving growth and which may need strategic adjustments.
Breaks down revenue by different business units or product lines, highlighting which areas are driving growth and which may need strategic adjustments.
Data provided by:
The Fly
The FlyArcus Biosciences (RCUS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.55B
Dividend YieldN/A
Average Volume (3M)1.39M
Price to Earnings (P/E)―
Beta (1Y)1.70
Revenue Growth67.38%
EPS Growth24.05%
CountryUS
Employees601
SectorHealthcare
Sector Strength45
IndustryBiotechnology
Share Statistics
EPS (TTM)-3.17
Shares Outstanding125,773,160
10 Day Avg. Volume1,023,565
30 Day Avg. Volume1,385,267
Financial Highlights & Ratios
PEG Ratio-1.52
Price to Book (P/B)4.06
Price to Sales (P/S)10.36
P/FCF Ratio-5.29
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda>-0.01
Forecast
1Y Price Target
$40.00Price Target Upside40.75% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering8
EPS Forecast (FY)-3.68
Revenue Forecast (FY)$79.95M
Arcus Biosciences Business Overview & Revenue Model
Company Description
Arcus Biosciences, Inc., a clinical-stage biopharmaceutical company, develops and commercializes cancer therapies in the United States. The company’s development product portfolio includes Casdatifan, a HIF-2a inhibitor for the treatment of kidney...
How the Company Makes Money
Arcus Biosciences does not primarily generate revenue from commercial product sales because, as a clinical-stage biotech, it has not had widely disclosed marketed products as of public reporting. Instead, the company’s revenue has generally come f...
Arcus Biosciences Earnings Call Summary
Earnings Call Date:May 05, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 05, 2026
Earnings Call Sentiment Positive
The call emphasized strong clinical differentiation and durable efficacy for cascadifan (notably improved ORR and substantially longer PFS versus a competitor), accelerating enrollment in the registrational PEEK-1 study, a solid cash position with runway into 2028, and a rapidly advancing I&I small-molecule pipeline (AB-102 and others). Offsetting these positives were a late-stage program discontinuation (STAR-121), competitor frontline/triplet failures that create class-level caution, and high near-term R&D spend in Q1 (with nonrecurring costs and a ~10% headcount reduction). On balance, the company presented multiple high-value catalysts, clear prioritization of cascadifan, and a strong balance sheet to execute—outweighing the program setbacks and near-term expense noise.Positive Updates
Strong cash position and runway
Cash and investments of $876 million at quarter end with runway into at least 2028; expected cash of approximately $600 million at year-end 2026.
Negative Updates
STAR-121 discontinuation (domvanalimab) due to futility
Phase 3 STAR-121 (domvanalimab + zimberelimab + chemo vs pembrolizumab + chemo in 1L metastatic NSCLC) was discontinued for futility, representing a late-stage setback and reduced investment in this program.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong cash position and runway
Cash and investments of $876 million at quarter end with runway into at least 2028; expected cash of approximately $600 million at year-end 2026.
Read all positive updates
Company Guidance
Management guidance: Arcus exited Q1 with $876M in cash and investments and said it has runway into at least 2028, expects to end 2026 with ~ $600M, and reiterated full‑year GAAP revenue guidance of $50–65M (Q1 was $17M). Q1 operating metrics included R&D of $122M (net of reimbursements, incl. nonrecurring workforce costs), G&A of $29M and $19M of noncash stock‑based compensation; headcount was reduced ~10% and management expects R&D and overall spend to decline in 2026–2027 with >80% of portfolio spend directed to cascadifan by 2027. Clinical and commercial milestones guided: PEEK‑1 (2:1 randomization, sole primary endpoint PFS) is enrolling rapidly and on track to complete enrollment by year‑end 2026 targeting ~20k IO‑experienced patients (>$2B opportunity); frontline opportunity >$4B and total peak sales $5–10B; PRISM‑1 readout expected in 2027 (enrollment completed Sept 2025); AB‑102 to enter clinic in Q3 2026 with PoC potential in early 2027; IND candidates for CCR6/CD89/CD40L expected in 6–18 months; and multiple cascadifan data readouts are planned in 2026 (including ~45‑patient cascadifan+cabo cohort with ≥12 months follow‑up, initial first‑line data, and updated late‑line OS).Arcus Biosciences Financial Statement Overview
Summary
Income Statement
28
Negative
Balance Sheet
62
Positive
Cash Flow
34
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 236.00M | 247.00M | 258.00M | 117.00M | 112.00M | 383.00M |
| Gross Profit | 229.00M | 237.00M | 258.00M | 117.00M | 112.00M | 383.00M |
| EBITDA | -330.00M | -335.00M | -269.00M | -291.00M | -258.00M | 59.00M |
| Net Income | -369.00M | -353.00M | -283.00M | -307.00M | -267.00M | 53.00M |
Balance Sheet | ||||||
| Total Assets | 997.00M | 1.14B | 1.15B | 1.09B | 1.34B | 1.59B |
| Cash, Cash Equivalents and Short-Term Investments | 822.00M | 981.00M | 978.00M | 759.00M | 1.01B | 499.31M |
| Total Debt | 113.00M | 112.00M | 60.00M | 11.00M | 120.00M | 121.99M |
| Total Liabilities | 473.00M | 508.00M | 665.00M | 633.00M | 688.00M | 750.45M |
| Stockholders Equity | 524.00M | 631.00M | 485.00M | 462.00M | 657.00M | 841.45M |
Cash Flow | ||||||
| Free Cash Flow | -489.00M | -484.00M | -176.00M | -330.00M | 432.00M | -282.25M |
| Operating Cash Flow | -488.00M | -482.00M | -170.00M | -306.00M | 438.00M | -256.17M |
| Investing Cash Flow | 148.00M | 66.00M | -84.00M | 194.00M | -413.00M | -3.87M |
| Financing Cash Flow | 349.00M | 488.00M | 277.00M | 33.00M | 33.00M | 237.34M |
Arcus Biosciences Risk Analysis
Arcus Biosciences disclosed 61 risk factors in its most recent earnings report. Arcus Biosciences reported the most risks in the "Tech & Innovation" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Arcus Biosciences Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | $1.72B | -90.30 | -4.83% | ― | 23.64% | ― | |
59 Neutral | $2.45B | -6.73 | -76.09% | ― | -58.40% | -31.99% | |
58 Neutral | $1.59B | -8.83 | -28.77% | ― | -23.48% | 25.73% | |
56 Neutral | $3.55B | -8.90 | -68.97% | ― | 67.38% | 24.05% | |
52 Neutral | $3.54B | -13.64 | -24.91% | ― | 56.70% | -13.77% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
51 Neutral | $4.67B | -7.72 | -30.88% | ― | -89.11% | -37.55% |
* Healthcare Sector Average
RCUS
Arcus Biosciences
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Arcus Biosciences Corporate Events
Executive/Board ChangesShareholder Meetings
Arcus Biosciences Stockholders Back Directors and Governance Measures
Positive
Jun 12, 2026
On June 11, 2026, Arcus Biosciences, Inc. held its annual meeting of stockholders, during which stockholders elected four Class II directors, including Dietmar Berger, David Lacey, Nicole Lambert, and Johanna Mercier, to serve until the 2029 annua...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.