Arcus Biosciences (RCUS)
NYSE:RCUS
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Arcus Biosciences
(NYSE:RCUS)
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Rating:55Neutral
Price Target:
$26.00
▲(7.22% Upside)
Action:Reiterated
Date:05/09/26
The score is held back primarily by weak financial performance driven by large ongoing losses and substantial cash burn, despite manageable leverage. Offsetting this, the earnings call conveyed a strong cash runway with multiple upcoming clinical catalysts and a clearer spend-focus plan, while technicals are supportive with the stock trading above major moving averages. Valuation remains difficult to assess due to negative earnings and no dividend yield.
Positive Factors
Strong cash runway
A cash balance of ~$876M with runway into at least 2028 materially reduces near-term dilution risk and funds pivotal registrational trials and planned commercialization activities. This durable liquidity supports execution of high-value catalysts and a focused development plan.
Negative Factors
Sustained cash burn
Persistently negative operating and free cash flow (TTM ~-$488M) show structural cash consumption from R&D and operations. Over the medium term this necessitates continued financing or partner funding, raising dilution risk and constraining investment optionality if revenue ramp lags expectations.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash runway
A cash balance of ~$876M with runway into at least 2028 materially reduces near-term dilution risk and funds pivotal registrational trials and planned commercialization activities. This durable liquidity supports execution of high-value catalysts and a focused development plan.
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
$3.19B
Dividend YieldN/A
Average Volume (3M)1.22M
Price to Earnings (P/E)―
Beta (1Y)1.84
Revenue Growth67.38%
EPS Growth24.05%
CountryUS
Employees627
SectorHealthcare
Sector Strength45
IndustryBiotechnology
Share Statistics
EPS (TTM)-3.17
Shares Outstanding125,773,160
10 Day Avg. Volume933,214
30 Day Avg. Volume1,223,497
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 Cap0.77
Enterprise Value/Revenue10.38
Enterprise Value/Gross Profit10.70
Enterprise Value/Ebitda-7.23
Forecast
1Y Price Target
$36.44Price Target Upside50.29% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering10
EPS Forecast (FY)-3.83
Revenue Forecast (FY)$89.62M
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. Its product pipeline includes, Etrumadenant, a dual A2a/A2b adenosine receptor antagonist, which is in a Phase ...
How the Company Makes Money
Arcus Biosciences does not primarily generate revenue from marketed products; instead, as a clinical-stage company its earnings have historically been driven mainly by collaboration and licensing arrangements and, when applicable, related cost rei...
Arcus Biosciences Earnings Call Summary
Earnings Call Date:May 05, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 12, 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 | -339.00M | -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 | 100.00M | 99.00M | 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 Technical Analysis
Positive
24.25
Price Trends
23.63
Positive
22.63
Positive
20.01
Positive
Market Momentum
0.07
Positive
57.49
Neutral
75.04
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RCUS, the sentiment is Positive. The current price of 24.25 is below the 20-day moving average (MA) of 24.63, above the 50-day MA of 23.63, and above the 200-day MA of 20.01, indicating a bullish trend. The MACD of 0.07 indicates Positive momentum. The RSI at 57.49 is Neutral, neither overbought nor oversold. The STOCH value of 75.04 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for RCUS.
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 |
|---|---|---|---|---|---|---|---|
60 Neutral | $6.38B | -141.75 | -31.25% | ― | ― | 22.31% | |
55 Neutral | $3.19B | -8.61 | -68.97% | ― | 67.38% | 24.05% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
47 Neutral | $280.80M | -6.75 | -38.76% | ― | ― | 15.81% | |
43 Neutral | $717.56M | -2.54 | -102.69% | ― | ― | -13.96% | |
43 Neutral | $918.36M | -3.78 | -161.87% | ― | ― | -6.15% |
* Healthcare Sector Average
RCUS
Arcus Biosciences
25.34
16.12
174.84%
AVXL
Anavex Life Sciences
3.03
-4.53
-59.92%
SYRE
Spyre Therapeutics
73.50
58.10
377.27%
REPL
Replimune Group
8.69
-0.88
-9.20%
SANA
Sana Biotechnology
3.30
1.10
50.00%
Arcus Biosciences Corporate Events
Business Operations and Strategy
Arcus Ends Key Lung Cancer Trials in Gilead Partnership Reset
Negative
Apr 20, 2026
On April 20, 2026, Arcus Biosciences said it will discontinue the Phase 3 STAR-121 trial, run with Gilead Sciences, after an independent committee found the domvanalimab plus zimberelimab and chemotherapy regimen futile versus pembrolizumab plus c...
Executive/Board Changes
Arcus Biosciences Announces COO Resignation and Transition Plan
Neutral
Mar 23, 2026
Arcus Biosciences, Inc. reported that on March 17, 2026, Chief Operating Officer Jennifer Jarrett notified the company of her decision to resign, with her departure effective March 30, 2026, and the move was not related to any disagreement over op...
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.