Arcus Biosciences (RCUS) AI Stock Analysis

• Market Cap: $2.76B
• Dividend Yield: N/A
• Average Volume (3M): 1.96M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.98
• Revenue Growth: -8.75%
• EPS Growth: -8.79%
• Country: US
• Employees: 627
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -1.27
• Shares Outstanding: 123,728,540
• 10 Day Avg. Volume: 2,573,862
• 30 Day Avg. Volume: 1,956,436
• PEG Ratio: 0.19
• Price to Book (P/B): 2.77
• Price to Sales (P/S): 5.20
• P/FCF Ratio: -7.62
• Enterprise Value/Market Cap: 0.26
• Enterprise Value/Revenue: 3.04
• Enterprise Value/Gross Profit: 3.06
• Enterprise Value/Ebitda: -2.26
• 1Y Price Target: $27.78
• Price Target Upside: 26.33% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 11
• EPS Forecast (FY): -3.59
• Revenue Forecast (FY): $247.89M

• Rating: 55 Neutral
• Price Target: $22.50 ▲(2.32% Upside)

Arcus Biosciences' overall stock score reflects its financial challenges and mixed technical outlook. While recent corporate events provide some positive momentum, the company's financial performance remains a significant concern. Investors should be cautious and monitor future developments closely.

Positive Factors

Strong Gross Profit Margin

A strong gross profit margin indicates efficient production and cost management, which can support long-term profitability as the company scales.

Successful Stock Offering

The successful stock offering strengthens the company's financial position, providing capital to fund R&D and potential commercialization efforts.

Amended Loan Facility

The amendment provides financial flexibility and aligns funding with clinical milestones, supporting long-term strategic goals and potential commercialization.

Negative Factors

Declining Revenue Growth

Negative revenue growth reflects challenges in expanding market reach and product adoption, potentially impacting future financial stability.

Discontinuation of Phase 3 Study

Ending the Phase 3 study indicates setbacks in clinical development, which could delay product pipeline progress and commercialization timelines.

Negative Cash Flow

Negative cash flow indicates operational inefficiencies and may constrain the company's ability to fund ongoing R&D and strategic initiatives.

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 1b/2 clinical trial; and Zimberelimab, an anti-PD-1 antibody that is in Phase 1b clinical trial for monotherapy. The company also develops Domvanalimab, an anti-TIGIT monoclonal antibody, which is in Phase 2 development for the treatment of first-line metastatic non-small cell lung cancer in combination with Zimberelimab; Quemliclustat, a small-molecule CD73 inhibitor is in a Phase 1/1b study for the treatment of first-line metastatic pancreatic cancer; and AB521, an oral and small molecule HIF-2a inhibitor that is in Phase 1 study for the treatment of patients with von Hippel- Lindau disease. It has a clinical development collaboration agreement with Strata Oncology, Inc. to evaluate Zimberelimab; a collaboration with AstraZeneca, BVF Partners L.P to evaluate domvanalimab, its investigational anti-TIGIT antibody, in combination with Imfinzi (durvalumab) in a registrational Phase 3 clinical trial in patients with unresectable Stage III non-small cell lung cancer; and license agreements with Taiho Pharmaceutical Co., Ltd, Abmuno Therapeutics LLC, and WuXi Biologics to develop anti-CD39 antibody for the treatment of cancer. The company was incorporated in 2015 and is headquartered in Hayward, California.

How the Company Makes Money

Arcus Biosciences generates revenue through several key streams, including licensing agreements, collaborations, and potential milestone payments from pharmaceutical partners. The company often enters into partnerships with larger biopharmaceutical companies to co-develop or license its drug candidates, which can provide upfront payments and ongoing royalties based on sales. Additionally, successful progress in clinical trials may lead to milestone payments as certain developmental or regulatory benchmarks are achieved. As Arcus continues to advance its clinical pipeline, successful commercialization of its therapies could further enhance its revenue through product sales.

Arcus Biosciences Financial Statement Overview

Summary

Arcus Biosciences faces significant financial challenges, with declining revenues and persistent losses impacting profitability. While the company maintains a strong gross profit margin and manageable leverage, negative cash flows and returns on equity highlight operational and financial difficulties.

Income Statement

Arcus Biosciences has experienced declining revenue growth, with a negative growth rate of -8.4% in the TTM period. The company has a strong gross profit margin of 89.2% in the TTM, but it is overshadowed by significant net losses, resulting in a net profit margin of -145.4%. The EBIT and EBITDA margins are also negative, indicating operational challenges.

Balance Sheet

The company's debt-to-equity ratio is relatively low at 0.225 in the TTM, suggesting manageable leverage. However, the return on equity is negative at -69.8%, reflecting ongoing losses. The equity ratio is not explicitly calculated, but the company maintains a solid equity base relative to its assets.

Cash Flow

Arcus Biosciences shows a positive free cash flow growth rate of 35.7% in the TTM, but the operating cash flow remains negative, with a coverage ratio of -1.97. The free cash flow to net income ratio is slightly above 1, indicating that free cash flow is covering net losses, but overall cash flow health is weak.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	240.00M	258.00M	117.00M	112.00M	383.00M	78.00M
Gross Profit	238.00M	258.00M	117.00M	112.00M	383.00M	78.00M
EBITDA	-323.00M	-269.00M	-291.00M	-258.00M	59.00M	-120.00M
Net Income	-349.00M	-283.00M	-307.00M	-267.00M	53.00M	-123.00M
Balance Sheet
Total Assets	974.00M	1.15B	1.09B	1.34B	1.59B	772.29M
Cash, Cash Equivalents and Short-Term Investments	831.00M	978.00M	759.00M	1.01B	499.31M	728.65M
Total Debt	111.00M	60.00M	11.00M	120.00M	121.99M	18.11M
Total Liabilities	538.00M	665.00M	633.00M	688.00M	750.45M	269.99M
Stockholders Equity	436.00M	485.00M	462.00M	657.00M	841.45M	502.30M
Cash Flow
Free Cash Flow	-464.00M	-176.00M	-330.00M	432.00M	-282.25M	108.11M
Operating Cash Flow	-462.00M	-170.00M	-306.00M	438.00M	-256.17M	111.17M
Investing Cash Flow	299.00M	-84.00M	194.00M	-413.00M	-3.87M	-434.37M
Financing Cash Flow	200.00M	277.00M	33.00M	33.00M	237.34M	438.68M

Arcus Biosciences Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 21.99
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RCUS, the sentiment is Neutral. The current price of 21.99 is below the 20-day moving average (MA) of 24.08, above the 50-day MA of 20.75, and above the 200-day MA of 12.40, indicating a neutral trend. The MACD of 0.50 indicates Positive momentum. The RSI at 45.76 is Neutral, neither overbought nor oversold. The STOCH value of 29.86 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for RCUS.

Arcus Biosciences Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AVXL	62 Neutral	$350.24M	-7.15	-43.11%	―	―	-5.71%
RCUS	55 Neutral	$2.76B	―	-68.13%	―	-8.75%	-8.79%
VERV	52 Neutral	―	―	―	―	271.44%	26.65%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
SYRE	43 Neutral	$2.57B	-15.37	-32.63%	―	―	-123.65%
REPL	42 Neutral	$757.76M	-2.69	-96.24%	―	―	-15.77%
SANA	33 Underperform	$1.27B	-4.64	-96.11%	―	―	31.16%

Arcus Biosciences Corporate Events

Arcus Biosciences Amends Loan Facility, Extends Maturity Terms

On December 18, 2025, Arcus Biosciences amended its existing loan and security agreement with a syndicate of lenders led by Hercules Capital, restructuring access to the remaining $150 million term loan facility into four tranches tied to specific time windows and clinical and regulatory milestones, and extending the facility’s maturity date to September 1, 2030. The amendment introduces new performance covenants that apply if outstanding borrowings exceed $200 million, requiring Arcus, after achieving an FDA approval milestone, to maintain either a minimum market capitalization with sufficient qualified cash, higher levels of qualified cash alone, or to meet defined net product revenue thresholds, effectively tightening financial discipline as the company advances its late-stage programs and approaches potential commercialization.

Arcus Biosciences Ends Phase 3 STAR-221 Study

On December 12, 2025, Arcus Biosciences announced the discontinuation of its Phase 3 STAR-221 study due to futility, as the combination of domvanalimab and zimberelimab with chemotherapy did not improve overall survival compared to nivolumab with chemotherapy in treating advanced gastric and esophageal cancers. The company, in collaboration with Gilead Sciences, will focus on analyzing these results and redirecting its R&D efforts towards casdatifan, a potential best-in-class HIF-2a inhibitor, and other emerging programs, with sufficient funding expected to last until at least the second half of 2028.

Arcus Biosciences Completes Successful Stock Offering

Arcus Biosciences, Inc. recently completed a public offering of its common stock, selling a total of 15,755,000 shares at $18.25 per share, including the full exercise of the underwriters’ option. The offering, which closed on November 3, 2025, generated approximately $269.7 million in net proceeds for the company, after accounting for underwriting discounts, commissions, and estimated expenses.

Arcus Biosciences Reports Promising Phase 2 Study Results

On October 12, 2025, Arcus Biosciences announced the first overall survival results from the Phase 2 EDGE-Gastric study, showing promising efficacy of the domvanalimab plus zimberelimab and chemotherapy regimen in patients with advanced gastric and esophageal cancers. The study, which evaluated 41 patients, demonstrated sustained efficacy across all PD-L1 subgroups with a median overall survival of 26.7 months and a favorable safety profile, indicating potential advancements in cancer treatment options.

Arcus Biosciences Presents Promising ARC-20 Study Data

On October 6, 2025, Arcus Biosciences presented updated data from its ARC-20 Phase 1/1b study, which evaluates the efficacy and safety of casdatifan in patients with metastatic clear cell renal cell carcinoma. The data, as of August 15, 2025, showed promising results in terms of progression-free survival and disease control rates, with no unexpected safety concerns. Additionally, Arcus announced plans to expand into immunology and inflammation, with potential new drug candidates targeting conditions such as atopic dermatitis, rheumatoid arthritis, and multiple sclerosis, aiming to initiate clinical studies in 2026.