Arcus Biosciences Inc (RCUS)
NYSE:RCUS
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Arcus Biosciences
(NYSE:RCUS)
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Rating:56Neutral
Price Target:
$24.50
▲(9.67% Upside)
Action:ReiteratedDate:03/03/26
The score is held back primarily by weak financial performance driven by large losses and heavy cash burn. Offsetting this, the earnings call pointed to strong clinical progress and a sizeable cash runway, while technicals show an improved price trend but mixed momentum; valuation is constrained by negative earnings and no dividend support.
Positive Factors
Clinical differentiation (casdatifan)
Sustained, materially longer median PFS (15.1 vs 5.6 months) signals clinical differentiation that can translate into durable competitive advantage, stronger regulatory and payer positioning, and higher adoption in target RCC settings, underpinning long-term commercial potential.
Negative Factors
Severe cash burn
Large negative operating and free cash flow magnitudes indicate ongoing funding needs; absent near-term commercialization or milestone receipts, the company remains dependent on financings or partnerships, increasing dilution and execution risk over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Clinical differentiation (casdatifan)
Sustained, materially longer median PFS (15.1 vs 5.6 months) signals clinical differentiation that can translate into durable competitive advantage, stronger regulatory and payer positioning, and higher adoption in target RCC settings, underpinning long-term commercial potential.
Read all positive factors
Arcus Biosciences (RCUS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.80B
Dividend YieldN/A
Average Volume (3M)1.21M
Price to Earnings (P/E)―
Beta (1Y)1.91
Revenue Growth-8.75%
EPS Growth-8.79%
CountryUS
Employees627
SectorHealthcare
Sector Strength45
IndustryBiotechnology
Share Statistics
EPS (TTM)-0.89
Shares Outstanding125,349,480
10 Day Avg. Volume896,424
30 Day Avg. Volume1,214,315
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 Cap0.76
Enterprise Value/Revenue8.61
Enterprise Value/Gross Profit8.79
Enterprise Value/Ebitda-6.75
Forecast
1Y Price Target
$35.56Price Target Upside59.18% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering10
EPS Forecast (FY)-3.96
Revenue Forecast (FY)$92.28M
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 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 biopharmaceutica...
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 Earnings Call Summary
Earnings Call Date:Feb 25, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 12, 2026
Earnings Call Sentiment Positive
The call conveyed strong clinical momentum for casdatifan — notably improved ORR (45% at 100 mg QD), durable PFS (median 15.1 months in the 100 mg cohort), low primary progression supporting a TKI‑sparing frontline strategy, an efficient ARC‑20 platform enabling rapid cohort expansion, a robust cash balance (~$1.0B) with runway into H2 2028, and near‑term clinic entry of immunology programs. Key risks discussed include an upcoming futility analysis (STAR‑121), a paused/dose‑reduced AstraZeneca volru combination with immune AE considerations, competition from Merck’s belzutifan program, and high ongoing R&D spend that depends on successful enrollment and readouts. On balance, the highlights (clinical differentiation, commercial opportunity, cash runway, and pipeline progress) strongly outweigh the manageable program and competitive risks.Positive Updates
Substantially Improved Monotherapy ORR at 100 mg QD
Confirmed ORR for the 100 mg once-daily casdatifan cohort increased from 35% (Aug data cut) to 45% (Jan 30 data cut) — an absolute increase of 10 percentage points (≈28.6% relative increase). Pooled confirmed ORR improved from 31% to 35% (4 percentage points, ≈12.9% relative).
Negative Updates
STAR‑121 Futility Analysis Creates Near‑Term Uncertainty
Management flagged an upcoming futility analysis for STAR‑121 in the next couple of months; results will influence 2026 R&D expense levels and could lead to study discontinuation — operational impact may be limited (study mostly enrolled) but introduces program uncertainty and potential spending shifts.
Read all updates
Q4-2025 Updates
Positive
Negative
Substantially Improved Monotherapy ORR at 100 mg QD
Confirmed ORR for the 100 mg once-daily casdatifan cohort increased from 35% (Aug data cut) to 45% (Jan 30 data cut) — an absolute increase of 10 percentage points (≈28.6% relative increase). Pooled confirmed ORR improved from 31% to 35% (4 percentage points, ≈12.9% relative).
Read all positive updates
Company Guidance
Management guided 2026 GAAP revenue of $45–55 million and said cash and investments of $1.0 billion at the end of Q4 (up from $841 million at end‑Q3 after a $288 million financing in November) should fund operations into at least the second half of 2028; Q4’25 GAAP revenue was $33 million (Q3 $26M), R&D expense was $121M (Q3 $141M), G&A $26M (Q3 $27M) and non‑cash stock‑based compensation $15M (Q3 $14M). They expect operating expenses to decrease meaningfully in 2026 versus 2025 (magnitude tied in part to an upcoming STAR‑121 futility analysis in the next few months) and will give more detailed R&D guidance on the Q1 call. Clinical and timing guidance included a goal to complete PEAK‑1 enrollment by year‑end, to initiate a frontline Phase III by year‑end, to advance two lead immunology programs into the clinic by early next year (within ~12 months), and to present at least two additional casdatifan data sets later in 2026 (including cas+cabo with ≥12 months follow‑up and cas+zim).Arcus Biosciences Financial Statement Overview
Summary
Income Statement
28
Negative
Balance Sheet
62
Positive
Cash Flow
24
Negative
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 247.00M | 258.00M | 117.00M | 112.00M | 383.00M |
| Gross Profit | 237.00M | 258.00M | 117.00M | 112.00M | 383.00M |
| EBITDA | -335.00M | -269.00M | -291.00M | -258.00M | 59.00M |
| Net Income | -353.00M | -283.00M | -307.00M | -267.00M | 53.00M |
Balance Sheet | |||||
| Total Assets | 1.14B | 1.15B | 1.09B | 1.34B | 1.59B |
| Cash, Cash Equivalents and Short-Term Investments | 981.00M | 978.00M | 759.00M | 1.01B | 499.31M |
| Total Debt | 99.00M | 60.00M | 11.00M | 120.00M | 121.99M |
| Total Liabilities | 508.00M | 665.00M | 633.00M | 688.00M | 750.45M |
| Stockholders Equity | 631.00M | 485.00M | 462.00M | 657.00M | 841.45M |
Cash Flow | |||||
| Free Cash Flow | -484.00M | -176.00M | -330.00M | 432.00M | -282.25M |
| Operating Cash Flow | -482.00M | -170.00M | -306.00M | 438.00M | -256.17M |
| Investing Cash Flow | 66.00M | -84.00M | 194.00M | -413.00M | -3.87M |
| Financing Cash Flow | 488.00M | 277.00M | 33.00M | 33.00M | 237.34M |
Arcus Biosciences Technical Analysis
Positive
22.34
Price Trends
21.46
Positive
22.21
Positive
17.40
Positive
Market Momentum
0.22
Negative
52.16
Neutral
79.90
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 22.34 is above the 20-day moving average (MA) of 21.88, above the 50-day MA of 21.46, and above the 200-day MA of 17.40, indicating a bullish trend. The MACD of 0.22 indicates Negative momentum. The RSI at 52.16 is Neutral, neither overbought nor oversold. The STOCH value of 79.90 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 |
|---|---|---|---|---|---|---|---|
59 Neutral | $4.03B | -45.32 | -29.44% | ― | ― | -123.65% | |
56 Neutral | $2.80B | -7.25 | -65.77% | ― | -8.75% | -8.79% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
46 Neutral | $273.38M | -13.95 | -38.76% | ― | ― | -5.71% | |
46 Neutral | $824.62M | -4.22 | -141.99% | ― | ― | 31.16% | |
44 Neutral | $393.05M | -3.16 | -102.69% | ― | ― | -15.77% |
* Healthcare Sector Average
RCUS
Arcus Biosciences
22.34
14.66
190.89%
AVXL
Anavex Life Sciences
2.95
-5.87
-66.55%
SYRE
Spyre Therapeutics
51.29
38.27
293.93%
REPL
Replimune Group
4.76
-2.75
-36.62%
SANA
Sana Biotechnology
3.09
1.28
70.72%
Arcus Biosciences Corporate Events
Business Operations and StrategyPrivate Placements and Financing
Arcus Biosciences Amends Loan Facility, Extends Maturity Terms
Positive
Dec 18, 2025
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...
Business Operations and StrategyProduct-Related Announcements
Arcus Biosciences Ends Phase 3 STAR-221 Study
Negative
Dec 12, 2025
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 ...
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.