Education
About Us
Working with TipRanks
Follow Us
Arcus Biosciences Inc (RCUS)
NYSE:RCUS
Top Page
Arcus Biosciences
(NYSE:RCUS)
Select Model
Select Model
Rating:53Neutral
Price Target:
$20.50
▲(4.91% Upside)
Action:ReiteratedDate:02/26/26
The score is held down primarily by weak financial performance (large losses and significant cash burn) and only moderate valuation support (negative P/E, no dividend). Offsetting this, the latest earnings call pointed to strong clinical progress and a sizable cash runway, while technical indicators remain neutral-to-soft and recent corporate events are mixed (facility extension vs Phase 3 discontinuation).
Positive Factors
Robust cash runway
A ~$1.0B cash balance funding operations into H2 2028 materially lowers near-term financing pressure and gives management flexibility to complete key Phase III programs, support enrollment, and prepare commercialization activities. This durable liquidity buffer reduces execution risk over the next 2–3 years.
Clinical differentiation of casdatifan
Improved monotherapy ORR and a median PFS of 15.1 months indicate meaningful clinical differentiation versus class comparators. Durable efficacy supports potential label advantages, a TKI‑sparing frontline strategy, and a stronger commercial proposition if Phase III confirms these outcomes, underpinning long‑term revenue potential.
ARC‑20 development platform
An efficient internal platform that accelerates cohort expansion and dose finding shortens development timelines and lowers execution risk for combination strategies. This operational advantage improves the company's ability to iterate quickly, prioritize promising regimens, and reach Phase III starts sooner than rivals.
Negative Factors
High cash burn and negative FCF
Large negative operating and free cash flow in 2025 signal a worsening cash burn profile despite the current runway. Sustained negative cash generation increases the likelihood of future financing, which could be dilutive or restrictive, and raises funding risk if development spend or enrollment needs accelerate.
Concentrated, high R&D expense
Heavy R&D spending focused on multiple late‑stage trials creates sustained operating outflows and execution exposure. If enrollments slip or futility analyses trigger program pauses, the company may need to reallocate resources or raise capital, which could delay development timelines and strain financial flexibility.
Pipeline concentration and recent Phase III discontinuation
Ending STAR‑221 narrows late‑stage diversification and increases the company's reliance on casdatifan and a smaller number of programs. That concentration raises binary outcome risk: commercial and clinical success of casdatifan becomes essential, and competition (e.g., belzutifan) heightens the risk to long‑term revenue and strategic optionality.
Arcus Biosciences (RCUS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.50B
Dividend YieldN/A
Average Volume (3M)939.86K
Price to Earnings (P/E)―
Beta (1Y)2.00
Revenue Growth-8.75%
EPS Growth-8.79%
CountryUS
Employees627
SectorHealthcare
Sector Strength45
IndustryBiotechnology
Share Statistics
EPS (TTM)-0.89
Shares Outstanding123,728,540
10 Day Avg. Volume1,134,889
30 Day Avg. Volume939,857
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/Revenue7.80
Enterprise Value/Gross ProfitN/A
Enterprise Value/Ebitda-4.99
Forecast
1Y Price Target
$29.88Price Target Upside52.92% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering8
EPS Forecast (FY)-4.11
Revenue Forecast (FY)$101.38M
Arcus Biosciences Business Overview & Revenue Model
Company DescriptionArcus 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 MoneyArcus 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 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.Q4-2025 Updates
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).
Strong and Durable PFS Results
100 mg cohort median PFS of 15.1 months (median follow-up 17.8 months). Pooled median PFS 12.2 months. These PFS outcomes are ~2–3x longer than the 5.6 months reported for belzutifan in the same late-line setting (15.1 vs 5.6 months ≈2.7×).
Low Primary Progression Rates Supporting TKI‑Sparing Frontline Strategy
CAS shows consistently low primary progression across cohorts (example: CAS + zim cohort primary progression 9% for first 23/30 patients). By contrast, belzutifan monotherapy has a 35% primary progression rate in its Phase III trial — an absolute reduction of ~26 percentage points (≈74% relative reduction) vs belzutifan.
ARC‑20 Platform Enables Rapid Development and Dose Optimization
ARC‑20 provided 121 late‑line monotherapy patient data supporting 100 mg QD as the optimal dose, rapid addition of ~90 patients across new cohorts, and ~30 active sites in 4 countries to accelerate combo cohorts and support Phase III starts (PEAK‑1 and frontline cohorts).
PEAK‑1 Phase III Enrolling; Fast‑to‑Market Design
PEAK‑1 (casdatifan + cabozantinib vs cabozantinib) is actively enrolling with a sole primary endpoint of PFS to shorten time to readout; company expects to complete enrollment by year‑end and views this as a high‑confidence, fast‑to‑market strategy in IO‑experienced ccRCC (~21,000 patients in major markets targeted for PEAK‑1).
Significant Commercial Opportunity Quantified
Management estimates casdatifan peak sales of ~$2.5B in the IO‑experienced (PEAK‑1) setting alone and ~$3B+ in first line, totaling a potential >$5B opportunity in 1st/2nd line RCC; current marketed belzutifan run‑rate ~ $1B validates class opportunity.
Robust Cash Position and Runway
Cash of $1.0 billion at end of Q4 vs $841 million at end of Q3 (+$159M, ≈18.9% increase), bolstered by $288M financing in November. Company expects cash and investments to fund operations until at least the second half of 2028.
Q4 Financials and 2026 Guidance
Q4 GAAP revenue of $33M vs $26M in Q3 (+$7M, ≈26.9% QoQ). Q4 R&D expense decreased to $121M from $141M in Q3 (≈‑14.2% QoQ). Company guides 2026 GAAP revenue of $45M–$55M and expects operating expenses to decrease meaningfully in 2026.
Advancing Immunology Pipeline with Near‑Term Clinic Entry
Three advanced I&I programs highlighted: MRGPRX2 antagonist expected to enter clinic later this year (Phase I healthy volunteers then proof‑of‑concept in chronic inducible urticaria with potential PoC in 9–12 months); selective TNF receptor‑1 inhibitor expected in clinic late 2026/early 2027 — both positioned for differentiation vs biologics.
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.
AstraZeneca Volru Combination Pause and Immune AE Concerns
The AstraZeneca study with volru (anti‑PD‑1/CTLA‑4 bispecific) was paused and later dosed down; immune AEs were observed that were characterized as volru/anti‑CTLA‑4 like. While no new immune AEs observed after dose reduction and no primary progression seen, the collaboration remains under active discussion and timing/plans are uncertain.
Competition and Benchmark Risk from Merck's Belzutifan Program
Merck is slightly ahead in the HIF‑2 inhibitor field and will present LITESPARK‑011 belzutifan + lenvatinib data at ASCO‑GU; strong Merck data could raise the competitive bar and enrollment dynamics despite Arcus' claimed differentiation — competitive risk remains meaningful in a two‑player class.
High Ongoing R&D Spend Concentrated in Late‑Stage Programs
Despite QoQ reduction, Q4 R&D expense remained high at $121M and total operating spend is significant while multiple large Phase III programs and expansion cohorts are being resourced — creates execution and financing risk if timelines slip or readouts are unfavorable.
Revenue Concentration and Modest Near‑Term Revenue Base
Q4 GAAP revenue of $33M is primarily driven by collaboration with Gilead, indicating revenue concentration. 2026 GAAP revenue guidance ($45M–$55M) remains modest relative to development spend and commercialization ambitions.
Dependence on Successful Timely Enrollment and Readouts
PEAK‑1 and frontline Phase III plans (one frontline Phase III targeted to start by year‑end) depend on rapid enrollment, supportive interim cohorts and external validation (e.g., LITESPARK data). Any enrollment delays, regulatory or competitive shifts could materially impact timelines and near‑term outlook.
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
Revenue has scaled meaningfully since 2022, and leverage is moderate (low debt vs equity). However, results are dominated by large, widening net losses and heavy cash burn (2025 operating cash flow and free cash flow deeply negative), increasing funding risk despite the balance-sheet leverage profile.Income Statement
Revenue has scaled meaningfully since 2022 (2023: $117M → 2024: $258M; 2025: $247M), but profitability remains weak and volatile. The company swung from profit in 2021 (net income $53M) back to sizable losses in 2022–2025, with 2025 net income at -$353M and negative profitability on sales. Overall, improving top-line traction is outweighed by persistently high operating costs and deep losses.28
Negative
Balance Sheet
Leverage is moderate with 2025 total debt of $99M against $631M of equity (debt-to-equity ~0.16), suggesting the balance sheet is not heavily debt-burdened. However, repeated large losses are reflected in consistently negative returns on equity (2025 ROE about -0.56), indicating ongoing erosion of shareholder value if losses persist.62
Positive
Cash Flow
Cash generation is a key concern: 2025 operating cash flow was -$482M and free cash flow was -$484M, a sharp deterioration versus 2024 (-$170M) and well below the positive outlier year in 2022. Free cash flow has generally tracked net income (both negative recently), reinforcing that losses are translating into cash burn and increasing funding risk if the trend continues.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 | 0.00 | 258.00M | 117.00M | 112.00M | 383.00M |
| EBITDA | -386.00M | -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
Negative
19.54
Price Trends
21.63
Negative
20.87
Negative
15.42
Positive
Market Momentum
-0.66
Negative
43.33
Neutral
50.03
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RCUS, the sentiment is Negative. The current price of 19.54 is below the 20-day moving average (MA) of 20.33, below the 50-day MA of 21.63, and above the 200-day MA of 15.42, indicating a neutral trend. The MACD of -0.66 indicates Negative momentum. The RSI at 43.33 is Neutral, neither overbought nor oversold. The STOCH value of 50.03 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for RCUS.
Arcus Biosciences Risk Analysis
Arcus Biosciences disclosed 60 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 | $3.41B | -21.12 | -22.03% | ― | ― | -123.65% | |
53 Neutral | $2.50B | -5.91 | -63.26% | ― | -8.75% | -8.79% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
51 Neutral | $1.13B | -4.30 | -96.11% | ― | ― | 31.16% | |
49 Neutral | $404.05M | -9.46 | -33.63% | ― | ― | -5.71% | |
47 Neutral | $690.31M | -2.29 | -90.88% | ― | ― | -15.77% |
* Healthcare Sector Average
RCUS
Arcus Biosciences
19.54
8.65
79.43%
AVXL
Anavex Life Sciences
4.46
-3.45
-43.62%
SYRE
Spyre Therapeutics
43.15
23.45
119.04%
REPL
Replimune Group
7.69
-4.99
-39.35%
SANA
Sana Biotechnology
4.27
1.66
63.60%
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 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.
The most recent analyst rating on (RCUS) stock is a Buy with a $30.00 price target. To see the full list of analyst forecasts on Arcus Biosciences stock, see the RCUS Stock Forecast page.
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 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.
The most recent analyst rating on (RCUS) stock is a Buy with a $30.00 price target. To see the full list of analyst forecasts on Arcus Biosciences stock, see the RCUS Stock Forecast page.
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.