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Arcus Biosciences
(NYSE:RCUS)
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Rating:54Neutral
Price Target:
$28.00
▼(-1.48% Downside)
Action:Reiterated
Date:08/06/26
The score is held back primarily by weak financial performance (large losses and substantial ongoing cash burn) and limited valuation support (negative earnings, no dividend). Offsetting these, the latest earnings call was constructive with defined clinical timelines, updated revenue guidance, and a stated cash runway into at least H2 2028, while technicals appear neutral-to-slightly positive with a longer-term uptrend but muted near-term momentum.
Positive Factors
Cash runway and liquidity
A $775M cash position and guidance to end 2026 with roughly $600M, providing runway into at least H2 2028, meaningfully reduces near‑term financing pressure. This durable liquidity allows management to fund registrational trials, multiple INDs and business development without immediate dilution if timelines hold.
Negative Factors
High and sustained cash burn
Very large negative operating and free cash flow (~-$474M TTM) signal persistent burn that will erode reserves absent product revenues. Over multiple quarters this increases dependency on capital markets or partners, raises dilution risk, and constrains strategic flexibility if clinical or regulatory timelines slip.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash runway and liquidity
A $775M cash position and guidance to end 2026 with roughly $600M, providing runway into at least H2 2028, meaningfully reduces near‑term financing pressure. This durable liquidity allows management to fund registrational trials, multiple INDs and business development without immediate dilution if timelines hold.
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.
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The Fly
The FlyArcus Biosciences (RCUS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.76B
Dividend YieldN/A
Average Volume (3M)1.39M
Price to Earnings (P/E)―
Beta (1Y)1.66
Revenue Growth-55.34%
EPS Growth-23.18%
CountryUS
Employees601
SectorHealthcare
Sector Strength45
IndustryBiotechnology
Share Statistics
EPS (TTM)-3.93
Shares Outstanding127,333,374
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
$38.44Price Target Upside35.27% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering10
EPS Forecast (FY)-3.6
Revenue Forecast (FY)$81.39M
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:Aug 05, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 10, 2026
Earnings Call Sentiment Positive
The call emphasized multiple substantial clinical and business positives: strong translational validation (Nature paper), robust development progress for casdatifan with clear registrational timelines (PEAK‑1 enrollment on track and PEAK‑20 planned), multiple strategic collaborations, a broad immunology pipeline with near‑term IND milestones (AB102, TNFR1), and a solid cash runway into H2 2028. Key near‑term risks include a meaningful quarter‑over‑quarter cash reduction (~11.5%), expected declines in collaboration revenue from the Gilead wind‑down, high R&D spend with planned concentration (>80%) on casdatifan by 2027, and dependence on upcoming clinical readouts to validate the growth and revenue thesis. On balance, the highlights — clinical progress, partnerships, translational evidence, and adequate runway — outweigh the lowlights, which are primarily financial/timing and execution risks.Positive Updates
Casdatifan Market Opportunity and Peak Sales Outlook
Management projects a total peak sales opportunity for casdatifan of $5–$10 billion, citing RCC sales in major markets expected to reach roughly $13 billion by 2030. Specific line opportunities highlighted: ~20,000 IO‑experienced patients (~$2B opportunity) and >$4B first‑line opportunity.
Negative Updates
Quarterly Cash Decline
Cash and investments decreased from $876M at the end of Q1 to $775M at June 30, 2026 — a decline of $101M (~11.5%) quarter‑over‑quarter, though management still forecasts runway into H2 2028.
Read all updates
Q2-2026 Updates
Positive
Negative
Casdatifan Market Opportunity and Peak Sales Outlook
Management projects a total peak sales opportunity for casdatifan of $5–$10 billion, citing RCC sales in major markets expected to reach roughly $13 billion by 2030. Specific line opportunities highlighted: ~20,000 IO‑experienced patients (~$2B opportunity) and >$4B first‑line opportunity.
Read all positive updates
Company Guidance
Management provided specific near- and medium-term guidance: as of June 30, 2026 Arcus had $775M cash and investments (down from $876M at March 31), expects to end 2026 with ~ $600M and to have runway into at least H2 2028; Q2 GAAP revenue was $41M with full-year 2026 GAAP revenue guided to $65–75M; Q2 R&D expense was $113M (net) with R&D expected to meaningfully decline in 2026–27 and >80% of 2027 portfolio spend directed to casdatifan, G&A was $24M and non-cash stock‑based comp $15M in Q2. Clinical and commercial timelines: PEAK‑1 (cas + cabozantinib) remains on track to complete enrollment by year‑end 2026, PEAK‑20 (first‑line registrational trial) to start by year‑end 2026, ARC‑20 will deliver a broad October data package from >200 patients (including a first‑line cas+zim cohort with 30 patients and a 7% primary progression rate, a cas+zim ORR readout with ~11 months follow‑up, a second‑line cas+cabo cohort of ~45 patients with ≥18 months follow‑up, and ~120 late‑line monotherapy patients with ~28 months median follow‑up), PRISM‑1 (quemliclustat in pancreatic cancer) is expected to read out in H1 next year, AB102 dosing begins this month with PK data in Q4 and a TNFR1 program entering clinic in early 2027. Finally, market and value context: Arcus projects RCC sales in major markets to reach ~$13B by 2030, estimates PEAK‑1 addresses ~20,000 IO‑experienced patients (> $2B opportunity), first‑line > $4B, and total peak sales opportunity for casdatifan of $5–10B.Arcus Biosciences Financial Statement Overview
Summary
Income Statement
24
Negative
Balance Sheet
56
Neutral
Cash Flow
18
Very Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 117.00M | 247.00M | 258.00M | 117.00M | 112.00M | 383.00M |
| Gross Profit | 110.00M | 237.00M | 258.00M | 117.00M | 112.00M | 383.00M |
| EBITDA | -419.00M | -335.00M | -269.00M | -291.00M | -258.00M | 59.00M |
| Net Income | -452.00M | -353.00M | -283.00M | -307.00M | -267.00M | 53.00M |
Balance Sheet | ||||||
| Total Assets | 924.00M | 1.14B | 1.15B | 1.09B | 1.34B | 1.59B |
| Cash, Cash Equivalents and Short-Term Investments | 702.00M | 981.00M | 978.00M | 759.00M | 1.01B | 499.31M |
| Total Debt | 114.00M | 112.00M | 60.00M | 11.00M | 120.00M | 121.99M |
| Total Liabilities | 460.00M | 508.00M | 665.00M | 633.00M | 688.00M | 750.45M |
| Stockholders Equity | 464.00M | 631.00M | 485.00M | 462.00M | 657.00M | 841.45M |
Cash Flow | ||||||
| Free Cash Flow | -475.00M | -484.00M | -176.00M | -330.00M | 432.00M | -282.25M |
| Operating Cash Flow | -474.00M | -482.00M | -170.00M | -306.00M | 438.00M | -256.17M |
| Investing Cash Flow | 63.00M | 66.00M | -84.00M | 194.00M | -413.00M | -3.87M |
| Financing Cash Flow | 313.00M | 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 |
|---|---|---|---|---|---|---|---|
62 Neutral | $2.82B | -7.88 | -76.09% | ― | -58.40% | -31.99% | |
56 Neutral | $1.72B | -10.65 | -28.66% | ― | -28.56% | 10.25% | |
54 Neutral | $3.76B | -7.52 | -87.98% | ― | -55.34% | -23.18% | |
52 Neutral | $4.00B | -41.30 | -8.70% | ― | 59.59% | 71.96% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
48 Neutral | $1.80B | -194.40 | -2.35% | ― | 20.19% | ― | |
46 Neutral | $5.25B | -11.40 | -24.39% | ― | -64.80% | 12.20% |
* Healthcare Sector Average
RCUS
Arcus Biosciences
29.51
19.42
192.47%
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52.97
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NRIX
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26.93
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IMCR
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36.02
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10.86%
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.