Key Highlights

  • Third quarter Revenue was USD 9 million against a USD 7.58 million estimate and USD 26 million last year.
  • Net loss per share was USD 1.00 against an estimate of USD 0.89 and USD 1.27 last year.
  • Net loss for the quarter was USD 128 million, compared with USD 135 million a year earlier.
  • An October offering raised approximately USD 288 million gross, and management said cash would fund planned operations into 2029.

Arcus Biosciences (NYSE:RCUS) closed its third quarter with revenue of USD 9 million, drawn entirely from research, collaboration and license arrangements, since the company has no product sales. The net loss was USD 128 million, or USD 1.00 per share, while the estimate stood at a loss of USD 0.89 per share. The period also included the end of Gilead's option rights under a 2020 agreement and new casdatifan data from the ARC-20 platform study.

Revenue

Total revenue was USD 9 million, compared with USD 26 million in the third quarter of 2025 and an estimate of USD 7.58 million. License and development services revenue was USD 8 million against USD 20 million a year earlier, and other collaboration revenue was USD 1 million against USD 6 million. The company said the lower figure mainly reflected Gilead collaboration activities winding down or reaching completion, partly offset by programs under the Taiho collaboration.

Gilead accounted for 78% of third quarter revenue, against 100% in the prior-year quarter. For the first nine months, revenue was USD 67 million against USD 214 million, a period that last year included a cumulative catch-up of USD 143 million after Gilead returned its license to the etrumadenant program.

Net Loss and Spending

Research and development expenses were USD 117 million against USD 141 million, and general and administrative expenses were USD 23 million against USD 27 million. Management tied the research decline to the wind-down of Phase 3 domvanalimab studies and the completion of enrollment in PRISM-1, partly offset by rising activity in the casdatifan Phase 3 program.

The loss from operations was USD 131 million, against USD 142 million.

Cash and Balance Sheet Ahead of the October Offering

At September 30, cash and cash equivalents were USD 151 million, marketable securities were USD 479 million and long-term marketable securities were USD 64 million. Long-term Debt was USD 102 million, under a Hercules Facility of USD 250 million of which USD 100 million has been drawn. Net cash used in Operating Activities for the nine months was USD 345 million, against USD 362 million a year earlier.

In October, the company sold 16.4 million shares at USD 17.50 each, for approximately USD 288 million in gross proceeds before fees. Management said that cash, cash equivalents and marketable securities, together with those proceeds, would be sufficient to fund planned operations into 2029.

Metrics to Track

Revenue of USD 9 million sits alongside a net loss of USD 128 million, cash and cash equivalents of USD 151 million and gross offering proceeds of approximately USD 288 million. Management pointed to casdatifan as the centre of its development spending, with the Phase 3 PEAK-1 trial led by the company and Taiho holding rights in Japan and other parts of Asia. In October it reported ARC-20 results, including a confirmed objective response rate of 50% for casdatifan plus zimberelimab in first-line clear cell renal cell carcinoma.

The company also named a new ARC-20 cohort with ivonescimab under a July clinical collaboration, and a cohort combining casdatifan with tivozanib under a Supply agreement. Gilead retains time-limited Options to AB801, AB598 and a TNF small-molecule inhibitor, and the discontinued PACIFIC-8 study ended with a termination agreement with AstraZeneca in August.