Arcus Biosciences

Arcus Biosciences (RCUS) Q1 2025 Earnings

Reported May 6, 2025 at 4:09 PM ET · SEC Source

Q1 25 EPS

$-1.14

MISS 12.61%

Est. $-1.01

Q1 25 Revenue

$28.0M

MISS 27.47%

Est. $38.6M

vs S&P Since Q1 25

+214.7%

BEATING MARKET

RCUS +249.3% vs S&P +34.5%

Market Reaction

Did RCUS Beat Earnings? Q1 2025 Results

Arcus Biosciences delivered a sharp miss on both the top and bottom lines in Q1 2025, as the clinical-stage oncology company absorbed the reversal of a landmark licensing windfall that had inflated year-ago comparisons. Revenue collapsed 80.7% year o… Read more Arcus Biosciences delivered a sharp miss on both the top and bottom lines in Q1 2025, as the clinical-stage oncology company absorbed the reversal of a landmark licensing windfall that had inflated year-ago comparisons. Revenue collapsed 80.7% year over year to $28.00 million, falling 27.47% below the $38.61 million consensus, as license and development services revenue plunged to $20.00 million from $135.00 million in Q1 2024 following the prior year's Gilead agreement milestone. The net loss widened dramatically to $112.00 million, or $1.14 per share, missing the $1.01 consensus estimate by 12.61%, with rising R&D expenses of $122.00 million reflecting accelerated Phase 2 enrollment across its pipeline. On the forward outlook, management guided for full-year 2025 GAAP revenue of $75.00 million to $90.00 million, a range that analysts have already received with skepticism, with recent estimates for the year revised meaningfully lower. The company's $1.00 billion cash position is expected to fund operations through pivotal readouts for its three lead programs, including the PEAK-1 Phase 3 trial in renal cell carcinoma, set to initiate in Q2 2025.

Key Takeaways

  • Revenue decline driven by lower license and development services revenue from Gilead collaboration ($20M vs. $135M in Q1 2024)
  • R&D expense increase of $13M driven by higher enrollment in Phase 2 studies and early-stage/preclinical activities
  • G&A expense decrease driven by absence of one-time costs related to Third Gilead Agreement Amendment in Q1 2024
  • February 2025 underwritten equity offering bolstered cash position
24/7 Wall St

RCUS YoY Financials

Q1 2025 vs Q1 2024, source: SEC Filings

24/7 Wall St

RCUS Revenue by Segment

With YoY comparisons, source: SEC Filings

Q1 25 Q1 26

“Beginning with an oral presentation at ASCO for casdatifan in ccRCC, we expect to report a steady stream of data from ARC-20 throughout the remainder of 2025 and into 2026. We believe these data will support our robust development plan for casdatifan across multiple settings. This includes our Phase 3 trial, PEAK-1 in the IO-experienced setting, our clinical trial with AstraZeneca, which will combine casdatifan with their anti-PD-1/CTLA-4 bispecific antibody in the IO-naive setting, and three new cohorts in ARC-20 evaluating casdatifan in first- and second-line ccRCC.”

— Terry Rosen, Q1 2025 Earnings Press Release