Arcus Biosciences Inc
Q3 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: −1.04%.
Did RCUS Beat Earnings? Q3 2025 Results
Arcus Biosciences delivered a stronger-than-expected third quarter for fiscal 2025, beating both earnings and revenue estimates even as the clinical-stage oncology company absorbed a widening net loss and a sharp year-over-year revenue decline. The company posted revenue of $26.00 million, clearing the $20.25 million consensus by 28.40%, while its loss of $1.27 per share came in slightly better than the $1.29 consensus estimate, a 1.57% positive surprise. Revenue fell 45.8% from the year-ago quarter's $48.00 million, a drop largely explained by the absence of a one-time $15.00 million license payment from Taiho's prior-year quemliclustat option exercise and lower Gilead collaboration revenues. Net loss widened to $135.00 million as R&D expenses climbed to $141.00 million, driven by accelerating enrollment in the pivotal PEAK-1 and PRISM-1 trials for casdatifan and quemliclustat. The company ended the quarter with $841.00 million in cash, which management said is sufficient to fund operations through multiple Phase 3 data readouts anticipated across 2026, and guided full-year 2025 revenue of $225.00 million to $235.00 million, with R&D costs expected to ease beginning in Q4.
- Revenue decline driven by absence of prior-year $15 million Taiho license revenue and lower Gilead collaboration revenues
- R&D expense increase driven by PRISM-1 and PEAK-1 enrollment and start-up activities
- G&A expense decrease driven by lower stock-based compensation
“Data from the ARC-20 study demonstrate that casdatifan has a best-in-class profile, based on a meaningfully higher response rate and longer PFS relative to data for the only marketed HIF-2a inhibitor. With our global Phase 3 PEAK-1 study now enrolling, and based on the encouraging, emerging data from cohorts evaluating casdatifan-based regimens in early-line settings, we are extremely excited about the potential for casdatifan to be a transformative therapy in clear cell renal cell carcinoma (ccRCC). We remain well capitalized and funded through readout of multiple Phase 3 trials, and we are looking forward to a steady cadence of key data events in 2026 and beyond.”
Arcus Biosciences CEO, on the earnings call
Forward Guidance & Outlook
Arcus expects full-year 2025 GAAP revenue of between $225 million and $235 million. R&D expenses are expected to decline starting in Q4 2025 as costs related to the domvanalimab Phase 3 development program decrease significantly. The company believes its $841 million in cash, cash equivalents and marketable securities, together with available facilities, will be sufficient to fund operations through initial pivotal readouts for domvanalimab, quemliclustat and casdatifan, including PEAK-1. Multiple key data readouts are planned for 2026: additional ARC-20 late-line monotherapy analyses in 1H 2026, casdatifan plus cabozantinib data in mid-2026, early-line ccRCC cohort data in 2H 2026, eVOLVE-RCC02 Phase 1b data and go/no-go decision in 2H 2026, and STAR-221 Phase 3 data in 2026. The company plans to initiate a Phase 3 study in early-line ccRCC in the second half of 2026.
RCUS YoY Financials
RCUS Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.