Arcus Biosciences (RCUS) Q1 2026 earnings summary

Executive summary

• Full ownership and advancement of casdatifan as a foundational therapy in clear cell RCC, with plans for first HIF-2a inhibitor-based, TKI-free regimen in first-line setting by year-end 2026 and expansion into inflammation and immunology.

• Robust late-stage oncology and emerging immunology portfolio, including two Phase 3 oncology programs (casdatifan and quemliclustat) and multiple first-in-human immunology assets (AB102, TNF inhibitor, CCR6 antagonist) entering the clinic by 2027.

• Discontinued Phase 3 STAR-121 study for domvanalimab in NSCLC after futility analysis, with wind-down of anti-TIGIT program.

• Gilead's option rights to new programs expire July 2026, limiting future collaboration scope.

• Net loss for Q1 2026 was $128 million, with no product sales revenue and all revenue from collaborations.

Financial highlights

• Q1 2026 GAAP revenue was $17 million, primarily from collaboration agreements, down 39% year-over-year.

• Cash, cash equivalents, and marketable securities totaled $876 million as of March 31, 2026, with a runway into the second half of 2028 and projected year-end 2026 cash of ~$600 million.

• R&D expenses for Q1 2026 were $122 million; G&A expenses were $29 million, with non-cash stock-based compensation of $19 million.

• Net loss per share was $1.02 (basic and diluted), with 125.5 million shares outstanding at quarter-end.

• Full-year 2026 GAAP revenue expected to be $50–$65 million.

Outlook and guidance

• Cash runway expected to fund operations until at least the second half of 2028, with no anticipated need for additional financing before then.

• R&D expenses projected to decline near-term as domvanalimab studies wind down, partially offset by increased investment in casdatifan and immunology programs.

• Multiple late-stage clinical trial milestones expected: PEAK-1 Phase III for casdatifan to complete enrollment by year-end 2026, first-line Phase III to begin by year-end, and PRISM-1 Phase III for quemliclustat fully enrolled with results expected in H1 2027.

• AB102 to enter clinic in Q3 2026, with proof-of-concept data anticipated in early 2027; TNF inhibitor and CCR6 antagonist to enter clinic in 2027.

• No impact on financial guidance or runway from current clinical development plans.