Arcus Biosciences(RCUS) - 2025 Q4 - Annual Results

Financial Performance - Arcus reported revenues of $33 million for Q4 2025, a decrease from $36 million in Q4 2024, with $23 million from Gilead collaboration and $7 million from Taiho's option exercise[17]. - The net loss for Q4 2025 was $106 million, compared to a net loss of $94 million in Q4 2024[17]. - Total revenues for Q4 2025 were $33 million, a decrease of 8.3% from $36 million in Q4 2024[22]. - Basic and diluted net loss per share improved slightly to $(0.89) in Q4 2025 from $(1.03) in Q4 2024[22]. - GAAP revenue for the full year 2026 is projected to be between $45 million and $55 million[17]. Research and Development - Research and Development (R&D) expenses increased to $121 million in Q4 2025 from $111 million in Q4 2024, driven by higher late-stage development costs[17]. - Arcus anticipates a decrease in R&D expenses for the full year 2026 compared to 2025, influenced by the results of the futility analysis of the STAR-121 study[17]. - Research and development expenses for the year ended December 31, 2025, were $523 million, up from $448 million in 2024, indicating a continued focus on innovation[22]. - The Phase 3 PEAK-1 study for casdatifan is currently enrolling globally, targeting a peak sales opportunity exceeding $5 billion in the IO-experienced and first-line settings[3]. - Casdatifan demonstrated a median progression-free survival (PFS) of 15.1 months and a confirmed overall response rate (cORR) of 45% in late-line kidney cancer[6]. - Arcus plans to initiate a Phase 3 study for casdatifan in a TKI-free combination by the end of 2026, focusing on first-line metastatic settings[6]. - The company expects to advance its first inflammation program, a potential oral MRGPRX2 antagonist, into clinical development in 2026[12]. Financial Position - Arcus has $1.0 billion in cash, cash equivalents, and marketable securities as of December 31, 2025, up from $992 million in 2024, providing a cash runway until at least the second half of 2028[17]. - Cash, cash equivalents, and marketable securities increased to $1,010 million as of December 31, 2025, compared to $992 million a year earlier[24]. - Total assets decreased to $1,139 million in 2025 from $1,150 million in 2024[24]. - Total liabilities decreased significantly from $665 million in 2024 to $508 million in 2025, indicating improved financial health[24]. - Total stockholders' equity increased to $631 million in 2025, up from $485 million in 2024, reflecting a strong capital position[24]. Operating Expenses - Total operating expenses rose to $147 million in Q4 2025, up from $139 million in Q4 2024, primarily driven by increased research and development costs[22].