Arcus Biosciences, Inc., a clinical-stage biopharmaceutical company, develops and commercializes cancer therapies in the United States. The company’s development product portfolio includes ...
Arcus Biosciences, Inc. is a clinical-stage biopharmaceutical company headquartered in Hayward, California, founded in 2015 by CEO Terry Rosen and others. The company develops differentiated molecules and combination therapies for cancer, particularly in immuno-oncology. Their pipeline includes Casdatifan, a HIF-2a inhibitor for kidney cancer; Domvanalimab, an anti-TIGIT antibody in Phase ...Arcus Biosciences, Inc. is a clinical-stage biopharmaceutical company headquartered in Hayward, California, founded in 2015 by CEO Terry Rosen and others. The company develops differentiated molecules and combination therapies for cancer, particularly in immuno-oncology. Their pipeline includes Casdatifan, a HIF-2a inhibitor for kidney cancer; Domvanalimab, an anti-TIGIT antibody in Phase 2/3 trials; Zimberelimab, an anti-PD-1 antibody; Quemliclustat, a CD73 inhibitor; and early-stage assets like AB598 and AB801. They have collaborations with AstraZeneca for pivotal trials. Financially, the company has a market cap around $3.6 billion, with significant R&D spending (R&D to revenue ratio of 4.248), and is not yet profitable, with negative margins. The company has 591 employees as of 2026. Their focus is on innovative cancer treatments, aiming to improve outcomes for patients.
YoYYoY means Year-over-Year. It compares the latest annual value with the previous annual value to show long-term trend strength.
QoQQoQ means Quarter-over-Quarter. It compares the latest quarter with the immediately previous quarter to show short-term momentum changes.
RevenueThe total money that came through the front door from selling things, before paying a single bill. Think of it as the grand total of every credit card swipe from customers. (YoY compares this year to last year's performance, while QoQ compares the current three months to the previous three).
$247.0M
-4.3%
+141.2%
Net IncomeThe absolute bottom line. If the company paid every single supplier, employee, banker, and tax collector, this is the actual money left in their pocket at the end of the day.
$-353.0M
-24.7%
+28.9%
Gross MarginThe basic markup. If they sell a $100 pair of sneakers, this percentage tells you how much of that price tag is profit right after paying for the rubber and shoelaces, but before paying for things like store rent or TV commercials.
+96.0%
-4.0%
+13.3%
Operating MarginThe 'day job' efficiency score. Out of every dollar a customer spends, this shows how many cents the company keeps after making the product AND paying for all the everyday corporate overhead (like salaries, marketing, and keeping the lights on).
-156.3%
-22.2%
+70.3%
Net MarginThe final take-home percentage. When you strip away every conceivable cost, tax, and interest payment, this is the exact number of cents the company truly gets to keep from every dollar in sales.
-142.9%
-30.3%
+70.5%
Free Cash FlowThe holy grail of corporate cash. It's the spendable, physical money left over after the business pays for its daily operations AND buys the big, expensive upgrades (like new factories or servers) it needs to survive. This is the 'free' money they can use to pay dividends or buy back stock.
$-484.0M
-175.0%
+13.8%
FCF MarginThe ultimate cash conversion rate. It shows how good the company is at turning regular sales directly into cold, hard, spendable cash. A high percentage means the business is an absolute cash-printing machine.
-196.0%
-187.2%
+64.2%
Debt / EquityThe financial risk gauge. It compares how much of the company's empire was built using borrowed money (loans) versus the owners' own money (shareholders). A high number means they are heavily leveraged and playing a riskier game; a low number means they are playing it safe.
17.7%
+43.5%
+13.9%
Current RatioThe 12-month survival check. It simply compares the cash they have right now (plus things they can quickly turn into cash) against the immediate bills they absolutely must pay this year. A score above 1 means they have enough in the wallet to cover the upcoming bills without panicking.
4.36x
-3.0%
-5.5%
Total AssetsThe absolute size of the company's empire. It bundles together absolutely everything of value they own—from the cash in the register and the inventory in the warehouse, to the software patents in the vault and the factories on the ground.
Operator: Hello, everyone. Thank you for joining us and welcome to the Arcus' Second Quarter 2026 Earnings Call. After today's prepared remarks, we will host a question-and-answer session. [Operator Instructions] I will now hand the conference over to Pia Eaves, Vice President of Investor Relations. Pia, please go ahead.
Pia Eaves: Good afternoon, and thank you for joining us on today's conference call to discuss Arcus' second quarter 2026 financial results and pipeline updates. I'd like to remind you that on this call, management will make forward-looking statements, including statements about our development strategies and our expectations regarding advantages and opportunities afforded by our investigational products, our clinical development milestones and timelines, our projected cash runway, and our financial outlook. All statements other than historical facts reflect the current beliefs and expectations of management and involve risks and uncertainties that may cause our actual results to differ from those expressed. Those risks and uncertainties are described in our most recent quarterly report on Form 10-Q that has been filed with the SEC. For today's call, please refer to our latest corporate presentation posted in the Investors section of our website. This afternoon, you'll hear from our CEO, Terry Rosen, CMO, Richard Markus, President Juan Jaen, and CFO, Bob Goeltz. With that, I'll turn the call over to Terry.
Terry Rosen: Thank you very much, Pia, and thanks so much, everyone, for joining us this afternoon. We continue to make substantial progress in advancing our portfolio of oncology and immunology programs. Execution throughout the first half of the year has been tremendous, and this tangible productivity will be a focus of today's discussion. Our highest priority, no surprise, continues to be the advancement of casdatifan, which we believe has clear potential to be a $5 to $10 billion drug. The remainder of our pipeline has also been advancing quite well, and we're beginning to share the details and breadth of our other programs. These create a steady and sustainable stream of additional opportunities, as well as strategic optionality. So starting with casdatifan, our next-generation HIF-2-alpha inhibitor. The advancement of cas has driven reflection and value for Arcus, and we expect further data this year to accelerate this reflection. Our first Phase III trial, PEAK-1, evaluating cas plus cabozantinib, the gold standard of care in second-line clear cell RCC, has tremendous investigator enthusiasm, and we remain on track to complete enrollment by the end of this year. Last year, we presented a wealth of data that demonstrated clearly casdatifan's efficacy advantages over belzutifan. Over the next 6 months, we will share new data that will provide clear line of sight to casdatifan's full market potential. Based upon casdatifan's superior profile, as well as our development strategy, we expect cas to become the backbone therapy …
