Free cash flow burn intensified to -$257M in 2026Q2, driven by working capital swings and R&D spending, with no capital returns to shareholders and minimal capex reflecting an asset-light model.
Arcus Biosciences, Inc. (RCUS) cash flow statement — 10-year operating, investing & financing cash flows
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 |
|---|
| Cash from Operations | -612M | -482M | -170M | -306M | 438M | -256.17M | 111.17M | -73.46M | -43M | -25.06M | -12.94M |
| Operating CF Margin % | - | -195.14% | -65.89% | -261.54% | 391.07% | -66.89% | 142.53% | -489.75% | -514.74% | -1773.46% | - |
| Operating CF Growth % | -590.86% | -183.53% | 44.44% | -169.86% | 270.98% | -330.43% | 251.33% | -70.86% | -71.58% | -93.6% | - |
| Net Income | -452M | -353M | -283M | -307M | -267M | 52.83M | -122.86M | -84.71M | -49.59M | -53.08M | -17.97M |
| Depreciation & Amortization | 12M | 10M | 10M | 8M | 14M | 3.84M | 4.19M | 3.58M | 3.66M | 2.61M | 1.31M |
| Stock-Based Compensation | 82M | 60M | 76M | 73M | 65M | 55M | 22M | 8.98M | 3.87M | 495K | 90K |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | 4.77M | 0 | 0 | -2.1M | 416K | -90K |
| Other Non-Cash Items | 0 | -5M | 5M | -9M | 68M | 3.47M | -46K | -1.44M | -177K | -98K | 90K |
| Working Capital Changes | -118M | -194M | 22M | -71M | 623M | -375.62M | 208.06M | 125K | 1.33M | 24.6M | 3.62M |
| Change in Receivables | 12M | 9M | 28M | 15M | 704M | -17.05M | -917K | -49K | -58K | 380K | 0 |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 14.09M | 21.32M | 0 | 0 | 0 | 0 |
| Change in Payables | 10M | 24M | 3M | -1M | 8M | -4.77M | 9.27M | 1.73M | -69K | -267K | 3.57M |
| Cash from Investing | 177M | 66M | -84M | 194M | -413M | -3.87M | -434.37M | 59.21M | -113.44M | -49.07M | -38.86M |
| Capital Expenditures | -1M | -2M | -6M | -24M | -6M | -26.08M | -3.06M | -1.93M | -3.74M | -5.51M | -4.1M |
| CapEx % of Revenue | 0.85% | 0.81% | 2.33% | 20.51% | 5.36% | 6.81% | 3.92% | 12.83% | 44.81% | 390.23% | - |
| Acquisitions | 0 | 0 | 0 | 0 | 0 | -22M | 431M | 0 | 0 | 0 | -1M |
| Investments | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 0 | 0 | 0 | 0 | -3M | 22M | -431M | 0 | -109.7M | -43.56M | -1M |
| Cash from Financing | 316M | 488M | 277M | 33M | 33M | 237.34M | 438.68M | 1.12M | 129.07M | 107.4M | 70.1M |
| Debt Issued (Net) | 0 | 49M | 47M | 0 | 10M | 5M | 0 | 0 | 0 | 0 | 0 |
| Equity Issued (Net) | 316M | 439M | 228M | 25M | 23M | 220M | 434M | -94K | 125.11M | 106.88M | 69.82M |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | -6K | -54K | -94K | 0 | 0 | 0 |
| Other Financing | 0 | 0 | 2M | 8M | 0 | 12.34M | 4.67M | 1.22M | 3.96M | 519K | 283K |
| Net Change in Cash | -119M | 72M | 23M | -79M | 58.09M | -22.7M | 115.48M | -13.13M | -27.36M | 33.27M | 18.3M |
| Free Cash Flow | -613M | -484M | -176M | -330M | 432M | -282.25M | 108.11M | -75.39M | -46.74M | -30.57M | -17.04M |
| FCF Margin % | -523.93% | -195.95% | -68.22% | -282.05% | 385.71% | -73.69% | 138.61% | -502.58% | -559.55% | -2163.69% | - |
| FCF Growth % | -79.24% | -175% | 46.67% | -176.39% | 253.06% | -361.06% | 243.41% | -61.29% | -52.88% | -79.39% | - |
| FCF per Share | -4.86 | -4.51 | -1.95 | -4.46 | 6.00 | -3.82 | 1.97 | -1.72 | -1.35 | -1.25 | -0.69 |
| FCF Conversion (FCF/Net Income) | 1.36x | 1.37x | 0.60x | 1.00x | -1.64x | -4.83x | -0.90x | 0.87x | 0.87x | 0.47x | 0.72x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Quick answers to the most common questions about buying RCUS stock.
Arcus Biosciences, Inc. (RCUS) generated $-482.0M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Arcus Biosciences, Inc. (RCUS) reported negative free cash flow of $484.0M in 2025, indicating capital requirements exceeded cash from operations.
Arcus Biosciences, Inc. (RCUS) spent $2.0M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
Key Metrics
Top Statement Risk
Persistent cash burn and lumpy revenue
Metrics are mathematically derived from official filings.
Cash Conversion Distorted by Working Capital
In 2026Q2, operating cash outflow of $257M was 2.8 times the net loss of $91M, per reported figures, suggesting working capital swings, not earnings quality, drive cash conversion.
The OCF/NI ratio of 2.82 in 2026Q2 is misleading because it reflects a $78M working capital outflow, not operational deterioration. Excluding working capital changes, cash burn roughly aligns with net losses plus non-cash charges, indicating that reported losses are a reasonable proxy for underlying cash consumption. Investors should monitor working capital volatility, as it can temporarily distort quarterly cash conversion metrics.
Free Cash Flow Burn Intensifies
Free cash flow remained deeply negative, with 2026Q2 FCF of -$257M versus -$138M in the prior quarter, based on reported data, indicating accelerating cash consumption despite stable net losses.
The FCF margin worsened from -8.1% in 2026Q1 to -6.3% in 2026Q2, but the absolute burn increased by $119M quarter-over-quarter, driven by working capital outflows. This suggests that while the underlying operational burn is roughly $130-150M per quarter, working capital timing can add significant volatility. The company's cash runway appears limited unless additional financing or partnership milestones are secured.
Working Capital Swings Amplify Burn
Working capital changes swung from a $101M inflow in 2024Q3 to a $148M outflow in 2025Q2, per financial statements, indicating that cash flow volatility is largely a timing issue.
The large swings in working capital, particularly the $148M outflow in 2025Q2 and $78M outflow in 2026Q2, appear tied to milestone payments and receivables timing. These swings obscure the underlying operational burn, which is more consistent at around $100-130M per quarter. Investors should focus on the trend in operating cash flow excluding working capital to gauge the true cash needs of the business.
Minimal Capital Expenditure Reflects Asset-Light Model
Capital expenditures were negligible, averaging under $1M per quarter, as reported, indicating that the company's cash burn is driven by R&D and working capital, not fixed asset investment.
With CapEx/Revenue below 4% in all quarters, the company appears to rely on outsourced manufacturing and partnerships rather than building its own facilities. This asset-light approach means that cash burn is primarily a function of operating expenses, particularly R&D, which has consistently exceeded $100M per quarter. The lack of significant CapEx suggests that the company's future cash needs will be driven by clinical trial progress and commercialization readiness, not capital intensity.
No Capital Returns, All Cash to Operations
No dividends or buybacks were paid in any quarter, per reported data, indicating that all available cash is being consumed by operating losses and working capital needs.
The absence of capital returns is consistent with a company in a heavy investment phase, where preserving cash is critical. With no acquisitions or debt paydowns reported, the cash flow statement shows a singular focus on funding ongoing operations. This suggests that the company's balance sheet is being used to support clinical development, but the lack of capital returns may become a concern if the cash burn persists without corresponding value creation.
What the Cash Flow Statement Obscures
Stock-based compensation of $34M in 2026Q2, as reported, is a non-cash charge that reduces net income but does not affect cash burn, potentially overstating the economic cost of operations.
While SBC is added back to reconcile net income to operating cash flow, it represents a real economic cost to shareholders through dilution. The company's cash burn, excluding SBC, is lower than the reported operating cash outflow, but the dilution impact is not captured in the cash flow statement. Additionally, the lack of detail on collaboration payments and receivables may obscure the sustainability of revenue, as the 2025Q2 revenue spike suggests reliance on one-time milestones. Investors should monitor the company's cash runway and the potential for future financing needs.