Free cash flow remains structurally negative with quarterly outflows often exceeding $100 million, further exacerbated by a dwindling cash position that fell to $201 million by 2026Q1.
| Cash from Operations | -488M | -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 % | -539.11% | -183.53% | 44.44% | -169.86% | 270.98% | -330.43% | 251.33% | -70.86% | -71.58% | -93.6% | - |
| Net Income | -369M | -353M | -283M | -307M | -267M | 52.83M | -122.86M | -84.71M | -49.59M | -53.08M | -17.97M |
| Depreciation & Amortization | 9M | 10M | 10M | 8M | 14M | 3.84M | 4.19M | 3.58M | 3.66M | 2.61M | 1.31M |
| Stock-Based Compensation | 63M | 60M | 76M | 73M | 0 | 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 | -34M | -5M | 5M | -9M | 68M | 3.47M | -46K | -1.44M | -177K | -98K | 90K |
| Working Capital Changes | -157M | -194M | 22M | -71M | 623M | -375.62M | 208.06M | 125K | 1.33M | 24.6M | 3.62M |
| Change in Receivables | 4M | 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 | 18M | 24M | 3M | -1M | 8M | -4.77M | 9.27M | 1.73M | -69K | -267K | 3.57M |
| Cash from Investing | 148M | 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 | 0.42% | 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 | 349M | 488M | 277M | 33M | 33M | 237.34M | 438.68M | 1.12M | 129.07M | 107.4M | 70.1M |
| Debt Issued (Net) | 49M | 49M | 47M | 0 | 10M | 5M | 0 | 0 | 0 | 0 | 0 |
| Equity Issued (Net) | 297M | 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 | 3M | 0 | 2M | 8M | 0 | 12.34M | 4.67M | 1.22M | 3.96M | 519K | 283K |
| Net Change in Cash | 9M | 72M | 23M | -79M | 58.09M | -22.7M | 115.48M | -13.13M | -27.36M | 33.27M | 18.3M |
| Free Cash Flow | -489M | -484M | -176M | -330M | 432M | -282.25M | 108.11M | -75.39M | -46.74M | -30.57M | -17.04M |
| FCF Margin % | -207.2% | -195.95% | -68.22% | -282.05% | 385.71% | -73.69% | 138.61% | -502.58% | -559.55% | -2163.69% | - |
| FCF Growth % | -61.39% | -175% | 46.67% | -176.39% | 253.06% | -361.06% | 243.41% | -61.29% | -52.88% | -79.39% | - |
| FCF per Share | -3.90 | -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) | 1.33x | 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 |
Clinical Milestone Funding Dependency
According to reported financial data, the relationship between net income and operating cash flow is frequently distorted, with OCF/NI ratios reaching as high as 16.62 in 2025Q2, suggesting that GAAP earnings provide little insight into the actual liquidity consumption required to sustain the company's clinical development programs.
The extreme volatility in the OCF/NI ratio indicates that non-cash items and working capital swings are the primary drivers of cash flow variance rather than core operational performance. Investors should interpret these fluctuations as evidence that the company's cash burn is decoupled from its accounting losses, necessitating a focus on raw cash depletion rates.
As reported in financial statements, Arcus Biosciences consistently records negative free cash flow, with quarterly outflows frequently exceeding $100 million, highlighting a structural inability to self-fund its extensive R&D pipeline through current collaboration-based revenue streams without relying on external capital or milestone-driven inflows from Gilead.
The trajectory of FCF margins remains deeply negative, reflecting the high fixed-cost burden of late-stage clinical trials. This trend suggests that the company's cash runway is highly sensitive to the timing of partnership payments, which may not align with the steady, non-discretionary nature of their clinical research expenditures.
Based on the provided quarterly data, working capital changes have been highly erratic, including a significant $148 million outflow in 2025Q2, which underscores the unpredictable nature of cash collections and the potential for large, lumpy payments to disrupt the company's short-term liquidity position and operational planning.
These swings in working capital appear to be tied to the milestone-based revenue recognition model, where the timing of cash receipts from partners does not always match the accrual of revenue. This creates a mismatch that may force the company to maintain higher cash buffers than would otherwise be necessary.
Analysis of recent filings reveals that stock-based compensation, often exceeding $15 million per quarter, acts as a significant non-cash add-back that masks the true economic cost of talent acquisition required to maintain the company's complex, multi-node clinical strategy in a highly competitive biotechnology labor market.
While SBC is a standard industry practice, its consistent magnitude suggests that the company's reported cash burn might be understated if one considers the dilutive impact on shareholders as a form of financing. Analysts should monitor whether this reliance on equity-based incentives remains sustainable if the company's valuation faces further pressure from clinical setbacks.
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.