Revenue is highly volatile, swinging from $160M in 2025Q2 to $17M in 2026Q1, with gross margins near 100% but operating losses widening to $134M in 2026Q1 due to R&D spending exceeding $100M per quarter.
Arcus Biosciences, Inc. (RCUS) annual income statement — 10-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 |
|---|
| Sales/Revenue | 117M | 247M | 258M | 117M | 112M | 383M | 78M | 15M | 8.35M | 1.41M | 0 |
| Revenue Growth % | -55.34% | -4.26% | 120.51% | 4.46% | -70.76% | 391.03% | 420% | 79.58% | 491.15% | - | - |
| Cost of Goods Sold | 7M | 10M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 1.31M |
| COGS % of Revenue | - | 4.05% | - | - | - | - | - | - | - | - | - |
| Gross Profit | 110M | 237M | 258M | 117M | 112M | 383M | 78M | 15M | 8.35M | 1.41M | -1.31M |
| Gross Margin % | 94.02% | 95.95% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | - |
| Gross Profit Growth % | - | -8.14% | 120.51% | 4.46% | -70.76% | 391.03% | 420% | 79.58% | 491.15% | 207.53% | - |
| Operating Expenses | 596M | 623M | 588M | 457M | 392M | 329M | 202M | 103.71M | 63.21M | 54.85M | 18.18M |
| OpEx % of Revenue | - | 252.23% | 227.91% | 390.6% | 350% | 85.9% | 258.97% | 691.39% | 756.76% | 3882.09% | - |
| Selling, General & Admin | 106M | 110M | 120M | 117M | 104M | 72M | 43M | 25.23M | 13.57M | 7.64M | 3.94M |
| SG&A % of Revenue | - | 44.53% | 46.51% | 100% | 92.86% | 18.8% | 55.13% | 168.19% | 162.41% | 540.41% | - |
| Research & Development | 497M | 523M | 448M | 340M | 288M | 257M | 159M | 78.48M | 49.65M | 47.22M | 14.25M |
| R&D % of Revenue | - | 211.74% | 173.64% | 290.6% | 257.14% | 67.1% | 203.85% | 523.21% | 594.35% | 3341.68% | - |
| Other Operating Expenses | -3M | -10M | 20M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Operating Income | -486M | -386M | -330M | -340M | -280M | 54M | -124M | -88.71M | -54.86M | -53.44M | -18.18M |
| Operating Margin % | -415.38% | -156.28% | -127.91% | -290.6% | -250% | 14.1% | -158.97% | -591.39% | -656.76% | -3782.09% | - |
| Operating Income Growth % | - | -16.97% | 2.94% | -21.43% | -618.52% | 143.55% | -39.78% | -61.7% | -2.65% | -193.92% | - |
| EBITDA | -476M | -376M | -320M | -332M | -274M | 58M | -121M | -85.13M | -51.2M | -50.83M | -16.87M |
| EBITDA Margin % | -406.84% | -152.23% | -124.03% | -283.76% | -244.64% | 15.14% | -155.13% | -567.54% | -612.89% | -3597.24% | - |
| EBITDA Growth % | -45.12% | -17.5% | 3.61% | -21.17% | -572.41% | 147.93% | -42.13% | -66.29% | -0.72% | -201.33% | - |
| D&A (Non-Cash Add-back) | 10M | 10M | 10M | 8M | 6M | 4M | 3M | 3.58M | 3.66M | 2.61M | 1.31M |
| EBIT | -429M | -345M | -279M | -299M | -264M | 55M | -123M | -84.71M | -54.86M | -53.44M | -18.18M |
| Net Interest Income | 35M | 33M | 48M | 39M | 14M | 1M | 1M | 5.2M | 4.92M | 775K | 0 |
| Interest Income | 58M | 41M | 52M | 41M | 16M | 1M | 1M | 5.2M | 4.92M | 775K | 212K |
| Interest Expense | 23M | 8M | 4M | 2M | 2M | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | 34M | 33M | 47M | 39M | 14M | 1M | 1M | 4M | 5.26M | 359K | 212K |
| Pretax Income | -452M | -353M | -283M | -301M | -266M | 55M | -123M | -84.71M | -49.59M | -53.08M | -17.97M |
| Pretax Margin % | -386.32% | -142.91% | -109.69% | -257.26% | -237.5% | 14.36% | -157.69% | -564.73% | -593.73% | -3756.69% | - |
| Income Tax | 0 | 0 | 1M | 6M | 1M | 2M | 0 | 0 | 0 | 0 | 0 |
| Effective Tax Rate % | 0% | 0% | -0.35% | -1.99% | -0.38% | 3.64% | 0% | 0% | 0% | 0% | 0% |
| Net Income | -452M | -353M | -283M | -307M | -267M | 53M | -123M | -84.71M | -49.59M | -53.08M | -17.97M |
| Net Margin % | -386.32% | -142.91% | -109.69% | -262.39% | -238.39% | 13.84% | -157.69% | -564.73% | -593.73% | -3756.69% | - |
| Net Income Growth % | -47.71% | -24.73% | 7.82% | -14.98% | -603.77% | 143.09% | -45.2% | -70.81% | 6.57% | -195.39% | - |
| Net Income (Continuing) | -452M | -353M | -284M | -307M | -267M | 53M | -123M | -84.71M | -49.59M | -53.08M | -17.97M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -3.58 | -3.29 | -3.14 | -4.15 | -3.71 | 0.71 | -2.13 | -1.73 | -1.43 | -2.16 | -0.73 |
| EPS Growth % | -25.29% | -4.78% | 24.34% | -11.86% | -622.54% | 133.33% | -23.12% | -20.98% | 33.8% | -195.89% | - |
| EPS (Basic) | - | -3.29 | -3.14 | -4.15 | -3.71 | 0.76 | -2.13 | -1.73 | -1.43 | -2.16 | -0.73 |
| Diluted Shares Outstanding | 126.1M | 107.4M | 90.1M | 74M | 72M | 73.97M | 54.79M | 43.83M | 34.62M | 24.55M | 24.55M |
| Basic Shares Outstanding | 126.1M | 107.4M | 90.1M | 74M | 72M | 69.35M | 54.79M | 43.83M | 34.62M | 24.55M | 24.55M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - |
Quick answers to the most common questions about buying RCUS stock.
For fiscal year 2025, Arcus Biosciences, Inc. (RCUS) reported total revenue of $247.0M.
Arcus Biosciences, Inc. (RCUS) reported a net loss of $353.0M for the fiscal year ending 2025.
Arcus Biosciences, Inc. (RCUS) reported an operating income of $-386.0M, resulting in an operating profit margin of -156.3%. This margin reflects the operational efficiency of the business before interest and taxes.
Arcus Biosciences, Inc. (RCUS) generated $237.0M in gross profit for the year, representing a gross profit margin of 96.0%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Revenue volatility and cash burn
Metrics are mathematically derived from official filings.
Revenue Volatility Masks Underlying Trends
Revenue swung from $160M in 2025Q2 to $17M in 2026Q1, a 89% drop, before recovering to $41M in 2026Q2, indicating lumpy partnership milestones rather than steady product sales.
The extreme quarter-to-quarter swings, with revenue growth ranging from -80.7% to +50.0%, suggest that reported revenue is heavily influenced by one-time collaboration payments and milestone achievements, not recurring commercial sales. The 2025Q2 spike to $160M appears to be an outlier, as the surrounding quarters cluster between $17M and $48M, implying that the underlying business generates modest recurring revenue. Investors should monitor the sustainability of these non-recurring inflows, as they obscure the true commercial trajectory.
Gross Margin Resilience Amidst Revenue Swings
Gross margin remained at or near 100% in most quarters, with only minor COGS in 2025Q4 and 2026Q1, reflecting a cost structure that is largely fixed and not tied to revenue volume.
The near-100% gross margin across all periods indicates that the company's revenue is derived from high-margin collaboration and licensing agreements, with minimal cost of goods sold. This is typical for a biotech in the development stage, where revenue is not from product sales but from upfront payments and milestones. However, the low absolute revenue means that even a small COGS can distort margins, as seen in 2026Q1 when gross margin dipped to 88.2% on just $17M revenue. The structural margin is strong, but the scalability of this model depends on future product commercialization.
Operating Leverage Absent as R&D Dominates
Operating losses widened to $134M in 2026Q1, with R&D expenses consistently above $100M per quarter, indicating that the company is in a heavy investment phase with no operating leverage.
Despite revenue fluctuations, R&D spending has remained elevated, ranging from $101M to $141M per quarter, while SG&A has been relatively stable between $24M and $32M. This suggests that the company is prioritizing pipeline development, but the lack of revenue growth to offset these costs means operating losses are persistent and deep. The operating margin has been consistently negative, with the best quarter being 2025Q2 at -5.0%, but that was due to the $160M revenue spike. Without a significant increase in recurring revenue, operating leverage is unlikely to materialize in the near term.
Net Losses Driven by Operating Burn, Not One-Offs
Net losses closely track operating losses, with the largest net loss of $135M in 2025Q3, and stock-based compensation averaging $19M per quarter, indicating that reported losses are primarily from ongoing operations.
The net income figures are almost entirely explained by operating losses, with minimal non-operating adjustments, as seen in quarters like 2025Q2 where net income was -$8M on operating income of -$8M. Stock-based compensation (SBC) is a significant non-cash expense, averaging around $19M per quarter, which inflates reported losses but does not affect cash burn. The EPS figures are consistently negative, with the exception of 2025Q2 where a small positive EPS of $0.04 was reported, but this was due to the revenue spike. Investors should focus on cash burn rather than net income, as SBC and other non-cash items distort the bottom line.
R&D Spending Remains the Primary Cost Driver
R&D expenses have consistently exceeded $100M per quarter, peaking at $141M in 2025Q3, while SG&A has been relatively flat, indicating that research and development is the main cash outflow.
The cost structure is dominated by R&D, which accounts for roughly 80% of total operating expenses, with SG&A making up the remainder. This is typical for a clinical-stage biotech, but the absolute level of R&D spending is high relative to revenue, which is often below $50M per quarter. The company appears to be maintaining a disciplined SG&A spend, but the R&D intensity suggests a commitment to advancing its pipeline, which may require continued high investment. Investors should monitor whether R&D efficiency improves as programs advance, as the current burn rate is substantial.
2025Q2 Revenue Spike: A Milestone-Driven Anomaly
The $160M revenue in 2025Q2, a 3.1% growth from the prior quarter, stands out as a clear inflection point, likely driven by a one-time collaboration payment, as revenue reverted to $28M in the following quarter.
The 2025Q2 quarter is the most significant inflection in the income statement history, with revenue jumping to $160M from $26M in the prior quarter, a 515% increase. This appears to be a non-recurring event, as revenue fell back to $28M in 2025Q1 and $26M in 2025Q3, suggesting a milestone payment or upfront fee from a partnership. The impact on profitability was dramatic, with operating income improving to -$8M from -$142M, but this was temporary. This inflection highlights the lumpy nature of biotech revenue and the importance of distinguishing between recurring and one-time inflows.
Revenue Concentration and Cash Burn Risks
The reliance on a few large collaboration payments, as evidenced by the $160M spike in 2025Q2, and the persistent quarterly cash burn of over $100M, raises concerns about the sustainability of the business model.
Short-sellers would likely focus on the extreme revenue volatility, which suggests that the company's revenue is not diversified and is dependent on the timing of partnership milestones. The consistent operating losses, with no quarter showing positive operating income, indicate that the company is far from profitability and may require significant additional funding. The cash burn, which is roughly $100M per quarter, could deplete the company's cash reserves within a few years if not replenished through partnerships or equity raises. Investors should monitor the company's ability to secure new collaborations and manage its cash runway, as the current trajectory appears unsustainable without external capital.