Arcus Biosciences, Inc.

Arcus reported GAAP revenue of $41 million in the second quarter of 2026. R&D expense was $113 million net of reimbursements, G&A expense was $24 million, and non-cash stock-based compensation was $15 million. Cash and investments were $775 million at June 30, 2026, versus $876 million at the end of the first quarter, and the company expects to end 2026 with approximately $600 million in cash and investments. Full-year 2026 GAAP revenue is expected to be $65 million to $75 million, and management said cash resources should provide runway into at least the second half of 2028. No quarterly EPS figure was stated in the call.

Terry Rosen’s message was that Arcus is rapidly building conviction around casdatifan as a potentially differentiated HIF-2-alpha inhibitor with a multi-line strategy in RCC. He emphasized that the company is expanding development through partnerships while retaining full rights, and framed the recent Merck frontline setback as creating a clearer path for casdatifan in first line. His tone was notably bullish, repeatedly saying the company expects cas to become the common denominator and backbone of treatment across all lines.

Bob Goeltz focused on the financial flexibility supporting the pipeline. He highlighted $775 million in cash and investments at quarter-end, an expected year-end 2026 balance of about $600 million, and runway into at least the second half of 2028. He said revenue was $41 million for the quarter, full-year GAAP revenue should be $65 million to $75 million, and lower collaboration revenue is expected ahead because of reduced Gilead activity tied to the domvanalimab wind-down. He also said R&D should decline meaningfully in 2026 and 2027 versus 2025, with more than 80% of portfolio spend by 2027 directed to casdatifan development.

Analysts focused heavily on the October data package, asking what would count as success in each line and which endpoints management would emphasize. Terry Rosen said the main goal is to leave investors convinced casdatifan can become the backbone standard in RCC, stressing first-line safety and primary progression, second-line PFS and possible OS, and late-line OS and durability. Questions also probed prior lenvatinib exposure and whether prior TKI exposure could improve cas performance; management said it would disclose the exact mix later, but argued late-line monotherapy data did not show the efficacy drop seen in belzutifan and that its own analyses suggest more durable HIF-2 inhibition may help patients with prior TKI exposure.