Arcus Biosciences, Inc.: Q2 FY2026 earnings call

What management said about Q2 FY2026, from the documents filed with the SEC on 5 August 2026: press release. Guidance figures: 1 raised, 1 lowered, 1 new, 7 kept. The quarter’s numbers.

Key takeaways

Backbone therapy across all lines of ccRCC: Management outlined strategy to establish casdatifan as backbone therapy across all lines of clear cell renal cell carcinoma treatment. Company aims to provide consecutive casdatifan-containing regimens in first-, second- and late-line settings. Source
PEAK-20 Phase 3 initiation by year-end: First registrational Phase 3 study PEAK-20 for casdatifan plus nivolumab plus ipilimumab in first-line ccRCC expected to initiate by year-end 2026, building on ARC-20 platform cohort data. Source
Enrollment accelerating toward year-end target: Phase 3 PEAK-1 study in IO-experienced metastatic ccRCC comparing casdatifan plus cabozantinib versus cabozantinib alone is accelerating enrollment toward year-end 2026 completion target. Source
Nature publication connects outcomes to biomarkers: ARC-20 monotherapy results published in Nature July 2026 provided first comprehensive connection between clinical outcomes in HIF-2α inhibitor-treated patients and peripheral biomarker changes. Deep suppression of serum erythropoietin correlated with higher response rates and longer PFS. Source
Multiple data readouts expected second half 2026: Arcus expects casdatifan readouts across lines in H2 2026: initial efficacy data for casdatifan plus zimberelimab in first-line, mature ORR and initial PFS data with 18+ months follow-up for casdatifan plus cabozantinib in second-line, and updated overall survival data in late-line. Source
Cash declined to $775M mid-year: Cash, cash equivalents and marketable securities totaled $775 million as of June 30, 2026, down from $1.010 billion at December 31, 2025. Decrease primarily from R&D spending. Expected year-end 2026 cash approximately $600 million. Source
Cash runway extends to at least H2 2028: Based on existing business plan, company believes cash sufficient to fund planned operations until at least H2 2028. Runway supports multiple casdatifan Phase 3 studies and immunology program advancement. Source

“Our recent publication in Nature demonstrated our commitment to being the scientific leader in HIF-2α biology and translational medicine. We are leveraging these insights and the differentiated profile of casdatifan compared to that of the competition to ensure that casdatifan becomes the backbone of treatment across every line of therapy in kidney cancer. In the front-line setting especially, we see a clear path to be first-to-market and to provide the best options for physicians and patients.”
Terry Rosen, Ph.D., Chief Executive Officer

Guidance

Area	Period	Figure	Against last quarter
Full year 2026 GAAP revenue Source	full year 2026	$65 million to $75 million	Raised from $50 million to $65 million
End of 2026 cash position Source	year-end 2026	approximately $600 million	Kept
Cash runway Source	future periods	at least second half of 2028	Kept
PEAK-1 enrollment completion Source	2026	by year-end 2026	Kept
PEAK-20 Phase 3 initiation Source	2026	by year-end 2026	Kept
AB102 proof-of-concept study timing Source	2027	mid-2027	Lowered from early 2027
TNF inhibitor clinic entry Source	early 2027	early 2027	Kept
PRISM-1 Phase 3 results readout Source	first half 2027	first half of 2027	Kept
Casdatifan data readouts timing Source	second half 2026	H2 2026	Kept
Immunology programs IND-readiness Source	2027	by end of 2027	New

What changed from last quarter

Guidance raised: Full year 2026 GAAP revenue guidance raised from $50-65M midpoint to $65-75M midpoint, reflecting increased access rights revenues from Gilead option expiration and Taiho collaboration revenues. Source
Guidance lowered: AB102 proof-of-concept study timing moved from early 2027 potential to mid-2027 expected, indicating later readout than initially considered. Source
New: Three new clinical collaborations announced to expand casdatifan combinations: BMS ROSETTA RCC-208 with pumitamig, Summit Therapeutics ARC-20 with ivonescimab first-line, AVEO ARC-20 with tivozanib late-line belzutifan-experienced patients. Source
New: $15 million milestone payment from Taiho Pharmaceutical triggered by PEAK-1 enrollment in Japan, expected Q3 2026. Source
Ended: Phase 3 PACIFIC-8 study with AstraZeneca evaluating domvanalimab plus durvalumab in Stage III unresectable NSCLC to be discontinued in connection with anti-TIGIT program wind-down. Source
New: Gilead relinquished its three seats on Arcus Board of Directors effective August 5, 2026, in connection with discontinuation of STAR-221 and STAR-121 trials. Source

Casdatifan Development Strategy

Backbone therapy across all lines of ccRCC: Management outlined strategy to establish casdatifan as backbone therapy across all lines of clear cell renal cell carcinoma treatment. Company aims to provide consecutive casdatifan-containing regimens in first-, second- and late-line settings. Source
PEAK-20 Phase 3 initiation by year-end: First registrational Phase 3 study PEAK-20 for casdatifan plus nivolumab plus ipilimumab in first-line ccRCC expected to initiate by year-end 2026, building on ARC-20 platform cohort data. Source
Late-line evaluation in belzutifan-experienced patients: Arcus initiating new randomized ARC-20 cohort in late-line ccRCC to evaluate casdatifan plus tivozanib versus tivozanib alone in patients receiving two or more prior lines including belzutifan, with enrollment expected Q4 2026. Source

PEAK-1 Second-Line Enrollment Progress

Enrollment accelerating toward year-end target: Phase 3 PEAK-1 study in IO-experienced metastatic ccRCC comparing casdatifan plus cabozantinib versus cabozantinib alone is accelerating enrollment toward year-end 2026 completion target. Source
Expected to establish new standard of care: Company confident PEAK-1 will establish casdatifan plus cabozantinib as new standard of care in IO-experienced setting. More mature overall response rate and initial PFS data for 45 patients with 18+ months follow-up expected 2026. Source

“The ARC-20 platform study and strategic clinical collaborations are enabling us to efficiently pursue an integrated approach across multiple lines of therapy, and we expect this year's upcoming ARC-20 data readouts in first-, second- and late-line settings to clarify casdatifan's potential to transform the treatment paradigm for kidney cancer.”
Terry Rosen, Ph.D., Chief Executive Officer

Casdatifan Science and Clinical Data

Nature publication connects outcomes to biomarkers: ARC-20 monotherapy results published in Nature July 2026 provided first comprehensive connection between clinical outcomes in HIF-2α inhibitor-treated patients and peripheral biomarker changes. Deep suppression of serum erythropoietin correlated with higher response rates and longer PFS. Source
Multiple data readouts expected second half 2026: Arcus expects casdatifan readouts across lines in H2 2026: initial efficacy data for casdatifan plus zimberelimab in first-line, mature ORR and initial PFS data with 18+ months follow-up for casdatifan plus cabozantinib in second-line, and updated overall survival data in late-line. Source
Primary progression rates favorable vs published data: Casdatifan plus zimberelimab in first-line showed primary progression rate of 7 percent in ARC-20, comparing favorably to published rates for anti-PD-1 monotherapy or dual IO regimens in first-line.

Strategic Clinical Collaborations

Taiho $15M milestone payment Q3 2026: Arcus will receive $15 million from Taiho Pharmaceutical in Q3 2026 triggered by PEAK-1 enrollment milestone in Japan, under option and license agreement for casdatifan in Japan and Asian territories. Source
Fourth partnership expected Q4 initiation: Arcus executed additional clinical collaboration for casdatifan combination with another anti-PD-x/VEGF bispecific antibody in first-line ccRCC, expected to initiate Q4 2026. Source

Financial Position and Cash Runway

Cash declined to $775M mid-year: Cash, cash equivalents and marketable securities totaled $775 million as of June 30, 2026, down from $1.010 billion at December 31, 2025. Decrease primarily from R&D spending. Expected year-end 2026 cash approximately $600 million. Source
Cash runway extends to at least H2 2028: Based on existing business plan, company believes cash sufficient to fund planned operations until at least H2 2028. Runway supports multiple casdatifan Phase 3 studies and immunology program advancement. Source

Quarterly Financial Results

Revenues declined 74 percent year-over-year: Q2 2026 revenues fell to $41 million from $160 million in Q2 2025. Decline primarily from $143 million cumulative catch-up revenue in 2025 for pausing etrumadenant and Gilead license return, partially offset by increased access rights and Taiho collaboration revenues. Source
G&A expenses down 17 percent: General and administrative expenses declined to $24 million in Q2 2026 from $29 million in Q2 2025, primarily from streamlining initiatives across operations. Source

Quemliclustat Pancreatic Cancer Program

PRISM-1 enrollment complete, 2027 readout: Phase 3 PRISM-1 trial of quemliclustat plus gemcitabine/nab-paclitaxel in first-line metastatic pancreatic cancer completed enrollment in September 2025. Results expected first half 2027. Source
Orphan drug designations from EMA and FDA: Quemliclustat received orphan drug designation from European Medicines Agency in May 2026, adding to FDA designation received June 2025, supporting pancreatic cancer development. Source

Immunology Portfolio Development

AB102 first-in-human study launching August: Arcus expects to initiate first-in-human healthy volunteer study for AB102, a highly selective oral MRGPRX2 antagonist for atopic dermatitis and chronic spontaneous urticaria, in August 2026. Preclinical data demonstrated ability to fully block MRGPRX2-dependent mast cell degranulation. Source
TNF inhibitor candidate entering clinic early 2027: Arcus selected development candidate for oral small-molecule TNF inhibitor designed to selectively block TNFR1 signaling for rheumatoid arthritis, psoriasis and inflammatory bowel disease. Expected to enter clinic early 2027. Source

Anti-TIGIT Program Discontinuation

PACIFIC-8 with AstraZeneca to be discontinued: Phase 3 PACIFIC-8 study evaluating domvanalimab plus durvalumab versus durvalumab alone in PD-L1 positive Stage III unresectable NSCLC will be discontinued following wind-down of STAR-221 and STAR-121. Source
Gilead board seats relinquished: Gilead relinquished its three seats on Arcus Board of Directors effective August 5, 2026, in connection with wind-down of STAR-221 and STAR-121 trials and streamlined operational relationship. Source

Coming up, as management said on 5 August 2026

AB102 first-in-human study initiation August 2026: Arcus expects to initiate first-in-human healthy volunteer study for AB102 oral MRGPRX2 antagonist in August 2026, followed by proof-of-concept study expected mid-2027. Source
PEAK-1 enrollment completion year-end 2026: Phase 3 PEAK-1 study in IO-experienced ccRCC expected to complete enrollment by year-end 2026, with mature data readout to follow. Source
PEAK-20 Phase 3 initiation by year-end 2026: First registrational Phase 3 study PEAK-20 for casdatifan plus nivolumab plus ipilimumab in first-line ccRCC expected to initiate by year-end 2026. Source
TNF inhibitor and broader I&I pipeline 2027: Oral small-molecule TNF inhibitor expected to enter clinic early 2027. CCR6 antagonist and additional programs expected to deliver IND-ready candidates by end 2027. Source
PRISM-1 Phase 3 results first half 2027: Quemliclustat Phase 3 PRISM-1 pancreatic cancer trial results expected in first half 2027 following September 2025 enrollment completion. Source
Taiho milestone payment Q3 2026: $15 million milestone payment from Taiho Pharmaceutical expected in Q3 2026 triggered by PEAK-1 enrollment in Japan. Source
Multiple casdatifan data readouts H2 2026: Arcus expects multiple casdatifan data readouts in second half 2026 including initial efficacy data for casdatifan plus zimberelimab in first-line, PFS data for casdatifan plus cabozantinib in second-line, and overall survival data in late-line. Source
New casdatifan combination studies Q4 2026: ARC-20 cohorts evaluating casdatifan plus axitinib in first-line and with additional anti-PD-x/VEGF bispecific antibodies expected to begin in fourth quarter 2026. Source

Earlier plans management reported on

On track: Company remains on track to complete PEAK-1 enrollment by year-end 2026 consistent with Q1 guidance. Source
On track: PEAK-20 Phase 3 first-line study expected to initiate by year-end 2026 as previously guided. Source
On track: AB102 first-in-human study expected to initiate in August 2026 as previously guided for Q3 2026. Source
On track: Company maintains guidance that cash will be sufficient to fund operations until at least H2 2028. Source
On track: Multiple ARC-20 data readouts across lines of therapy expected in H2 2026 as previously committed. Source

Other quarters

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.

As filed with the SEC

Open the filing on EDGAR

Arcus Biosciences Reports Second-Quarter 2026 Financial Results and Provides a Pipeline Update

Arcus executes on strategy to establish casdatifan as a backbone therapy across each line of treatment for clear cell renal cell carcinoma (ccRCC), including three new clinical trial collaborations that advance distinct casdatifan-based combinations
New research published in Nature, evaluating patients with advanced ccRCC who were treated with casdatifan, provided the first data that comprehensively connect clinical outcomes for patients receiving a HIF-2α inhibitor with peripheral biomarker changes and associated tumor biology
Multiple ARC-20 data readouts for casdatifan across lines of therapy are expected in the second half of 2026, including initial efficacy data for casdatifan plus zimberelimab in first-line, progression-free survival (PFS) data for casdatifan plus cabozantinib in second-line and overall survival data for casdatifan monotherapy in late-line ccRCC
With $775 million in cash, cash equivalents and marketable securities at quarter-end, Arcus is well positioned to advance casdatifan aggressively, with cash runway until at least the second half of 2028

HAYWARD, Calif. - (BUSINESS WIRE) - Arcus Biosciences, Inc. (NYSE:RCUS), a clinical-stage, global biopharmaceutical company focused on developing differentiated molecules and combination therapies for people with cancer and inflammatory and autoimmune diseases, today reported financial results for the second quarter ended June 30, 2026 and provided a pipeline update on its clinical-stage investigational molecules and discovery programs.

"Our recent publication in Nature demonstrated our commitment to being the scientific leader in HIF-2α biology and translational medicine. We are leveraging these insights and the differentiated profile of casdatifan compared to that of the competition to ensure that casdatifan becomes the backbone of treatment across every line of therapy in kidney cancer. In the front-line setting especially, we see a clear path to be first-to-market and to provide the best options for physicians and patients," said Terry Rosen, Ph.D., chief executive officer of Arcus. "The ARC-20 platform study and strategic clinical collaborations are enabling us to efficiently pursue an integrated approach across multiple lines of therapy, and we expect this year’s upcoming ARC-20 data readouts in first-, second- and late-line settings to clarify casdatifan’s potential to transform the treatment paradigm for kidney cancer."

Casdatifan (HIF-2α inhibitor)

Development Strategy:

Arcus's development strategy is designed to generate evidence to secure casdatifan as a backbone therapy in ccRCC so that every patient has the opportunity to benefit from casdatifan across each line of therapy over the course of their care. Arcus is executing on this strategy, including embedding casdatifan into the treatment paradigm in combination with the most commonly used dual-immunotherapy regimen in the first-line setting, nivolumab (an anti-PD-1) plus ipilimumab (an anti-CTLA-4) and the standard of care in the second-line setting, cabozantinib. Arcus’s combinations were selected to complement these two core regimens. The holistic strategy, which has the opportunity to provide the first and only HIF-2α inhibitor-based TKI-sparing first-line therapy, provides consecutive casdatifan-containing regimens in the first-, second- and third-line-plus settings highly aligned with a new treatment paradigm offered by the robust HIF-2α inhibitory profile of casdatifan. In this context, Arcus will also begin to evaluate casdatifan plus TKI-containing regimens in first-line and late-line settings, the latter in belzutifan-experienced patients. Arcus’s newly announced clinical collaborations described below support these efforts, enabling the company to evaluate numerous casdatifan-based combinations in parallel.

Casdatifan Partnership Updates:

Arcus will receive a $15 million milestone payment from Taiho Pharmaceutical in the third quarter, triggered by PEAK-1 enrollment in Japan, under the parties’ option and license agreement. Taiho holds rights to casdatifan in Japan and certain territories in Asia.

New Clinical Collaborations:

Arcus announced three new clinical collaborations to evaluate casdatifan-based combinations in first-line and late-line ccRCC:

Bristol Myers Squibb (BMS): Casdatifan combinations will be added as two new arms of the BMS-sponsored Phase 1/2 ROSETTA RCC-208 study in advanced RCC, evaluating casdatifan in combination with the anti-PD-L1/VEGF-A bispecific antibody pumitamig, which is being jointly developed by BioNTech and BMS.
Summit Therapeutics: A new cohort in the ARC-20 platform study in ccRCC will evaluate casdatifan with the PD-1/VEGF bispecific antibody ivonescimab in the first-line setting.
AVEO Oncology: A new ARC-20 cohort will evaluate casdatifan with the VEGFR TKI tivozanib in patients previously treated with belzutifan.
Arcus has also executed one additional clinical collaboration agreement to evaluate a casdatifan combination with another anti-PD-x/VEGF bispecific antibody in first-line ccRCC, which is expected to initiate in the fourth quarter of 2026.

Development Program:

First-Line ccRCC: The first-line setting today is divided into immunotherapy (IO/IO) regimens, representing roughly one-third of the market, and IO/TKI regimens, representing roughly two-thirds of the market. Arcus’s casdatifan strategy encompasses both, plus another novel TKI-free combination approach:
TKI-free (casdatifan plus IO/IO): The cohort evaluating casdatifan plus zimberelimab (anti-PD-1) and ipilimumab (anti-CTLA-4) in the ARC-20 study is currently enrolling, with the purpose of supporting Arcus’s first registrational Phase 3 study, PEAK-20, evaluating casdatifan plus nivolumab plus ipilimumab in the first-line setting, which is expected to initiate by year-end 2026.
TKI-containing (casdatifan plus IO/TKI): A casdatifan-based regimen inclusive of the well-established TKI axitinib, for those circumstances where physicians prefer to have a TKI-inclusive therapy, with an ARC-20 cohort expected to begin in the fourth quarter of 2026.
Novel TKI-free bispecific combinations (see New Clinical Collaborations above): Casdatifan in combination with anti-PD-x/VEGF bispecifics pumitamig, ivonescimab and one additional antibody with study initiations expected prior to the end of the year.
IO-Experienced (second-line) ccRCC: Enrollment in PEAK-1, the global Phase 3 study evaluating casdatifan plus cabozantinib versus cabozantinib alone in IO-experienced metastatic ccRCC, is accelerating, and Arcus remains on track to complete enrollment by year-end 2026. Arcus is confident PEAK-1 will establish casdatifan plus cabozantinib as the new standard of care in the IO-experienced setting.
Late-Line ccRCC: A new randomized ARC-20 cohort will evaluate casdatifan plus tivozanib versus tivozanib alone in patients who received two or more lines of prior therapy, including a belzutifan-containing regimen, which will elucidate the impact of prior HIF-2α inhibitor treatment on casdatifan’s activity. Enrollment in this new ARC-20 cohort is expected to begin in the fourth quarter of 2026.

Casdatifan Research Published in Nature:

In July, Arcus announced that results from the ARC-20 study evaluating casdatifan monotherapy were published in Nature. This is the first study to comprehensively connect clinical outcomes in patients treated with a HIF-2α inhibitor with peripheral biomarker changes and associated tumor biology. HIF-2α inhibition with casdatifan resulted in deep and sustained suppression of the hormone erythropoietin in blood (serum EPO), which correlated with higher response rates and longer PFS.

Planned Data Readouts:

Arcus expects multiple data readouts for casdatifan in 2026:

In first-line ccRCC, initial data from the ARC-20 cohorts evaluating casdatifan in early-line settings, including early efficacy data for the cohort evaluating casdatifan plus zimberelimab and early safety data for the cohort evaluating casdatifan plus zimberelimab plus ipilimumab in first-line ccRCC.
In second-line IO-experienced ccRCC, more mature overall response rate data and initial PFS data, including Kaplan-Meier curve(s), for approximately 45 patients treated in the ARC-20 cohort evaluating casdatifan plus cabozantinib. All patients will have had at least 18 months of follow-up.
In late-line ccRCC, updated data from the ARC-20 monotherapy cohorts, including overall survival data.

Quemliclustat (small-molecule CD73 inhibitor)

The European Medicines Agency granted orphan drug designation in May 2026 to quemliclustat for the treatment of pancreatic cancer, adding to the orphan drug designation received from the U.S. Food and Drug Administration in June 2025.
Enrollment was completed in September 2025 for PRISM-1, a Phase 3 trial of quemliclustat combined with gemcitabine/nab-paclitaxel versus gemcitabine/nab-paclitaxel in first-line metastatic pancreatic ductal adenocarcinoma. Results from this study are expected in the first half of 2027.

Immunology Portfolio

Arcus is applying its proven expertise developing potent and selective small-molecule drugs to address large markets in immunology, pursuing mechanisms that regulate key cytokines validated by existing biologics and targeting immune cell types that are central to disease but historically understudied. A steady cadence of immunology molecules will be ready for advancement into the clinic, with multiple new clinical candidates expected between 2026 and 2028.

AB102 (oral MRGPRX2 antagonist): This month, Arcus expects to initiate a first-in-human healthy volunteer study of AB102, a highly selective oral MRGPRX2 antagonist and potential treatment for atopic dermatitis and chronic spontaneous urticaria.
In May, Arcus presented preclinical data for AB102 in an oral presentation at the Society for Investigative Dermatology Annual Meeting, which showed its ability to fully block MRGPRX2-dependent mast cell degranulation and transcriptional activation in LAD2 and primary skin mast cells as well as its inhibition of all common human MRGPRX2 variants.
A proof-of-concept study evaluating AB102 as a potential oral therapy for patients with chronic spontaneous urticaria is expected in mid-2027.
TNF Inhibitor: Arcus has selected a development candidate as an oral small-molecule TNF inhibitor, a potential treatment for rheumatoid arthritis, psoriasis and inflammatory bowel disease, which is expected to enter the clinic in early 2027.
The molecule is designed to selectively block TNFR1 signaling, which could lead to better safety and efficacy than those of approved anti-TNF antibodies that block both TNFR1 and TNFR2 signaling, the latter of which can paradoxically lead to an inflammatory response in some patients.
At the European Alliance of Associations for Rheumatology Annual Meeting 2026, Arcus presented data on its small-molecule approach to TNF inhibition, advancing research in conditions such as RA and IBD.
Additional Targets: Arcus is advancing additional programs across its immunology portfolio. Arcus's programs for a small-molecule CCR6 antagonist for psoriasis and inflammatory bowel disease, a STAT6 small molecule program for atopic dermatitis and asthma, a CD89 monoclonal antibody program for the treatment of rheumatoid arthritis, and a CD40L small molecule program for the treatment of multiple sclerosis and systemic lupus erythematosus, are each expected to deliver IND-ready candidates by the end of 2027.

Anti-TIGIT Program and Related Partnerships

Following the discontinuations of the Arcus and Gilead STAR-221 and STAR-121 studies in upper gastrointestinal cancer and non-small cell lung cancer (NSCLC), respectively, Arcus and AstraZeneca will discontinue the Phase 3 PACIFIC-8 study, evaluating domvanalimab in combination with durvalumab versus durvalumab alone in patients with PD-L1 positive, Stage III unresectable NSCLC.
In connection with the wind-down of these Phase 3 trials and resulting streamlined operational relationship with Arcus, Gilead has relinquished its three seats on Arcus’s Board of Directors, effective as of August 5, 2026.

Financial Results for Second Quarter 2026:

Cash, Cash Equivalents and Marketable Securities were $775 million as of June 30, 2026, compared to $1.0 billion as of December 31, 2025. The decrease during the period is primarily due to the use of cash in our research and development activities. Arcus expects to end 2026 with approximately $600 million in cash. Based on the existing business plan, Arcus believes that its cash, cash equivalents and marketable securities will be sufficient to fund its planned level of operations until at least the second half of 2028.
Revenues were $41 million for the second quarter 2026, compared to $160 million for the same period in 2025. The decrease in revenue was primarily driven by the cumulative catch-up from license and development services revenue of $143 million in 2025 relating to pausing future development of etrumadenant and Gilead's related return of its license to the program, partially offset by an increase in access rights revenues recognized in June 2026 related to the expiration of Gilead's option rights and increased revenues related to programs optioned under the Taiho Collaboration Agreement. Arcus expects to recognize GAAP revenue of between $65 million and $75 million for the full year 2026.
Research and Development (R&D) Expenses were $113 million for the second quarter 2026, compared to $139 million for the same period in 2025. The decrease was due to (i) late-stage development activities decreasing primarily due to the wind down of the domvanalimab program and the completion of enrollment of PRISM-1, partially offset by increasing activities in our Phase 3 studies for casdatifan; (ii) early-stage development activities decreasing primarily due to the wind down of Phase 2 studies related to domvanalimab and lower Phase 2 study costs for casdatifan; partially offset by (iii) partnership reimbursements decreasing, primarily due to Gilead-led activities representing a larger share of total joint development costs and a shift towards programs fully funded by us. Non-cash stock-based compensation expense was $9 million for the second quarter 2026, compared to $8 million for the same period in 2025. For the second quarters 2026 and 2025, Arcus recognized gross reimbursements of $17 million and $33 million, respectively, for shared expenses from its collaborations. R&D expenses by quarter may fluctuate due to the timing of clinical manufacturing and standard-of-care therapeutic purchases with a corresponding impact on reimbursements.

Arcus expects R&D expenses to continue to decline in the near-term relative to what we have incurred as we wind down studies for domvanalimab. Streamlining initiatives Arcus has undertaken across its R&D operations in connection with this wind-down, together with efficiencies the company is pursuing across its programs outside the Gilead collaboration, are expected to further reduce costs. These decreases will be partially offset by increased investment in the development of casdatifan and advancement of our small-molecule immunology programs.

General and Administrative (G&A) Expenses were $24 million for the second quarter 2026, compared to $29 million for the same period in 2025. The decrease was primarily due to streamlining initiatives Arcus has undertaken across its operations. Non-cash stock-based compensation expense was $6 million for the second quarter 2026, compared to $7 million for the same period in 2025.
Net Income (Loss) was $91 million net loss for the second quarter 2026, compared to $ - million for the same period in 2025.

Conference Call Information

Arcus will host a conference call and webcast today, August 5, 2026, at 1:30 PM PT/4:30 PM ET to discuss its second-quarter 2026 financial results and pipeline updates. To access the call, please dial +1 (585) 542-9983 (local) or +1 (833) 461-5787 (toll-free), using Meeting ID: 156828313. Participants may also register for the call online using the following link: https://events.q4inc.com/attendee/156828313. To access the live webcast and accompanying slide presentation, please visit the “Investors & Media” section of the Arcus Biosciences website at www.arcusbio.com. A replay of the webcast will be available following the live event.

About Arcus Biosciences

Arcus Biosciences is a clinical-stage, global biopharmaceutical company focused on developing differentiated molecules for the treatment of cancer and inflammatory and autoimmune diseases. In partnership with industry collaborators, patients and physicians around the world, Arcus is expediting the development of its late-stage portfolio of first- and/or best-in-class medicines against well-characterized biological targets and pathways and studying novel, biology-driven combinations that have the potential to help people with cancer live longer. Founded in 2015, the company has advanced multiple investigational medicines into registrational clinical trials including casdatifan, a HIF-2α inhibitor for clear cell renal cell carcinoma, and quemliclustat, a small-molecule CD73 inhibitor for pancreatic cancer. For more information about Arcus Biosciences’ clinical and preclinical programs, please visit www.arcusbio.com.

Forward-Looking Statements

Forward-looking statements notice

This press release contains forward-looking statements. All statements regarding events or results to occur in the future contained herein are forward-looking statements reflecting the current beliefs and expectations of management made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including, but not limited to, statements regarding Arcus’s development strategies and opportunities, including the potential for casdatifan to become the backbone of treatment across every line of therapy in kidney cancer; the timing and achievement of milestones, including the completion of enrollment in PEAK-1, the initiation of PEAK-20, and the progress and cadence of additional molecules from Arcus’s immunology programs to IND-readiness; the timing of future data readouts and presentations; and expectations regarding the decline in its operating expenses, year-end cash balance and its anticipated cash runway. All forward-looking statements involve known and unknown risks and uncertainties and other important factors that may cause Arcus’s actual results, performance or achievements to differ materially from those expressed or implied by the forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, risks associated with: Arcus’s ability to manage the breadth and pace of its development plans for casdatifan; the unexpected emergence of adverse events or other undesirable side effects with casdatifan, alone or in combination with other agents; difficulties or delays in initiating, enrolling and completing clinical trials, including due to regulatory review, site activation, patient identification or enrollment, or manufacturing and supply constraints of investigational or standard-of-care products for such clinical trials; interim data not being guarantees of future data or replicated in other studies evaluating casdatifan, including the Phase 3 PEAK-1 study; adverse data from toxicology studies that affect Arcus’s ability to advance development candidates from its immunology programs; the risk that the preclinical profiles of Arcus’s development candidates may not translate in clinical trials; changes in the competitive landscape for Arcus’s programs; the inherent uncertainty associated with pharmaceutical product development and clinical trials; and risks associated with Arcus’s ability to accurately forecast financial results and changes in Arcus’s operating plans. Risks and uncertainties facing Arcus are described more fully in the “Risk Factors” section of Arcus’s most recent periodic report filed with the U.S. Securities and Exchange Commission (SEC) and in other filings that Arcus makes with the SEC from time to time, which are available at www.sec.gov. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Arcus disclaims any obligation or undertaking to update, supplement or revise any forward-looking statements contained in this press release, except to the extent required by law.

The Arcus name and logo are trademarks of Arcus Biosciences, Inc. All other trademarks belong to their respective owners.

Investor Inquiries:

Pia Eaves

VP of Investor Relations & Strategy

(617) 459-2006 peaves@arcusbio.com

Media Inquiries:

Holli Kolkey VP of Corporate Affairs (650) 922-1269 hkolkey@arcusbio.com

Maryam Bassiri

Director of Corporate Affairs

(510) 406-8520 mbassiri@arcusbio.com

ARCUS BIOSCIENCES, INC.

Consolidated Statements of Operations

(unaudited)

(In millions, except per share amounts)

	Three Months Ended June 30,		Six Months Ended June 30,
	2026	2025	2026	2025
Revenues:
License and development services	$16	$152	$28	$172
Other collaboration	25	8	30	16
Total revenues	41	160	58	188
Operating expenses:
Research and development	113	139	235	261
General and administrative	24	29	53	57
Total operating expenses	137	168	288	318
Loss from operations	(96)	(8)	(230)	(130)
Non-operating income (expense):
Interest and other income, net	8	10	17	21
Interest expense	(3)	(2)	(6)	(3)
Total non-operating income, net	5	8	11	18
Income (loss) before income taxes	(91)	-	(219)	(112)
Income tax expense	-	-	-	-
Net income (loss)	$(91)	$ -	$(219)	$(112)
Net income (loss) per share:
Basic	$(0.72)	$ -	$(1.74)	$(1.09)
Diluted	$(0.72)	$ -	$(1.74)	$(1.09)
Shares used to compute net income (loss) per share:
Basic	126.1	106.1	125.7		102.3
Diluted	126.1	106.5	125.7		102.3

Selected Consolidated Balance Sheet Data

(unaudited)

(In millions)

	June 30, 2026	December 31, 2025
Cash, cash equivalents and marketable securities	$775	$1,010
Total assets	924	1,139
Total liabilities	460	508
Total stockholders’ equity	464	631

(1)Derived from the audited financial statements for the year ended December 31, 2025, included in the Company's Annual Report on Form 10-K filed with the Securities and Exchange Commission on February 25, 2026.