Overview

• U.S. biopharma firm's Q1 revenue fell yr/yr, mainly on lower Gilead collaboration revenue

• Q1 net loss widened from a year ago

• Company ended Q1 with $876 mln in cash, expects runway into at least H2 2028

Outlook

• Arcus expects full-year 2026 GAAP revenue between $50 mln and $65 mln

• Company expects to end 2026 with about $600 mln in cash

• Arcus anticipates R&D expenses to decline in the near term as domvanalimab studies wind down

Result Drivers

• LOWER COLLABORATION REVENUE - Revenue decline was mainly due to lower development services revenue from the Gilead collaboration

• SHIFT IN R&D SPENDING - Flat R&D expenses reflected increased investment in casdatifan and quemliclustat, offset by the wind-down of domvanalimab studies and reduced early-stage costs

• COST REDUCTION INITIATIVES - Streamlining of R&D operations and efficiencies outside the Gilead collaboration are expected to reduce costs, partially offset by increased investment in casdatifan and inflammation programs

Company press release: ID:nBw42Rf7a

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q1 Net Income		-$128 mln
Q1 Operating Expenses		$151 mln
Q1 Operating Income		-$134 mln
Q1 Pretax Profit		-$128 mln

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 9 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the biotechnology & medical research peer group is "buy"

• Wall Street's median 12-month price target for Arcus Biosciences Inc is $31.00, about 19% above its May 4 closing price of $26.05

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