Company: RCUS
Filing Date: 2025-08-06
Form Type: 10-Q
Source: 0001724521-25-000101
Chunk: 339

Company: Arcus Biosciences, Inc.
Filing Date: 2025-08-06
Form: 10-Q
Item: Part I, Item 2
Chunk 339
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Impairment of Long-Lived Assets

Impairment charges consist of impairment of right-of-use assets resulting from updated plans in the first quarter 2024 for a portion of our office space.

Non-Operating Income, net

Non-operating income, net consists primarily of interest earned on our investments in fixed-income marketable securities, interest expense on our loan financing with Hercules and non-cash interest income/expense incurred under the effective interest method on our liability for sale of future royalties to BVF.

24

Results of Operations

The following table summarizes our results of operations (in millions):

Three Months EndedJune 30,Change Six Months EndedJune 30,Change 2025202420252024Revenues:License and development services revenue$152 $28 443%$172 $163 6 %Other collaboration revenue8 11 (27%)16 21 (24)%Total revenues160 39 310%188 184 2 %Operating expenses:Research and development139 115 21%261 224 17%General and administrative29 30 (3%)57 62 (8%)Impairment of long-lived assets — — —%— 20 (100%)Total operating expenses168 145 16%318 306 4%Loss from operations(8)(106)(92%)(130)(122)7%Non-operating income, net8 13 (38%)18 25 (28%)Income (loss) before income taxes— (93)(100%)(112)(97)15%Income tax expense— — *— — *Net income (loss)$— $(93)(100%)$(112)$(97)15%

*Not meaningful

Total Revenues

The increase in Total revenues for the three months ended June 30, 2025 was primarily driven by the cumulative catch-up from license and development services revenue of $143 million relating to pausing future development of etrumadenant and Gilead's related return of its license to the program.

The increase in Total revenues for the six months ended June 30, 2025 was primarily driven by the cumulative catch-up from license and development services revenue of $143 million relating to pausing future development of etrumadenant and Gilead's related return of its license to the program, partially offset by the cumulative catch-up of $107 million in the prior year as a result of the Third