Company: RCUS
Filing Date: 2025-08-06
Form Type: 10-Q
Source: 0001724521-25-000101
Chunk: 214

Company: Arcus Biosciences, Inc.
Filing Date: 2025-08-06
Form: 10-Q
Item: Part I, Item 1
Chunk 214
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 basic earnings per share ("EPS") is based on the weighted-average number of our common shares outstanding. The computation of diluted EPS is based on the weighted-average number of our common shares outstanding and dilutive potential common shares, which primarily include shares that may be issued under our stock option, restricted stock and performance unit award programs (collectively, dilutive securities), as determined by using the treasury stock method.The computations for basic and diluted EPS were as follows (in millions, except per-share data):Three Months Ended June 30,Six Months Ended June 30,2025202420252024Net income (loss) (Numerator):Net income (loss)$— $(93)$(112)$(97)Weighted-average shares (Denominator):Outstanding106.1 91.1 102.3 88.6 Effect of dilutive securities0.4 — — — Weighted-average shares for diluted EPS106.5 91.1 102.3 88.6 Net income (loss) per share - Basic$— $(1.02)$(1.09)$(1.09)Net income (loss) per share - Diluted$— $(1.02)$(1.09)$(1.09)

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The following table summarizes potentially dilutive securities excluded from the computation of diluted net loss per share calculations because they would have been antidilutive (in millions):Three Months Ended June 30,Six Months Ended June 30,2025202420252024Common stock options issued and outstanding17.015.617.715.6Restricted stock units issued3.93.04.03.0Employee stock purchase plan shares0.20.20.20.2Total potential dilutive securities21.118.821.918.8We have also excluded the effect of Gilead’s right to purchase additional shares of our common stock which expired in July 2025, from the calculation as these rights had no intrinsic value at either June 30, 2025 or 2024.

Note 8. Stock-based compensation 

Stock-based Compensation ExpenseThe following table reflects the components of stock-based compensation expense recognized in our Condensed Consolidated Statements of Operations (in millions):Three Months Ended June 30,Six Months Ended June 30,2025202420252024Research and development$8 $10 $16 $20 General and administrative7 10 15 20 Total stock-based compensation$