Company: RCUS
Filing Date: 2025-10-28
Form Type: 10-Q
Source: 0001724521-25-000116
Chunk: 228

Company: Arcus Biosciences, Inc.
Filing Date: 2025-10-28
Form: 10-Q
Item: Part I, Item 1
Chunk 228
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 effective interest method on our liability for sale of future royalties to BVF.

Results of Operations

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

Three Months EndedSeptember 30,Change Nine Months EndedSeptember 30,Change 2025202420252024Revenues:License and development services revenue$20 $41 (51%)$192 $204 (6)%Other collaboration revenue6 7 (14%)22 28 (21)%Total revenues26 48 (46%)214 232 (8)%Operating expenses:Research and development141 123 15%402 347 16%General and administrative27 30 (10%)84 92 (9%)Impairment of long-lived assets — — —%— 20 (100%)Total operating expenses168 153 10%486 459 6%Loss from operations(142)(105)35%(272)(227)20%Non-operating income, net7 13 (46%)25 38 (34%)Loss before income taxes(135)(92)47%(247)(189)31%Income tax expense— — *— — *Net loss$(135)$(92)47%$(247)$(189)31%

*Not meaningful

Total Revenues

The decrease in Total revenues for the three months ended September 30, 2025 was primarily driven by the prior year license revenue of $15 million as a result of Taiho's exercise of its option for quemliclustat in the third quarter 2024 and lower development service revenues from the Gilead Collaboration.

24

The decrease in Total revenues for the nine months ended September 30, 2025 was primarily driven by lower development services revenue from the Gilead Collaboration and the prior year $15 million license revenue as a result of Taiho's exercise of its option for quemliclustat in the third quarter 2024. The overall decrease was partially offset by the cumulative catch-up of $143 million in the second quarter 2025 relating to pausing future development of etrumadenant and Gilead's related return of its license to the program, compared to the prior year cumulative catch-up of $107 million as a result of the Third Gilead Collaboration Agreement Amendment in the first quarter 2024.

See Note 5, Revenues, to our Condensed Consolidated Financial Statements in Part I, Item 1 of this report