Company: RCUS
Filing Date: 2025-10-28
Form Type: 10-Q
Source: 0001724521-25-000116
Chunk: 210

Company: Arcus Biosciences, Inc.
Filing Date: 2025-10-28
Form: 10-Q
Item: Part I, Item 1
Chunk 210
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Taiho collaboration      License revenue*— 15 — 15 Other*— 3 — 10 Total revenues  $26 $48 $214 $232 Total revenues from collaborations$20 $41 $192 $204 Total revenues from a customer$6 $7 $22 $28 Revenues from Gilead accounted for 100% and 63% of Total revenues for the three months ended September 30, 2025 and 2024, respectively and 100% and 89% of Total revenues for the nine months ended September 30, 2025 and 2024, respectively.

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The following table summarizes the revenue recognized as a result of changes in the deferred revenue balance (in millions):Three Months Ended September 30,Nine Months Ended September 30,2025202420252024Revenue recognized from amounts in deferred revenue at the beginning of the period$26 $33 $214 $212 We had $105 million and $319 million of deferred revenue remaining on our Condensed Consolidated Balance Sheets at September 30, 2025 and December 31, 2024, respectively, allocated between current and noncurrent based on the expected timing of future recognition.Revenue from the Gilead CollaborationIn the first quarter 2025, we decided to pause future development of etrumadenant. In June 2025, Gilead terminated its rights to etrumadenant (the adenosine receptor antagonist program). We determined that this was a significant reduction in the scope of the arrangement, which met the accounting definition of a contract modification. As a result, we accounted for this as both a modification of the existing contract and the creation of a new contract. Under the applicable accounting rules for such contract modifications, we did not adjust the accounting for completed performance obligations that were distinct from the modified goods or services. Accordingly, we allocated the updated transaction price of $256 million, which was comprised of the deferred revenue remaining as of the modification date, to the remaining unsatisfied and partially satisfied performance obligations and updated the measure of progress as of the modification date, which resulted in a cumulative catch-up to revenue of $143 million. This cumulative catch-up reduced net loss per share, basic and diluted, in the nine months ended September 30, 2025 by $1.38. See Note 3, Related party - Gilead Sciences, Inc., for more information