Forensic Analysis · Healthcare / Pharmaceuticals / Biotech · as of Aug 11, 2026
Arcus Biosciences, Inc. (RCUS)
A forensic read on Arcus Biosciences, Inc. built from its complete SEC filings — financial-health screens, earnings quality, red flags and a price-aware rating. Reproducible math, not opinion.
F · Poor — capital at risk
Forensic grade
Safe
Financial health
5.5
Distress distance
Clean
Earnings quality
6
Forensic signals
-7.2
P / E (ttm)
-55.9%
ROE
$3.7B
Market cap
0.00%
Dividend yield
-4.3%
Revenue growth
This free snapshot doesn't read filing or proxy text, so the auditor-quality and governance checks that can lower a grade were not evaluated (red flags, auditor quality, say on pay, board independence). Those checks only ever lower a grade, so the full analysis can land below the grade above but never above it — treat it as the most favourable reading, not the settled one.
Arcus Biosciences, Inc. earns an F (Poor — capital at risk) forensic quality grade, and its balance-sheet distress test reads 5.5, placing it in the Safe zone. 6 forensic signals were flagged in its latest SEC filings, led by accruals ratio (% of noa).
What the filings flag
+28.1%
FY2024→FY2025
Accruals ratio (% of NOA).Net operating assets grew +28.1% relative to their own average in FY2025 — scaled by NOA itself, not total assets (see the Forensic Screens card's differently-scaled Sloan Accrual Ratio for that read). Accruals are building sharply — a large slice of profit sits in operating assets, not cash; Richardson/Sloan link high accruals to weaker future returns as they reverse. The cash-flow cross-check agrees: reported earnings ran ahead of operating cash by 29% of net operating assets.
-44.5%
FY2025
Return on invested capital.Return on invested capital is -44.5% in the latest fiscal year and slipping from -23% — well below its ~10% cost of capital, so reinvested dollars may be destroying value, not building it.
+14.3%/yr
FY2022–FY2025
Share-count dilution.Diluted share count changed +49% over the last 3 years to FY2025 (+14.3%/yr). The count is growing: more stock was issued than repurchased over this window, so aggregate results grew faster than their per-share equivalents. That's ~14.3% shaved off per-share growth every year — total profit has to grow that much just to keep earnings-per-share flat, and a stake held since FY2022 has been diluted ~33%.
24% of rev
FY2025
Stock-based comp load.Stock-based compensation ran 24% of revenue in FY2025 — about $0.56 per diluted share. The cost of it is not in the cash flow — no cash left the business — it is in the count: holders gave up about 14.6% of the company a year, and that rate is not falling. That is the figure to weigh, not the share of free cash flow.
Key fundamentals
Latest Revenue$247.0M
Revenue Growth YoY-4.3%
Revenue CAGR (3yr)+30.2%
Net Margin-142.9%
Free Cash Flow-$484.0M
Return on Equity-55.9%
Debt / Equity0.16x
The forensic grade and screens above are free — no account needed. Want the AI investment read on top — the 0–100 rating, thesis, bull-vs-bear, red flags and the 12-month scenario, written from Arcus Biosciences, Inc.'s actual 10-K/10-Q/8-K filings?
Data from SEC EDGAR public filings · metrics as of Aug 11, 2026. Forensic signals flag probability, not certainty.
Arcus Biosciences, Inc. (RCUS) Stock — Forensic Analysis, Red Flags & Rating | Stockonomy · Stockonomy
FCF ($75M)
FY2019
Shareholder returns.Returned $94,000 to shareholders (buybacks + dividends) in FY2019, but free cash flow was ($75M) after capex — there was no free cash flow to fund the payout from at all, and operating cash flow itself was negative or zero that year too. The entire return is coming from debt or cash reserves, not cash the business itself generated — a harder case than returns merely running ahead of free cash flow, since here there was none to run ahead of.
-$958.0M
FY2023–FY2025
Cash burn vs. reported loss.Over FY2023–FY2025, the company reported a cumulative net loss of $943.0M against operating cash flow of -$958.0M. Cash burn ran heavier than the reported loss — something outside net income (working capital, a cash item not in the P&L) is consuming cash faster than the loss alone implies.