Recursion Pharmaceuticals

Recursion Pharmaceuticals (RXRX) Q1 2025 Earnings

Reported May 5, 2025 at 6:01 AM ET · SEC Source

Q1 25 EPS

$-0.50

BEAT +3.10%

Est. $-0.52

Q1 25 Revenue

$14.7M

MISS 18.46%

Est. $18.1M

Market Reaction

Did RXRX Beat Earnings? Q1 2025 Results

Recursion Pharmaceuticals delivered a mixed first quarter for 2025, narrowly beating loss expectations while falling short on revenue as the company absorbed the full weight of its Exscientia integration. The clinical-stage TechBio company posted a l… Read more Recursion Pharmaceuticals delivered a mixed first quarter for 2025, narrowly beating loss expectations while falling short on revenue as the company absorbed the full weight of its Exscientia integration. The clinical-stage TechBio company posted a loss of $0.50 per share, edging past the consensus estimate of $0.52 by 3.10%, but revenue of $14.74 million trailed the $18.08 million consensus by 18.46%, even as it climbed 9.3% year over year. The revenue shortfall reflected a deliberate strategic pivot: Recursion deprioritized four programs, including three clinical candidates, to concentrate spending on higher-conviction oncology and rare disease assets, a shift that also drove R&D expenses nearly double to $129.63 million and widened the net loss to $202.49 million. Bright spots included promising Phase 2 data for REC-4881 in familial adenomatous polyposis and a $7.00 million Sanofi milestone, bringing that collaboration to $130.00 million in total cash inflows. Looking ahead, management guided for full-year cash burn of no more than $450.00 million, well below the combined $606.00 million consumed in 2024, with runway projected into mid-2027.

Key Takeaways

  • Fourth Sanofi partnership milestone generating $7 million payment for orally active small-molecule lead in autoimmune diseases
  • Revenue driven by timing of Sanofi, Roche, and Merck KGaA collaboration projects
  • R&D expense increase driven by Tempus data agreement ($27 million non-cash) and Exscientia business combination
  • Integration synergies from Exscientia merger reducing duplicated costs while maintaining platform capabilities
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RXRX YoY Financials

Q1 2025 vs Q1 2024, source: SEC Filings

“Recursion's decade-long investment in AI is driving a decisive, data-led portfolio strategy. We are prioritizing high-potential programs to accelerate better treatments to patients, building on our platform's unique ability to learn and lead this transformative shift in drug discovery. Our deep appreciation goes to the patients and investigators whose participation is invaluable on this journey.”

— Chris Gibson, Q1 2025 Earnings Press Release