Recursion Pharmaceuticals Inc - Class A
Q1 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +5.24%.
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 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.
- 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
“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.”
Recursion Pharmaceuticals CEO, on the earnings call
Forward Guidance & Outlook
Recursion expects cash burn (excluding partnership/financing inflows) of ≤$450 million for full-year 2025, a significant reduction from the combined $606 million in 2024. The company projects cash runway into mid-2027 based on its current business plan. Key upcoming catalysts include: REC-617 combination study initiation in 1H25, additional REC-4881 FAP data in 2H25, REC-7735 development candidate nomination in 2H25, REC-1245 early Phase 1 safety/PK data in 1H26, REC-3565 early Phase 1 safety/PK data in 2H26, and REV102 Phase 1 initiation in 2H26. The company noted limited expected business impact from macroeconomic factors including China and tariffs. Integration synergies are being realized across duplicated corporate expenses, reduced platform capacity, facility rationalization, and the spin-out of Austrian operations.
RXRX YoY Financials
Figures from SEC filings and company reports. Not investment advice.