Recursion Pharmaceuticals Inc - Class A
Q4 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: −8.52%.
Did RXRX Beat Earnings? Q4 2025 Results
Recursion Pharmaceuticals delivered a standout fourth quarter, beating on both the top and bottom lines as its AI-native drug discovery platform began translating into clinical and financial results. The clinical-stage TechBio company posted Q4 2025 revenue of $35.54 million, well ahead of the $22.59 million consensus estimate and representing a 57.31% revenue beat, with year-over-year growth of 687.8% driven primarily by recognition of a $30.00 million milestone payment from Roche and Genentech for a second neuroscience Phenomap. Loss per share narrowed to $0.21, beating the $0.30 consensus estimate by 30.00%, as tighter operational discipline, including cash operating expenses coming in roughly 10% below guidance, helped compress the net loss to $108.12 million from $178.91 million a year earlier. The company ended the period with $753.92 million in cash, extending its runway into early 2028, and management guided 2026 operating cash expense below $390.00 million. Notably, plans for a $300 million at-the-market equity offering have drawn scrutiny over potential dilution, though near-term catalysts, including FDA engagement on a registrational pathway for REC-4881 expected in the first half of 2026, give investors concrete milestones to watch.
- Recognition of $30 million Roche/Genentech milestone payment for second neuroscience Phenomap (microglia map) in Q4 2025
- Increased revenue from Sanofi collaboration including fifth program milestone
- Full-year inclusion of Exscientia operations following November 2024 business combination
- Operational efficiency improvements and strategic reprioritization of clinical portfolio reducing cash operating expense ~10% below guidance
- Approximately 35% reduction in pro forma operating expenses year-over-year
“Recursion has reached an inflection point: moving from proving that AI can participate in drug discovery to demonstrating that an AI-native operating system can generate clinical proof and durable value. Our first AI-enabled clinical proof of concept in FAP and our fifth program milestone achieved with Sanofi reflect the increasing maturity of a deeply integrated model — one that connects biology, chemistry, and clinical development into a continuous learning system. We enter 2026 with five differentiated clinical programs advancing with defined next-stage milestones, a growing discovery portfolio informed by proprietary platform insights, and more than $500 million in upfront and progress-based milestone payments earned to date. Pairing bold ambition with disciplined execution, we are building Recursion to compound over time — translating insight into molecules, molecules into medicines, and innovation into measurable impact for patients and shareholders alike.”
Recursion Pharmaceuticals CEO, on the earnings call
Forward Guidance & Outlook
Recursion expects 2026 operating cash expense (excluding partnership inflows and transaction costs) to be less than $390 million. The company's cash runway extends into early 2028 without additional financing, based on current operating plans. Key upcoming milestones include: FDA engagement on a registrational pathway for REC-4881 in 1H26; early Phase 1 safety/PK data for REC-1245 in 1H26; go/no-go decisions for REC-7735 and REC-102 in 2H26; Phase 1 trial start for REC-4539 in 1H26; and combination data for REC-617 in 1H27. The Sanofi partnership has potential for additional near-term later-stage discovery milestones over the next 12-18 months as first programs advance towards development candidates. The company expects to translate biological insights from maps delivered to Roche and Genentech into early-stage programs across 2026 and beyond.
RXRX YoY Financials
Figures from SEC filings and company reports. Not investment advice.