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Mar 31, 2025
Recursion Pharmaceuticals Q1 2025 Earnings Report
Recursion Pharmaceuticals reported a wider net loss and significantly increased R&D and G&A expenses in Q1 2025 compared to the prior year.
Key Takeaways
Recursion posted higher revenue but also much higher losses in Q1 2025, driven by a major jump in R&D and administrative costs due to the integration with Exscientia and expanded platform efforts.
Total revenue rose to $15 million, up from $14 million year-over-year.
Net loss more than doubled to $203 million from $91.4 million a year earlier.
R&D expenses nearly doubled to $130 million, driven by the Tempus agreement and Exscientia acquisition.
Cash position was $509 million with a projected runway into mid-2027.
Revenue by Segment
Forward Guidance
Recursion expects lower cash burn in 2025 and maintains a cash runway through mid-2027 despite integration costs.
Positive Outlook
- Cash burn for Q1 2025 was $118 million, excluding transaction costs.
- Full-year 2025 cash burn projected at or below $450 million.
- Cash runway expected through mid-2027.
- Integration of Exscientia on schedule with synergy gains.
- Operational cost efficiencies achieved without impacting core capabilities.
Challenges Ahead
- Net loss widened substantially year-over-year.
- Significant increase in operating expenses driven by acquisitions and data agreements.
- Ongoing need to deprioritize and discontinue multiple pipeline programs.
- No revenue reported from product sales, indicating continued reliance on partnerships.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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