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Jun 30, 2025
Recursion Pharmaceuticals Q2 2025 Earnings Report
Recursion reported increased revenue and a wider net loss driven by elevated R&D and G&A expenses in Q2 2025.
Key Takeaways
Recursion saw higher revenue from collaborative agreements but posted a significantly larger net loss due to increased research and development spending and expanded administrative costs following the Exscientia acquisition.
Total revenue for Q2 2025 increased to $19.2 million from $14.4 million in Q2 2024, primarily due to collaboration agreements.
Research and development expenses significantly rose to $128.6 million in Q2 2025, up from $73.9 million in Q2 2024, largely due to the Tempus agreement and Exscientia business combination.
Net loss widened to $171.9 million in Q2 2025, compared to a net loss of $97.5 million in Q2 2024.
The company achieved a $7 million milestone payment from Sanofi for an immunology program, marking the fourth partnered program to reach a significant discovery milestone in 18 months.
Revenue by Segment
Forward Guidance
The company expects its cash runway to last through Q4 2027 and continues to project milestone achievements and clinical progress across key programs.
Positive Outlook
- Cash runway expected to extend into Q4 2027.
- Achieved $7M milestone from Sanofi partnership in Q2.
- Multiple programs nearing development candidate status in the next 12-15 months.
- Expansion of Recursion OS and Virtual Cell to support program acceleration.
- Upcoming clinical milestones for REC-1245, REC-617, and REC-102.
Challenges Ahead
- Net loss significantly increased year-over-year.
- Operating expenses surged due to integration and platform expansion.
- No non-GAAP EPS reported.
- Restructuring costs expected to total $9.3 million in 2025.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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