Recursion Pharmaceuticals (RXRX) Q2 2025 earnings summary

Executive summary

• Integrated Exscientia and Recursion platforms into Recursion OS 2.0, accelerating AI-driven drug discovery and clinical development across internal and partnered portfolios.

• Advanced multiple oncology and rare disease programs, with key clinical milestones expected in 2H25 and 1H26, and strategic partnerships driving additional value.

• Achieved a $7 million milestone payment from Sanofi, marking the fourth partnered discovery milestone in 18 months and reflecting strong momentum in joint pipelines.

• Revenue increased 33% year-over-year to $19.2 million for the quarter, driven by collaboration milestones and expanded partnerships.

• Completed acquisition of Exscientia, expanding AI-driven drug design capabilities and clinical pipeline.

Financial highlights

• Cash, cash equivalents, and restricted cash totaled $533.8 million as of June 30, 2025, supported by milestone payments and a $28.6 million UK R&D tax credit.

• Total revenue for the quarter was $19.2 million, up from $14.4 million year-over-year; six-month revenue reached $34.0 million.

• Operating expenses rose 70% year-over-year to $195.5 million for the quarter, driven by R&D ($128.6 million) and G&A ($46.7 million), mainly due to Exscientia integration.

• Net loss widened to $171.9 million for the quarter, reflecting higher R&D and integration costs.

• Projected cash burn for 2026 is below $390 million, with a cash runway extending through Q4 2027.

Outlook and guidance

• Guidance unchanged: over $100 million in partnership inflows expected by end of 2026.

• Multiple clinical and preclinical milestones anticipated in 2H25 and 1H26, including FAP, CDK7, and RBM39 data readouts.

• Cash runway expected to extend into Q4 2027 based on current operating plans.

• Additional financing may be required in the future to support long-term growth and commercialization.

• Ongoing focus on operational efficiency and leveraging partnerships to extend cash runway.