Recursion Pharmaceuticals (RXRX) Q4 2025 earnings summary

Executive summary

• Achieved first AI-enabled clinical proof of concept in FAP with REC-4881, demonstrating significant and durable polyp burden reduction and favorable safety profile in a disease with no approved therapies.

• Advanced diversified clinical and discovery portfolios, including five+ clinical and ~15 discovery programs, leveraging AI-driven biology, chemistry, and clinical development.

• Secured over $500 million in partnership inflows, including $134 million from Sanofi and $30 million from Roche, with five milestones achieved and a robust joint pipeline.

• Extended cash runway to early 2028 through disciplined execution, significant cost reductions, and operational efficiencies.

• Delivered five milestone payments with Sanofi and advanced Roche/Genentech collaborations, highlighting platform value and partnership momentum.

Financial highlights

• Year-end 2025 cash balance of $754 million, providing runway into early 2028 without additional financing.

• 2025 cash operating expense was $399 million, a ~35% year-over-year reduction and 10% below guidance.

• Total revenue for Q4 2025 was $35.5 million; full-year 2025 revenue was $74.7 million, driven by milestone and collaboration payments.

• Research and development expenses for 2025 were $475.3 million, reflecting acquisitions and expanded operations.

• 2026 cash operating expenses expected to be under $390 million (non-GAAP measure).

Outlook and guidance

• Initial FDA engagement for REC-4881 planned for first half of 2026; additional clinical data expected first half of 2027.

• Go/No Go decisions for PI3K, ENPP1, REC-7735, and REC-102 programs anticipated in the second half of 2026.

• Multiple early safety, PK, and combo data readouts expected across the pipeline in 2026–2027.

• Continued investment in AI platform and operational efficiency to drive further pipeline progress.

• Cash runway projected into early 2028 without additional financing, reflecting disciplined capital allocation.