Recursion Pharmaceuticals Reports $202.5 Million Net Loss and $14.7 Million Revenue in Q1 2025

Recursion Pharmaceuticals, Inc. reported a net loss of $202.5 million for the first quarter of 2025, a significant increase from the $91.4 million loss recorded in the same period of 2024. The company's total revenue for the quarter was $14.7 million, reflecting a 7% increase from $13.8 million in the prior year. This growth was primarily driven by operating revenue from strategic partnerships, particularly with Sanofi and Merck, which contributed to a 10% rise in operating revenue to $14.8 million. However, the company also faced a substantial increase in operating costs, which rose to $206.1 million, up 87% from $110.1 million a year earlier, largely due to higher research and development expenses associated with the acquisition of Exscientia and increased personnel costs.

In terms of operational metrics, Recursion's total assets decreased to $1.3 billion as of March 31, 2025, down from $1.4 billion at the end of 2024. The company’s cash and cash equivalents also fell to $500.5 million from $594.4 million, indicating a need for ongoing capital to support its operations. The accumulated deficit increased to $1.6 billion, underscoring the financial challenges faced by the company as it continues to invest heavily in its drug discovery platform and pipeline.

Strategically, Recursion has made significant moves, including the acquisition of Exscientia in November 2024, which is expected to enhance its capabilities in AI-driven drug discovery. The integration of Exscientia's operations is ongoing, and the company anticipates that this will bolster its research and development efforts. Additionally, Recursion has entered into a new sales agreement with Citigroup to raise up to $500 million through at-the-market offerings, following the termination of its previous agreement with Jefferies. This new agreement allows for continued access to capital as the company navigates its growth trajectory.

Recursion's operational focus remains on advancing its pipeline of clinical and preclinical candidates, particularly in oncology and rare diseases. The company is actively working on several key programs, including REC-4881 for familial adenomatous polyposis and REC-7735 for PI3Kα H1047R mutant breast cancer, with various milestones expected in the coming quarters. Despite the challenges, Recursion believes that its existing cash reserves will be sufficient to fund operations for at least the next 12 months, although it acknowledges the need for additional financing to support its long-term growth and development objectives.