Recursion Pharmaceuticals Reports 33% Revenue Growth but Increases Net Loss to $171.9 Million in Q2 2025

Recursion Pharmaceuticals, Inc. reported its financial results for the second quarter of 2025, revealing a total revenue of $19.2 million, a 33% increase from $14.4 million in the same period last year. For the first half of 2025, the company generated $34.0 million in revenue, up 20% from $28.2 million in the first half of 2024. The growth in revenue was primarily attributed to increased activity in ongoing collaborations with major partners such as Sanofi, Roche, and Merck KGaA. However, the company also reported a net loss of $171.9 million for the quarter, compared to a loss of $97.5 million in the prior year, reflecting a 76% increase in losses.

The significant rise in losses was driven by a 70% increase in total operating costs and expenses, which reached $195.5 million for the quarter, up from $115.0 million a year earlier. This increase was largely due to heightened research and development expenditures, which surged 74% to $128.6 million, influenced by the acquisition of Exscientia and ongoing investments in the Tempus data records. General and administrative expenses also rose by 47% to $46.7 million, partly due to severance costs associated with a workforce reduction announced in June 2025, which is expected to yield long-term operational efficiencies.

Recursion's operational metrics indicate a strategic shift following its acquisition of Exscientia, which has expanded its capabilities in AI-driven drug discovery. The company reported a workforce reduction of approximately 20%, aimed at streamlining operations and enhancing integration efficiencies post-acquisition. As of June 30, 2025, Recursion had approximately 432.8 million shares of common stock outstanding, reflecting a significant increase in share count due to recent equity financing activities.

Looking ahead, Recursion anticipates continued investment in its drug discovery platform, with a focus on advancing its pipeline of clinical and preclinical programs. The company has outlined several upcoming milestones, including the initiation of Phase 1 trials for its ENPP1 inhibitor, REC-102, and further data releases for its other investigational drugs. Despite the current financial losses, Recursion believes its existing cash reserves of $525.1 million will be sufficient to fund operations for at least the next 12 months, although it acknowledges the need for additional capital to support ongoing and future development efforts.