Recursion Pharmaceuticals Reports 80% Revenue Decline and $162M Net Loss in Latest Quarter

Recursion Pharmaceuticals, Inc. reported significant financial challenges in its latest 10-Q filing for the quarter ending September 30, 2025. The company generated total revenue of $5.175 million, a substantial decline of 80% compared to $26.082 million in the same quarter of the previous year. For the nine months ending September 30, 2025, total revenue was $39.143 million, down 28% from $54.293 million in the prior year. The decrease in revenue was attributed to the timing of projects from collaborations with major partners such as Sanofi, Roche, and Merck KGaA.

The company's operating expenses also saw a significant increase, totaling $177.377 million for the third quarter, up 43% from $124.436 million in the same period last year. This rise was primarily driven by a 62% increase in research and development costs, which reached $121.062 million, reflecting the company's ongoing investment in its drug discovery platform and the integration of Exscientia's operations. General and administrative expenses also rose by 10% to $41.628 million. As a result, Recursion reported a net loss of $162.253 million for the quarter, compared to a net loss of $95.842 million in the same quarter of 2024.

In terms of strategic developments, Recursion completed the acquisition of Rallybio's interest in the joint venture RE Ventures I for $20.2 million in July 2025, gaining full ownership of the asset. Additionally, the company recorded a loss of $4.5 million from the disposal of its Austrian operations, Exscientia GmbH, as part of its strategy to streamline operations and focus on core areas. The company also entered into a five-year agreement with Tempus AI, Inc. to access multimodal oncology data, which is expected to enhance its drug discovery capabilities.

Operationally, Recursion's workforce was reduced by approximately 20% in June 2025 as part of a restructuring effort aimed at improving efficiency. The company reported an increase in its employee headcount to 1,200 as of September 30, 2025, reflecting ongoing hiring efforts despite the recent layoffs. The company continues to focus on advancing its clinical pipeline, with several programs in various stages of development, including REC-617 and REC-7735, which are expected to enter clinical trials in the near future.

Looking ahead, Recursion anticipates continued operating losses and recognizes the need for additional capital to fund its operations and drug development initiatives. The company believes its existing cash and cash equivalents, totaling $659.8 million as of September 30, 2025, will be sufficient to support its operations for at least the next 12 months. However, the company acknowledges the uncertainty surrounding future revenue generation and the potential need for further financing to sustain its growth and development objectives.