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Recursion Pharma's Earnings Disappoint, Stock Plunges
7 Aug
Summary
- Recursion Pharma's Q2 revenue up, but losses deepen
- Stock falls 5% despite beating revenue estimates
- Promising pipeline update, including phase 1/2 trial
On August 7th, 2025, Recursion Pharmaceuticals (NASDAQ: RXRX) announced its latest quarterly financial results and business update. The clinical-stage biotech company reported revenue of $19.2 million for the second quarter of 2025, up from $14.4 million in the same period last year. However, Recursion's net loss deepened considerably, reaching almost $172 million, compared to a $97.5 million deficit in the year-ago quarter.
While Recursion's revenue exceeded analysts' expectations of $15.4 million, the company's net loss per share of $0.41 was wider than the projected $0.35 per share. This financial performance led to Recursion's stock closing the day nearly 5% lower, a steeper decline than the 0.5% dip in the broader S&P 500 index.
Despite the disappointing financial results, Recursion provided an update on its pipeline, highlighting the progress of its most advanced program, the oncology drug REC-617. The company announced that REC-617 had advanced into a phase 1/2 clinical trial in the first half of 2025.
As a biotech company without any approved products on the market, Recursion generates most of its revenue from collaborations with large pharmaceutical firms, including Bayer, Merck, and Sanofi. The company noted that its partnership with Sanofi has the potential to generate over $300 million in milestone payments, which could provide a significant boost to Recursion's financial position going forward.
