Key Highlights
- Recursion Pharmaceuticals (RXRX) delivered Q4 EPS of -$0.21, outperforming consensus by $0.09 against expectations of -$0.30.
- Quarterly revenue reached $35.54M, surpassing analyst projections of $24.51M by approximately $11M.
- A significant $30M milestone payment from pharmaceutical giant Roche, received in October 2025, fueled the revenue outperformance.
- Annual revenue climbed roughly 27% year-over-year to $74.7M, supported by the Exscientia integration completed in 2024.
- The company maintains $743.3M in cash reserves, providing operational runway through 2028.
Recursion Pharmaceuticals (RXRX) shares climbed Wednesday following the release of fourth-quarter 2025 financial results that exceeded Street forecasts across key metrics.
The biotechnology company specializing in AI-powered drug discovery reported a quarterly loss of $0.21 per share. This figure came in significantly better than Wall Street’s anticipated $0.30 loss, representing a $0.09 beat.
Quarterly revenue totaled $35.54M, substantially higher than the Street’s $24.51M projection. This marks a dramatic increase from the $4.5M generated during the comparable quarter in the prior year.
Recursion Pharmaceuticals, Inc., RXRX
The revenue surge was primarily attributable to a $30M milestone payment from Roche, the Switzerland-based pharmaceutical powerhouse, which was received in October 2025. A significant portion of this payment contributed to Q4 collaboration revenue.
While this revenue beat stems largely from a non-recurring milestone event, the strong results provided a welcome catalyst for the beleaguered stock.
Annual Revenue Shows Solid Growth Trajectory
For fiscal year 2025, Recursion generated total revenue of $74.7M, representing approximately 27% growth compared to the previous year.
This year-over-year expansion was partially driven by incorporating financial results from Exscientia, the UK-based AI drug discovery platform that Recursion successfully acquired in 2024.
Research and development expenditures for the fourth quarter totaled $95.9M, declining roughly 2% from the year-ago period. Selling, general and administrative costs showed more substantial improvement, decreasing approximately 56% year-over-year to $33.7M. These operational efficiencies contributed to reducing the overall net loss.
Recursion concluded 2025 holding $743.3M in cash, cash equivalents, and investments. This represents an increase from the $594.4M balance reported at year-end 2024.
Financial Runway Extends Through 2028
Recursion management indicated that existing cash reserves should sustain operations through 2028 without requiring additional capital raises. This guidance provides important visibility for investors monitoring the company’s cash consumption rate.
Despite the quarterly beat, InvestingPro characterizes Recursion’s overall financial health as showing “weak performance,” highlighting that one strong quarter hasn’t resolved underlying operational challenges.
RXRX shares have experienced significant downward pressure recently. The stock has declined 23.76% over the trailing three-month period and has fallen 57.67% over the past year.
Wednesday’s rally occurred within this challenging context — market participants welcomed results that exceeded what had become depressed expectations.
Regarding earnings estimate revisions, Recursion received three upward adjustments and one downward revision during the 90-day window preceding the quarterly report.
RXRX shares closed at $3.53 in the previous trading session before Wednesday’s advance.
