Recursion Pharmaceuticals-A (NASDAQ:RXRX) Reports Mixed Q2 2025 Earnings: Revenue Beat but EPS Miss

Recursion Pharmaceuticals (NASDAQ:RXRX) reported its second-quarter 2025 financial results, delivering a mixed performance relative to analyst expectations. The company, a clinical-stage biotechnology firm leveraging artificial intelligence and automation for drug discovery, posted revenue of $19.22 million, surpassing the consensus estimate of $15.74 million. However, its earnings per share (EPS) of -$0.41 fell short of the projected -$0.357.

Key Financial Highlights vs. Estimates

• Revenue Beat: Actual revenue of $19.22 million exceeded expectations by approximately 22%, driven in part by a $7 million milestone payment from its partnership with Sanofi.
• EPS Miss: The wider-than-expected loss per share (-$0.41 vs. -$0.357) reflects continued investment in clinical programs and platform development.
• Market Reaction: Pre-market trading showed a positive response, with shares up ~5.5%, likely reflecting optimism around the revenue beat and partnership milestones. However, the stock has been volatile in recent weeks, declining ~9.4% over the past two weeks before this rebound.

Business and Clinical Updates

The earnings release highlighted progress across Recursion’s pipeline, including:

• REC-1245 (RBM39 inhibitor): Expanded patient population data in oncology.
• REC-617 (CDK7 inhibitor): Continued development for advanced solid tumors.
• Sanofi Collaboration: The $7 million milestone underscores the value of Recursion’s partnerships in validating its AI-driven drug discovery platform.

Forward-Looking Estimates

Analysts project full-year 2025 sales of $70.58 million, with Q3 sales expected at $19.58 million. The company did not provide explicit guidance in its release, but the revenue outperformance in Q2 may signal stronger-than-anticipated execution.

For a deeper dive into Recursion’s earnings and future estimates, see the detailed earnings and estimates page.

Disclaimer: This article is not investment advice. Investors should conduct their own research or consult a financial advisor before making decisions.