Recursion Pharmaceuticals (NASDAQ:RXRX) Reports Q3 2025 Results with Revenue Miss and Extended Cash Runway

Recursion Pharmaceuticals (NASDAQ:RXRX) reported its third-quarter 2025 financial results, delivering a performance that has elicited a muted, slightly negative response from investors in pre-market trading. The clinical-stage TechBio company's latest figures reveal a complex story of significant operational progress set against a backdrop of widening financial losses and a substantial revenue miss against analyst expectations.

Earnings and Revenue Versus Estimates

The company's top and bottom-line results for the quarter ended September 30, 2025, fell notably short of Wall Street forecasts. The market's reaction, with the stock down approximately 2% in pre-market activity, appears to be a direct response to these financial misses.

• Revenue: Recursion reported total revenue of $5.2 million, a significant decrease from the $26.1 million reported in the same quarter last year. This figure came in well below the analyst estimate of $17.3 million.
• Earnings Per Share (EPS): The company posted a non-GAAP net loss per share of $0.36. While this loss was slightly narrower than the analyst estimate of a $0.38 loss per share, it represents a deepening of the $0.34 per share loss from the third quarter of 2024.

The year-over-year decline in revenue was primarily attributed to the timing of milestone payments from its partnerships. The company highlighted the achievement of a $30 million milestone from Roche and Genentech in October 2025 for a neuroscience phenomap; however, this payment will be recognized in the fourth quarter, explaining the current quarter's lighter revenue figure.

Operational Highlights and Financial Health

Beyond the earnings headlines, the press release detailed several key operational achievements that the company emphasizes as validation of its long-term platform strategy.

• Partnership Milestones: The company achieved a $30 million milestone from partners Roche and Genentech for delivering a second neuro map, this one focusing on microglial immune cells. This achievement pushed the total upfront and milestone payments received from all partnerships to over $500 million.
• Pipeline Progress: Updates were provided across the clinical pipeline, including the advancement of REC-617 in its ELUCIDATE Phase 1/2 trial and the nomination of REC-7735 as a new development candidate. The company also outlined numerous upcoming milestones through the first half of 2027.
• Cash Runway: A critical point of strength highlighted is the company's financial cushion. Following the utilization of an at-the-market (ATM) facility, Recursion reported approximately $785 million in cash and cash equivalents as of October 9, 2025. Management stated this provides an expected cash runway through the end of 2027, based on current operating plans and without additional financing.

Financial Metrics and Expenses

The quarter also revealed a substantial increase in operating expenses, reflecting the company's aggressive investment in its platform and pipeline.

• R&D Expenses: Research and development costs surged to $121.1 million, up from $74.6 million in the prior-year period, driven by acquired IP and the business combination with Exscientia.
• Net Loss: The net loss for the quarter widened to $162.3 million, compared to a net loss of $95.8 million in Q3 2024.

Looking Ahead

While the press release did not provide a specific quantitative financial outlook for the next quarter or full year, it did express confidence in the platform's ability to generate future returns. The company is "well on track for over $100 million in milestone payments by the end of 2026." This will be a key metric for investors to watch, especially when compared to analyst estimates for Q4 2025 revenue of $23.6 million and a full-year 2025 sales estimate of $73.1 million.

For a detailed breakdown of future earnings estimates and historical performance, more information can be found on the Recursion earnings and estimates page.

The market's initial reaction suggests a focus on the significant revenue miss and escalating cash burn. However, long-term investors may weigh this against the company's strategic achievements, robust partnership revenue, and the extended cash runway that provides ample time to execute on its clinical milestones.

Disclaimer: This article is for informational purposes only and does not constitute investment advice.