Recursion Pharmaceuticals reported its third‑quarter 2025 financial results on November 5, 2025, posting a net loss of $162.3 million and revenue of $5.2 million—about 70 % below the consensus estimate of $17.45 million. The miss reflects the timing of milestone payments rather than a decline in product demand, as the company’s revenue model is heavily lumpy and driven by partner milestones.
Revenue fell sharply from $26.1 million in Q3 2024 to $5.2 million in Q3 2025. The year‑over‑year drop is largely attributable to a $30 million milestone from Roche and Genentech that was earned in October 2025 and will be recognized in Q4. In addition, research and development expenses rose to $121.1 million from $74.6 million, driven by the acquisition of intellectual property and the integration of Exscientia’s assets.
The company’s non‑GAAP net loss per share was $0.36, slightly better than the consensus estimate of –$0.38. The modest beat is largely due to disciplined cost management and the absence of large one‑time charges, but the loss remains significant as it indicates that operating expenses continue to outpace revenue growth.
Management did not provide specific forward‑looking revenue or earnings guidance, but reiterated confidence in generating over $100 million in milestone payments by the end of 2026. The company’s cash position of approximately $785 million, as of October 9, 2025, gives it a runway through the end of 2027, underscoring its ability to sustain heavy investment in its AI‑driven platform.
CEO Chris Gibson highlighted the $30 million milestone as a validation of Recursion’s platform and noted that the company continues to advance its internal pipeline, including REC‑617, REC‑7735, and REC‑4881. He also announced a leadership transition: Gibson will become Chairman and Executive Advisor on January 1, 2026, while Najat Khan will assume the roles of CEO, President, and Director.
Investors reacted negatively to the results, citing the substantial revenue miss and widening net loss as concerns about the company’s ability to generate consistent revenue outside of milestone payments. The company’s strong cash reserves and partnership pipeline remain viewed as mitigating factors, but the revenue shortfall signals ongoing execution challenges.
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