Key Takeaways
- Recursion Pharmaceuticals (RXRX) exceeded Q4 earnings projections by $0.09 per share, posting -$0.21 versus the anticipated -$0.30.
- Quarterly revenue totaled $35.54M, surpassing analyst expectations of $24.51M by approximately $11M.
- A significant $30M milestone payment from Roche, secured in October 2025, primarily fueled the revenue outperformance.
- Annual revenue increased roughly 27% year-over-year to $74.7M, supported by the Exscientia acquisition completed in 2024.
- The company maintains $743.3M in cash reserves, providing sufficient runway through 2028.
Recursion Pharmaceuticals (RXRX) experienced a notable stock price increase on Wednesday following the release of fourth quarter 2025 financial results that exceeded analyst projections across key metrics.
The artificial intelligence-powered drug discovery company reported an adjusted loss of $0.21 per share for the quarter, performing significantly better than the Street consensus estimate of a $0.30 loss—a positive variance of $0.09.
Quarterly revenue reached $35.54M, substantially outpacing analyst expectations of $24.51M. This represents a dramatic increase compared to the $4.5M generated during the corresponding quarter in the prior year.
Recursion Pharmaceuticals, Inc., RXRX
The primary catalyst behind this revenue surge was a substantial $30M milestone payment from Swiss pharmaceutical powerhouse Roche, which the company received in October 2025. A significant portion of this payment contributed to Q4 collaboration revenue.
While the revenue outperformance was predominantly driven by this non-recurring milestone event, investors reacted favorably to the headline figures nonetheless.
Annual Revenue Shows Strong Growth Trajectory
Looking at the complete fiscal year 2025, Recursion delivered total revenue of $74.7M, representing approximately 27% growth compared to the previous year.
This year-over-year expansion was partially attributed to consolidated results from Exscientia, the UK-based artificial intelligence drug discovery platform that Recursion acquired during 2024.
Research and development expenditures for the fourth quarter totaled $95.9M, reflecting a modest 2% decline year-over-year. Meanwhile, selling, general and administrative costs decreased more substantially, falling roughly 56% YoY to $33.7M. This expense management contributed to a reduced net loss for the period.
Recursion concluded fiscal year 2025 with cash, cash equivalents, and marketable securities of $743.3M. This compares favorably to the $594.4M balance reported at year-end 2024.
Financial Runway Secured Through 2028
Recursion management indicated that current cash reserves are sufficient to fund operations into 2028 without requiring additional capital raises. This guidance provides important visibility for investors monitoring the company’s cash consumption rate.
Despite the positive quarterly results, InvestingPro continues to characterize Recursion’s overall financial health as reflecting “weak performance,” underscoring that a single quarter’s beat doesn’t fundamentally alter the company’s longer-term challenges.
RXRX shares have faced considerable headwinds recently. The stock has declined 23.76% over the trailing three-month period and has fallen 57.67% over the past year.
Wednesday’s price appreciation occurred within this challenging context—providing relief to shareholders after the company cleared what many viewed as a relatively low performance hurdle.
Regarding earnings estimate revisions, Recursion experienced three upward adjustments and one downward revision during the 90-day period preceding this quarterly report.
RXRX shares closed Tuesday’s trading session at $3.53 before rallying on Wednesday’s positive earnings announcement.
