RXRX Q3 Loss Narrower Than Expected, Revenues Decline Y/Y

Recursion Pharmaceuticals RXRX reported a loss of 36 cents per share in the third quarter of 2025, narrower than the Zacks Consensus Estimate of a loss of 38 cents. The company had incurred a loss of 34 cents per share in the year-ago quarter.

In the absence of an approved product, Recursion Pharmaceuticals only recognizes collaboration and grant revenues from its partners. Total revenues in the reported quarter amounted to $5.2 million, down significantly year over year, primarily due to the achievement of a $30 million milestone payment for the first phenomap from Roche, which was partially recognized in the year-ago quarter. The reported figure fell short of the Zacks Consensus Estimate of $17 million.

RXRX also recognizes periodic revenues from its ongoing collaboration agreements with Sanofi, Bayer and Merck KGaA, Darmstadt, Germany.

RXRX’s Q3 Results in Detail

In the third quarter of 2025, Research and development (R&D) expenses soared 62% to $121.1 million compared with the $74.6 million reported in the year-ago period. The massive uptick in R&D expenses can be attributed to an increase in acquired in-process R&D purchases related to the acquisition of full rights to REC-102, as well as its business combination with Exscientia in November 2024.

General and administrative (G&A) expenses were $41.6 million in the reported quarter, up 10% year over year, due to the inclusion of G&A expenses from the business combination with Exscientia. Additionally, Recursion Pharmaceuticals’ cost of revenues in the reported quarter increased 22% to $14.7 million.

The company had cash, cash equivalents and restricted cash worth $667.1 million as of Sept. 30, 2025, compared with $533.8 million as of June 30, 2025. Recursion Pharmaceuticals expects its existing cash, cash equivalents and restricted cash to fuel operations through the end of 2027, based on its current business plan.

RXRX shares have plunged 26.7% year to date against the industry’s 10.2% growth.

RXRX’s Key Pipeline Updates

In the latest earnings release, Recursion Pharmaceuticals announced that it has earned a second $30 million milestone from its collaboration with Roche after the latter accepted a novel phenomap of microglial cells. RXRX expects to recognize a portion of this payment as revenues in the fourth quarter of 2025.

Recursion Pharmaceuticals faced a significant setback in May 2025 after announcing the discontinuation of three key drug candidates — REC-994, REC-2282, and REC-3964 — as part of its broader strategic pipeline reprioritization. These candidates were being developed for cerebral cavernous malformation, neurofibromatosis type II and Clostridioides difficile infection, respectively.

Following the terminations, Recursion Pharmaceuticals shifted focus to more promising candidates, notably REC-4881, which is being evaluated in a phase Ib/II TUPELO study for familial adenomatous polyposis. In May 2025, the company reported preliminary data from this study, with additional data expected in December 2025.

In 2024, Recursion Pharmaceuticals initiated its phase I/II DAHLIA study of REC-1245, a new chemical entity for the treatment of biomarker-enriched solid tumors and lymphoma. Data readout from the phase I portion of the DAHLIA study is expected in the first half of 2026. Recursion Pharmaceuticals is also developing a few other candidates, like REC-617 (advanced solid tumors) and REC-3565 (B-cell malignancies), in separate early-stage studies, anticipating data readouts in late 2025 and early 2027, respectively.

In July 2025, Recursion Pharmaceuticals acquired Rallybio’s full stake in their joint venture for developing REV102 (now REC102) and an associated backup molecule for the treatment of hypophosphatasia. REC102, a potent and selective ENPP1 inhibitor with strong preclinical safety data, is expected to enter phase I studies by late 2026. Its oral formulation offers a major advantage over current enzyme replacement therapies, potentially improving patient adherence and reducing treatment-associated risks.

Recursion Pharmaceuticals, Inc. Price, Consensus and EPS Surprise

Recursion Pharmaceuticals, Inc. price-consensus-eps-surprise-chart | Recursion Pharmaceuticals, Inc. Quote

RXRX’s Zacks Rank & Stocks to Consider

Recursion Pharmaceuticals currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the biotech sector are ANI Pharmaceuticals ANIP, Acadia Pharmaceuticals ACAD and Amicus Therapeutics FOLD. While FOLD currently sports a Zacks Rank #1 (Strong Buy), ANIP and ACAD carry a Zacks Rank #2 (Buy) each at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

In the past 60 days, estimates for Amicus Therapeutics’ earnings per share have remained constant at 31 cents for 2025. During the same time, earnings per share estimates for 2026 have increased from 69 cents to 70 cents. Year to date, shares of FOLD have lost 4.5%.

Amicus Therapeutics’ earnings beat estimates in one of the trailing four quarters, missing the mark thrice, with the average negative surprise being 20.21%.

In the past 60 days, estimates for ANI Pharmaceuticals’ earnings per share have increased from $7.25 to $7.29 for 2025. During the same time, earnings per share estimates for 2026 have increased from $7.74 to $7.81. Year to date, shares of ANIP have surged 67.6%.

ANI Pharmaceuticals' earnings beat estimates in each of the trailing four quarters, the average surprise being 22.66%.

In the past 60 days, estimates for Acadia Pharmaceuticals’ earnings per share have increased from 52 cents to 53 cents for 2025. During the same time, earnings per share estimates for 2026 have increased from 78 cents to 84 cents. Year to date, shares of ACAD have surged 21.7%.

Acadia Pharmaceuticals’ earnings beat estimates in three of the trailing four quarters while missing the same on the remaining occasion, the average surprise being 16.90%.

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This article originally published on Zacks Investment Research (zacks.com).

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