Short answer
RECURSION PHARMACEUTICALS, INC. (RXRX) filed its fiscal 2025 10-K annual report with the SEC on Feb 25, 2026. It reported revenue of $75M (+26.9% year over year) and net income of −$645M.
- Top risk flagged: FDA regulatory approval risk for all drug candidates currently in discovery or clinical stages, no products approved or commercial revenue as of 2026
FY2025 key financial metrics · XBRL
- Revenue
- $75M
- +26.9% YoY
- Net income
- −$645M
- −39.1% YoY
- Operating margin
- -867.9%
- −53.8 pp YoY
- EPS (diluted)
- −$1.44
- +14.8% YoY
- ROE
- -57.0%
- −12.2 pp YoY
- Operating cash flow
- −$372M
- −3.5% YoY
Source: XBRL data from the RECURSION PHARMACEUTICALS, INC. (RXRX) FY2025 10-K on SEC EDGAR. USD.
RECURSION PHARMACEUTICALS, INC. FY2025 10-K analysis
AI summary of each section, grounded in the filing text
Business Overview
- Core business: AI-native drug discovery platform integrating biology, chemistry, clinical development to accelerate novel medicine creation
- New emphasis: Clinical validation of Recursion OS in 2025 with positive Phase 1b/2 data for REC-4881 in familial adenomatous polyposis (FAP)
- Strategic shift: Pivot from traditional high-attrition “V-shaped” funnel to a ‘T-shaped’ model emphasizing early attrition and AI-driven success probability
- Quantitative highlight: Over $500M partner payments received; 90% fewer compounds synthesized vs industry average; clinical pipeline trimmed to 5 clinical programs in 2025
- Noteworthy fact: First whole-genome CRISPR knockout neuronal and microglial maps created with Roche/Genentech, resulting in $60M milestone payments in 2024-2025
Management Discussion & Analysis
- Revenue $74.7M in 2025, up 27% YoY from $58.8M driven by Sanofi partnership; 2024 revenue rose 32% from $44.6M primarily from Roche partnership
- Operating margin negative 868% (loss $648.1M on revenue $74.7M) worsening from 815% in 2024 (loss $479.0M on $58.8M revenue)
- Best segment: Research & Development expenses $475.3M up 51.2% YoY, driven by platform costs, Tempus record purchases ($49.9M), and Exscientia acquisition ($102.4M)
- Worst segment: General & Administrative flat at $176.6M in 2025, down 0.9% YoY, but still a substantial cost burden
- Cash flow: Operating cash outflow $371.8M increased; Financing inflow $521.5M mainly from equity sales; Cash & equivalents $753.9M end 2025
- Capital allocation: Raised $957.1M net proceeds from stock since 2023; no product revenue yet; no buybacks or dividends reported
- Outlook: Management plans multiple clinical data readouts and FDA engagement in 2026; key risk includes need for future capital raises; full valuation allowance maintained on Canadian DTAs
Risk Factors
- FDA regulatory approval risk for all drug candidates currently in discovery or clinical stages, no products approved or commercial revenue as of 2026
- Geopolitical risk from potential U.S. and foreign regulatory reviews on foreign investments, possibly limiting strategic alliances with international partners
- Supply chain vulnerability linked to disruptions impacting clinical trial enrollment, manufacturing capacity, and timing of research activities
- Competitive risk from industry consolidation reducing potential collaborators and increasing competition in neuroscience and oncology drug discovery
- Financial risk of $2.1 billion accumulated deficit as of 12/31/2025 with ongoing need to raise capital through equity offerings, risking shareholder dilution
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