RECURSION PHARMACEUTICALS, INC. (RXRX) FY2025 10-K Annual Report
RECURSION PHARMACEUTICALS, INC. (RXRX) 10-K annual report for fiscal year 2025, filed with SEC EDGAR on Feb 25, 2026. This page provides AI-powered analysis including business overview, management discussion & analysis (MD&A), risk factors, and key financial data such as revenue, net income, gross margin, operating margin, and return on equity (ROE) extracted from XBRL.
RECURSION PHARMACEUTICALS, INC. FY2025 10-K Analysis
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
RECURSION PHARMACEUTICALS, INC. FY2025 Key Financial MetricsXBRL
Revenue
$75M
▲ +26.9% YoY
Net Income
-$645M
▼ -39.1% YoY
Operating Margin
-867.9%
▼ -5377bp YoY
Net Margin
-863.4%
▼ -7533bp YoY
ROE
-57.0%
▼ -1221bp YoY
Total Assets
$1.5B
▲ +1.8% YoY
EPS (Diluted)
$-1.44
▲ +14.8% YoY
Operating Cash Flow
-$372M
▼ -3.5% YoY
Source: XBRL data from RECURSION PHARMACEUTICALS, INC. FY2025 10-K filing on SEC EDGAR. All figures in USD.
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