Biotech firm Recursion's Q2 revenue beats estimates

Recursion Pharmaceuticals

05/08/2025 11:40

Overview

Recursion Q2 operating revenue beats expectations, reaching $19.2 mln, per LSEG data

Net loss widens to $171.9 mln, missing analyst estimates, per LSEG data

Achieved $7 mln milestone payment from Sanofi partnership in Q2

Outlook

Recursion expects cash runway to extend into Q4 2027

Company anticipates $100 mln in partnership milestones by end of 2026

Recursion advancing multiple programs towards development candidate designation

Company expects REC-102 Phase 1 initiation in 2H26

Result Drivers

SANOFI MILESTONE - Achieved $7 mln milestone payment from Sanofi partnership, reflecting progress in partnered discovery programs

INCREASED R&D EXPENSES - R&D expenses rose due to collaboration with Tempus and acquisition of Exscientia

PLATFORM ADVANCEMENTS - Recursion OS platform aids in drug discovery and patient targeting, supporting pipeline progress

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Operating Revenue
Beat
$19.10 mln
$15.40 mln (6 Analysts)
Q2 EPS
-$0.41
Q2 Net Income
Miss
-$171.90 mln
-$93.20 mln (4 Analysts)
Q2 Pretax Profit
Miss
-$171.90 mln
-$140.20 mln (2 Analysts)
Q2 Operating Income
-$176.23 mln


Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 6 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the biotechnology & medical research peer group is "buy."

Wall Street's median 12-month price target for Recursion Pharmaceuticals Inc is $6.50, about 10.8% above its August 4 closing price of $5.80

Press Release: ID:nGNX5P7KF1

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)