Analyst Conference Summary

biotechnology

conference date: November 6, 2025
for quarter ending: September 30, 2025 (third quarter, Q3)

Forward-looking statements

Overview: Continues to advance pipeline.

Basic data (GAAP):

Revenue was $5 million, down 74% sequentially from $19.2 million, and down 81% from $26 million year-earlier.

Net Income was negative $162 million, up sequentially from negative $172 million, and down from negative $96 million year-earlier.

EPS (Earnings per Share), diluted, was negative $0.36, up sequentially from negative $0.41, and down from negative $0.34 year-earlier. Sharecount greatly increased.

Guidance:

Cash runway to Q4 2027.

Conference Highlights:

Chris Gibson, CEO, said "Recursion continues to deliver on our internal pipeline, our strategic partnerships and the continued building and refinement of the Recursion OS. On the partnership front, we are proud to announce that with the option of our second neuro map in the Roche and Genentech collaboration, we’ve achieved over $500 million in upfront and milestone payments from our partners to date as we continue to deliver novel insights and advance programs for some of the toughest disease areas. This is only the beginning of the returns we expect to see on the investment in our platform. With a strong cash runway through the end of 2027, we look forward to delivering on our pipeline and proving that building an end-to-end AI-enabled platform—combining massive proprietary datasets with industry-leading supercomputing capabilities and sophisticated AI models—is the critical infrastructure we need to realize real change in our industry." As of October 9, 2025 Recursion had $785 million in cash.

On January 1, 2026, Najat Khan will be promoted to CEO and President. Chris Gibson will become Chairman of the Board. Current Chairman Rob Hershberg will become Vice-Chairman.

Recursion is in discovery partnerships with Roche, Sanofi, Bayer, and Merck KGaA. In early Q4 2025 received a $30 million milestone payment from Roche and Genentech.

In Q3 REC-617 for advanced solid CDK7 tumors the Phase 1/2 study established the maximum tolerated dose at 10 mg. Toxicities were not too bad. One partial response and five stable disease cases among 29 heavily pretreated patients, most at the lower doses. Has now expanded into 2L+ platinum-resistant ovarian cancer with a Phase 2 monotherapy cohort ongoing and a Phase 1 combination arm initiated. Combination regimens include bevacizumab plus paclitaxel or pegylated liposomal doxorubicin. Recursion is exploring additional indications and dosing regimens for expansion cohorts. But notes CDK7 therapies have been historically challenged, 617 has been optimized to deal with problems.

REC-7735 targetting Pl3KaH1047R is now in IND enabling studies for breast and other solid tumors with the mutations. Could initiate Phase 1 in 2H 2026.

REC-1245 entered Phase 1 in Q2 2025. It is a first-in-class RBM39 degrader, identified using phenomap-derived insight, which mimics CDK12 loss to induce replication stress and suppress DDR pathways without CDK12 related toxicities. Earlier data showed activity in tumors with replication stress and DNA repair vulnerabilities. The trial is now enrolling select tumor types to identify responsive populations. Early data release in 1H 2026.

REV102 targetting ENPP1 for hypophasphatasia has reached the IND-enabling stage, with preclinical data supporting first-in-class potential. In Q2 2025 Recursion acquired full rights from Rallybio. Phase 1 trial target initation in 2H 2026.

REC-4881 (MEK1/2) additional Phase 2 data in FAP (Familial adenomatous polyposis) is expected in December 2025.

Other preclinical programs include REC-617; REC-3565; REC-4539.

Recursion maps of the genome gives insight into gene interactions and novel pathways, including in the immune cells of the brain. Compleated a microglial cell map. Talked about absorption, distribution, metabolism, excretion and toxicity (ADMET).

Recursion platform is currently Recursion 2.0 (earlier did 0.1 and 1.0).

Cash ended the quarter at $660 million, up sequentially from $534 million. Cash used in operating activities for nine months was $326 million. In Q4 added $388 million from an ATM facility.

Total expenses were $177 million, consisting of: cost of revenue $15 million, R&D $121 million, G&A $42 million. Loss from operations $172 million. Other income $10 million.

Q&A selective summary:

2026 cash burn? Financing? Focus is on delivering on high-value milestones. Completed ATM in the quarter, which allows us to get to the end of 2027 with no further cash raises.

Full stack use in newer potential therapies? 4881 levers genomics a lot. Newer potential therapies have a more complete platform generating them, like FAP. But we will continue to improve the platform.

Partnerships, possibly new? Our partnerships are deap. We often have discussions with other potential partners. But we are careful in choosing partners.

Lilly AI development? It confirms what we have been doing is the smart path and the future of biopharma. We want to move the entire field forward.

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