Analyst Conference Summary

biotechnology

conference date: February 25, 2026
for quarter ending: December 31, 2025 (fourth quarter, Q4)

Bought initial position on 12/1/2025
Forward-looking statements

Overview: Revenue from milestone payments increasing, but still mainly early clinical stage pipeline designed by AI.

Basic data (GAAP):

Revenue was $35 million, up sequentially from $5 million, and up from $4.5 million year-earlier.

Net Income was negative $108 million, up sequentially from negative $162 million, and up from negative $179 million year-earlier.

EPS (Earnings per Share), diluted, was negative $0.21, up sequentially from negative $0.36, and up from negative $0.53 year-earlier.

Guidance:

Cash runway into early 2028. 2026 cash operating expense less than $390 million.

Conference Highlights:

Najat Khan, Ph.D., CEO and President said "Recursion has reached an inflection point: moving from proving that AI can participate in drug discovery to demonstrating that an AI-native operating system can generate clinical proof and durable value. Our first AI-enabled clinical proof of concept in FAP and our fifth program milestone achieved with Sanofi reflect the increasing maturity of a deeply integrated model – one that connects biology, chemistry, and clinical development into a continuous learning system. We enter 2026 with five differentiated clinical programs advancing with defined next-stage milestones, a growing discovery portfolio informed by proprietary platform insights, and more than $500 million in upfront and progress-based milestone payments earned to date. Pairing bold ambition with disciplined execution, we are building Recursion to compound over time – translating insight into molecules, molecules into medicines, and innovation into measurable impact for patients and shareholders alike."

On January 1, 2026, Najat Khan was be promoted to CEO and President. Chris Gibson became Chairman of the Board. Current Chairman Rob Hershberg became 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 February 2026, Recursion a milestone across, generating a $4M payment from Sanofi. The first-in-class Sanofi-partnered oncology program is against a historically difficult and novel biological space.

REC-4881 (MEK1/2) additional Phase 2 data in FAP (Familial adenomatous polyposis) in December 2025 showed first AI-enabled clinical proof-of-concept.

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.

REC-102 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.

In Q4 2025 REC-3565 for B-cell malignancies began a Phase 1 trial, with data expected 1H 2027.

Other preclinical programs include REC-4539 (in Phase 1 startup), REC-7735 (in IND enabling).

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.

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

Cash ended the quarter at $754 million, up sequentially from $660 million. Cash used in operating activities was $46 million. In Q4 added $132 million from an ATM facility.

Total Q4 expenses were $144 million, consisting of: cost of revenue $14 million, R&D $96 million, G&A $34 million. Loss from operations $108 million. Other income $0 million.

Full year 2025 revenue was $74.7 million, GAAP net income negative $645 million, GAAP EPS negative $1.44. Cash operating expense in 2025 was $399 million.

Q&A selective summary:

REC-4881 pathway? On track for initial FDA engagement in 1H 2026, for design, endpoints. We have natural history data. Patient population updated, more data coming.

Cost cutting details, go-forward level? It is about efficiency more than cost cutting. Making an impact with every dollar. Expect to continue to grow pipeline, move forward while hitting cost targets. Rapid go/no go decisions help.

The AI takes the toil out of the system to let our scientists do the really hard work [because biology is extremely complicated]

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