Recursion(US:RXRX)2025-11-05 11:37Financial Performance - Total revenue for Q3 2025 was $5.2 million, a decrease from $26.1 million in Q3 2024, primarily due to the timing of milestone payments[19]. - Total revenue for Q3 2025 was $5.175 million, a decrease from $26.082 million in Q3 2024, while total revenue for the nine months ended September 30, 2025, was $39.143 million compared to $54.293 million in the same period of 2024[25]. - Net loss for Q3 2025 was $162.3 million, compared to a net loss of $95.8 million in Q3 2024, reflecting a significant increase in losses[23]. - The company reported a net loss per share of $0.36 for Q3 2025, compared to a net loss per share of $0.34 in Q3 2024[25]. Research and Development - Research and development expenses increased to $121.1 million in Q3 2025 from $74.6 million in Q3 2024, driven by increased IPR&D purchases related to REC-102 and the business combination with Exscientia[19][20]. - Research and development expenses surged to $121.1 million in Q3 2025, up from $74.6 million in Q3 2024, indicating a focus on advancing drug development[25]. - The ELUCIDATE Phase 1/2 trial for REC-617 established a maximum tolerated dose of 10 mg once-daily, with 27.6% of patients experiencing grade ≥3 treatment-related adverse events[8]. - REC-7735 has been nominated as a development candidate, with IND-enabling studies underway, showing significant tumor regressions in preclinical studies[12]. Cash and Liquidity - As of October 9, 2025, Recursion reported approximately $785 million in cash and cash equivalents, providing a runway through the end of 2027 without additional financing[6]. - Cash and cash equivalents increased to $659.8 million as of September 30, 2025, from $594.4 million at the end of 2024, indicating improved liquidity[27]. - Net cash used in operating activities for the nine months ended September 30, 2025, was $325.7 million, compared to $243.7 million for the same period in 2024, largely due to the inclusion of Exscientia's operations[23]. - Total liabilities decreased to $352.6 million as of September 30, 2025, from $413.8 million at the end of 2024, reflecting a reduction in current liabilities[27]. Partnerships and Collaborations - Recursion achieved a $30 million milestone from Roche and Genentech for delivering a whole-genome map of microglial immune cells, bringing total milestone and upfront payments to over $500 million[6]. - The partnership with Sanofi has resulted in $130 million in upfront and milestone payments, with each program having the potential for over $300 million in milestone payments[18]. - Recursion expects to achieve over $100 million in milestone payments by the end of 2026, with multiple programs advancing towards potential development candidate designation[12]. - Recursion's collaborations are projected to provide future milestone payments exceeding $10 billion, along with royalties across various indications[11]. Operational Costs - Operating costs and expenses rose to $177.4 million in Q3 2025 from $124.4 million in Q3 2024, driven by increased research and development costs[25]. - General and administrative expenses increased to $41.6 million in Q3 2025 from $37.8 million in Q3 2024, primarily due to the inclusion of G&A expenses from the business combination with Exscientia[23]. Future Outlook - Forward-looking statements indicate expectations for advancements in drug discovery and development, with a focus on achieving near-term milestones and potential collaborations[28]. - The Recursion OS platform continues to drive program development by integrating AI across multimodal biology, enhancing drug discovery and development efficiency[16].