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RXRX Stock Down 17% as Q1 Earnings & Revenues Miss Estimates
RXRXRecursion(RXRX) ZACKS· ZACKS·2025-05-06 14:20

Core Viewpoint - Recursion Pharmaceuticals reported a wider-than-expected loss in Q1 2025, leading to a significant decline in its stock price due to disappointing financial results and pipeline setbacks [1][2][5]. Financial Performance - The company reported a loss of 50 cents per share, compared to the Zacks Consensus Estimate of a loss of 44 cents, and a loss of 39 cents per share in the same quarter last year [1]. - Total revenues for the quarter were 14.7million,a714.7 million, a 7% increase year over year, but below the Zacks Consensus Estimate of 20 million [2]. - Research and development (R&D) expenses surged 92% to 129.6 million, driven by agreements for upgrading its therapeutic development platform and a business combination with Exscientia [3]. - General and administrative (G&A) expenses rose 74% to 54.7 million, influenced by the inclusion of G&A expenses from the Exscientia business combination [4]. - The company had cash and equivalents of 509millionasofMarch31,2025,downfrom509 million as of March 31, 2025, down from 603 million at the end of 2024, which is expected to sustain operations into mid-2027 [5]. Pipeline Developments - Recursion Pharmaceuticals discontinued the development of its lead candidate, REC-994, and REC-2282 due to unfavorable efficacy results from mid-stage studies [7]. - The company also halted the mid-stage study of REC-3964 for treating clostridioides difficile infection, opting to focus on areas with greater unmet needs [8]. - The company is now concentrating on other candidates, including REC-4881, which showed a preliminary median 43% reduction in polyp burden in a phase Ib/II study [9][10]. - REC-1245 is being evaluated in the phase I/II DAHLIA study for biomarker-enriched solid tumors and lymphoma, with data expected in the first half of 2026 [12].