Core Insights - Recursion Pharmaceuticals reported disappointing quarterly earnings, leading to a nearly 5% decline in stock price, which was worse than the S&P 500's 0.5% dip [1] Financial Performance - In the second quarter, Recursion generated $19.2 million in revenue, an increase from $14.4 million in the same period of 2024, but the GAAP net loss deepened to almost $172 million ($0.41 per share) compared to a $97.5 million loss in the previous year [2][4] - Analysts had expected lower revenue of $15.4 million but had estimated a narrower net loss of $0.35 per share [4] Pipeline and Collaborations - Recursion focuses on developing investigational drugs for cancer and rare disorders, with its most advanced program, oncology drug REC-617, entering phase 1/2 clinical trials in the first half of the year [4] - The company generates modest revenue primarily through collaborations with major pharmaceutical companies, including Bayer and Merck [5] - A notable collaboration with Sanofi has the potential to yield over $300 million in milestone payments [6]