Recursion Pharmaceuticals Inc.
11/05/2025 | Press release | Distributed by Public on 11/05/2025 05:41
Quarterly Report for Quarter Ending September 30, 2025 (Form 10-Q)
Management's Discussion and Analysis of Financial Condition and Results of Operations.
The following is a discussion and analysis of the financial condition of Recursion Pharmaceuticals, Inc. (Recursion, the Company, we, us or our) and the results of operations. This commentary should be read in conjunction with the unaudited Condensed Consolidated Financial Statements and accompanying notes appearing in Item 1, "Financial Statements" and the Company's audited consolidated financial statements and accompanying notes and "Management's Discussion and Analysis of Financial Condition and Results of Operations" included in the Annual Report on Form 10-K for the year ended December 31, 2024 (the 2024 Annual Report). This discussion, particularly information with respect to our future results of operations or financial condition, business strategy and plans and objectives of management for future operations, includes forward-looking statements that involve risks and uncertainties as described under the heading "Note About Forward-Looking Statements" in this Quarterly Report on Form 10-Q. You should review the disclosure under the heading "Risk Factors" in the 2024 Annual Report and in our subsequent Quarterly Reports on Form 10-Q, including this Quarterly Report on Form 10-Q, for a discussion of important factors that could cause our actual results to differ materially from those anticipated in these forward-looking statements. We assume no obligation to revise or publicly release any revision to any forward-looking statements contained in this Quarterly Report on Form 10-Q, unless required by law.
Investors and others should note that we announce material financial and other information to our investors using our investor relations website (https://ir.recursion.com/), SEC filings, press releases, public conference calls and webcasts. We use these channels as well as social media and blogs to communicate with our stakeholders and the public about our company, our services and other issues. It is possible that the information we post on social media and blogs could be deemed to be material information. Therefore, we encourage investors, the media and others interested in our company to review the information we post on the social media channels and blogs listed on our investor relations website. Information contained in, or that can be accessed through, our website is not a part of, and is not incorporated into, this report.
Overview
Recursion is a leading clinical stage TechBio company decoding biology to radically improve lives. We aim to achieve our mission by industrializing drug discovery using the Recursion Operating System (OS), a vertical platform of diverse technologies that enables us to map and navigate trillions of biological, chemical and patient-centric relationships utilizing approximately 65 petabytes of proprietary data. The Recursion OS integrates 'Real World' data generated in our own wet-laboratories or by select partners and a 'World Model' which is a collection of AI computational models we also build in-house. Today, our scaled 'wet-lab' biology, chemistry and patient-centric experimental data feed our 'dry-lab' computational tools to identify, validate and translate therapeutic insights, which we can then validate in our wet-lab to both advance drug discovery programs and to generate data to further refine our world model.
There are a few key factors that differentiate Recursion from other technology-enabled drug discovery companies.
•Recursion has built a full-stack platform utilizing many biology, chemistry and patient-centric proprietary datasets and modular tools to industrialize drug discovery, while most other competitor companies rely on a point solution to solve one important step in drug discovery. We recognize that drug discovery is made up of many steps and a point solution is insufficient to generate efficiencies across the entire process. To decode biology, we must construct a full-stack technology platform capable of integrating and industrializing many complex workflows.
•Recursion integrates wet-lab and dry-lab capabilities in-house to create a virtuous cycle of iteration. Fit-for-purpose wet-lab experimental data are translated by dry-lab digital tools into in silico hypotheses and testable predictions, which in turn generates more wet-lab data from which improved predictions can be made. Recursion is well positioned compared to companies of a similar stage either focused more specifically on the wet-lab only (traditional biotech or pharma companies) or dry-lab only (companies facing rapidly commoditized algorithms and a challenge differentiating on non-proprietary data).
•Recursion has achieved a significant scale with respect to its scientific, technological and business endeavors. With 6 high potential clinical and pre-clinical programs across oncology and rare disease indications, four of the largest discovery partnerships in the biopharma industry with Roche and Genentech, Sanofi, Bayer and Merck KGaA and over four technology and data-focused partnerships, Recursion is on the precipice of demonstrating the potential of technology-driven approaches to increase speed, quality and scalability of drug discovery.
We leverage the Recursion OS to deliver value in three ways: 1) our own pipeline of clinical and preclinical potential medicines focused in precision oncology, rare disease and other areas of high unmet need; 2) by discovering new medicines with large biopharmaceutical companies in some of the biggest areas of unmet need in medicine like neuroscience and inflammation; and 3) by leveraging our tools, technology and data for the benefit of other partners in targeted and limited ways.
We are actively advancing key catalysts in our pipeline while demonstrating significant progress in addressing high unmet medical needs. At the same time, we continue to validate various components of the Recursion OS, which has played a role in advancing every program in our portfolio, reinforcing its potential to accelerate drug discovery and development.
Summary of Business Highlights
Portfolio - Internal and Partnered Programs
Internal Pipeline Updates:
•REC-617 (CDK7):
◦Recursion announced progress in its ELUCIDATE Phase 1/2 trial evaluating REC-617, a precision-designed oral CDK7 inhibitor. The monotherapy dose-escalation study established the maximum tolerated dose (MTD) at 10 mg once-daily, demonstrating a manageable safety profile and preliminary anti-tumor activity consistent with the December 2024 update.
◦As of September 29, 2025, 29 heavily pre-treated patients with advanced solid tumors had received REC-617 across six dose levels. Treatment was generally well tolerated, with the most common dose-limiting toxicities (DLTs) being nausea and thrombocytopenia. Grade ≥3 treatment-related adverse events (TRAEs) occurred in 27.6% of patients (n=8), with no Grade 4/5 TRAEs reported. Only 6.9% (n=2) discontinued due to a TRAE. Importantly, REC-617 demonstrated rates of GI-related toxicities consistent with best-in-class potential. Specifically, common GI toxicities with REC-617 treatment were diarrhea (69%), nausea (41%), and vomiting (28%). Toxicities reported for samuraciclib treatment also included diarrhea (82%), nausea (77%), and vomiting (80%) (Coombes et al, 2023).
◦REC-617 has shown early anti-tumor activity, including one confirmed partial response and five cases of stable disease. Pharmacokinetic data support dose-proportional exposure, rapid absorption, and a short half-life (~5 hours), in line with its design as a selective, reversible CDK7 inhibitor.
◦The ELUCIDATE study has now expanded into 2L+ platinum-resistant ovarian cancer (PROC), with a Phase 2 monotherapy cohort ongoing and a Phase 1 combination arm initiated. Combination regimens include bevacizumab plus paclitaxel or pegylated liposomal doxorubicin (PLD). Recursion is also leveraging Recursion OS insights to explore additional indications and dosing regimens for expansion cohorts.
•REC-7735 (PI3Kα H1047R):
◦Recursion announced progress on REC-7735, with nomination as a Development Candidate and IND-enabling studies now underway. REC-7735 is a precision-designed PI3K⍺ H1047R inhibitor generated using the Recursion OS. In preclinical studies, REC-7735 demonstrated significant tumor regressions at low doses, outperforming approved agents, while maintaining high selectivity (>100-fold) over wild-type PI3K⍺ to reduce the risk of dose-limiting hyperglycemia.
◦With a differentiated preclinical efficacy and tolerability profile, REC-7735 has the potential to be a best-in-class PI3K⍺ H1047R inhibitor for breast and other solid tumors harboring this mutation.
Upcoming Milestones:
•REC-4881 (MEK1/2): Additional data in FAP from the Phase 2 TUPELO study expected in December 2025
•REC-1245 (RBM39): Early Phase 1 safety and PK monotherapy data expected in 1H26
•REC-3565 (MALT1): Early Phase 1 safety and PK monotherapy data expected in 1H27
•REC-102 (ENPP1): Potential Phase 1 initiation expected in 2H26
•REC-7735 (PI3Kα H1047R): Potential Phase 1 initiation expected in 2H26
•Recursion is well on track for over $100 million in milestone payments by end of 2026
◦Programs are advancing towards potential development candidate designation over the next 12 months
◦Multiple neuroscience target validation programs advancing by leveraging the Recursion OS
Partnered Discovery Updates:
With the acceptance of the second neuro map and the $30 million milestone from Roche and Genentech, Recursion has now achieved more than $500 million in upfront and milestone payments from its partners. This milestone places Recursion among a small group of pre-commercial biotechnology companies to achieve such scale, underscoring the strength of its partnership strategy. These collaborations not only support the maintenance and expansion of the Recursion OS, but also provide access to insights from leading biopharma companies and the potential for future milestone payments exceeding $10 billion, as well as royalties across indications Recursion may not pursue independently.
•Roche and Genentech: Recursion announced that it has achieved a second $30 million milestone from its partner, Roche and Genentech. The payment follows the acceptance of a novel whole-genome phenotypic map ("phenomap") of microglial cells, which are critical for brain health and implicated in a wide range of neurodegenerative and neuroinflammatory diseases.
◦The milestone is part of a larger ongoing 10+ year collaboration to discover novel targets and develop potential therapeutic treatments for up to 40 programs in neuroscience and gastrointestinal oncology.
◦Together, Recursion, Roche and Genentech have identified a number of biological insights from the first neuroscience-focused phenomap, that could become novel targets of interest.
◦Roche and Genentech have already optioned an initial program in gastrointestinal oncology with additional potential targets/programs under exploration based off of 4 whole-genome GI oncology phenomaps accepted by the partner to date.
◦To date, Recursion has achieved $213 million in upfront and milestone payments through the collaboration.
•Sanofi:Recursion and Sanofi continue to advance multi-target collaboration for up to 15 best-in-class or first-in-class programs across oncology and immunology, with $130 million in upfront and milestone payments achieved to date. Each program has the potential for over $300 million in milestone payments.
◦Sanofi continues to leverage combined Recursion OS 2.0, including phenomics, to identify new program opportunities.
◦Recursion and Sanofi are further advancing and expanding their joint pipeline across oncology and immunology.
◦Several programs are continuing to advance towards potential lead series and development candidate designation over the next 12 months.
Platform
Recursion OS 2.0:The platform is continuing to drive program development by integrating AI across multimodal biology, precision design, and clinical development-enabling faster, more efficient, and more innovative drug discovery and development.
Financing and Operations
Since 2023, our financing and operations activities include the following:In July 2023, we issued an aggregate of 7.7 millionshares of our Class A common stock at a purchase price of $6.49 per share in the 2023 Private Placement with NVIDIA Corporation for net proceeds of approximately $49.9 million. In August 2023, we entered into an Open Market Sales Agreement with Jefferies LLC to provide for the offering, issuance and sale of up to an aggregate amount of $300.0 millionof its Class A common stock. The Company sold 26.8 million shares and received net proceeds of $199.1 million under the agreement. In June 2024, we issued an aggregate of 35.4 million shares of our Class A common stock at a purchase price of $6.50per share and received net proceeds of $216.4 million, after deducting transaction costs of $13.6 million. See Note 8, "Common Stock" to the Condensed Consolidated Financial Statements for additional information on the public offering. In September 2024, we received a Phenomap acceptance fee of $30.0 million from our collaboration with Roche. In February 2025, the Company terminated the Sales Agreement with Jefferies LLC and entered into a Sales Agreement with Citigroup Capital Markets Inc., to provide for the offering, issuance and sale of up to an aggregate amount of 500.0 million of its Class A common stock. As of September 30, 2025, an amount of $136.4 million remained available for future sales under the Sales Agreement all of which was sold in October 2025. For the nine months ended September 30, 2025, the Company has sold 74.6 million shares and received net proceeds of $358.2 million under the agreement.
We use the capital we have raised to fund operating and investing activities across platform research operations, drug discovery, clinical development, digital and other infrastructure, creation of our portfolio of intellectual property and administrative support. We do not have any products approved for commercial sale and have not generated any revenues from product sales. We had cash and cash equivalents of $659.8 million as of September 30, 2025. Based on our current operating plan, we believe that our cash and cash equivalents will be sufficient to fund our operations for at least the next twelve months.
Since inception, we have incurred significant operating losses. Our net losses were $162.3 million and $536.6 million during the three and nine months ended September 30, 2025, respectively. Our net losses were $95.8 million and $284.8 million during the three and nine months ended September 30, 2024, respectively. As of September 30, 2025, our accumulated deficit was $2.0 billion.
As of September 30, 2025, we did not have any unconditional outstanding commitments for additional funding. We anticipate that we will need to raise additional financing in the future to fund our operations, including the potential commercialization of any approved product candidates. Until such time, if ever, as we can generate significant product revenue, we expect to finance our operations with our existing cash and cash equivalents, any future equity or debt financings and upfront, milestone and royalty payments, if any, received under current or future license or collaboration agreements. We may not be able to raise additional capital on terms acceptable to us or at all. If we are unable to raise additional capital when desired, our business, results of operations and financial condition may be adversely affected.
Results of Operations
The following table summarizes our results of operations:
| (in thousands, except percentages) | Three months ended September 30, | Change | Nine months ended September 30, |
Change
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| 2025 | 2024 | $ | % | 2025 | 2024 |
$
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%
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| Revenue | |||||||||||||||||||||||||||||
| Operating revenue | $ | 4,983 | $ | 26,082 | $ | (21,099) | (81) | % | $ | 38,905 | $ | 53,977 | $ | (15,072) | (28) | % | |||||||||||||
| Grant revenue | 192 | - | 192 | n/m | 238 | 316 | (78) | (25) | % | ||||||||||||||||||||
| Total revenue | 5,175 | 26,082 | (20,907) | (80) | % | 39,143 | 54,293 | (15,150) | (28) | % | |||||||||||||||||||
| Operating costs and expenses | |||||||||||||||||||||||||||||
| Cost of revenue | 14,687 | 12,079 | 2,608 | 22 | % | 56,678 | 32,444 | 24,234 | 75 | % | |||||||||||||||||||
| Research and development | 121,062 | 74,600 | 46,462 | 62 | % | 379,331 | 216,087 | 163,244 | 76 | % | |||||||||||||||||||
| General and administrative | 41,628 | 37,757 | 3,871 | 10 | % | 142,932 | 100,998 | 41,934 | 42 | % | |||||||||||||||||||
| Total operating costs and expenses | 177,377 | 124,436 | 52,941 | 43 | % | 578,941 | 349,529 | 229,412 | 66 | % | |||||||||||||||||||
| Loss from operations | (172,202) | (98,354) | (73,848) | 75 | % | (539,798) | (295,236) | (244,562) | 83 | % | |||||||||||||||||||
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Other income, net
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9,952 | 2,679 | 7,273 | >100% | 3,005 | 9,347 | (6,342) | (68) | % | ||||||||||||||||||||
| Loss before income tax benefit | (162,250) | (95,675) | (66,575) | 70 | % | (536,793) | (285,889) | (250,904) | 88 | % | |||||||||||||||||||
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Income tax benefit (expense)
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(3) | (167) | 164 | (98) | % | 156 | 1,134 | (978) | (86) | % | |||||||||||||||||||
| Net loss | $ | (162,253) | $ | (95,842) | $ | (66,411) | 69 | % | $ | (536,637) | $ | (284,755) | $ | (251,882) | 88 | % | |||||||||||||
n/m = Not meaningful
Revenue
The following table summarizes our components of revenue:
| Three months ended September 30, | Change |
Nine months ended September 30, |
Change | ||||||||||||||||||||||||||
| (in thousands, except percentages) | 2025 | 2024 |
$
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%
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2025 | 2024 |
$
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%
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| Revenue | |||||||||||||||||||||||||||||
| Operating revenue | $ | 4,983 | $ | 26,082 | $ | (21,099) | (81) | % | $ | 38,905 | $ | 53,977 | $ | (15,072) | (28) | % | |||||||||||||
| Grant revenue | 192 | - | 192 | n/m | 238 | 316 | (78) | (25) | % | ||||||||||||||||||||
| Total revenue | $ | 5,175 | $ | 26,082 | $ | (20,907) | (80) | % | $ | 39,143 | $ | 54,293 | $ | (15,150) | (28) | % | |||||||||||||
n/m = Not meaningful
Operating revenue is generated through research and development agreements derived from strategic alliances. We are entitled to receive variable consideration as certain milestones are achieved. The timing of revenue recognition is not directly correlated to the timing of cash receipts.
For the three and nine months ended September 30, 2025, the decrease in revenue compared to prior period was due to the timing of projects from the Company's Sanofi, Roche and Merck KGaA, Darmstadt, Germany collaborations. For the three months ended September 30, 2024, we recognized revenue related to the acceptance
fee for the completion of a Phenomap for one of our neuroscience performance obligations for the Roche agreement. Prior to the three months ended September 30, 2024, we had fully constrained the $30.0 million acceptance fee.
Cost of Revenue
The following table summarizes our cost of revenue:
| (in thousands, except percentages) | Three months ended September 30, | Change | Nine months ended September 30, | Change | |||||||||||||||||||||||||
| 2025 | 2024 |
$
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%
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2025 | 2024 |
$
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%
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| Total cost of revenue | $ | 14,687 | $ | 12,079 | $ | 2,608 | 22 | % | $ | 56,678 | $ | 32,444 | $ | 24,234 | 75 | % | |||||||||||||
Cost of revenue consists of the Company's costs to provide services for drug discovery required under performance obligations with partnership customers. These primarily include materials costs, service hours performed by our employees and depreciation of property and equipment.
For the three and nine months ended September 30, 2025, the change in cost of revenue compared to prior period was due to our Exscientia acquisition for which our results now also include additional customers.
Research and Development
The following table summarizes our components of research and development expense:
| (in thousands, except percentages) | Three months ended September 30, | Change | Nine months ended September 30, | Change | |||||||||||||||||||||||||
| 2025 | 2024 |
$
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%
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2025 | 2024 |
$
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%
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| Research and development expense | |||||||||||||||||||||||||||||
| Platform | $ | 42,321 | $ | 37,227 | $ | 5,094 | 14 | % | $ | 191,096 | $ | 95,961 | $ | 95,135 | 99 | % | |||||||||||||
| Discovery | 19,799 | 16,584 | 3,215 | 19 | % | 63,235 | 48,767 | 14,468 | 30 | % | |||||||||||||||||||
| Clinical | 20,752 | 13,004 | 7,748 | 60 | % | 57,877 | 44,310 | 13,567 | 31 | % | |||||||||||||||||||
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Acquired IPR&D
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22,840 | - | 22,840 | n/m | 22,840 | - | 22,840 | n/m | |||||||||||||||||||||
| Stock based compensation | 16,423 | 9,457 | 6,966 | 74 | % | 48,312 | 26,031 | 22,281 | 86 | % | |||||||||||||||||||
| UK R&D tax credit | (1,099) | - | (1,099) | n/m | (5,445) | - | (5,445) | n/m | |||||||||||||||||||||
| Other | 26 | (1,672) | 1,698 | (102) | % | 1,416 | 1,018 | 398 | 39 | % | |||||||||||||||||||
| Total research and development expense | $ | 121,062 | $ | 74,600 | $ | 46,462 | 62 | % | $ | 379,331 | $ | 216,087 | $ | 163,244 | 76 | % | |||||||||||||
n/m = Not meaningful
Research and development expenses account for a significant portion of our operating expenses. We recognize research and development expenses as they are incurred. Research and development expenses consist of costs incurred in performing activities including:
•costs to develop and operate our platform;
•costs of discovery efforts which may lead to development candidates, including research materials and external research;
•costs for clinical development of our investigational products;
•costs for materials and supplies associated with the manufacture of active pharmaceutical ingredients, investigational products for preclinical testing and clinical trials;
•personnel-related expenses, including salaries, benefits, bonuses and stock-based compensation for employees engaged in research and development functions;
•costs associated with operating our digital infrastructure; and
•other direct and allocated expenses incurred as a result of research and development activities, including those for facilities, depreciation, amortization and insurance.
•certain cash refundable research and development tax credits including the research and development expenditure credit (RDEC) in the United Kingdom.
We recognize expenses associated with third-party contracted services as they are incurred. Upon termination of contracts with third parties, our financial obligations are generally limited to costs incurred or committed to date. Any advance payments for goods or services to be used or rendered in future research and product development activities pursuant to a contractual arrangement are classified as prepaid expenses until such goods or services are rendered.
Significant components of research and development expense include the following allocated by development phase: Platform, which refers primarily to expenses related to screening of product candidates through hit identification, this also includes expenses related to Tempus records purchased; Discovery, which refers primarily to expenses related to hit identification through development of candidates; and Clinical, which refers primarily to expenses related to development of candidates and beyond.
For the three months ended September 30, 2025, the increase in research and development expenses compared to the prior period was primarily driven by acquired IPR&D purchases of $22.8 million and the inclusion of Exscientia's results of $29.6 million.
For the nine months ended September 30, 2025, the increase in research and development expenses compared to the prior period was primarily driven by Tempus record purchases of $46.9 million, the inclusion of Exscientia's results of $85.1 million and acquired IPR&D purchases of $22.8 million.
General and Administrative Expense
The following table summarizes our general and administrative expense:
| (in thousands, except percentages) | Three months ended September 30, | Change | Nine months ended September 30, | Change | |||||||||||||||||||||||||
| 2025 | 2024 |
$
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%
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2025 | 2024 |
$
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%
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| Total general and administrative expense | $ | 41,628 | $ | 37,757 | $ | 3,871 | 10 | % | $ | 142,932 | $ | 100,998 | $ | 41,934 | 42 | % | |||||||||||||
We expense general and administrative costs as incurred. General and administrative expenses consist primarily of salaries; including employee benefits and stock-based compensation. General and administrative expenses also include facilities, depreciation, information technology, professional fees for auditing and tax, legal fees for corporate and patent matters and insurance costs.
For the three months ended September 30, 2025, the increase in general and administrative expense compared to prior period was primarily driven by the inclusion of Exscientia's results.
For the nine months ended September 30, 2025, the increase in general and administrative expense compared to prior period was primarily driven by the inclusion of Exscientia's results of $23.9 million and an increase in salaries and wages of $15.0 million.
Other Income (Loss), Net
The following table summarizes our components of other income (loss), net:
| (in thousands, except percentages) | Three months ended September 30, | Change | Nine months ended September 30, | Change | |||||||||||||||||||||||||
| 2025 | 2024 |
$
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%
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2025 | 2024 |
$
|
%
|
||||||||||||||||||||||
| Interest income | 5,540 | 3,826 | 1,714 | 44.8 | % | 16,541 | 11,138 | 5,403 | 48.5 | % | |||||||||||||||||||
| Interest expense | (833) | (553) | (280) | 50.6 | % | (1,821) | (967) | (854) | 88.3 | % | |||||||||||||||||||
| Other | 5,245 | (594) | 5,839 | n/m | (11,716) | (824) | (10,892) | >100% | |||||||||||||||||||||
| Other income (loss), net | $ | 9,952 | $ | 2,679 | $ | 7,273 | >100% | $ | 3,004 | $ | 9,347 | $ | (6,343) | (67.9) | % | ||||||||||||||
n/m = Not meaningful
For the three months ended September 30, 2025, the increase in other income (loss), net compared to prior period related to an increase in other income driven primarily by foreign currency gains and investing activities.
For the nine months ended September 30, 2025, theincrease in other income (loss), net compared to prior period related to our loss on disposal of Exscientia GmbH of $4.5 million and our Vienna lease termination fee of $5.2 million. This decrease is partially offset by an increase in interest income driven by our increase in earnings on cash and cash equivalents.
Liquidity and Capital Resources
Sources of Liquidity
We have not yet commercialized any products and do not expect to generate revenue from the sales of any product candidates for at least several years. Cash and cash equivalents totaled $659.8 million and $594.3 million as of September 30, 2025 and December 31, 2024, respectively.
We have incurred operating losses and experienced negative operating cash flows and we anticipate that the Company will continue to incur losses for at least the foreseeable future. Our net loss was $162.3 million and $536.6 million during the three and nine months ended September 30, 2025, respectively. Our net loss was $95.8 millionand $284.8 millionduring the three and nine months ended September 30, 2024, respectively. As of September 30, 2025, we had an accumulated deficit of $2.0 billion.
Since 2023, we have financed our operations primarily through Class A common stock issuances. As of September 30, 2025, we have received net proceeds of $823.6 million from Class A common stock issuances. See Note 8, "Common Stock" to the Condensed Consolidated Financial Statements for additional details on Class A common stock issuances. Additionally, as of September 30, 2025, we have received proceeds of $44.0 million from our strategic partnerships. See Note 9, "Collaborative Development Contracts" to the Condensed Consolidated Financial Statements for additional details on the strategic partnerships.
Cash Flows
The following table is a summary of the Condensed Consolidated Statements of Cash Flows for each of the periods presented below:
|
Nine months ended September 30, |
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| (in thousands) | 2025 | 2024 | ||||||
| Cash used in operating activities | $ | (325,735) | $ | (243,744) | ||||
| Cash used in investing activities | (15,627) | (15,397) | ||||||
| Cash provided by financing activities | 389,526 | 293,481 | ||||||
Operating Activities
Cash used by operating activities increased during the nine months ended September 30, 2025 as a result of higher costs incurred for research and development and general and administrative primarily due to the Company's
acquisition of Exscientia. This included Exscientia GmbH disposal related payments of $9.7 million and severance payments of $14.3 million. See Note 4, "Acquisitions" to the Consolidated Financial Statements for additional details related to the Exscientia acquisition and Exscientia GmbH disposal.
Cash used by operating activities increased during the nine months ended September 30, 2024 as a result of higher costs incurred for research and development and general and administrative due to the Company's expansion and upgraded capabilities.
Investing Activities
Cash used by investing activities during the nine months ended September 30, 2025 primarily consisted of the disposal of Exscientia GmbH of $4.4 million and property and equipment purchases of $5.2 million.
Cash used by investing activities during the nine months ended September 30, 2024 consisted primarily of purchases of property and equipment of $12.4 million, which included $2.9 million for a project to upgrade the BioHive -2 supercomputer and $2.7 million for lab equipment purchases. Additionally, investing activities included the purchase of an intangible asset of $3.0 millionfrom Helix.
Financing Activities
Cash provided by financing activities during the nine months ended September 30, 2025 primarily included proceeds of $395.5 million from common stock issuances. Financing outflows included a $3.0 million payment for the purchase of an intangible asset that was not soon after the purchase.
Cash provided by financing activities during the nine months ended September 30, 2024 primarily included proceeds of $289.4 million from common stock issuances. Financing cash inflows also included proceeds from equity incentive plans of $6.4 million.
Critical Accounting Estimates and Policies
A summary of the Company's significant accounting estimates and policies is included in Note 2, "Summary of Significant Accounting Policies" in our 2024 Annual Report. There were no significant changes in the Company's application of its critical accounting policies during the nine months ended September 30, 2025.
Recently Issued and Adopted Accounting Pronouncements
See Note 2, "Basis of Presentation" in Item 1 of this Quarterly Report on Form 10-Qfor information regarding recently issued and adopted accounting pronouncements.
Recursion Pharmaceuticals Inc. published this content on November 05, 2025, and is solely responsible for the information contained herein. Distributed via Edgar on November 05, 2025 at 11:41 UTC. If you believe the information included in the content is inaccurate or outdated and requires editing or removal, please contact us at [email protected]