Recursion (NASDAQ:RXRX) reported fourth-quarter 2025 revenue of $35.5 million on Wednesday, significantly exceeding analyst estimates of $24.6 million.
The performance was driven by the timing of milestone payments from its high-profile collaborations with Sanofi and Roche.
While the company posted a full-year net loss of $644.8 million—reflecting heavy R&D investment and the integration of Exscientia—the fourth-quarter loss narrowed to $108.1 million compared to $178.9 million in the prior-year period.
The Salt Lake City-based company reached a major scientific milestone with its lead candidate, REC-4881.
In an ongoing Phase 2 trial for Familial Adenomatous Polyposis (FAP), the drug demonstrated a 43% median reduction in polyp burden after 12 weeks of treatment.
Notably, the effect was durable, with the median reduction deepening to 53% after 12 weeks off-therapy.
Management cited this as the first clinical proof of concept for the "Recursion OS," proving that its AI-native platform can successfully identify and translate biological insights into meaningful patient outcomes.
Financially, Recursion enters 2026 with a robust balance sheet, holding $753.9 million in cash and cash equivalents.
Due to aggressive cost-saving measures and operating efficiencies, the company extended its projected cash runway into early 2028.
This extension provides a critical buffer as the company navigates the exit of former strategic backers, including NVIDIA and Novo Holdings, earlier this month.
Operationally, the company achieved its fifth milestone in its collaboration with Sanofi, bringing total payments from that partnership to $134 million.
Under new CEO Najat Khan, who took the helm in January 2026, the company is shifting its focus toward "industrializing" drug discovery.
Recursion plans to meet with the FDA in the first half of 2026 to discuss a registration path for REC-4881 and expects several additional clinical readouts across its rare disease and oncology portfolio throughout the year.