Stock Track | Recursion Pharmaceuticals Plummets 5% as Q2 Losses Widen Despite Revenue Beat

Stock Track
Aug 05

Recursion Pharmaceuticals (NASDAQ: RXRX) saw its stock plummet 5% in Tuesday's trading session following the release of its second-quarter financial results. The clinical-stage TechBio company reported a wider-than-expected loss, overshadowing a revenue beat.

For the quarter ended June 30, 2025, Recursion reported a net loss of $171.9 million, or $0.41 per share, compared to a loss of $97.5 million, or $0.40 per share, in the same period last year. The loss was significantly larger than analysts' expectations of a $0.35 per share loss. Despite the disappointing bottom line, the company's revenue grew to $19.2 million, up from $14.4 million a year ago and surpassing the $15.4 million analysts had forecast.

The widened loss was primarily attributed to increased research and development expenses, which jumped to $128.6 million from $73.9 million in the previous year. This surge was largely due to Recursion's agreement with Tempus and its business combination with Exscientia. General and administrative expenses also rose to $46.7 million from $31.8 million. Despite the revenue growth and progress in various clinical programs, investors seemed to focus on the mounting losses, leading to the stock's decline. The company maintains that its current cash position of $533.8 million is expected to extend its runway into the fourth quarter of 2027, which may provide some reassurance to long-term investors.

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