Recursion Q3 2025 slides: leadership change amid revenue miss

Introduction & Market Context

Recursion Pharmaceuticals Inc (NASDAQ:RXRX) presented its third-quarter 2025 results on November 5, revealing a mixed financial performance that sent shares down 8.09% in the regular session, though they recovered 3% in premarket trading. The AI-driven drug discovery company reported an earnings per share of -$0.36, slightly beating expectations of -$0.37, but significantly missed on revenue with just $5.18 million against forecasts of $16.95 million.

Executive Summary

The most significant announcement from Recursion’s presentation was a major leadership transition effective January 1, 2026. Co-founder and current CEO Chris Gibson will become Chairman & Executive Advisor, while current Chief R&D & Commercial Officer Najat Khan will take over as CEO, President & Director. Current Chairman Rob Hershberg will transition to Vice-Chairman & Lead Independent Director.

As shown in the following leadership transition slide:

Despite the revenue challenges, Recursion emphasized its strong cash position and milestone achievements from partnerships. The company highlighted its catalyst calendar spanning from late 2025 through 2026, alongside its financial runway.

As illustrated in this comprehensive timeline and financial outlook:

Strategic Initiatives

Recursion continues to advance its platform technology, emphasizing how its partnerships with major pharmaceutical companies validate its approach. The company announced a $30 million milestone payment for delivering a second whole-genome neuro map, bringing total partnership cash inflows to over $500 million.

The collaboration with Roche and Genentech remains a cornerstone of Recursion’s strategy, spanning neuroscience and GI oncology indications:

A key technological advancement highlighted was the completion of Recursion’s first-of-its-kind Microglia Map, providing a whole-genome view of the brain’s resident immune cells. This map, created from over 100 billion microglial cells, represents a significant achievement in the company’s platform development:

The company also showcased Recursion OS 2.0, its integrated platform for delivering biological insights, precision design, and optimized clinical trials:

This platform powers Recursion’s diverse pipeline of medicines at various development stages:

Pipeline Developments

Recursion presented a comprehensive overview of its pipeline, highlighting both wholly-owned programs and partnered assets:

The company provided detailed updates on its lead clinical programs, including REC-617, a CDK7 inhibitor for advanced solid tumors. The Phase 1/2 ELUCIDATE trial has established a maximum tolerated dose with a manageable safety profile and early signs of anti-tumor activity:

For REC-4881, a MEK1/2 inhibitor being developed for Familial Adenomatous Polyposis (FAP), Recursion reported encouraging preliminary efficacy data showing a 43% median reduction in total polyp burden, with 5 of 6 patients achieving greater than 30% reduction. The company plans to provide additional data from this program in December.

Financial Analysis

Despite the revenue miss, Recursion emphasized its strong cash position and extended runway. The company reported $785 million in cash as of October 9, 2025 (unaudited), providing runway through the end of 2027 without additional financing:

The company reaffirmed its guidance for 2025 cash burn of less than $450 million and 2026 cash burn of less than $390 million, representing an expected reduction in pro forma operating expenses by approximately 35% from 2024 to 2026. This focus on cost management likely contributed to the slight EPS beat despite the significant revenue shortfall.

Forward-Looking Statements

Recursion outlined several key milestones expected in the coming months:

Near-term catalysts include additional safety and efficacy data from the TUPELO trial of REC-4881 in FAP expected in December 2025, followed by early safety and pharmacokinetic data from the REC-1245 (RBM39 degrader) monotherapy trial in the first half of 2026. The company also anticipates potential Phase 1 initiations for REC-102 (ENPP1i) and REC-7735 (PI3Ka H1047Ri) in the second half of 2026.

For partnerships, Recursion expects multiple new project initiations and potential program options by partners throughout 2026, which could provide additional revenue streams to address the current shortfall in financial performance.

The company’s internal and external momentum was summarized in its key accomplishments slide, highlighting both pipeline advancements and platform developments alongside partnership achievements. Despite the financial challenges, Recursion continues to position itself as an innovator in the competitive AI-driven drug discovery landscape.

Full presentation:

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