Recursion Reports Q4 2025 Results with Clinical Validation and Strong Cash Position
Recursion reported Q4 2025 financial results with $754 million in cash providing runway into early 2028. The company achieved clinical validation of its AI platform with REC-4881 showing meaningful polyp reductions in FAP patients and received its fifth Sanofi milestone payment. Full-year revenue reached $74.7 million while net loss widened to $644.8 million.
Recursion reported fourth-quarter and full-year 2025 results and a business update highlighting clinical validation of its AI Operating System, material partnered milestone receipts, and a strong cash position. The company holds $754 million in cash and expects runway into early 2028 without additional financing, reflecting disciplined capital allocation alongside continued platform and program investment.
The company achieved a fifth program milestone with Sanofi, totaling $134 million in payments to date. Five Recursion discovery program packages have been accepted to date, establishing a growing joint portfolio of novel AI-driven small molecules for immunology and oncology. Platform-driven milestones exceed $500 million in upfront and progress-based payments.
Recursion delivered the first clinical validation of its full stack AI Operating System in familial adenomatous polyposis (FAP), demonstrating translation from AI-driven biological insight to meaningful patient outcomes. For lead candidate REC-4881, 75% of evaluable patients showed polyp reductions, with a 43% median reduction at 12 weeks. The company plans to engage with the FDA in the first half of 2026 to discuss a potential registration pathway for REC-4881, while also expanding eligibility to younger patients and further refining the dosing strategy.
Fourth-quarter 2025 revenue reached $35.5 million, while full-year revenue was $74.7 million. The company reduced cash operating expense to $399.2 million for 2025, exceeding original cost savings guidance. However, the full-year net loss widened to $644.8 million in 2025 from $463.7 million in 2024, with research and development spend rising to $475.3 million in 2025 from $314.4 million in 2024. Net cash used in operating activities totaled $371.8 million for 2025.
Multiple clinical and preclinical programs are advancing with defined milestones. The ongoing phase I/II DAHLIA study is evaluating REC-1245 for biomarker-enriched solid tumors and lymphoma, with data readout from the phase I portion expected in the first half of 2026. The company is also developing REC-617 for advanced solid tumors and REC-3565 for B-cell malignancies in separate early-stage studies.
Recursion acquired Rallybio's full stake in their joint venture for developing REV102 (now REC-102) and an associated backup molecule for the treatment of hypophosphatasia. REC-102, a potent and selective ENPP1 inhibitor with strong preclinical safety data, is expected to enter phase I studies by late 2026. Its oral formulation offers a major advantage over current enzyme replacement therapies, potentially improving patient adherence and reducing treatment-associated risks.