TLDR
- RXRX stock climbed 16% to $6.08 on October 8, 2025, recovering from a 5.4% drop the day before during market-wide selling.
- Q2 2025 revenue reached $19.2 million, up 33% from last year, while the company recorded a $171.9 million net loss due to heavy R&D spending.
- The biotech firm reduced headcount by 20% to lower expenses, projecting cash burn under $450 million for 2025 with runway extending to late 2027.
- Recursion’s AI platform claims to cut drug development time from 42 months to 18 months, attracting partnerships with Sanofi, Bayer, and Roche.
- Analysts maintain mixed ratings with average price target of $6.47, while CNBC’s Jim Cramer expressed skepticism about the pre-revenue company.
Recursion Pharmaceuticals stock experienced dramatic swings in early October 2025. Shares fell 5.4% to $5.23 on October 7 during broader market weakness.
The very next day, RXRX stock surged 16% to approximately $6.08. The rapid reversal caught traders’ attention as volume spiked to tens of millions of shares.
The stock settled near $5.89 by October 14, putting shares in the middle of their 52-week range of $3.97 to $10.87. Despite the October bounce, RXRX remains down roughly 30% year-to-date.
Investor enthusiasm returned ahead of CEO Chris Gibson’s October 15 keynote at an AI technology conference in Dubai. The timing coincided with renewed interest in artificial intelligence applications for drug development.
Financial Performance and Cash Management
The Salt Lake City-based company reported Q2 2025 results in August showing $19.2 million in revenue. That marked a 33% increase from $14.4 million in the prior-year quarter.
Revenue included a $7 million milestone payment from partner Sanofi. Partnership deals provide critical funding for the pre-revenue biotech.
Net losses reached $171.9 million in Q2, compared to $97.5 million a year earlier. Research and development spending continues to climb as Recursion invests in its AI platform and clinical trials.
The company held approximately $534 million in cash at quarter-end. Management projects this extends their runway into late 2027 following recent cost reductions.
Recursion expects 2025 cash burn below $450 million, down from $606 million in 2024. The company cut its workforce by about 20% in mid-2025 to achieve these savings.
CEO Chris Gibson emphasized the need to “reduce complexity” and ensure every dollar generates returns. The layoffs help focus resources on the most promising drug candidates.
Technology Platform and Drug Pipeline
Recursion operates an AI-powered platform called Recursion OS that analyzes millions of cellular images and biochemical experiments. The system uses machine learning to identify potential drug candidates faster than traditional methods.
The company claims its technology compressed development timelines dramatically. One oncology candidate moved from concept to clinical trial in 18 months versus a typical 42-month process.
Recursion has partnerships with major pharmaceutical companies including Bayer, Roche/Genentech, Takeda, and Sanofi. These collaborations span multiple disease targets and have generated over $130 million in payments.
The company acquired UK-based Exscientia for approximately $630 million in late 2024. That all-stock deal added AI capabilities and pipeline assets.
Current pipeline programs focus on cancer and rare diseases. Key candidates include REC-617 for cancer and REV-102 for the rare bone disorder hypophosphatasia.
Recursion discontinued several Phase II trials in 2025 to concentrate resources. The company also partnered with NVIDIA to develop AI models, including the open-source Boltz-2 molecular binding prediction system.
Wall Street analysts show divided opinions on RXRX stock. Needham maintains a Buy rating with an $8 price target, citing leadership in AI drug discovery.
Morgan Stanley and Bank of America hold the stock with targets around $4.80 and $8 respectively. The consensus price target sits at approximately $6.47, suggesting 17% upside.
Eight analysts cover the stock with 2 Buy ratings and 6 Hold ratings. CNBC’s Jim Cramer expressed skepticism, saying Recursion needs to show “proof of concept” before he’d invest.
The company remains pre-revenue with no approved drugs on the market. Financial metrics show earnings per share of -1.81 and negative free cash flow of $186 million.
RXRX stock closed at $5.89 on October 14, 2025, as investors continue weighing the potential of AI-driven drug discovery against ongoing losses and uncertain timelines to product approval.
