Recursion's Q2 2025 Earnings Call: Unpacking Key Contradictions in Strategy and Innovation

Platform focus and program prioritization, use of AI in clinical development, importance of compute scale, revenue model and cash runway, technology commoditization and proprietary models are the key contradictions discussed in Recursion's latest 2025Q2 earnings call.



Recursion OS 2.0 and Technology Advancements:
- Recursion Pharmaceuticals highlighted significant advancements in its Recursion OS 2.0 platform, including the development and open-source release of the Boltz-2 project, which has seen nearly 200,000 downloads and 50,000 unique users.
- These advancements were driven by the integration of Exscientia's capabilities post-business combination, focusing on improving the efficiency of protein folding and ligand binding predictions.

Clinical Trial Simulations and Enrollment Enhancements:
- Recursion introduced its ClinTech platform, which aims to improve trial recruitment by 50% faster at high-quality sites and activate trials 2 months faster.
- This platform leverages causal AI and patient stratification algorithms to optimize trial design and patient selection, enhancing the efficiency of clinical trial execution.

Pipeline and Partnership Expansion:
- Recursion is advancing various internal programs in oncology and rare diseases, with notable progress in programs like CDK7 and RBM39.
- The company's partnership portfolio has seen success, with four out of four program milestones achieved in its collaboration with Sanofi, demonstrating the effectiveness of its collaboration strategy with major pharmaceutical companies.

Cash Runway and Financial Management:
- Recursion reported $533 million in cash at the end of Q2 2025, with a projected cash runway through Q4 2027.
- This financial strength is supported by efficient expense management and significant cash inflows, including a $29 million R&D tax credit and a $7 million milestone payment from Sanofi.