Recursion Pharmaceuticals, Inc. (RXRX): Business Model Canvas [Dec-2025 Updated]

You're looking at Recursion Pharmaceuticals, Inc. (RXRX) and wondering how this AI-first drug discovery outfit actually makes money-it's a classic, yet complex, TechBio hybrid. Honestly, the whole engine runs on their proprietary Recursion OS, which is backed by a hefty $785 million cash pile as of October 2025, giving them runway to burn through the $121.1 million they spent on R&D in Q3 2025. Their model isn't just about internal drugs; it's about scaling data generation to secure massive upfront and milestone payments from giants like Roche and Sanofi, which is where the $5.2 million in Q3 collaboration revenue comes from. If you want to see exactly how they balance platform investment with partnership upside, dive into the full nine blocks below.

Recursion Pharmaceuticals, Inc. (RXRX) - Canvas Business Model: Key Partnerships

You're looking at the external scaffolding that supports Recursion Pharmaceuticals, Inc.'s (RXRX) platform growth, which is critical for validating their approach. These aren't just handshake agreements; they are deep, data-centric collaborations that fuel the engine. Honestly, the quality of these partners tells you a lot about the perceived value of their wet-lab and AI infrastructure.

Here's a look at the structure of these key alliances, focusing on the financial commitments and data access points that matter for valuation right now.

Partner Entity	Primary Focus Area	Financial/Data Metric	Value/Access Point
Roche and Genentech	Drug Discovery & Development	Total Payments Achieved	Over $500 million
NVIDIA	AI Foundation Model Co-development	Equity Investment	$50 million
Sanofi	Discovery Milestones	Cash Inflows Reported	$130 million (as of Q2 2025)
Tempus	Data Access	Data Type	Patient-centric multimodal oncology data
Bayer	Drug Discovery Focus	Therapeutic Areas	Neuroscience and oncology

The Roche and Genentech strategic collaboration stands out for its sheer scale; you've seen total payments achieved surpass $500 million, which is a significant validation point for the Recursion Operating System (OS). Then there's the NVIDIA relationship, which includes a direct $50 million equity investment alongside the critical co-development work on AI foundation models. That's capital plus compute power, a powerful combination for a data-intensive company like Recursion Pharmaceuticals, Inc. (RXRX).

Looking deeper into the milestone achievements, the Sanofi engagement has been a steady source of non-dilutive funding. As of Q2 2025, multiple discovery milestones have been hit, resulting in cash inflows totaling $130 million. That's real cash flow derived directly from hitting scientific targets. The other partnerships focus heavily on data enrichment, which is the lifeblood of any AI drug discovery firm. You need to see what they are getting access to:

• Tempus provides access to patient-centric multimodal oncology data for biomarker-driven programs.
• Bayer collaboration centers on drug discovery efforts specifically in neuroscience and oncology.
• NVIDIA investment is tied to co-development of proprietary AI foundation models.
• Roche/Genentech deal structure involves significant upfront and milestone payments.

Finance: review Q3 2025 partnership revenue recognition against the Sanofi $130 million run-rate by next Tuesday.

Recursion Pharmaceuticals, Inc. (RXRX) - Canvas Business Model: Key Activities

You're looking at the core engine of Recursion Pharmaceuticals, Inc. (RXRX) as of late 2025-the activities that turn their massive data infrastructure into potential medicines. This isn't just research; it's industrial-scale biology and chemistry execution.

Building and refining the Recursion OS (AI/ML platform)

The foundation is the Recursion OS, which they are actively upgrading, evidenced by the focus on Recursion OS 2.0. This system integrates everything from wet lab automation to computational modeling. A key part of this refinement involves the use of specialized models, like Boltz-2, which they use for designing ligands aimed at high-value biological targets. The platform's operational focus is expanding, with a strategic shift towards deploying ClinTech to industrialize clinical development, aiming to reduce costs and accelerate timelines. To power this, Recursion leverages infrastructure from partners like Nvidia (NVDA) for its AI backbone.

High-throughput screening and automated biological data generation

This activity is where the physical and digital worlds meet, combining computational biology, machine learning, and high-throughput phenotyping via heavy automation. The goal is to generate proprietary, high-quality, linked data assets at scale. For instance, in their collaboration with Enamine, they generated enriched screening libraries designed to target 100 key and clinically relevant drug targets. Furthermore, the work with partners like Roche and Genentech involves generating massive biological maps. They have accepted 4 whole-genome GI oncology phenomaps from the partner to date, and delivered a whole-genome map of microglial immune cells for neuroscience work.

Advancing a diverse internal clinical pipeline (e.g., REC-617, REC-7735)

Recursion Pharmaceuticals is focused on a streamlined portfolio, currently centering on 5+ key programs across oncology and rare diseases. You need to track the specific progress points for these lead assets, as they represent the near-term value inflection points for the company. Here's a snapshot of the internal pipeline as of late 2025:

Program (Target)	Status/Key Metric (as of late 2025)	Key Finding/Milestone
REC-617 (CDK7)	Monotherapy dose-escalation established MTD at 10 mg once-daily.	As of September 29, 2025, 29 patients treated; showed one confirmed partial response and five cases of stable disease.
REC-7735 (PI3K$\alpha$ H1047R)	Nominated as a Development Candidate; IND-enabling studies underway.	Designed to be $\sim$100x more selective for the mutant protein over the wild-type, aiming to reduce hyperglycemia.
REC-4881 (MEK1/2)	Phase 2 open-label study (TUPELO) ongoing.	Preliminary median 43% reduction (n=6 patients) in polyp burden at Week 13 assessment.
REC-1245 (RBM39)	Phase 1/2 DAHLIA study dose-escalation ongoing.	Early Phase 1 safety and PK monotherapy data expected in 1H26.
REC-3565 (MALT1)	Phase 1 EXCELERIZE study.	Early Phase 1 safety and PK monotherapy data expected in 2H26.

The progress on REC-617 is notable: Grade $\ge$3 TRAEs occurred in only 27.6% of patients (n=8), with only 6.9% (n=2) discontinuing due to a TRAE, supporting its best-in-class potential.

Training large-scale foundation models in biology and chemistry

This activity involves feeding the OS with massive, proprietary datasets to train the next generation of predictive models. The neuroscience collaboration with Roche and Genentech is a prime example of this scale. They built a whole-genome knockout phenomap using over one trillion iPSC-derived neural cells. This map is complemented by around 5,000 transcriptomes, which translates to approximately 171 TB of data. This scale is what allows them to generate the 'first-in-kind microglia map.'

Managing complex, multi-year pharmaceutical collaboration projects

Partnerships are critical for funding platform expansion and validating the technology. Collaboration revenue is a significant component of the top line. For instance, Q2 2025 total revenue was $19.2 million, and Q3 2025 total revenue was $5.2 million, both consisting primarily of collaboration agreement revenue. As of October 2025, Recursion Pharmaceuticals achieved over $500 million in total milestone and upfront payments across all partnerships. Here's a breakdown of the major financial activity:

Collaboration Partner	Key Financial/Data Metric (as of late 2025)	Total Accrued/Potential
Roche and Genentech	Achieved a second $30 million milestone in October 2025 for the second neuro map.	Total upfront/milestones to date: $213 million.
Sanofi	Achieved a $7 million milestone in Q2 2025 (the fourth in 18 months).	Total accrued from Sanofi: $130 million to date; potential for over $300 million in future milestones per program.
Tempus	Recognized $22.7 million in non-cash expenses in Q2 2025 for data use.	Multi-year strategic collaboration for patient-centric multimodal oncology data.

The company projects that partnership milestones due by the end of 2026 could surpass $100 million. Overall, the potential for future milestone payments across all collaborations is estimated to exceed $10 billion. The cash position as of June 30, 2025, was $533.8 million, with management projecting the cash runway to extend into the fourth quarter of 2027 based on current operating plans.

Recursion Pharmaceuticals, Inc. (RXRX) - Canvas Business Model: Key Resources

You're looking at the core assets Recursion Pharmaceuticals, Inc. (RXRX) relies on to execute its drug discovery model as of late 2025. These aren't just line items; they are the engine.

The Recursion OS (Operating System) is the central nervous system, now featuring Recursion OS 2.0. This platform continuously integrates AI across multimodal biology, precision design, and clinical development. A key enhancement comes from the integration of AI-driven chemistry capabilities following the November 2024 business combination with Exscientia, which brought in precision chemistry tools and an automated small molecule synthesis platform. This combination aims to create an end-to-end drug discovery company.

The computational backbone is the BioHive-2 Supercomputer. This infrastructure is critical for training the large foundation models that power the OS. It was developed in collaboration with NVIDIA and is reportedly the fastest supercomputer wholly owned and operated by a pharmaceutical company. It's a serious piece of hardware.

BioHive-2 Specification	Data Point
TOP500 Ranking (as of May 2024)	No. 35
AI Performance	2 exaflops
NVIDIA H100 GPUs	504 units
Speed vs. BioHive-1	Nearly 5x faster

The fuel for this computational engine is the data. Recursion Pharmaceuticals, Inc. has generated and aggregated one of the largest biological and chemical datasets globally, purpose-built for training new AI models. This repository now exceeds 50 petabytes of biological, chemical, and patient data. That's a massive resource for distilling trillions of searchable relationships across biology and chemistry unconstrained by human bias.

Financially, the company maintains a strong liquidity position, which is vital for funding the high R&D spend associated with this technology-first approach. As of October 9, 2025, the cash and cash equivalents position stood at approximately $785 million (unaudited). This level of capital, based on current operating plans and without additional financing, projects the cash runway to extend through the end of 2027. Also, the Q3 2025 report showed net cash used in operating activities was $325.7 million for the nine months ended September 30, 2025, which includes the operations of the acquired Exscientia business.

The key tangible and intangible assets supporting the business model include:

• The Recursion OS platform, now incorporating Exscientia's chemistry know-how.
• The BioHive-2 supercomputer, an NVIDIA DGX SuperPOD.
• A proprietary dataset exceeding 50 petabytes.
• Cash and cash equivalents of approximately $785 million as of October 9, 2025.
• Integrated automated small molecule synthesis technology.

Finance: draft 13-week cash view by Friday.

Recursion Pharmaceuticals, Inc. (RXRX) - Canvas Business Model: Value Propositions

You're looking at the core reasons why Recursion Pharmaceuticals, Inc. (RXRX) commands attention in the TechBio space. The value proposition centers on industrializing drug discovery through massive data generation and AI. Here's the quick math on what they deliver to partners and the market.

Accelerated drug discovery: Reducing the time from target to clinical candidate

Recursion Pharmaceuticals, Inc. is delivering tangible speed improvements by integrating its Recursion OS 2.0 platform, which includes Exscientia's technology, across the entire R&D spectrum. This aims to move candidates faster than conventional methods. For instance, one internal program, the CDK7 inhibitor, saw 136 compounds synthesized and reached candidate ID in less than 12 months. Furthermore, the ClinTech platform, using causal AI, projects the potential for 50% faster enrollment projections at high-quality clinical sites. The platform's success in advancing its pipeline is evidenced by internal programs like REC-3565 (MALT1 inhibitor) and REC-102 (ENPP1 inhibitor for hypophosphatasia) nearing Phase 1 trial initiation in 2025. Also, REC-617, a selective CDK7 inhibitor, demonstrated positive interim Phase 1 data in advanced solid tumors, including a confirmed durable partial response.

De-risked R&D: Identifying novel targets with higher probability of success

The platform's value is validated by major pharmaceutical partners who rely on its ability to identify novel targets, which is critical given that roughly 90% of drug candidates fail in clinical trials. The merger with Exscientia resulted in a combined pipeline with projected peak sales potential exceeding an estimated $1 billion. The partnership structure itself de-risks R&D through milestone payments. The collaboration with Sanofi, for example, has the potential to deliver over $300 million in milestone payments per program. The company's Q2 2025 revenue included a $7 million milestone payment from the Sanofi immunology program. The company maintains a projection of over $100 million in partnership inflows by the end of 2026.

Industrial-scale phenomic data generation unconstrained by human bias

Recursion Pharmaceuticals, Inc. is building one of the world's largest proprietary biological and chemical datasets, leveraging machine learning to find relationships unconstrained by human preconceptions. This industrial scale is a core differentiator. You can see the sheer volume of data generated through key partnerships:

Data Metric	Scale/Amount	Context/Source
Searchable Relationships	Trillions	Distilled from the dataset across biology and chemistry.
Experimental Scale	Up to millions of wet lab experiments weekly	Massive experimental throughput supporting the platform.
Neural Cell Data (Roche/Genentech)	Over one trillion iPSC-derived neural cells	Used to build a whole-genome knockout phenomap.
Neuroscience Data Volume (Roche/Genentech)	Approximately 171 TB	Data volume associated with the neural cell phenomap.

The platform's influence is also expanding externally; the Boltz-2 open-source molecular modeling tool has already exceeded 40,000 unique users to date.

Access to a full-stack TechBio platform for partners' R&D needs

Partners gain access to a full-stack platform described as having a true end-to-end capability, spanning from target discovery right through to clinical trial simulation. This is validated by the depth and breadth of their collaborations. The Sanofi partnership has already yielded a total of $130 million received as of Q2 2025, marking their fourth milestone payment in 18 months. The Q3 2025 revenue of $51.75M was significantly boosted by a milestone payment of over $30 million for delivering a crucial whole-genome map of microglial immune cells to Roche and Genentech. Recursion Pharmaceuticals, Inc. also maintains collaborations with Bayer and Merck KGaA for early-stage oncology projects.

Focus on complex diseases like rare diseases and oncology

Recursion Pharmaceuticals, Inc. directs its platform capabilities toward high unmet need areas. The internal pipeline reflects this focus with specific targets in oncology and rare diseases. The company is advancing programs in oncology, including the REC-617 CDK7 inhibitor for advanced solid tumors. For rare diseases, they are targeting hypophosphatasia with REC-102. The neuroscience focus, in partnership with Roche/Genentech, targets complex conditions like Alzheimer's and Parkinson's. Additionally, REC-4881 is being advanced for Familial Adenomatous Polyposis.

Finance: draft 13-week cash view by Friday.

Recursion Pharmaceuticals, Inc. (RXRX) - Canvas Business Model: Customer Relationships

You're looking at how Recursion Pharmaceuticals, Inc. manages its most critical external relationships, which are overwhelmingly structured as deep, high-touch strategic alliances with major biopharma players. These aren't simple vendor contracts; they are foundational to the company's revenue generation and pipeline validation.

The core of these relationships involves collaborative R&D programs, which are governed by joint steering committees that guide the work. This structure ensures shared oversight for the programs advancing through the Recursion Operating System (Recursion OS) pipeline. For instance, the collaboration with Roche and Genentech is a long-term commitment, described as an ongoing 10+ year collaboration to discover novel targets and develop potential treatments across neuroscience and gastrointestinal oncology programs.

These alliances are heavily incentivized through milestone-based financial structures, which is where you see the real numbers. Recursion Pharmaceuticals has secured over $500 million in total upfront and milestone payments from its partners to date, a scale that sets it apart for a pre-commercial biotech. The Sanofi partnership alone has accrued $130 million in upfront and milestone payments through Q2 2025. The mechanism is clear: deliver a validated biological insight or drug candidate lead, receive a payment. The Q1 2025 revenue included a $7 million milestone from Sanofi for identifying differentiated, orally active small molecule leads against an immune cell target.

The risk and reward are explicitly shared through platform licensing and co-development agreements. The Roche and Genentech deal is a prime example of this co-development model. As of late 2025, the partners have optioned an initial program in gastrointestinal oncology, based on 4 whole-genome GI oncology phenomaps accepted by the partner so far. Furthermore, the achievement of a second $30 million milestone from Roche and Genentech in October 2025, following the acceptance of a novel whole-genome phenotypic map of microglial cells, underscores this structure. This specific program still holds the potential for over $300 million in additional milestone payments. It's about using the Recursion OS as a shared engine for discovery.

Here's a snapshot of the financial impact from these key customer relationships as of late 2025:

Partner(s)	Key Milestone/Achievement (2025)	Milestone Amount (USD)	Total Payments to Date (USD)	Program/Target Area
Sanofi	Fourth milestone payment in 18 months (Q2 2025)	$7 million (Q1 2025 payment noted)	$130 million	Immune cell target leads
Roche and Genentech	Second $30 million milestone achieved (October 2025)	$30 million (Portion recognized in Q4 2025)	$213 million	Neuroscience and GI Oncology
All Partners (Cumulative)	Total Upfront and Milestone Payments	N/A	Over $500 million	Various

The financial health derived from these relationships provides a strong operational cushion. Recursion Pharmaceuticals reported cash, cash equivalents, and restricted cash of $667.1 million as of September 30, 2025, up from $603.0 million at the end of 2024. This strong liquidity, supported by partnership inflows, projects a cash runway extending into the fourth quarter of 2027. The company also expects to achieve a majority of $100 million in synergies from its merger within 2025, further optimizing operational alignment supporting these customer-facing R&D efforts.

The relationships also extend to technology access and data sharing, which is a form of platform licensing. While specific 2025 licensing revenue isn't detailed, historical context shows technology licensing agreements with 3 pharmaceutical companies in 2023, generating $12.7 million in revenue that year. The current focus is on advancing the pipeline, but the underlying platform access is a continuous component of the value exchange. You can see the commitment in their spending, with Research & Development Expenses reaching $128.6 million in Q2 2025, a 74.0% year-over-year increase, much of which supports these collaborative programs.

The relationships are characterized by tangible deliverables tied to financial rewards, which is how you track the success of the customer engagement model. The company is focused on advancing programs toward significant milestones, with management projecting expectations of over $100 million in partnership milestones by the end of 2026.

Finance: review the Q4 2025 milestone recognition schedule against the $100 million projection for year-end 2026.

Recursion Pharmaceuticals, Inc. (RXRX) - Canvas Business Model: Channels

You're looking at how Recursion Pharmaceuticals, Inc. (RXRX) gets its platform and pipeline in front of potential partners and the broader scientific community as of late 2025. It's a mix of high-touch executive interaction and broad digital outreach.

Direct business development and executive engagement with top biopharma

The channel here is deep, executive-level engagement, often resulting in multi-year, multi-target collaborations that provide significant, albeit lumpy, revenue through milestones. These deals validate the Recursion OS platform.

Recursion Pharmaceuticals, Inc. has actively engaged with major pharmaceutical companies to channel its discovery engine:

• The collaboration with Sanofi has resulted in a total of $130 million in upfront and milestone payments achieved as of Q2 2025.
• The company has earned over $450,000,000 in earned revenue through four collaborations to date, as reported in Q1 2025.
• Recursion Pharmaceuticals, Inc. registered over 7 million Class A common shares for resale that were issued to Tempus AI as payment for annual license fees.
• Management projects that partnership milestones due by the end of 2026 could surpass $100 million.

Here's a snapshot of the financial impact from key collaborations:

Partner	Milestone Payment Received (Q2 2025)	Total Milestones Achieved to Date (as of Q2 2025)	Potential Per Program
Sanofi	$7 million	$130 million	Over $300 million
Roche & Genentech	N/A (Focus on data generation)	N/A	N/A
Bayer AG & Merck KGaA	N/A (Early-stage oncology)	N/A	N/A

Scientific publications and presentations at industry conferences

Presenting data at key medical and scientific conferences is a critical channel for validating the platform's output and advancing specific drug candidates through scientific scrutiny. This builds credibility for both internal assets and partnered programs.

Recent and upcoming data dissemination channels include:

• Preclinical data for REC-102 (ENPP1) was scheduled for presentation at the 2025 American Society for Bone and Mineral Research (ASMBR) on September 6, 2025.
• Initial safety, tolerability, and preliminary efficacy data for REC-4881 (FAP) was presented at the DDW conference in San Diego in May 2025.
• Executive and R&D leadership presented at the Jefferies London Healthcare Conference in November 2025.

Open-source release of AI tools like Boltz-2 for community engagement

Releasing foundational AI models as open-source software serves as a powerful channel to drive adoption, attract talent, and embed Recursion Pharmaceuticals, Inc.'s technology stack within the broader scientific community, which feeds back into platform refinement.

The release of Boltz-2, in partnership with MIT and Nvidia, demonstrates this strategy:

• The model has seen almost 200,000 downloads by nearly 50,000 unique users to date (as of August 2025).
• Boltz-2 is over 1,000 times faster and less computationally expensive than traditional physics-based free energy perturbation (FEP) calculations.
• The cost per prediction dropped from approximately $100 (taking 6-12 hours) to just a few cents in 20 seconds on a single GPU.

Clinical trial sites for advancing internal and partnered drug candidates

The physical and operational network of clinical trial sites is the final channel to prove clinical efficacy. Recursion Pharmaceuticals, Inc. is using its proprietary ClinTech platform to optimize this channel.

Platform advancements are directly impacting site operations:

• The ClinTech platform offers the potential for 50% faster enrollment projections at high-quality sites.
• This efficiency means trials can be activated up to 2 months faster.
• Internal pipeline programs are advancing through this channel, with Early Phase 1 data expected for REC-1245 (RBM39) in 1H26 and REC-3565 (MALT1) in 2H26.

The company's cash position as of June 30, 2025, was $533.8 million, which management projects will support operations into the fourth quarter of 2027.

Recursion Pharmaceuticals, Inc. (RXRX) - Canvas Business Model: Customer Segments

You're looking at the core groups Recursion Pharmaceuticals, Inc. (RXRX) serves or partners with to drive its industrial-scale drug discovery platform. It's a mix of big pharma paying for access to the tech, tech giants providing the engine, and ultimately, patients who stand to benefit from the resulting medicines.

Large Pharmaceutical and Biotech Companies (seeking AI-discovered assets)

These are the primary revenue generators right now, paying for access to the Recursion Operating System (Recursion OS) to advance their pipelines. The financial commitment from these partners is substantial and lumpy, based on hitting specific discovery milestones.

The collaboration with Sanofi has been a consistent source of funding; as of the second quarter of 2025, Recursion Pharmaceuticals, Inc. had received a total of $130 million in upfront and milestone payments from this multi-target agreement covering oncology and immunology programs. In the second quarter of 2025 alone, a $7 million milestone payment was received from Sanofi, marking the fourth discovery milestone hit in 18 months. Each Sanofi program carries the potential for over $300 million in future milestones.

The partnership with Roche and Genentech has also delivered significant value. In the third quarter of 2025, Recursion Pharmaceuticals, Inc. achieved a second $30 million milestone payment for delivering a whole-genome map of microglial immune cells, bringing the total achieved from this specific collaboration to $213 million to date. This collaboration has also advanced programs in GI oncology.

Overall, as of the third quarter of 2025, Recursion Pharmaceuticals, Inc. had reached over $500 million in milestone and upfront payments across all its partnerships. Management estimated that partnership milestones due by the end of 2026 could surpass $100 million. Other key partners include Bayer AG and Merck KGaA, Darmstadt, Germany.

Here's a quick look at the financial scale of these key collaborations:

Partner Group	Key Financial/Data Metric	Value/Amount (as of late 2025)
Sanofi	Total Upfront/Milestone Payments Received to Date	$130 million
Sanofi	Potential Future Milestones Per Program	Over $300 million
Roche & Genentech	Second Milestone Payment Achieved (Q3 2025)	$30 million
Roche & Genentech	Total Upfront/Milestone Payments Achieved to Date	$213 million
All Partnerships	Total Upfront/Milestone Payments Achieved to Date	Over $500 million

Technology Companies (e.g., NVIDIA, for AI model co-development)

These entities provide the foundational computing power and data infrastructure necessary to run the Recursion OS at an industrial scale. This segment is less about direct revenue and more about strategic enablement and investment.

The partnership with NVIDIA is central, which included a $50 million equity investment via a Private Investment in Public Equity (PIPE). This collaboration focuses on advancing AI foundation models using NVIDIA DGX Cloud and making them available on BioNeMo. The training of these models leverages Recursion Pharmaceuticals, Inc.'s proprietary biological and chemical dataset, which comprises information about 23 petabytes of data.

Another critical technology relationship involves data access. Recursion Pharmaceuticals, Inc. utilizes patient-centric multimodal oncology data from Tempus. The non-cash expenses recognized for the use of this Tempus data in the second quarter of 2025 were $22.7 million.

The company also released Boltz-2, an open-source molecular modeling tool, which has exceeded 40,000 unique users to date.

Patients with Rare Diseases and Oncology indications (ultimate beneficiaries)

While not direct payers, patients represent the target market for the therapeutic candidates emerging from the platform. The focus here is on advancing programs into clinical stages for these patient populations.

Recursion Pharmaceuticals, Inc. is advancing a streamlined portfolio of over five clinical and preclinical programs targeting areas of high unmet need. These efforts are concentrated in oncology and rare diseases.

Specific patient indications being addressed include:

• REC-617 (CDK7 inhibitor) being studied in platinum-resistant ovarian cancer cohorts.

• REC-994 for cerebral cavernous malformation, a rare disease indication.

• REC-4881 for familial adenomatous polyposis and AXIN1 or APC mutant cancers.

• REC-3565, a selective MALT1 inhibitor, which entered Phase 1 dose escalation.

• ENPP1 inhibitors for hypophosphatasia, another rare disease program.

The platform's ability to integrate real-world patient data from partners like Helix and Tempus is intended to help connect the platform to patients, enabling target identification and patient stratification. Furthermore, in-house software for clinical trial simulation aims to potentially improve the optimal dose for thirty percent more patients.

Academic and Research Institutions (for research collaboration)

This segment is less about direct, quantifiable financial transactions in the same way as pharma partnerships, but it is crucial for validating the platform and generating novel biological insights. The Recursion OS is used to generate data and models that are then leveraged in these collaborations.

The work with Roche and Genentech, for instance, involves building large biological datasets, such as a whole-genome knockout phenomap derived from over one trillion iPSC-derived neural cells, alongside around 5,000 transcriptomes, representing approximately 171 TB of data for neuroscience targets. Sanofi is also leveraging Recursion OS 2.0 to identify new program opportunities.

The company also released the Boltz-2 open-source molecular modeling tool, which has seen adoption exceeding 40,000 unique users to date, indicating broad engagement within the broader research community.

Recursion Pharmaceuticals, Inc. (RXRX) - Canvas Business Model: Cost Structure

You're looking at the expense side of Recursion Pharmaceuticals, Inc.'s operations as of late 2025, which is heavily weighted toward platform development and pipeline advancement. The cost structure reflects an aggressive, technology-first approach to drug discovery.

The primary driver of operating expenditure is Research and Development (R&D). For the third quarter of 2025, Recursion Pharmaceuticals, Inc. reported R&D expenses totaling $121.1 million. This figure was a significant increase, soaring 62% compared to the $74.6 million reported in the third quarter of 2024. The resulting operating loss for Q3 2025 was $172.2 million, with the net loss reaching $162.3 million.

Personnel costs are embedded within these figures, supporting the large team required to run the platform. While a specific personnel cost number isn't isolated, the General and Administrative (G&A) expenses for Q3 2025 were $41.6 million, which also reflects the inclusion of costs from the prior year's business combination.

A major capital outlay supports the computational backbone of Recursion Pharmaceuticals, Inc.'s model. This investment centers on the BioHive-2 supercomputer, which is key to scaling their proprietary platform. Here are the reported specifications of this significant asset:

Component	Specification/Detail
System Type	NVIDIA DGX SuperPOD AI supercomputer
DGX H100 Systems	63 systems
NVIDIA H100 GPUs Total	504 NVIDIA H100 Tensor Core GPUs
Interconnect	NVIDIA Quantum-2 InfiniBand networking
Performance Relative to Predecessor	Four times faster than BioHive-1

The company is actively managing its cash usage to sustain operations. Management has guided the cash burn for the full fiscal year 2025 to be at or below $450 million, calculated on a non-GAAP basis and excluding any partnering or financing inflows. This guidance reflects a focus on operational discipline following the Exscientia integration.

Costs related to corporate restructuring and integration activities are also present in the recent financials. These costs are a direct result of the business combination with Exscientia and subsequent efforts to streamline operations. Specific charges noted include:

• Costs associated with the business combination with Exscientia, including $16 million of one-time transaction related costs reported in Q1 2025.
• Acquired in-process R&D purchases related to acquiring full rights to REC-102, which contributed to the R&D increase.
• A June 2025 restructuring, which involved a workforce reduction of about 20%, carrying expected charges of approximately $9.5 million.
• Recognition of $20.2 million of acquired IPR&D related to acquiring the remainder of RE Ventures I in Q3 2025.

The inclusion of Exscientia's operations also drove up Q3 2025 G&A expenses year-over-year. It's defintely a period of absorbing significant one-time and integration-related expenses.

Recursion Pharmaceuticals, Inc. (RXRX) - Canvas Business Model: Revenue Streams

You're looking at how Recursion Pharmaceuticals, Inc. (RXRX) pulls in cash, and right now, it's heavily weighted toward non-sales revenue from its deep-tech partnerships. This model relies on proving out the value of the Recursion OS platform through scientific achievements.

The core of the current revenue is tied up in strategic collaboration agreements. For the third quarter of 2025, total revenue, which is primarily collaboration revenue, came in at $5.2 million. This figure was notably lower than the $26.1 million reported in Q3 2024, largely because of the timing of milestone payments.

Milestone payments are a huge driver. Recursion Pharmaceuticals, Inc. achieved a significant $30 million milestone in October 2025 from its collaboration with Roche and Genentech for delivering the second neuro map, specifically a whole-genome map of microglial immune cells. While the milestone was achieved in October 2025, the company expects to recognize a portion of that revenue in the fourth quarter of 2025.

These partnership achievements stack up over time. With this latest payment, Recursion Pharmaceuticals, Inc. has reached over $500 million in upfront and milestone payments across all its partnerships and collaborations to date. Also, a $7.0 million Sanofi milestone is being recognized over time, and a $2.4 million milestone was recognized related to the acquisition of the remaining interest in RE Ventures I.

Here's a quick look at some of the recent, relevant financial data points related to these revenue drivers:

Revenue Component/Metric	Amount/Value	Period/Date
Total Collaboration Revenue	$5.2 million	Q3 2025
Roche/Genentech Milestone Payment Triggered	$30 million	October 2025
Cumulative Partnership Upfront/Milestone Payments	Over $500 million	As of Q3 2025
Sanofi Milestone Recognized Over Time	$7.0 million	Recognized over time
RE Ventures I Milestone	$2.4 million	Recognized in Q3 2025 period

Beyond immediate cash triggers like milestones, the model anticipates potential future royalties on net sales of any partnered drugs that successfully make it through clinical trials and commercialization. This is the long-term payoff for platform validation. Also, the value of the Recursion OS platform itself suggests revenue potential through technology licensing or access fees, though the current reported revenue is dominated by the upfront and milestone structures.

You should keep an eye on how they translate platform usage into recurring revenue streams. The current structure is lumpy, which is typical, but the goal is to see those partnership milestones continue to hit targets. The company is projecting to be on track for over $100 million in milestone payments by the end of 2026.

The key components of the collaboration-driven revenue streams are:

• Upfront payments from initial strategic collaboration agreements.
• Milestone payments tied to research, discovery, and clinical progress.
• Potential future royalties on net sales of commercialized partnered drugs.
• Technology licensing or access fees for the Recursion OS platform.

Finance: draft Q4 2025 milestone recognition forecast by next Tuesday.