Recursion Pharmaceuticals, Inc
Recursion Pharmaceuticals is a U.S.-based clinical-stage TechBio company that uses its Recursion Operating System to discover and develop medicines. Its business combines an internal pipeline of drug candidates with strategic partnerships, using AI, multimodal biological data, and automated chemistry to move from biological insight to clinical development.
Fiscal year 2025 · change from previous year
Development 2020–2025
Business
Share of revenueWholly owned drug candidates advancing through discovery and clinical development.
Research and development agreements with pharmaceutical and biotech partners.
AI-enabled discovery, data generation, and development capabilities used internally and for partners.
Products
Reported · share of revenue- License and Service99.4 %
- Grant0.6 %
Source: 10-K FY2025, revenue the company reports per product line (SEC XBRL). Shares are of the lines shown and add up to 100 %.
Customers
Recursion’s customers are primarily pharmaceutical, biotechnology, and research partners that pay for discovery and development work under collaboration agreements. The company also serves future end-markets indirectly through its own pipeline, which targets patients in oncology and rare disease once programs advance to commercialization.
Large pharma companies buy discovery and development services, data, and program work through alliance agreements.
Biotech companies use Recursion's platform and scientific capabilities to accelerate target discovery and candidate generation.
Institutions collaborate for access to datasets, biology expertise, and intellectual property.
Patients and healthcare systems are the eventual end market for approved medicines from the internal pipeline.
Strategy
Recursion’s strategy is to use its integrated AI-native platform to increase the speed and quality of drug discovery, while validating the platform through both internal programs and partner collaborations. The company is building a diversified pipeline across oncology and rare disease, with partnerships serving as external proof points for the Recursion OS.
Clinical data is the main value driver for a TechBio pipeline and validates the platform.
A stronger platform improves candidate selection, reduces attrition, and supports partner demand.
Collaborations provide non-dilutive funding, external validation, and broader data access.
Geography
Q3/2025Recursion is headquartered in the United States, with operations and collaboration activity spanning North America and Europe. The company also maintains research sites in Montréal and London, which support its AI and computational biology capabilities and broaden access to scientific talent.
Share of the revenue the company reports by geography.
Risks
Recursion faces the typical risks of a clinical-stage biotechnology company: no approved products, long development timelines, and dependence on external capital and collaboration revenue. Its platform model also depends on third-party vendors, data quality, and successful translation of AI-driven discovery into clinical outcomes.
- Clinical development failureImpact: HighLikelihood: Medium
Drug candidates can fail in discovery, preclinical work, or clinical trials, which would reduce pipeline value.
Exposure: Internal oncology and rare disease programs
- Capital dependenceImpact: HighLikelihood: Medium
The company has no approved product sales and relies on financing and collaboration receipts to fund operations.
Exposure: Operating runway and future commercialization
- Technology and data execution riskImpact: HighLikelihood: Medium
The Recursion OS must consistently generate useful biological insight and candidate selection to justify the model.
Exposure: Platform performance and partner confidence
- Partner concentration and milestone timingImpact: MediumLikelihood: Medium
Collaboration revenue is tied to performance obligations and milestone achievement, which can be uneven.
Exposure - Supply chain and manufacturing dependenceImpact: MediumLikelihood: Medium
The company relies on third-party CDMOs, vendors, and testing providers for drug substance and product.
Exposure: Clinical supply and platform operations
Accounting
Judgemental itemsRevenue is recognized as performance obligations are satisfied, so timing can shift materially between periods.
Impact: Affects operating revenue and quarter-to-quarter comparability
Variable consideration is recognized when milestones are achieved, not when cash is received.
Impact: Can create lumpy revenue recognition
Equity awards are a meaningful operating cost for a research-intensive biotech company.
Impact: Affects reported R&D and G&A expense
Business combinations can change the revenue base, cost structure, and asset valuation.
Impact: Can distort year-over-year comparisons
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Last updated: 24/09/2026