0001601830-25-000075 | 10-Q | XBRL Viewer | Recursion Pharmaceuticals INC

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Leases - Schedule of Supplemental Cash Flow Information Related to Leases (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2025	Mar. 31, 2024
Cash paid for amount included in the measurement of lease liabilities:
Operating cash flows from operating leases	$ 5,265	$ 3,955
Operating cash flows from financing leases	495	0
Financing cash flows from financing leases	2,019	0
Right-of-use assets modifications and termination:
Operating leases	(10,084)	(3,115)
Financing leases	$ 0	$ 0

Net Loss Per Share

3 Months Ended

Mar. 31, 2025

Earnings Per Share [Abstract]

Net Loss Per Share

For the three months ended March 31, 2025 and 2024, Recursion calculated net loss per share of Class A, Class B and the Exchangeable common stock. Basic net loss per share is computed using the weighted-average number of shares outstanding during the period. Diluted net loss per share is computed using the weighted-average number of shares and the effect of potentially dilutive securities outstanding during the period. Potentially dilutive securities consist of stock options and other contingently issuable shares. For periods presented in which the Company reports a net loss, all potentially dilutive shares are anti-dilutive and as such are excluded from the calculation. For the three months ended March 31, 2025 and 2024, the Company reported a net loss and therefore basic and diluted loss per share were the same.

The rights, including the liquidation and dividend rights, of the holders of the Company’s Class A, Class B and the Exchangeable common stock are identical, except with respect to voting. As a result, the undistributed earnings for each period are allocated based on the contractual participation rights of the Class A, Class B and the Exchangeable common stock as if the earnings for the period had been distributed. As the liquidation and dividend rights are identical, the undistributed earnings are allocated on a proportionate basis and the resulting amount per share for Class A, Class B and the Exchangeable common stock was the same during the three months ended March 31, 2025 and 2024.

The following tables set forth the computation of basic and diluted net loss per share of Class A, Class B and Exchangeable common stock:


	Three months ended March 31,
(in thousands, except share amounts)	2025		2024
Numerator:
Net loss	$	(202,487)	$	(91,373)
Denominator:
Weighted average common shares outstanding	402,771,972		236,019,349
Net loss per share, basic and diluted	$	(0.50)	$	(0.39)

The Company excluded the following potential common shares from the computation of diluted net loss per share for the periods indicated because including them would have had an anti-dilutive effect:


	Three months ended March 31,
	2025	2024
Stock based compensation	11,896,288	11,159,250
Tempus agreement	5,369,128	5,143,690
Total	17,265,416	16,302,940

Common Stock	3 Months Ended
Common Stock	Mar. 31, 2025
Equity [Abstract]
Common Stock	Common Stock Each share of Class A common stock entitles the holder to one vote per share and each share of Class B common stock entitles the holder to 10 votes per share on all matters submitted to a vote of the Company’s stockholders. Common stockholders are entitled to receive dividends, as may be declared by the Company’s Board of Directors. As of March 31, 2025 and December 31, 2024, no dividends had been declared. At-The-Market Offering (Jefferies) In August 2023, the Company entered into an Open Market Sales Agreement (the “Jefferies Sales Agreement”) with Jefferies LLC ( “Jefferies”), to provide for the offering, issuance and sale of up to an aggregate amount of $300.0 million of its Class A common stock from time to time in “at-the-market” (ATM) offerings. In February 2025, the Company terminated the Jefferies Sales Agreement. In total, the Company sold 26.8 million shares and received net proceeds of $199.1 million under the agreement through its termination. Of the total sales and net proceeds, the Company sold 4.9 million shares and received net proceeds of $36.9 million under the agreement in the three months ended March 31, 2025 prior to its termination. The Company paid Jefferies a commission of up to 3% of the aggregate gross proceeds received from all sales of Class A common stock. The Jefferies ATM Offering was made under a prospectus supplement dated August 8, 2023 and related prospectus filed with the Securities and Exchange Commission pursuant to the Company’s automatically effective shelf registration statement on Form S-3ASR (Registration No. 333-264845). At-The-Market Offering (Citi) In February 2025, following the termination of the Jefferies Sales Agreement, the Company entered into a Sales Agreement (the Citi Sales Agreement) with Citigroup Capital Markets Inc. (Citi) to provide for the offering, issuance and sale of up to an aggregate amount of 500.0 million of its Class A common stock from time to time in “at-the-market” offerings (the Citi ATM Offering). As of March 31, 2025, an amount of $495.9 million remained available for future sales under the Sales Agreement. For the three months ended March 31, 2025, the Company has sold 0.6 million shares and received net proceeds of $4.1 million under the agreement. Recursion is not required to sell additional shares under the Citi Sales Agreement. The Company pays the Citi Sales Agent a commission of up to 3% of the aggregate gross proceeds received from all sales of Class A common stock less certain agreed credits and reimbursements. The Citi Sales Agreement continues until the earlier of selling all shares available under the Citi Sales Agreement or terminated by written notice from either of the parties. The Citi ATM Offering is being made under a prospectus supplement dated February 28, 2025 and related prospectus filed with the Securities and Exchange Commission pursuant to the Company’s automatically effective shelf registration statement on Form S-3 (Registration No. 333-284878). Public Offering of Common Stock In June 2024, the Company closed its public offering of Class A common stock and issued 35.4 million shares at a price of $6.50 per share for net proceeds of approximately $216.4 million, after deducting transaction costs of $13.6 million. In connection with the public offering of Class A common stock, the Company entered into an underwriting agreement for the offering and sale of 30.8 million shares. The Company also granted the Underwriters a 30 day option from the date of the underwriting agreement to purchase up to an additional 4.6 million shares of Class A Common Stock, which was exercised in full. The public offering was made pursuant to the Company's effective registration statement on Form S-3 (File No. 333-264845) and a related prospectus supplement and accompanying prospectus dated June 26, 2024. Valence Acquisition Exchangeable Shares In May 2023, in connection with the acquisition of Valence, the Company entered into an agreement to issue up to 5.9 million shares of Class A common stock (the “Exchangeable Shares”), that may be issued upon exchange, retraction or redemption of exchangeable shares of a subsidiary of Recursion. Each exchangeable share of the subsidiary of Recursion entitles the holder to exchange those shares on a one-for-one basis for Recursion’s Class A common stock. The shares are entitled to receive dividends economically equivalent to dividends declared by Recursion, are non-voting and are subject to customary adjustments for stock splits or other reorganizations. In addition, the Company may require all outstanding exchangeable shares to be exchanged into an equal number of Class A common stock upon the occurrence of certain events and at any time following the seventh anniversary of the closing of the Valence acquisition. The exchangeable shares are substantially the economic equivalent of the Class A shares and classified as common stock within the Company’s stockholders’ equity. The Company’s calculation of weighted-average shares outstanding includes the exchangeable shares. As of March 31, 2025, 4.9 million Exchangeable shares have been redeemed for Class A shares. Registration Rights Agreements Tempus agreement In November 2023, in connection with the Tempus Agreement, the Company agreed to prepare and file a registration statement (or a prospectus supplement to an effective registration statement on Form S-3ASR that will become automatically effective upon filing with the SEC pursuant to Rule 462(e)) with the SEC, for resale of the shares of Class A common stock issued or issuable under the Tempus Agreement. A prospectus supplement to a registration statement (File No. 333-264845) was subsequently filed in December 2023 to register shares issued to Tempus for the initial license fee under the Tempus Agreement for resale. In December 2024, a prospectus supplement to a registration statement (File No. 333-264845) was filed to register shares issued to Tempus in payment for the 2024 annual fee. After registration of any shares issued to Tempus under the Tempus Agreement, the Company has agreed to use commercially reasonable efforts to keep such registration statement effective until such date that all shares issued to Tempus covered by such registration statement have been sold or are able to be publicly sold by relying on Rule 144 of the Securities Act without registration. NVIDIA Private Placement In July 2023, in connection with the 2023 Private Placement with NVIDIA, the Company entered into a Registration Rights Agreement providing for the registration for resale of the shares of Class A common stock issued in such transaction. A prospectus supplement to a registration statement (File No. 333-264845) was subsequently filed in August 2023 to register the resale of the shares of Class A common stock issued to NVIDIA. The Company has agreed to use commercially reasonable efforts to keep the registration statement continuously effective until such date that all registrable securities under the agreement have been sold. In the event the holders cannot sell their shares due to certain circumstances causing the registration statement to be ineffective, the Company must pay each holder of shares outstanding on the date and each month thereafter 1% of the aggregate purchase price with the maximum payable amount of 5% of the aggregate purchase price. As of March 31, 2025, there was no accrued liability related to this agreement, as it was not probable that payment would be required. Acquisitions In November 2024, in connection with the acquisition of Exscientia, the Company filed a Registration Statement on Form S-8 (File No. 333-283347) to register the shares of Class A common stock issuable upon exercise or settlement, as applicable, of Recursion stock options and RSUs issued under the assumed Exscientia plans and the Inducement awards. The Company has agreed to use commercially reasonable efforts to maintain the effectiveness of such registration statement as long as such Recursion stock options and RSUs issued under the assumed Exscientia plans remain outstanding. In May 2023, in connection with the acquisition of Valence, the Company entered into a Registration Agreement providing for the registration for resale of the shares of Class A common stock and Exchange Shares issued or issuable in such transaction. A registration statement on Form S-3ASR (File No. 333-272281) was filed to register the shares for resale by the holders. The registration statement must remain effective for a period of not less than three years. In May 2023, in connection with the acquisition of Cyclica, the Company entered into a Registration Agreement providing for the registration for resale of the shares of Class A common stock issued in such transaction. A prospectus supplement to a registration statement (File No. 333-264845) was subsequently filed in June 2023 to register the shares for resale by the holders. The registration statement must be continuously effective until the earlier of the date that all shares have been sold thereunder or are able to be publicly sold by relying on Rule 144 of the Securities Act without registration. 2022 Private Placement In October 2022, in connection with the 2022 Private Placement, the Company entered into a Registration Rights Agreement providing for the registration for resale of the shares of Class A common stock issued in such transaction. A prospectus supplement to a registration statement (File No. 333-264845) was subsequently filed in October 2022 to register the resale of the shares of Class A common stock by the Purchasers. The agreement must remain effective until registrable securities covered by the agreement have been publicly sold by the holders or all shares cease to be registrable securities. In the event the holders cannot sell their shares due to certain circumstances causing the agreement to be ineffective, the Company must pay each holder of shares outstanding on the date and each month thereafter 1.0% of the aggregate purchase price paid by the holder without limit until the agreement is cured. As of March 31, 2025, there was no accrued liability related to this agreement, as it was not probable that a payment would be required. Class A and B Common Shares Authorization In April 2021, the Company’s Board of Directors authorized two classes of common stock, Class A and Class B. The rights of the holders of Class A and B common stock are identical, except with respect to voting and conversion. Each share of Class A common stock is entitled to one vote per share. Each share of Class B common stock is entitled to 10 votes per share and is convertible at any time into one share of Class A common stock. All Class B common stock is held by Christopher Gibson, Ph.D., the Company’s Chief Executive Officer (CEO), or his affiliates. As of March 31, 2025, Dr. Gibson and his affiliates held outstanding shares of Class B common stock representing approximately 15% of the voting power of the Company’s outstanding shares. This voting power may increase over time as Dr. Gibson vests in and exercises equity awards outstanding. If all the exchangeable equity awards held by Dr. Gibson had been fully vested, exercised and exchanged for shares of Class B common stock as of March 31, 2025, Dr. Gibson and his affiliates would hold approximately 15% of the voting power of the Company’s outstanding shares. As a result, Dr. Gibson will be able to significantly influence any action requiring the approval of Recursion stockholders, including the election of the Board of Directors; the adoption of amendments to the Company’s certificate of incorporation and bylaws; and the approval of any merger, consolidation, sale of all or substantially all of the Company’s assets, or other major corporate transaction.

- Definition

The entire disclosure for equity.

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+ Details

Fair Value Measurements

3 Months Ended

Mar. 31, 2025

Fair Value Disclosures [Abstract]

Fair Value Measurements

The fair value hierarchy consists of the following three levels:

•Level 1 — Valuations based on unadjusted quoted prices in active markets for identical assets that the company has the ability to access;

•Level 2 — Valuations based on quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active and model-based valuations in which all significant inputs are observable in the market; and

•Level 3 — Valuations using significant inputs that are unobservable in the market and include the use of judgment by the company's management about the assumptions market participants would use in pricing the asset or liability.

The Company is required to maintain a cash balance in a collateralized account to secure the Company’s credit cards. Additionally, the Company holds restricted cash related to an outstanding letter of credit issued by J.P. Morgan, which was obtained to secure certain Company obligations relating to tenant improvements. Recursion also holds restricted cash as required by a lease agreement.

The following tables summarize the Company’s assets and liabilities that are measured at fair value on a recurring basis:


			Basis of fair value measurement
(in thousands)	March 31, 2025		Level 1		Level 2		Level 3
Assets
Cash equivalents:
Money market funds	$	238,349	$	238,349	$	—	$	—
Bank deposits	—		—		—		—
Restricted cash	8,704		8,704		—		—
Total assets	$	247,053	$	247,053	$	—	$	—


	December 31, 2024		Basis of fair value measurement
(in thousands)			Level 1		Level 2		Level 3
Assets
Cash equivalents:
Money market funds	$	235,812	$	235,812	$	—	$	—
Bank deposits	160,487		160,487		—		—
Restricted cash	8,675		8,675		—		—
Total assets	$	404,974	$	404,974	$	—	$	—

In addition to the financial instruments that are recognized at fair value on the Condensed Consolidated Balance Sheet, the Company has certain financial instruments that are recognized at amortized cost or some basis other than fair value. The carrying amount of these instruments are considered to be representative of their approximate fair values.

The following tables summarize the Company’s financial instruments that are not measured at fair value:


	Book values				Fair values
(in thousands)	March 31, 2025		December 31, 2024		March 31, 2025		December 31, 2024
Liabilities
Notes payable and financing lease liabilities, current	$	8,587	$	8,425	$	8,587	$	8,425
Notes payable and financing lease liabilities, non-current	16,446		19,022		16,446		19,022
Total liabilities	$	25,033	$	27,447	$	25,033	$	27,447

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

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+ Details

Collaborative Development Contracts (Details) $ in Millions	1 Months Ended			3 Months Ended
Collaborative Development Contracts (Details) $ in Millions	Nov. 30, 2024 USD ($) performance_obligation	Sep. 30, 2024 USD ($)	Jan. 31, 2022 USD ($) candidate performance_obligation phenomap program	Mar. 31, 2025 USD ($)	Mar. 31, 2024 USD ($)	Sep. 30, 2023 USD ($)
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Revenue recognized				$ 14.7	$ 13.5
Cost incurred				$ 6.2
Sanofi \| Collaborative Arrangement
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Maximum number of novel small molecule candidates \| candidate			15
Remaining unearned revenue			$ 100.0
Revenue recognized			23.0
Number of performance obligations under the agreement (in performance obligations) \| performance_obligation	8
Remaining performance obligation revenue	$ 141.1
Sanofi \| Collaborative Arrangement \| Research Milestones
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Remaining unearned revenue			555.0
Sanofi \| Collaborative Arrangement \| Development And Regulatory Milestones
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Remaining unearned revenue			1,800.0
Merck KGaA (Merck) \| Collaborative Arrangement
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Remaining unearned revenue						$ 20.1
Number of performance obligations under the agreement (in performance obligations) \| performance_obligation	3
Remaining performance obligation revenue	$ 20.1
Merck KGaA (Merck) \| Collaborative Arrangement \| Discovery, Development And Sales Milestones
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Remaining unearned revenue			73.0
Roche and Genentech \| Collaborative Arrangement
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Remaining unearned revenue			$ 150.0
Revenue recognized		$ 30.0
Number of performance obligations under the agreement (in performance obligations) \| performance_obligation			3
Remaining performance obligation revenue			$ 180.0
Roche and Genentech \| Collaborative Arrangement \| Phenomaps Creation
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Research project, fees and milestones payments receivable for an option on a lead series			$ 250.0
Number of eligible phenomaps \| phenomap			16
Roche and Genentech \| Collaborative Arrangement \| Phenomaps Raw Images
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Research project, fees and milestones payments receivable for an option on a lead series			$ 250.0
Number of eligible phenomaps \| phenomap			12
Roche and Genentech \| Collaborative Arrangement \| Developed and Commercialized Programs
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Research project, fees and milestones payments receivable for an option on a lead series			$ 300.0
Number of projects that may be initiated \| program			40
Roche and Genentech \| Collaborative Arrangement \| Gastrointestinal Cancer
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Number of performance obligations under the agreement (in performance obligations) \| performance_obligation			1
Roche and Genentech \| Collaborative Arrangement \| Neuroscience
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Number of performance obligations under the agreement (in performance obligations) \| performance_obligation			2

Description of the Business (Details) - USD ($) $ in Thousands	Mar. 31, 2025	Dec. 31, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Accumulated deficit	$ 1,633,694	$ 1,431,283

- Definition

Amount of accumulated undistributed earnings (deficit).

+ References + Details

Segment Information - Schedule of Segment Net Loss and Reconciliations of Segment Operating Loss to Loss Before Income Tax Benefit (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2025	Mar. 31, 2024
Segment Reporting Information [Line Items]
Revenue	$ 14,745	$ 13,794
Significant segment expenses
Depreciation and amortization	19,331	7,377
Loss from operations	191,368	96,340
Other non-operating income (loss), net	(11,277)	4,188
Income tax benefit	158	779
Total segment loss	202,487	91,373
Reportable Segment
Segment Reporting Information [Line Items]
Revenue	14,745	13,794
Significant segment expenses
Salaries	83,554	50,358
Consumables	54,677	15,741
Platform	8,765	1,883
Discovery	6,287	7,809
Clinical development	10,564	12,568
Depreciation and amortization	19,331	7,377
Other segment items	22,935	14,398
Loss from operations	191,368	96,340
Other non-operating income (loss), net	(11,277)	4,188
Income tax benefit	158	779
Total segment loss	202,487	91,373
Supplemental asset information
Total expenditures for additions to long-lived assets	$ 2,978	$ 6,733

Goodwill and Intangible Assets - Schedule of Changes in the Carrying Amount of Goodwill (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2025 USD ($)
Goodwill [Roll Forward]
Goodwill, beginning balance	$ 148,873
Additions	5,947
Foreign currency translation adjustments	3,292
Goodwill, ending balance	$ 158,112

- Definition

Amount, after accumulated impairment loss, of asset representing future economic benefit arising from other asset acquired in business combination or from joint venture formation or both, that is not individually identified and separately recognized.

+ References

Reference 1: http://www.xbrl.org/2003/role/exampleRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 55
-Paragraph 49
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-URI https://asc.fasb.org/1943274/2147482785/280-10-55-49

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+ Details

Acquisitions (Tables)

3 Months Ended

Mar. 31, 2025

Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract]

Schedule of Fair Value of Assets Acquired and Liabilities Assumed

The following table summarizes the fair value of assets acquired and liabilities assumed as of the acquisition date:


(in thousands)
Cash and cash equivalents	$	277,104
Other receivables	48,408
Other current assets	12,843
Property and equipment, net	61,961
Operating lease right-of-use assets	20,271
Intangible assets, technology	182,000
Intangible assets, indefinite-lived	129,000


Deferred tax assets	1,934
Other assets, non-current	930
Accounts payable and accrued liabilities	(40,780)
Lease liabilities	(21,679)
Deferred revenue	(120,905)
Deferred tax liability	(23,077)
Other liabilities	(1,572)
Total identifiable net assets	526,438
Goodwill	103,686
Total assets acquired and liabilities assumed	$	630,124

Schedule of Pro Forma Financial Information

The following pro forma summary presents consolidated revenue and earnings of Recursion as if the Exscientia business combination had occurred on January 1, 2023.


	Three months ended March 31, 2024
(in thousands)	Three months ended March 31, 2024
Revenue	$	22,044
Operating loss	$	(126,145)

Acquisitions

3 Months Ended

Mar. 31, 2025

Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract]

Acquisitions

Exscientia plc

In November 2024, Recursion acquired all of the outstanding equity interests of Exscientia plc (“Exscientia”), a United Kingdom based public company that was registered on the Nasdaq Global Select Market. Exscientia is a drug design company utilizing its artificial intelligence platform to efficiently design and develop differentiated medicines for diseases with high unmet patient needs. Their focus is on utilizing their platform to develop best in class molecules with improvements to known or likely points of failure to improve the probability of developmental success. The Company believes the combination of the Recursion and Exscientia platforms and pipelines will position it to be a leader of the AI-enabled drug discovery and development space.

The acquisition of Exscientia was accounted for as a business combination using the acquisition method of accounting. The consideration transferred of approximately $630.1 million consisted of $616.9 million in Recursion Class A shares and $13.2 million related to the portion of Exscientia share based awards that were replaced with Recursion share based awards that is attributable to pre-combination service. Approximately 102.1 million Recursion Class A shares were issued in exchange for Exscientia ordinary shares using a fixed exchange ratio of one Exscientia ordinary share converts to 0.7729 Recursion Class A shares (the “Exchange Ratio”). In addition, Recursion replaced all outstanding Exscientia share based awards with Recursion share based awards wherein the vesting schedule and other applicable terms were carried over except for the exercise price of share options which were adjusted using the 0.7729 exchange ratio. This included Exscientia’s stock options and restricted stock units. Recursion used $6.04, the Company’s share price on November 20, 2024 to calculate the consideration transferred. See Note 10, “Stock-Based Compensation” for additional information on the Exscientia share based awards.

In the three months ended March 31, 2025, Recursion updated the deferred tax liabilities from the acquisition, which were incomplete as of December 31, 2024. As a result, Recursion adjusted the provisional deferred tax liabilities to reflect the additional information obtained about the facts and circumstances that existed as of the acquisition date. As a result, deferred tax liabilities and goodwill increased by $6.0 million.

The following table summarizes the fair value of assets acquired and liabilities assumed as of the acquisition date:


(in thousands)
Cash and cash equivalents	$	277,104
Other receivables	48,408
Other current assets	12,843
Property and equipment, net	61,961
Operating lease right-of-use assets	20,271
Intangible assets, technology	182,000
Intangible assets, indefinite-lived	129,000


Deferred tax assets	1,934
Other assets, non-current	930
Accounts payable and accrued liabilities	(40,780)
Lease liabilities	(21,679)
Deferred revenue	(120,905)
Deferred tax liability	(23,077)
Other liabilities	(1,572)
Total identifiable net assets	526,438
Goodwill	103,686
Total assets acquired and liabilities assumed	$	630,124

Acquired contract liabilities in the scope of ASC 606 are an exception to the ASC 805 fair value measurement principle and were measured as if Recursion had originated the acquired contract. Two acquired customer contracts had contract liabilities and for each contract Recursion reassessed the identification of performance obligations, determination of transaction price, allocation of transaction price and measure of progress for each performance obligation as if Recursion has been party to the original contract and recognized the resulting contract liability as a liability assumed. No contract assets in the scope of ASC 606 were acquired.

The intangible assets of Exscientia consist of the Exscientia artificial intelligence platform and four clinical stage oncology in process research and development (IPR&D) assets. The operating system is a critical tool used for both designing molecules for fulfilling collaboration agreements and Exscientia’s own research and development projects. The fair value of each intangible asset was valued based on the present value of future discounted cash flows prepared under the multi-period excess earnings method with the significant inputs being the estimates of future revenues, future expenses, the discount rate of 10.5% and probabilities of technological and regulatory success. The platform asset is being amortized on a straight line basis over a six year useful life. The IPR&D assets have been assigned an indefinite useful life and will be tested for impairment prospectively and, if regulatory approval is achieved, will be assigned a useful life and amortization will commence.

Goodwill was calculated based on the excess of the consideration transferred over net assets acquired. The goodwill recognized represents the assembled workforce, future research and development projects enabled by the platform that do not yet have sufficient substance to meet the definition of in-process research and development assets and expected synergies such as the integration of Recursion and Exscientia platforms. The goodwill is not deductible for tax purposes.

Recursion’s consolidated statement of operations for the three months ended March 31, 2025 includes $5.3 million of revenue and $36.8 million of operating loss from Exscientia operations. As the business combination occurred in November 2024, Recursion is still finalizing the allocation of the purchase price to assets acquired and liabilities assumed. The preliminary purchase price allocation reflected in the March 31, 2025 balance sheet is based on the current best estimate of management and subject to change. The Company will finalize the amounts recognized as the information necessary to complete the analysis is obtained and management estimates are further refined. The primary areas subject to finalization are the valuation of intangible assets, right-of-use assets, property and equipment and the valuation of tax assets and liabilities. The Company expects to finalize the purchase price allocation soon but will do so no later than one year from the acquisition date. External specialists have been engaged to assist with certain elements of applying the acquisition method of accounting.

Pro forma financial information

The following pro forma summary presents consolidated revenue and earnings of Recursion as if the Exscientia business combination had occurred on January 1, 2023.


	Three months ended March 31, 2024
(in thousands)	Three months ended March 31, 2024
Revenue	$	22,044
Operating loss	$	(126,145)

The pro forma amounts have been calculated after converting the Exscientia financial information to U.S. GAAP, applying Recursion accounting policies and applying the acquisition method of accounting at January 1, 2023. The pro forma financial information is not necessarily indicative of what the consolidated results of operations would have been had the acquisition been completed on January 1, 2023. In addition, the pro forma financial information is not a projection of the future results of operations of the combined company nor does it reflect the expected realization of any cost savings or synergies associated with the acquisition.

Sale of Exscientia GmbH

In March 2025, Recursion completed the sale of its Austrian operations (Exscientia GmbH) to a newly formed company, Alpha Biotechnology GmbH (Alpha). As part of the sale, Recursion obtained a 49% equity interest in Alpha. Recursion entered into this transaction as part of focusing its efforts and moderating spend. Alpha is a company leveraging a patient-tissue platform for the development of precision therapeutics for the treatment of hematological and solid cancers. For the three months ended March 31, 2025, Recursion recorded a loss on the disposal of Exscientia GmbH of $4.5 million, which was classified as “Other income (loss), net” on the Condensed Consolidated Statement of Operations. Recursion also recorded a $4.4 million investment on the Condensed Consolidated Balance Sheet within “Other assets, non-current” related to its 49% equity interest in Alpha, which was determined to be an equity method investment.

Fair Value Measurements - Schedule of Financial Instruments Not Measured at Fair Value (Details) - USD ($) $ in Thousands	Mar. 31, 2025	Dec. 31, 2024
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items]
Notes payable and financing lease liabilities, current	$ 8,587	$ 8,425
Notes payable and financing lease liabilities, non-current	16,446	19,022
Book values
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items]
Total liabilities	25,033	27,447
Book values \| Notes Payable
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items]
Notes payable and financing lease liabilities, current	8,587	8,425
Notes payable and financing lease liabilities, non-current	16,446	19,022
Fair values
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items]
Total liabilities	25,033	27,447
Fair values \| Notes Payable
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items]
Notes payable and financing lease liabilities, current	8,587	8,425
Notes payable and financing lease liabilities, non-current	$ 16,446	$ 19,022

Goodwill and Intangible Assets - Narrative (Details) - USD ($)	3 Months Ended
	Mar. 31, 2025	Mar. 31, 2024
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill impairment	$ 0	$ 0
Amortization expense	11,700,000	3,400,000
Impairment of indefinite-lived intangible assets	$ 0	$ 0

Supplemental Financial Information - Narrative (Details) - USD ($) $ in Millions	1 Months Ended	3 Months Ended
	Nov. 30, 2023	Mar. 31, 2025
Property, Plant and Equipment [Line Items]
License Agreement, increase (decrease) prepaid expenses		$ (27.1)
Tempus Labs, Inc
Property, Plant and Equipment [Line Items]
License agreement, term	5 years
Trading period used for equity value determination	7 days
Business days prior to the payment date	5 days
Tempus Labs, Inc \| Minimum
Property, Plant and Equipment [Line Items]
Annual payments	$ 22.0
Tempus Labs, Inc \| Maximum
Property, Plant and Equipment [Line Items]
Annual payments	42.0
Aggregate amount payable in cash or equity	$ 160.0

Fair Value Measurements - Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - Fair Value, Recurring - USD ($) $ in Thousands	Mar. 31, 2025	Dec. 31, 2024
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Restricted cash	$ 8,704	$ 8,675
Total assets	247,053	404,974
Money market funds
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash equivalents	238,349	235,812
Bank deposits
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash equivalents	0	160,487
Level 1
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Restricted cash	8,704	8,675
Total assets	247,053	404,974
Level 1 \| Money market funds
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash equivalents	238,349	235,812
Level 1 \| Bank deposits
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash equivalents	0	160,487
Level 2
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Restricted cash	0	0
Total assets	0	0
Level 2 \| Money market funds
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash equivalents	0	0
Level 2 \| Bank deposits
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash equivalents	0	0
Level 3
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Restricted cash	0	0
Total assets	0	0
Level 3 \| Money market funds
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash equivalents	0	0
Level 3 \| Bank deposits
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash equivalents	$ 0	$ 0

Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2025

Fair Value Disclosures [Abstract]

Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis

The following tables summarize the Company’s assets and liabilities that are measured at fair value on a recurring basis:


			Basis of fair value measurement
(in thousands)	March 31, 2025		Level 1		Level 2		Level 3
Assets
Cash equivalents:
Money market funds	$	238,349	$	238,349	$	—	$	—
Bank deposits	—		—		—		—
Restricted cash	8,704		8,704		—		—
Total assets	$	247,053	$	247,053	$	—	$	—


	December 31, 2024		Basis of fair value measurement
(in thousands)			Level 1		Level 2		Level 3
Assets
Cash equivalents:
Money market funds	$	235,812	$	235,812	$	—	$	—
Bank deposits	160,487		160,487		—		—
Restricted cash	8,675		8,675		—		—
Total assets	$	404,974	$	404,974	$	—	$	—

Schedule of Financial Instruments Not Measured at Fair Value

The following tables summarize the Company’s financial instruments that are not measured at fair value:


	Book values				Fair values
(in thousands)	March 31, 2025		December 31, 2024		March 31, 2025		December 31, 2024
Liabilities
Notes payable and financing lease liabilities, current	$	8,587	$	8,425	$	8,587	$	8,425
Notes payable and financing lease liabilities, non-current	16,446		19,022		16,446		19,022
Total liabilities	$	25,033	$	27,447	$	25,033	$	27,447

Cover - shares	3 Months Ended
Cover - shares	Mar. 31, 2025	Apr. 30, 2025
Document Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2025
Document Transition Report	false
Entity File Number	001-40323
Entity Registrant Name	RECURSION PHARMACEUTICALS, INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	46-4099738
Entity Address, Address Line One	41 S Rio Grande Street
Entity Address, City or Town	Salt Lake City,
Entity Address, State or Province	UT
Entity Address, Postal Zip Code	84101
City Area Code	385
Local Phone Number	269 - 0203
Title of 12(b) Security	Class A Common Stock, par value $0.00001
Trading Symbol	RXRX
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Central Index Key	0001601830
Amendment Flag	false
Document Fiscal Year Focus	2025
Document Fiscal Period Focus	Q1
Current Fiscal Year End Date	--12-31
Class A Common Stock
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		399,656,573
Class B Common Stock
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		6,838,575

Supplemental Financial Information - Schedule of Interest Income, Net (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2025	Mar. 31, 2024
Supplemental Financial Information [Abstract]
Interest income	$ 5,558	$ 4,048
Interest expense	(508)	(20)
Interest income, net	$ 5,050	$ 4,028

Basis of Presentation	3 Months Ended
Basis of Presentation	Mar. 31, 2025
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation Basis of Presentation The unaudited interim condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (SEC). Accordingly, certain information and footnote disclosures normally included in annual financial statements prepared in accordance with generally accepted accounting principles in the United States (U.S. GAAP) have been condensed or omitted. These unaudited interim condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and notes for the year ended December 31, 2024. It is management’s opinion that these condensed consolidated financial statements include all normal and recurring adjustments necessary for a fair statement of the financial position, results of operations and cash flows for the periods presented. Revenue and net loss for any interim period are not necessarily indicative of future or annual results. Recent Accounting Pronouncements Recent Accounting Pronouncements Not Yet Adopted In November 2024, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2024-03, Disaggregation of Income Statement Expenses (Topic 220). The standard requires new disclosures in the notes to the financial statements about certain caption expenses presented on the face of the Income Statement including information on: purchases of inventory; employee compensation; depreciation and intangible asset amortization. Recursion must also disclose a qualitative description of the amounts remaining in expense captions that are not separately disaggregated. This standard will be effective for Recursion starting the annual period ending December 31, 2027 and for interim reporting periods within annual reporting periods beginning after December 15, 2027. Early adoption is permitted. The amendments can be applied on a prospective or retrospective basis. Recursion is currently assessing the impact of adopting this guidance on its consolidated financial statements. In December 2023, the FASB issued ASU No. 2023-9, Income Taxes (Topic 740). The new standard updates disclosure requirements for Accounting Standards Codification (ASC) 740 primarily by requiring additional information in the income tax rate reconciliation and additional disclosures about income taxes paid. This standard will be effective for Recursion starting the annual period ending December 31, 2025. The amendments can be applied on a prospective or retrospective basis. Recursion is currently assessing the impact of adopting this guidance on its consolidated financial statements.

Goodwill and Intangible Assets - Schedule of Intangible assets (Details) - USD ($) $ in Thousands	Mar. 31, 2025	Dec. 31, 2024
Goodwill [Line Items]
Accumulated Amortization	$ (38,572)	$ (26,632)
Indefinite-lived intangible assets	132,739	128,775
Intangible assets, gross	374,362	362,487
Intangible assets, net	335,790	335,855
Technology Intangible Assets
Goodwill [Line Items]
Gross carrying amount	230,115	224,362
Accumulated Amortization	(35,647)	(24,544)
Net carrying amount	194,468	199,818
Licensing Agreements
Goodwill [Line Items]
Gross carrying amount	11,508	9,350
Accumulated Amortization	(2,925)	(2,088)
Net carrying amount	$ 8,583	$ 7,262

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

Reference 1: http://www.xbrl.org/2003/role/exampleRef
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+ Details

Stock-Based Compensation - Schedule of RSU Activity (Details) - RSUs	3 Months Ended
	Mar. 31, 2025 $ / shares shares
Stock units
Beginning balance, (in shares) \| shares	27,304,229
Granted (in shares) \| shares	2,034,892
Vested (in shares) \| shares	(2,229,677)
Forfeited (in shares) \| shares	(935,152)
Ending balance, (in shares) \| shares	26,174,292
Weighted-average grant date fair value
Beginning balance, (in dollars per share) \| $ / shares	$ 7.47
Granted (in dollars per share) \| $ / shares	7.20
Vested (in dollars per share) \| $ / shares	7.74
Forfeited (in dollars per share) \| $ / shares	8.35
Ending balance, (in dollars per share) \| $ / shares	$ 7.39

Net Loss Per Share - Schedule of Antidilutive Securities Excluded from Computation of Net Loss Per Share (Details) - shares	3 Months Ended
	Mar. 31, 2025	Mar. 31, 2024
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of loss per share, amount (in shares)	17,265,416	16,302,940
Stock based compensation
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of loss per share, amount (in shares)	11,896,288	11,159,250
Tempus agreement
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of loss per share, amount (in shares)	5,369,128	5,143,690

Stock-Based Compensation (Tables)

3 Months Ended

Mar. 31, 2025

Share-Based Payment Arrangement [Abstract]

Schedule of Stock-Based Compensation Expense

The following table presents the classification of stock-based compensation expense for employees and non-employees within the Condensed Consolidated Statements of Operations:


	Three months ended March 31,
(in thousands)	2025		2024
Cost of revenue	$	2,950	$	766
Research and development	17,800		7,666
General and administrative	14,839		7,077
Total	$	35,589	$	15,509

Schedule of Stock Option Activity

Stock option activity during the three months ended March 31, 2025 was as follows:


(in thousands except share data and per share amounts)	Shares	Weighted-Average Exercise Price		Weighted-Average Remaining Contractual Life (in years)	Aggregate Intrinsic Value
Outstanding as of December 31, 2024	21,941,495	$	5.40	7.9	$	62,685
Granted	3,076,635	7.25
Cancelled	(1,254,312)	6.88
Exercised	(1,858,286)	2.13			11,824
Outstanding as of March 31, 2025	21,905,532	$	6.00	5.1	$	36,322
Exercisable as of March 31, 2025	10,774,836	$	5.65	5.0	$	24,960

Schedule of Weighted-Average Assumptions Used to Calculate Grant-Date Fair Value of Stock Options

The following weighted-average assumptions were used to calculate the grant-date fair value of stock options:


	Three months ended March 31,
	2025		2024
Expected term (in years)	6.0		6.3
Expected volatility	64	%	65	%
Expected dividend yield	—		—
Risk-free interest rate	4.4	%	4.2	%

Schedule of RSU Activity

The following table summarizes Recursion’s RSU activity during the three months ended March 31, 2025:


	Stock units	Weighted-average grant date fair value
Outstanding as of December 31, 2024	27,304,229	$	7.47
Granted	2,034,892	7.20
Vested	(2,229,677)	7.74
Forfeited	(935,152)	8.35
Outstanding as of March 31, 2025	26,174,292	$	7.39

Supplemental Financial Information - Schedule of Accrued Expenses and Other Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2025	Dec. 31, 2024
Supplemental Financial Information [Abstract]
Accrued compensation	$ 22,459	$ 50,853
Accrued development expenses	7,669	5,812
Accrued early discovery expenses	5,828	3,095
Accrued professional fees	2,856	787
Materials received not invoiced	1,628	1,590
Accrued license fees	5,158	3,000
Accrued other expenses	11,206	16,735
Accrued expenses and other liabilities	$ 56,804	$ 81,872

Acquisitions - Schedule of Fair Value of Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands	Mar. 31, 2025	Dec. 31, 2024	Nov. 30, 2024
Business Acquisition [Line Items]
Goodwill	$ 158,112	$ 148,873
Exscientia Plc
Business Acquisition [Line Items]
Cash and cash equivalents			$ 277,104
Other receivables			48,408
Other current assets			12,843
Property and equipment, net			61,961
Operating lease right-of-use assets			20,271
Intangible assets, technology			182,000
Intangible assets, indefinite-lived			129,000
Deferred tax assets			1,934
Other assets, non-current			930
Accounts payable and accrued liabilities			(40,780)
Lease liabilities			(21,679)
Deferred revenue			(120,905)
Deferred tax liability			(23,077)
Other liabilities			(1,572)
Total identifiable net assets			526,438
Goodwill			103,686
Total assets acquired and liabilities assumed			$ 630,124

Net Loss Per Share (Tables)

3 Months Ended

Mar. 31, 2025

Earnings Per Share [Abstract]

Schedule of Computation of Basic and Diluted Net Loss Per Share

The following tables set forth the computation of basic and diluted net loss per share of Class A, Class B and Exchangeable common stock:


	Three months ended March 31,
(in thousands, except share amounts)	2025		2024
Numerator:
Net loss	$	(202,487)	$	(91,373)
Denominator:
Weighted average common shares outstanding	402,771,972		236,019,349
Net loss per share, basic and diluted	$	(0.50)	$	(0.39)

Schedule of Antidilutive Securities Excluded from Computation of Net Loss Per Share

The Company excluded the following potential common shares from the computation of diluted net loss per share for the periods indicated because including them would have had an anti-dilutive effect:


	Three months ended March 31,
	2025	2024
Stock based compensation	11,896,288	11,159,250
Tempus agreement	5,369,128	5,143,690
Total	17,265,416	16,302,940

Condensed Consolidated Balance Sheets (unaudited) (Parenthetical) - $ / shares	Mar. 31, 2025	Dec. 31, 2024
Common stock, par value (in dollars per share)	$ 0.00001	$ 0.00001
Common stock, shares authorized (in shares)	2,000,000,000	2,000,000,000
Common stock, shares issued (in shares)	406,410,733	396,802,394
Common sock, shares outstanding (in shares)	406,410,733	396,802,394
Class A Common Stock
Common stock, shares authorized (in shares)	1,989,032,117	1,989,032,117
Common stock, shares issued (in shares)	399,150,820	389,547,223
Common sock, shares outstanding (in shares)	399,150,820	389,547,223
Class B Common Stock
Common stock, shares authorized (in shares)	10,967,883	10,967,883
Common stock, shares issued (in shares)	6,838,575	6,958,575
Common sock, shares outstanding (in shares)	6,838,575	6,958,575
Exchangeable Stock
Common stock, shares issued (in shares)	421,338	296,596
Common sock, shares outstanding (in shares)	421,338	296,596

Stock-Based Compensation - Narrative (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended
	Mar. 31, 2025	Mar. 31, 2024
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options granted in period, weighted average grant date fair value (in dollars per share)	$ 4.59	$ 6.41
Unvested stock options, unamortized stock-based compensation cost	$ 52.0
Unvested stock options, unamortized stock-based compensation cost, weighted average period recognition	2 years
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock options, vesting period	4 years
Stock options, expiration period	10 years
RSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock options, vesting period	4 years
Unvested stock options, unamortized stock-based compensation cost, weighted average period recognition	3 years
Fair market value of vested shares	$ 22.6
Unrecognized compensation cost	$ 179.4
2021 Equity Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares available for grant (in shares)	22.3
2024 Inducement Equity Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares available for grant (in shares)	9.7

Leases

3 Months Ended

Mar. 31, 2025

Leases [Abstract]

Leases

The Company has entered into various long-term real estate operating leases primarily related to office, research and development and operating activities and an equipment financing lease related to the supercomputer. The Company’s leases have remaining terms from under one year to eight years and some of those leases include options that provide Recursion with the ability to extend the lease term, generally for five years. The options are included in the lease term when it is reasonably certain that the option will be exercised.

For the three months ended March 31, 2025, Recursion entered into lease modifications and termination resulting in a decrease to the right-of-use asset and lease liability of $10.1 million. This impact included the lease surrender of the Vienna facilities of Exscientia GmbH in March, which resulted in a $5.2 million reduction to both the right-of-use asset and lease liability. In connection with this surrender, the Company also incurred a lease termination fee of $5.2 million, which was classified as “Other income (loss), net” on the Condensed Consolidated Statement of Operations. Additionally, the Company entered into a lease modification related to the Schrodinger leases to decrease the lease terms, which now ends during the second quarter of 2025. This resulted in a decrease to both the right-of-use asset and lease liability by $4.9 million. As a part of the lease modifications and termination, Recursion recorded leasehold impairments of $6.0 million.

For the three months ended March 31, 2024 Recursion entered into lease modifications resulting in a decrease to the right-of-use asset and lease liability of $3.1 million. The modifications had no impact to the Condensed Consolidated Statements of Operations.

Supplemental cash flow information related to leases were:


	Three months ended March 31,
(in thousands)	2025		2024
Cash paid for amount included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	5,265	$	3,955
Operating cash flows from financing leases	495		—
Financing cash flows from financing leases	2,019		—

Right-of-use assets modifications and termination:
Operating leases	$	(10,084)	$	(3,115)
Financing leases	—		—

Leases

Supplemental cash flow information related to leases were:


	Three months ended March 31,
(in thousands)	2025		2024
Cash paid for amount included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	5,265	$	3,955
Operating cash flows from financing leases	495		—
Financing cash flows from financing leases	2,019		—

Right-of-use assets modifications and termination:
Operating leases	$	(10,084)	$	(3,115)
Financing leases	—		—

Commitments and Contingencies (Details) - USD ($)	Mar. 31, 2025	Dec. 31, 2024
Commitments and Contingencies Disclosure [Abstract]
Loss contingency accrual	$ 0	$ 0
Finance leases, assets pledged as collateral	22,600,000
Finance lease liability	$ 24,600,000

Common Stock - Class A and B Common Shares Authorization (Narrative) (Details)	Mar. 31, 2025 vote	May 31, 2023	Apr. 30, 2021 class
Class of Stock [Line Items]
Number of classes of common stock authorized \| class			2
CEO and Affiliates
Class of Stock [Line Items]
Affiliated holders, ownership percentage	0.15
Affiliated holders, potential ownership percentage when outstanding equity awards vest	0.15
Class A Common Stock
Class of Stock [Line Items]
Vote per share of common stock (in votes)	1
Common stock, conversion ratio	1	1
Class B
Class of Stock [Line Items]
Vote per share of common stock (in votes)	10

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

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+ Details

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended
Pay vs Performance Disclosure - USD ($) $ in Thousands	Mar. 31, 2025	Mar. 31, 2024
Pay vs Performance Disclosure
Net loss	$ (202,487)	$ (91,373)

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

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Reference 29: http://www.xbrl.org/2003/role/disclosureRef
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-Paragraph 1
-Subparagraph (SX 210.9-04(22))
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+ Details

Segment Information - Schedule of Revenue and Long-Lived Assets Based on Geographic Areas (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2025	Mar. 31, 2024	Dec. 31, 2024
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	$ 14,745	$ 13,794
United States
Revenues from External Customers and Long-Lived Assets [Line Items]
Long-lived assets	74,473		$ 78,471
United Kingdom
Revenues from External Customers and Long-Lived Assets [Line Items]
Long-lived assets	49,682		56,332
Canada
Revenues from External Customers and Long-Lived Assets [Line Items]
Long-lived assets	2,679		2,631
Other
Revenues from External Customers and Long-Lived Assets [Line Items]
Long-lived assets	0		$ 3,629
Operating revenue
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	14,818	13,491
Operating revenue \| United States
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	9,482	13,491
Operating revenue \| United Kingdom
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	$ 5,336	$ 0

- Definition

Amount, excluding tax collected from customer, of revenue from satisfaction of performance obligation by transferring promised good or service to customer. Tax collected from customer is tax assessed by governmental authority that is both imposed on and concurrent with specific revenue-producing transaction, including, but not limited to, sales, use, value added and excise.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
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-Section 50
-Paragraph 41
-Subparagraph (a)
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Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
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Reference 13: http://www.xbrl.org/2003/role/disclosureRef
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-Section 50
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-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479806/606-10-50-4

+ Details

Condensed Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2025	Mar. 31, 2024
Statement of Comprehensive Income [Abstract]
Net loss	$ (202,487)	$ (91,373)
Other comprehensive gain:
Currency translation adjustments	21,782	0
Other comprehensive income	21,782	0
Comprehensive loss	$ (180,705)	$ (91,373)

- Definition

Amount after tax of increase (decrease) in equity from transactions and other events and circumstances from net income and other comprehensive income, attributable to parent entity. Excludes changes in equity resulting from investments by owners and distributions to owners.

+ References + Details

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References

+ Details

Leases - Narrative (Details) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended
Leases - Narrative (Details) - USD ($) $ in Thousands	Mar. 31, 2025	Mar. 31, 2025	Mar. 31, 2024
Lessee, Lease, Description [Line Items]
Operating lease, renewal term	5 years	5 years
Increase (decrease) in operating lease right-of-use assets		$ (10,084)	$ (3,115)
Increase (decrease) in operating lease liabilities		(10,100)	$ (3,100)
Termination of lease fee	$ 5,200
Vienna facilities of Exscientia GmbH
Lessee, Lease, Description [Line Items]
Increase (decrease) in operating lease right-of-use assets	(5,200)
Increase (decrease) in operating lease liabilities	$ (5,200)
Schrodinger Leases
Lessee, Lease, Description [Line Items]
Increase (decrease) in operating lease right-of-use assets		(4,900)
Increase (decrease) in operating lease liabilities		(4,900)
Impairment of leasehold improvements		$ 6,000
Minimum
Lessee, Lease, Description [Line Items]
Remaining operating lease term	1 year	1 year
Maximum
Lessee, Lease, Description [Line Items]
Remaining operating lease term	8 years	8 years

Basis of Presentation (Policies)	3 Months Ended
Basis of Presentation (Policies)	Mar. 31, 2025
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The unaudited interim condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (SEC). Accordingly, certain information and footnote disclosures normally included in annual financial statements prepared in accordance with generally accepted accounting principles in the United States (U.S. GAAP) have been condensed or omitted. These unaudited interim condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and notes for the year ended December 31, 2024. It is management’s opinion that these condensed consolidated financial statements include all normal and recurring adjustments necessary for a fair statement of the financial position, results of operations and cash flows for the periods presented. Revenue and net loss for any interim period are not necessarily indicative of future or annual results.
Recent Accounting Pronouncements	Recent Accounting Pronouncements Recent Accounting Pronouncements Not Yet Adopted In November 2024, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2024-03, Disaggregation of Income Statement Expenses (Topic 220). The standard requires new disclosures in the notes to the financial statements about certain caption expenses presented on the face of the Income Statement including information on: purchases of inventory; employee compensation; depreciation and intangible asset amortization. Recursion must also disclose a qualitative description of the amounts remaining in expense captions that are not separately disaggregated. This standard will be effective for Recursion starting the annual period ending December 31, 2027 and for interim reporting periods within annual reporting periods beginning after December 15, 2027. Early adoption is permitted. The amendments can be applied on a prospective or retrospective basis. Recursion is currently assessing the impact of adopting this guidance on its consolidated financial statements. In December 2023, the FASB issued ASU No. 2023-9, Income Taxes (Topic 740). The new standard updates disclosure requirements for Accounting Standards Codification (ASC) 740 primarily by requiring additional information in the income tax rate reconciliation and additional disclosures about income taxes paid. This standard will be effective for Recursion starting the annual period ending December 31, 2025. The amendments can be applied on a prospective or retrospective basis. Recursion is currently assessing the impact of adopting this guidance on its consolidated financial statements.

Income Taxes (Details) - USD ($)	3 Months Ended
Income Taxes (Details) - USD ($)	Mar. 31, 2025	Mar. 31, 2024
Income Tax Disclosure [Abstract]
U.S. income tax expense	$ 0	$ 0

Stock-Based Compensation - Schedule of Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2025	Mar. 31, 2024
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Share-based payment arrangement, expense	$ 35,589	$ 15,509
Cost of revenue
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Share-based payment arrangement, expense	2,950	766
Research and development
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Share-based payment arrangement, expense	17,800	7,666
General and administrative
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Share-based payment arrangement, expense	$ 14,839	$ 7,077

Supplemental Financial Information

3 Months Ended

Mar. 31, 2025

Supplemental Financial Information [Abstract]

Supplemental Financial Information

Tempus agreement

In November 2023, Recursion entered into a five-year agreement (the Tempus Agreement) with Tempus Labs, Inc. (“Tempus”) to purchase access to their records of patient-centric multimodal oncology data and use rights for therapeutic development purposes. This data will be used to improve the training of Recursion’s artificial intelligence and machine learning models and is expected to accelerate Recursion’s drug discovery process. Recursion is making annual payments, ranging between $22.0 million and $42.0 million, up to $160.0 million in aggregate, to Tempus in cash or equity at the Company’s option. The equity value is determined by using the seven-trading day period dollar volume-weighted average price (VWAP) for Recursion Class A common stock ending on the day immediately preceding the date that is five business days prior to the payment date.

Recursion is expensing the record purchases based on a contractually agreed price as “Research and Development” expenses in the Condensed Consolidated Statements of Operations as the records are downloaded. To the extent that the Recursion payments to Tempus are greater than or less than the records purchased amount, Recursion records the applicable amount to “Other Current Assets” or “Accrued Expenses and Other Liabilities” on the Condensed Consolidated Balance Sheet, respectively. The balance decreased from December 31, 2024 by $27.1 million due to records purchased by the Company. The purchase was recorded in “Research and Development” in the Condensed Consolidated Statement of Operations.

Accrued Expenses and Other Liabilities


	March 31,		December 31,
(in thousands)	2025		2024
Accrued compensation	$	22,459	$	50,853
Accrued development expenses	7,669		5,812
Accrued early discovery expenses	5,828		3,095
Accrued professional fees	2,856		787

Materials received not invoiced	1,628		1,590
Accrued license fees	5,158		3,000
Accrued other expenses	11,206		16,735
Accrued expense and other liabilities	$	56,804	$	81,872

Interest Income, Net


	Three months ended March 31,
(in thousands)	2025		2024
Interest income	$	5,558	$	4,048
Interest expense	(508)		(20)
Interest income, net	$	5,050	$	4,028

For the three months ended March 31, 2025 and 2024, interest income primarily related to earnings on cash and cash equivalents in money market funds. Interest expense primarily related to the Company’s supercomputer financing lease. Interest income, net was included in “Other income (loss), net” on the Condensed Consolidated Statements of Operations.

Leases (Tables)

3 Months Ended

Mar. 31, 2025

Leases [Abstract]

Schedule of Components of Lease Cost and Supplemental Cash Flow Information Related to Leases and Lease Term and Discount Rates

Supplemental cash flow information related to leases were:


	Three months ended March 31,
(in thousands)	2025		2024
Cash paid for amount included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	5,265	$	3,955
Operating cash flows from financing leases	495		—
Financing cash flows from financing leases	2,019		—

Right-of-use assets modifications and termination:
Operating leases	$	(10,084)	$	(3,115)
Financing leases	—		—

Supplemental Financial Information (Tables)

3 Months Ended

Mar. 31, 2025

Supplemental Financial Information [Abstract]

Schedule of Accrued Expenses and Other Liabilities

Accrued Expenses and Other Liabilities


	March 31,		December 31,
(in thousands)	2025		2024
Accrued compensation	$	22,459	$	50,853
Accrued development expenses	7,669		5,812
Accrued early discovery expenses	5,828		3,095
Accrued professional fees	2,856		787

Materials received not invoiced	1,628		1,590
Accrued license fees	5,158		3,000
Accrued other expenses	11,206		16,735
Accrued expense and other liabilities	$	56,804	$	81,872

Schedule of Interest Income, Net

Interest Income, Net


	Three months ended March 31,
(in thousands)	2025		2024
Interest income	$	5,558	$	4,048
Interest expense	(508)		(20)
Interest income, net	$	5,050	$	4,028

Goodwill and Intangible Assets

3 Months Ended

Mar. 31, 2025

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets

Goodwill

The following table summarizes the changes in the carrying amount of goodwill:


(in thousands)
Balance as of December 31, 2024	$	148,873
Additions	5,947
Foreign currency translation adjustments	3,292
Balance as of March 31, 2025	$	158,112

No goodwill impairment was recorded during the three months ended March 31, 2025 and 2024.

Intangible Assets, Net

The following table summarizes intangible assets:


	March 31, 2025						December 31, 2024
(in thousands)	Gross carrying amount		Accumulated Amortization		Net carrying amount		Gross carrying amount		Accumulated Amortization		Net carrying amount
Definite-lived technology intangible assets	$	230,115	$	(35,647)	$	194,468	$	224,362	$	(24,544)	$	199,818
Definite-lived licensed intangible assets	11,508		(2,925)		8,583		9,350		(2,088)		7,262
Indefinite-lived intangible assets	132,739		—		132,739		128,775		—		128,775
Total intangible assets	$	374,362	$	(38,572)	$	335,790	$	362,487	$	(26,632)	$	335,855

Amortization expense was $11.7 million and $3.4 million during the three months ended March 31, 2025 and 2024 respectively. Amortization expense was included in “Research and Development” and “Cost of Revenue” in the Condensed Consolidated Statements of Operations. No indefinite-lived intangible asset impairment charges were recorded during the three months ended March 31, 2025 and 2024.

Acquisitions - Schedule of Pro Forma Financial Information (Details) - Exscientia Plc $ in Thousands	3 Months Ended
	Mar. 31, 2024 USD ($)
Business Acquisition [Line Items]
Revenue	$ 22,044
Operating loss	$ (126,145)

Common Stock - Registration Rights Agreements (Narrative) (Details) - USD ($)	1 Months Ended
	May 31, 2023	Mar. 31, 2025	Aug. 31, 2023	Oct. 31, 2022
Class of Stock [Line Items]
Percent of aggregate purchase price paid by the holder due if agreement is broken				1.00%
Registration rights agreement, accrued liability		$ 0
Valence Discovery Inc
Class of Stock [Line Items]
Registration rights agreement term	3 years
NVDIA Private Placement
Class of Stock [Line Items]
Percent of aggregate purchase price paid by the holder due if agreement is broken			1.00%
Registration rights agreement, accrued liability		$ 0
NVDIA Private Placement \| Maximum
Class of Stock [Line Items]
Percent of aggregate purchase price paid by the holder due if agreement is broken			5.00%

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

+ Details

Condensed Consolidated Statements of Stockholders’ Equity (unaudited) - USD ($) $ in Thousands	Total	Common Stock (Class A, B and Exchangeable)	Additional Paid-in-Capital	Accumulated Deficit	Accumulated other comprehensive income (loss)
Beginning balance (in shares) at Dec. 31, 2023		234,270,384
Beginning balance at Dec. 31, 2023	$ 463,436	$ 2	$ 1,431,056	$ (967,622)	$ 0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(91,373)
Other comprehensive income	0
Stock option exercises and other (in shares)		2,317,083
Stock option exercises and other	2,088		2,088
Stock-based compensation	16,127		16,127
Common stock sales issuances, net of issuance costs (in shares)		921,215
Common stock sales issuances, net of issuance costs	10,873		10,873
Ending balance (in shares) at Mar. 31, 2024		237,508,682
Ending balance at Mar. 31, 2024	$ 401,151	$ 2	1,460,144	(1,058,995)	0
Beginning balance (in shares) at Dec. 31, 2024	396,802,394	396,802,394
Beginning balance at Dec. 31, 2024	$ 1,034,782	$ 4	2,473,698	(1,431,283)	(7,637)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(202,487)			(202,487)
Other comprehensive income	$ 21,782				21,782
Stock option exercises and other (in shares)	1,858,286	4,108,659
Stock option exercises and other	$ 2,788		2,712	76
Stock-based compensation	36,058		36,058
Common stock sales issuances, net of issuance costs (in shares)		5,499,680
Common stock sales issuances, net of issuance costs	$ 41,024		41,024
Ending balance (in shares) at Mar. 31, 2025	406,410,733	406,410,733
Ending balance at Mar. 31, 2025	$ 933,947	$ 4	$ 2,553,492	$ (1,633,694)	$ 14,145

Income Taxes	3 Months Ended
Income Taxes	Mar. 31, 2025
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes The Company did not record any U.S. income tax expense during the three months ended March 31, 2025 and 2024. The Company has historically incurred operating losses and maintains a full valuation allowance against its U.S. net deferred tax assets. Foreign taxes were insignificant during the three months ended March 31, 2025 and 2024. Net operating losses (NOLs) and tax credit carry-forwards are subject to review and possible adjustment by the Internal Revenue Service (“IRS”) and may become subject to annual limitation due to ownership changes that occur under Section 382 of the Internal Revenue Code, as amended and similar state provisions. These ownership changes may limit the amount of carryforwards that can be utilized annually to offset future taxable income. In general, an ownership change, as defined by Section 382, results from transactions increasing the ownership of certain shareholders or public groups in the stock of a corporation by more than 50% over a three-year period. As of December 31, 2024, the Company completed a Section 382 study and did not identify ownership changes that would subject its NOLs or tax credit carry-forwards to Section 382 limitations. The Company files income tax returns in the United States, Canada and United Kingdom. The Company files state income tax returns in multiple states in the United States among others Utah, California and Massachusetts. The Company is not currently under examination in any of these jurisdictions. The Company is subject to income tax examinations on all US federal and state returns since the 2017 tax return, Canadian income tax returns from the 2021 tax year, and UK income tax returns from the 2020 year.

- Definition

The entire disclosure for income tax.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482685/740-10-50-12

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-Topic 740
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-Name Accounting Standards Codification
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-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482685/740-10-50-14

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
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-Section 50
-Paragraph 21
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482685/740-10-50-21

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
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-Section 50
-Paragraph 17
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482685/740-10-50-17

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
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-Paragraph 2
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Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
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-Section 50
-Paragraph 2
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-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482603/740-30-50-2

+ Details

Condensed Consolidated Balance Sheets (unaudited) - USD ($) $ in Thousands	Mar. 31, 2025	Dec. 31, 2024
Current assets
Cash and cash equivalents	$ 500,453	$ 594,350
Restricted cash	3,075	3,045
Other receivables	46,124	49,166
Prepaid data assets	2,470	29,601
Other current assets	32,023	38,107
Total current assets	584,145	714,269
Restricted cash, non-current	5,629	5,629
Property and equipment, net	126,834	141,063
Operating lease right-of-use assets	53,186	65,877
Financing lease right-of-use assets	24,757	26,273
Intangible assets, net	335,790	335,855
Goodwill	158,112	148,873
Deferred tax assets	2,003	1,934
Other assets, non-current	14,778	8,825
Total assets	1,305,234	1,448,598
Current liabilities
Accounts payable	25,086	21,613
Accrued expenses and other liabilities	56,804	81,872
Unearned revenue	39,651	61,767
Operating lease liabilities	11,853	13,795
Notes payable and financing lease liabilities	8,587	8,425
Total current liabilities	141,981	187,472
Unearned revenue, non-current	129,609	118,765
Operating lease liabilities, non-current	56,024	67,250
Notes payable and financing lease liabilities, non-current	16,446	19,022
Deferred tax liabilities	22,437	16,575
Other liabilities, non-current	4,790	4,732
Total liabilities	371,287	413,816
Commitments and contingencies (Note 7)
Stockholders’ equity
Common stock, $0.00001 par value; 2,000,000,000 shares (Class A 1,989,032,117 and Class B 10,967,883) authorized as of March 31, 2025 and December 31, 2024; 406,410,733 shares (Class A 399,150,820, Class B 6,838,575 and Exchangeable 421,338) and 396,802,394 shares (Class A 389,547,223, Class B 6,958,575 and Exchangeable 296,596) issued and outstanding as of March 31, 2025 and December 31, 2024, respectively	4	4
Additional paid-in capital	2,553,492	2,473,698
Accumulated deficit	(1,633,694)	(1,431,283)
Accumulated other comprehensive income (loss)	14,145	(7,637)
Total stockholders’ equity	933,947	1,034,782
Total liabilities and stockholders’ equity	$ 1,305,234	$ 1,448,598

Segment Information (Tables)

3 Months Ended

Mar. 31, 2025

Segment Reporting [Abstract]

Schedule of Segment Net Loss and Reconciliations of Segment Operating Loss to Loss Before Income Tax Benefit

The following table presents Recursion’s segment net loss:


	Three months ended March 31,
(In thousands)	2025		2024
Revenue	$	14,745	$	13,794

Significant segment expenses
Salaries	83,554		50,358
Consumables	54,677		15,741
Platform	8,765		1,883
Discovery	6,287		7,809
Clinical development	10,564		12,568
Depreciation and amortization	19,331		7,377
Other segment items	22,935		14,398
Loss from operations	191,368		96,340
Other non-operating income (loss), net	(11,277)		4,188
Income tax benefit	158		779
Total segment loss	$	202,487	$	91,373

Supplemental asset information
Total expenditures for additions to long-lived assets	$	2,978	$	6,733

Schedule of Long-Lived Assets Based on Geographic Areas

Recursion’s operating revenues are attributed to the following geographic areas based on the location the services are performed:


	Three months ended March 31,
(In thousands)	2025		2024
United States	$	9,482	$	13,491
United Kingdom	5,336		—
Total	$	14,818	$	13,491

Recursion’s long-lived assets are attributed to the following geographic areas based on their location:


(In thousands)	March 31, 2025		December 31, 2024
United States	$	74,473	$	78,471
United Kingdom	49,682		56,332
Canada	2,679		2,631
Other	—		3,629

Common Stock - At-The-Market Offering (Narrative) (Details) - Class A Common Stock - USD ($) shares in Millions, $ in Millions	1 Months Ended			3 Months Ended	20 Months Ended
	Feb. 28, 2025	Jan. 31, 2025	Aug. 31, 2023	Mar. 31, 2025	Mar. 31, 2025
At-The-Market Offering Program Jefferies
Class of Stock [Line Items]
Sale of stock, value authorized			$ 300.0
Number of shares issued (in shares)		4.9			26.8
Net proceeds received		$ 36.9			$ 199.1
Sale of stock, percentage of commission		3.00%
At-The-Market Offering Program Citi
Class of Stock [Line Items]
Sale of stock, value authorized	$ 500.0
Sale of stock, value remaining authorized				$ 495.9	$ 495.9
Number of shares issued (in shares)				0.6
Net proceeds received				$ 4.1
Sale of stock, percentage of commission				3.00%

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

+ Details

Condensed Consolidated Statements of Cash Flows (unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2025	Mar. 31, 2024
Cash flows from operating activities
Net loss	$ (202,487)	$ (91,373)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	19,331	7,377
Stock-based compensation	36,058	16,127
Asset impairment	5,956	108
Lease expense	6,130	2,472
Loss on disposal of a business	4,502	0
Other, net	4,405	(560)
Changes in operating assets and liabilities:
Other receivables and assets	4,839	(1,040)
Prepaid data assets	27,131	0
Unearned revenue	(9,762)	(13,655)
Accounts payable	3,692	1,168
Accrued development expense	599	(273)
Accrued expenses and other current liabilities	(26,591)	(18,857)
Lease liabilities	(5,760)	(3,794)
Net cash used in operating activities	(131,957)	(102,300)
Cash flows from investing activities
Purchases of property and equipment	(1,832)	(6,653)
Decrease in cash related to disposal of a business	(4,438)	0
Purchases of investments	(1,000)	0
Net cash used in investing activities	(7,270)	(6,653)
Cash flows from financing activities
Proceeds from issuance of common shares, net of issuance costs	41,024	10,873
Proceeds from equity incentive plans	1,550	3,050
Repayment of long-term debt and finance lease liabilities	(2,047)	(26)
Net cash provided by financing activities	40,527	13,897
Effect of exchange rate changes on cash, cash equivalents and restricted cash	4,833	(219)
Net change in cash, cash equivalents and restricted cash	(93,867)	(95,275)
Cash, cash equivalents and restricted cash, beginning of period	603,024	401,425
Cash, cash equivalents and restricted cash, end of period	509,157	306,150
Supplemental schedule of non-cash investing and financing activities
Accrued property and equipment	1,146	80
Purchase of an equity investment	$ 4,438	$ 0

Common Stock - Valence Acquisition Exchangeable Shares (Narrative) (Details) shares in Millions	1 Months Ended	3 Months Ended
	May 31, 2023 shares	Mar. 31, 2025 shares
Exchangeable Stock
Class of Stock [Line Items]
Shares issued in the period, upon conversion (in shares)		4.9
Class A Common Stock
Class of Stock [Line Items]
Common stock, conversion ratio	1	1
Valence Discovery Inc \| Exchangeable Stock
Class of Stock [Line Items]
Equity interest issued or issuable (in shares)	5.9

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

+ Details

Acquisitions - Narrative (Details) $ / shares in Units, $ in Thousands	1 Months Ended		3 Months Ended
	Mar. 31, 2025 USD ($)	Nov. 30, 2024 USD ($) inProcessResearchAndDevelopmentAsset shares	Mar. 31, 2025 USD ($)	Mar. 31, 2024 USD ($)	Nov. 20, 2024 $ / shares
Business Acquisition [Line Items]
Share price (in dollars per share) \| $ / shares					$ 6.04
Goodwill additions			$ 5,947
Loss on disposal of a business			$ 4,502	$ 0
Alpha Biotechnology GmbH (Alpha)
Business Acquisition [Line Items]
Equity method investment ownership percentage	49.00%		49.00%
Equity method investments	$ 4,400		$ 4,400
Disposal Group, Disposed of by Sale, Not Discontinued Operations \| Exscientia GmbH
Business Acquisition [Line Items]
Loss on disposal of a business	$ 4,500
Exscientia Plc
Business Acquisition [Line Items]
Consideration transferred		$ 630,100
Consideration transferred for shares		616,900
Fair value of stock and equity awards		$ 13,200
Equity interest issued or issuable (in shares) \| shares		102,100,000
Increase deferred tax liabilities			6,000
Goodwill additions			6,000
Number of in-process research and development assets \| inProcessResearchAndDevelopmentAsset		4
Discount rate (as a percent)		10.50%
Net revenues			5,300
Operating loss			$ 36,800
Exscientia Plc \| Technology Intangible Assets
Business Acquisition [Line Items]
Useful life (in years)		6 years
Exscientia Plc \| Class A Common Stock
Business Acquisition [Line Items]
Shares of acquirer stock per share of acquiree stock outstanding (in shares) \| shares		0.7729

Goodwill and Intangible Assets (Tables)

3 Months Ended

Mar. 31, 2025

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Goodwill

The following table summarizes the changes in the carrying amount of goodwill:


(in thousands)
Balance as of December 31, 2024	$	148,873
Additions	5,947
Foreign currency translation adjustments	3,292
Balance as of March 31, 2025	$	158,112

Schedule of Finite-Lived Intangible Assets

The following table summarizes intangible assets:


	March 31, 2025						December 31, 2024
(in thousands)	Gross carrying amount		Accumulated Amortization		Net carrying amount		Gross carrying amount		Accumulated Amortization		Net carrying amount
Definite-lived technology intangible assets	$	230,115	$	(35,647)	$	194,468	$	224,362	$	(24,544)	$	199,818
Definite-lived licensed intangible assets	11,508		(2,925)		8,583		9,350		(2,088)		7,262
Indefinite-lived intangible assets	132,739		—		132,739		128,775		—		128,775
Total intangible assets	$	374,362	$	(38,572)	$	335,790	$	362,487	$	(26,632)	$	335,855

Schedule of Indefinite-Lived Intangible Assets

The following table summarizes intangible assets:


	March 31, 2025						December 31, 2024
(in thousands)	Gross carrying amount		Accumulated Amortization		Net carrying amount		Gross carrying amount		Accumulated Amortization		Net carrying amount
Definite-lived technology intangible assets	$	230,115	$	(35,647)	$	194,468	$	224,362	$	(24,544)	$	199,818
Definite-lived licensed intangible assets	11,508		(2,925)		8,583		9,350		(2,088)		7,262
Indefinite-lived intangible assets	132,739		—		132,739		128,775		—		128,775
Total intangible assets	$	374,362	$	(38,572)	$	335,790	$	362,487	$	(26,632)	$	335,855

- Definition

Tabular disclosure of goodwill by reportable segment and in total which includes a rollforward schedule.

+ References

Reference 1: http://www.xbrl.org/2003/role/exampleRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 55
-Paragraph 24
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482548/350-20-55-24

Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482573/350-20-50-1

Reference 3: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
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-Paragraph 1
-Subparagraph (h)
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-URI https://asc.fasb.org/1943274/2147482573/350-20-50-1

Reference 4: http://www.xbrl.org/2009/role/commonPracticeRef
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-Name Accounting Standards Codification
-Section 50
-Paragraph 1
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-URI https://asc.fasb.org/1943274/2147482573/350-20-50-1

Reference 5: http://www.xbrl.org/2009/role/commonPracticeRef
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-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482573/350-20-50-1

Reference 6: http://www.xbrl.org/2009/role/commonPracticeRef
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-Section 50
-Paragraph 1
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-URI https://asc.fasb.org/1943274/2147482573/350-20-50-1

Reference 7: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
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Reference 8: http://www.xbrl.org/2009/role/commonPracticeRef
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Reference 9: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
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Reference 10: http://www.xbrl.org/2009/role/commonPracticeRef
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-URI https://asc.fasb.org/1943274/2147482573/350-20-50-1

Reference 11: http://www.xbrl.org/2009/role/commonPracticeRef
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-Name Accounting Standards Codification
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-URI https://asc.fasb.org/1943274/2147482573/350-20-50-1A

Reference 12: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482573/350-20-50-2

+ Details

Stock-Based Compensation

3 Months Ended

Mar. 31, 2025

Share-Based Payment Arrangement [Abstract]

Stock-Based Compensation

In April 2021, the Board of Directors and the stockholders of the Company adopted the 2021 Equity Incentive Plan (the 2021 Plan). The Company may grant stock options, restricted stock units (RSUs), stock appreciation rights, restricted stock awards and other forms of stock-based compensation. As of March 31, 2025, 22.3 million shares of Class A common stock were available for grant in the 2021 plan. In November 2024, the Board of Directors and the stockholders of the Company adopted the 2024 Inducement Equity Incentive Plan (the 2024 Plan) as part of the Exscientia acquisition. See Note 4, “Acquisitions” for additional information. As of March 31, 2025, 9.7 million shares of Class A common stock were available for grant in the 2024 plan.

The following table presents the classification of stock-based compensation expense for employees and non-employees within the Condensed Consolidated Statements of Operations:


	Three months ended March 31,
(in thousands)	2025		2024
Cost of revenue	$	2,950	$	766
Research and development	17,800		7,666
General and administrative	14,839		7,077
Total	$	35,589	$	15,509

Stock Options

Stock options are primarily granted to executive leaders at the Company, generally vest over four years and expire no later than 10 years from the date of grant.

Stock option activity during the three months ended March 31, 2025 was as follows:


(in thousands except share data and per share amounts)	Shares	Weighted-Average Exercise Price		Weighted-Average Remaining Contractual Life (in years)	Aggregate Intrinsic Value
Outstanding as of December 31, 2024	21,941,495	$	5.40	7.9	$	62,685
Granted	3,076,635	7.25
Cancelled	(1,254,312)	6.88
Exercised	(1,858,286)	2.13			11,824
Outstanding as of March 31, 2025	21,905,532	$	6.00	5.1	$	36,322
Exercisable as of March 31, 2025	10,774,836	$	5.65	5.0	$	24,960

The fair value of options granted to employees is calculated on the grant date using the Black-Scholes option valuation model. The weighted-average grant-date fair values of stock options granted during the three months ended March 31, 2025 and 2024 were $4.59 and $6.41, respectively.

The following weighted-average assumptions were used to calculate the grant-date fair value of stock options:


	Three months ended March 31,
	2025		2024
Expected term (in years)	6.0		6.3
Expected volatility	64	%	65	%
Expected dividend yield	—		—
Risk-free interest rate	4.4	%	4.2	%

As of March 31, 2025, $52.0 million of unrecognized compensation cost related to stock options is expected to be recognized as expense over approximately the next two years.

RSUs

Equity awards granted to employees primarily consist of RSUs and generally vest over four years. The weighted-average grant-date fair value of RSUs generally is determined based on the number of units granted and the quoted price of Recursion’s common stock on the date of grant.

The following table summarizes Recursion’s RSU activity during the three months ended March 31, 2025:


	Stock units	Weighted-average grant date fair value
Outstanding as of December 31, 2024	27,304,229	$	7.47
Granted	2,034,892	7.20
Vested	(2,229,677)	7.74
Forfeited	(935,152)	8.35
Outstanding as of March 31, 2025	26,174,292	$	7.39

The fair market value of RSUs vested was $22.6 million during the three months ended March 31, 2025. As of March 31, 2025, $179.4 million of unrecognized compensation cost related to RSUs is expected to be recognized as expense over approximately the next three years.

Collaborative Development Contracts	3 Months Ended
Collaborative Development Contracts	Mar. 31, 2025
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Collaborative Development Contracts	Collaborative Development Contracts Sanofi Description In January 2022, the Company and Sanofi entered into a collaboration agreement to develop an AI-driven pipeline of precision-engineered medicines. The research is focused on up to 15 novel small molecule candidates across oncology and immunology and utilizes the Company’s AI platform. The Company is leading small molecule drug design and lead optimization activities with Sanofi assuming responsibility for preclinical and clinical development, manufacturing and commercialization. Pricing The Company received a $100.0 million non-refundable upfront payment. The Company has also received multiple milestone payments related to this agreement of approximately $23.0 million. These related to the advancement of several of the discovery programs within the collaboration and the addition of an existing Company program into the collaboration. Recursion is eligible for additional milestone payments based on performance progress of the collaboration and tiered royalties ranging from high-single-digits to mid-teens. Recursion could earn a maximum of $555.0 million from all research milestones and $1.8 billion from all development and regulatory milestones. Accounting In November 2024, Recursion acquired Exscientia as part of an acquisition. See Note 4, “Acquisitions” for additional information. As such, the initial Recursion accounting analysis for this transaction was done as of the business combination date as if Recursion had originated the contract. This agreement represents a transaction with a customer and therefore is accounted for in accordance with ASC 606. Recursion has determined that it has at least eight performance obligations related to the small molecule projects. These performance obligations are for performing research and development services for Sanofi to design small molecules and perform lead optimization activities. The performance obligations also include potential licenses related to the intellectual property. The Company concluded that licenses within the contract are not distinct from the research and development services as they are interrelated due to the fact that the research and development services significantly impact the potential licenses. Any additional services are considered customer options and will be considered as separate contracts for accounting purposes. The Company has determined the transaction price to be $141.1 million, for the initial performance obligations, comprised of the upfront payment, several milestones that have been achieved and estimated additional target exercises. Recursion will fully constrain the amounts of remaining variable consideration to be received from potential milestones considering the stage of development and the risks associated with the remaining development required to achieve each milestone. Recursion will re-evaluate the transaction price each reporting period. The transaction price was generally allocated to the performance obligations based on the estimated relative stand-alone selling price of each performance obligation as determined using an expected cost plus margin approach. The milestone fees were allocated to related performance obligation as the terms of the variable consideration related specifically to Recursion’s efforts to satisfy the related performance obligation. The Company recognizes revenue over time based on costs incurred relative to total expected costs to perform the research and development services. Recursion determined that this method provides a faithful depiction of the transfer of control to the customer. This method of recognizing revenue requires the Company to make estimates of total costs to provide the services required under the performance obligations. Significant inputs used to determine the total costs included the number of projects to be performed, the number of substitutions related to those projects, length of time required, service hours performed by Company employees and materials costs. A significant change in these estimates could have a material effect on the timing and amount of revenue recognized in future periods. Recursion is unable to estimate the completion date of the performance obligations due to the current stage of work. Merck KGaA (Merck) Description In September 2023, the Company and Merck entered into a collaboration agreement to discover novel small molecule drug candidates across oncology, neuroinflammation and immunology. The collaboration utilizes the Company’s AI platform and the Company is performing drug design and discovery while Merck will be assuming responsibility for the preclinical and clinical development. Pricing The Company received a $20.1 million non-refundable upfront payment. Recursion is eligible for additional milestone payments based on performance progress of the collaboration and tiered royalties from the mid-single-digits to low-double-digits. The Company could earn a maximum of $73.0 million for discovery, development and sales milestones per product. Accounting In November 2024, Recursion acquired Exscientia as part of an acquisition. See Note 4, “Acquisitions” for additional information. As such, the initial Recursion accounting analysis for this transaction was done as of the business combination date as if Recursion had originated the contract. This agreement represents a transaction with a customer and therefore is accounted for in accordance with ASC 606. Recursion has determined that it has three performance obligations related to each project in the partnership. These performance obligations are for performing research and development services for Merck to design small molecules and perform lead optimization activities. The performance obligations also include potential licenses related to the intellectual property. The Company concluded that licenses within the contract are not distinct from the research and development services as they are interrelated due to the fact that the research and development services significantly impact the potential licenses. Any additional services are considered customer options and will be considered as separate contracts for accounting purposes. The Company has determined the transaction price to be $20.1 million, for the initial performance obligations, comprised of the upfront payment. Recursion will fully constrain the amounts of remaining variable consideration to be received from potential milestones considering the stage of development and the risks associated with the remaining development required to achieve each milestone. Recursion will re-evaluate the transaction price each reporting period. The transaction price was allocated to the performance obligations based on the estimated relative stand-alone selling price of each performance obligation as determined using an expected cost plus margin approach. The Company recognizes revenue over time based on costs incurred relative to total expected costs to perform the research and development services. Recursion determined that this method provides a faithful depiction of the transfer of control to the customer. This method of recognizing revenue requires the Company to make estimates of total costs to provide the services required under the performance obligations. Significant inputs used to determine the total costs included the number of projects to be performed, the number of substitutions related to those projects, length of time required, service hours performed by Company employees and materials costs. A significant change in these estimates could have a material effect on the timing and amount of revenue recognized in future periods. Recursion was unable to estimate the completion date of the performance obligations due to the current stage of work. Roche and Genentech Description In December 2021, Recursion entered into a collaboration and license agreement with Roche and Genentech (collectively referred to as Roche). Recursion is constructing, using the Company’s imaging technology and proprietary machine-learning algorithms, unique maps of the inferred relationships amongst perturbation phenotypes in a given cellular context with the goal to discover and develop therapeutic small molecule programs in a gastrointestinal cancer indication and in key areas of neuroscience. Roche and Recursion will collaborate to select certain novel inferences with respect to small molecules or targets generated from the Phenomaps for further validation and optimization as collaboration programs. Roche and Recursion may also combine sequencing datasets from Roche with Recursion’s Phenomaps and collaborate to generate new algorithms to produce multi-modal maps from which additional collaboration programs may be initiated. For every collaboration program that successfully identifies potential therapeutic small molecules or validates a target, Roche will have an option to obtain an exclusive license to develop and commercialize such potential therapeutic small molecules or to exploit such target in the applicable exclusive field. Pricing In January 2022, Recursion received a $150.0 million non-refundable upfront payment from the Company’s collaboration with Roche. In September 2024, Recursion received a $30.0 million milestone payment (the “acceptance fee”), which was an acceptance fee related to the first accepted neuroscience Phenomap. Recursion is eligible for additional milestone payments based on performance progress of the collaboration. Each of the Phenomaps requested by Roche and created by Recursion may be subject to either an initiation fee, acceptance fee or both. Such fees could exceed $250.0 million for 16 accepted Phenomaps. In addition, for a period of time after Roche’s acceptance of certain Phenomaps, Roche will have the option to obtain, subject to payment of an exercise fee, rights to use outside the collaboration the raw images generated in the course of creating those Phenomaps. If Roche exercises its external use option for all 12 eligible Phenomaps, Roche’s associated exercise fee payments to Recursion could exceed $250.0 million. Under the collaboration, Roche may initiate up to 40 programs, each of which, if successfully developed and commercialized, could yield more than $300.0 million in development, commercialization and net revenue milestones for Recursion, as well as tiered royalties on net revenue. Accounting This agreement represents a transaction with a customer and therefore is accounted for in accordance with ASC 606. Recursion has determined that it has three performance obligations, one related to gastrointestinal cancer and two in neuroscience. These performance obligations are for performing research and development services for Roche to identify targets and medicines. The performance obligations also include potential licenses related to the intellectual property. The Company concluded that licenses within the contract are not distinct from the research and development services as they are interrelated due to the fact that the research and development services significantly impact the potential licenses. Any additional services are considered customer options and will be considered as separate contracts for accounting purposes. The Company has determined the transaction price to be $180.0 million, comprised of the upfront payment and the acceptance fee. Prior to the three months ended September 30, 2024, Recursion had fully constrained the $30.0 million variable consideration acceptance fee. As a result of Roche’s acceptance of the neuroscience Phenomap, Recursion is now recognizing the acceptance fee as part of the transaction price over the completion period of one of the neuroscience performance obligations. Recursion has fully constrained the remaining amounts of variable consideration to be received from potential milestones considering the stage of development and the risks associated with the remaining development required to achieve each milestone. Recursion will re-evaluate the transaction price each reporting period. The transaction price was generally allocated to the performance obligations based on the estimated relative stand-alone selling price of each performance obligation as determined using an expected cost plus margin approach. The acceptance fee was allocated to one of the neuroscience performance obligations as the terms of the variable consideration related specifically to Recursion’s efforts to satisfy this performance obligation. The Company recognizes revenue over time based on costs incurred relative to total expected costs to perform the research and development services. Recursion determined that this method provides a faithful depiction of the transfer of control to the customer. This method of recognizing revenue requires the Company to make estimates of total costs to provide the services required under the performance obligations. Significant inputs used to determine the total costs included the length of time required, service hours performed by Company employees and materials costs. A significant change in these estimates could have a material effect on the timing and amount of revenue recognized in future periods. Recursion has estimated the completion of the performance obligations by 2026. Additional Revenue Disclosures Of the revenue recognized during the three months ended March 31, 2025 and 2024, $14.7 million and $13.5 million was included in the unearned revenue balance as of December 31, 2024 and 2023, respectively. Revenue recognized was from the upfront payments received at the inception of the related contracts, which decreased the initial unearned revenue recognized. As of March 31, 2025, the Company had $6.2 million of costs incurred to fulfill a contract on its Condensed Consolidated Balance Sheet within “Other Current Assets.” Unearned revenue was classified as short-term and long-term on the Condensed Consolidated Balance Sheets based on the Company’s estimate of revenue that will be recognized during the next twelve months.

Condensed Consolidated Statements of Operations (unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2025	Mar. 31, 2024
Revenue
Total revenue	$ 14,745	$ 13,794
Operating costs and expenses
Cost of revenue	21,829	11,166
Research and development	129,634	67,560
General and administrative	54,650	31,408
Total operating costs and expenses	206,113	110,134
Loss from operations	(191,368)	(96,340)
Other income (loss), net	(11,277)	4,188
Loss before income tax benefit	(202,645)	(92,152)
Income tax benefit	158	779
Net loss	$ (202,487)	$ (91,373)
Per share data
Net loss per share of class A, B and Exchangeable common stock, basic (in dollars per share)	$ (0.50)	$ (0.39)
Net loss per share of class A, B and Exchangeable common stock, diluted (in dollars per share)	$ (0.50)	$ (0.39)
Weighted-average shares (Class A, B and Exchangeable) outstanding, basic (in shares)	402,771,972	236,019,349
Weighted-average shares (Class A, B and Exchangeable) outstanding, diluted (in shares)	402,771,972	236,019,349
Operating revenue
Revenue
Total revenue	$ 14,818	$ 13,491
Grant revenue
Revenue
Total revenue	$ (73)	$ 303

Common Stock - Narrative (Details)	3 Months Ended	12 Months Ended
Common Stock - Narrative (Details)	Mar. 31, 2025 USD ($) vote	Dec. 31, 2024 USD ($)
Class of Stock [Line Items]
Dividends declared \| $	$ 0	$ 0
Class A Common Stock
Class of Stock [Line Items]
Vote per share of common stock (in votes)	1
Class B
Class of Stock [Line Items]
Vote per share of common stock (in votes)	10

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

+ Details

Stock-Based Compensation - Schedule of Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2025	Dec. 31, 2024
Shares
Beginning balance (in shares)	21,941,495
Granted (in shares)	3,076,635
Cancelled (in shares)	(1,254,312)
Exercised (in shares)	(1,858,286)
Ending balance (in shares)	21,905,532	21,941,495
Exercisable (in shares)	10,774,836
Weighted-Average Exercise Price
Beginning balance (in dollars per share)	$ 5.40
Granted (in dollars per share)	7.25
Cancelled (in dollars per share)	6.88
Exercised (in dollars per share)	2.13
Ending balance (in dollars per share)	6.00	$ 5.40
Exercisable (in dollars per share)	$ 5.65
Options, outstanding, weighted average remaining contractual life	5 years 1 month 6 days	7 years 10 months 24 days
Options, exercisable, weighted average remaining contractual life	5 years
Options, outstanding, intrinsic value	$ 36,322	$ 62,685
Exercise, intrinsic value	11,824
Exercise, intrinsic value	$ 24,960

Net Loss Per Share - Schedule of Computation of Basic and Diluted Net Loss Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2025	Mar. 31, 2024
Numerator:
Net loss	$ (202,487)	$ (91,373)
Denominator:
Weighted average common shares outstanding, basic (in shares)	402,771,972	236,019,349
Weighted average common shares outstanding, diluted (in shares)	402,771,972	236,019,349
Net loss per share, basic (in dollars per shares)	$ (0.50)	$ (0.39)
Net loss per share, diluted (in dollars per shares)	$ (0.50)	$ (0.39)

- Definition

The amount of net income (loss) for the period per each share of common stock or unit outstanding during the reporting period.

+ References

+ Details

- Definition

The amount of net income (loss) for the period available to each share of common stock or common unit outstanding during the reporting period and to each share or unit that would have been outstanding assuming the issuance of common shares or units for all dilutive potential common shares or units outstanding during the reporting period.

+ References

+ Details

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References

+ Details

Stock-Based Compensation - Schedule of Weighted-Average Assumptions Used to Calculate Grant-Date Fair Value of Stock Options (Details) - Stock based compensation	3 Months Ended
	Mar. 31, 2025	Mar. 31, 2024
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term (in years)	6 years	6 years 3 months 18 days
Expected volatility	64.00%	65.00%
Expected dividend yield	0.00%	0.00%
Risk-free interest rate	4.40%	4.20%

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

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+ Details

Description of the Business	3 Months Ended
Description of the Business	Mar. 31, 2025
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Description of the Business	Description of the Business Recursion Pharmaceutical, Inc. (“Recursion” or the “Company”) is a clinical stage TechBio company decoding biology and chemistry to industrialize drug discovery. The Recursion Operating System (OS), a platform built across diverse technologies, enables the Company to map and navigate trillions of biological and chemical relationships within the Recursion Data Universe, one of the world’s largest proprietary biological and chemical datasets. The Company integrates physical and digital components as iterative loops of atoms and bits scaling wet lab biology and chemistry data organized into virtuous cycles with computational tools to rapidly translate in silico hypotheses into validated insights and novel chemistry. As of March 31, 2025, the Company had an accumulated deficit of $1.6 billion. The Company expects to incur substantial operating losses in future periods and will require additional capital to advance its drug candidates. The Company does not expect to generate significant revenue until the Company successfully completes significant drug development milestones or in collaboration with third parties, which the Company expects will take a number of years. In order to commercialize its drug candidates, the Company or its partners need to complete clinical development and comply with comprehensive regulatory requirements. The Company is subject to a number of risks and uncertainties similar to those of other companies of the same size within the biotechnology industry, such as the uncertainty of clinical trial outcomes, uncertainty of additional funding and a history of operating losses. The Company has funded its operations to date primarily through the issuance of Class A common stock (see Note 8, “Common Stock” for additional details). Additionally, the Company has received payments from its strategic partnerships (see Note 9, “Collaborative Development Contracts” for additional details). Recursion will likely be required to raise additional capital. As of March 31, 2025, the Company did not have any unconditional outstanding commitments for additional funding. If the Company is unable to access additional funds when needed, it may not be able to continue the development of its products or the Company could be required to delay, scale back or abandon some or all of its development programs and other operations. The Company’s ability to access capital when needed is not assured and, if not achieved on a timely basis, could materially harm its business, financial condition and results of operations. Recursion believes that the Company’s existing cash and cash equivalents will be sufficient to fund the Company’s operating expenses and capital expenditures for at least the next 12 months.

Insider Trading Arrangements	3 Months Ended
Insider Trading Arrangements	Mar. 31, 2025
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

Commitments and Contingencies	3 Months Ended
Commitments and Contingencies	Mar. 31, 2025
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Contract Obligations In the normal course of business, the Company enters into contracts with clinical research organizations, drug manufacturers and other vendors for preclinical and clinical research studies, research and development supplies and other services and products for operating purposes. These contracts generally provide for termination on notice and are cancellable contracts. Indemnification The Company has agreed to indemnify its officers and directors for certain events or occurrences, while the officer or director is or was serving at the Company’s request in such capacity. The Company purchases directors and officers liability insurance coverage that provides for reimbursement to the Company for covered obligations and this is intended to limit the Company’s exposure and enable it to recover a portion of any amount it pays under its indemnification obligations. The Company had no liabilities recorded for these agreements as of March 31, 2025 and December 31, 2024, as no amounts were probable. Employee Agreements The Company has signed employment agreements with certain key employees pursuant to which, if their employment is terminated following a change of control of the Company, the employees are entitled to receive certain benefits, including accelerated vesting of equity incentives. Legal Matters The Company may, from time to time, be involved in various legal proceedings arising in the normal course of business. An unfavorable resolution of any such matter could materially affect the Company’s future financial position, results of operations or cash flows. In April 2024, a putative class action complaint was filed in the U.S. District Court for the District of New Jersey against Exscientia plc, Andrew Hopkins, Ben R. Taylor and David Nicholson (Campanile v. Exscientia plc, Case No. 1:24-cv-05692). In June 2024, a separate complaint was filed against the same defendants in the U.S. District Court for the District of New Jersey (Case 1:24-cv-07181). Both complaints allege that the defendants violated federal securities laws by, among other things, making materially false and misleading statements regarding Exscientia’s business, operations, and prospects. The complaints seek unspecified compensatory damages, as well as an award of reasonable attorneys’ fees and other costs, on behalf of persons and/or entities which purchased Exscientia securities between March 2022 and February 2024. The cases were consolidated and plaintiffs filed an amended complaint on November 11, 2024 against Exscientia plc, Andrew Hopkins, and David Nicholson, and the Company moved to dismiss on January 21, 2025. That motion remains pending. As of March 31, 2025, the Company had no liability recorded for these events as an unfavorable outcome was not probable. In February 2021, the Company entered into a lease agreement for laboratory and office space (the Industry Lease) with Industry Office SLC, LLC (the landlord). In March 2023, the Company sent a letter to the landlord detailing numerous construction delays and irregularities, deficiencies and deviations from applicable structural drawings and/or non-conforming conditions with applicable building codes. On June 23, 2023, the landlord filed a lawsuit against the Company (Industry Office SLC, LLC v. Recursion Pharmaceuticals, Inc., Case No. 230904627) amended in October 2023, in the Third District Court for Salt Lake County, State of Utah (the Court), alleging anticipatory repudiation, breach of contract and breach of the implied covenant of good faith and fair dealing and seeks monetary damages and attorney’s fees. As of March 31, 2025, the Company had no liability recorded for these events as an unfavorable outcome was not probable. In connection with the Industry Lease, in September 2023, the Company filed claims in the Court against the landlord alleging, among other things, breach of contract and fraudulent misrepresentation (the Counterclaims). In October 2023, the landlord filed an answer and denied the Company’s allegations asserted in the Counterclaims. The Company and the landlord are currently engaged in discovery. The Company is unable to estimate the possible amount or range of damages associated with the Counterclaims. Pledged Assets As of March 31, 2025, assets pledged as collateral against finance leases totaled $22.6 million. Assets pledged as collateral are Lab Equipment reported in “Property and Equipment, net” on the Condensed Consolidated Balance Sheet. As of March 31, 2025, the liabilities associated with collateral pledged were solely comprised of a finance lease and had a carrying value of $24.6 million. The collateral pledged under the lease agreement may only be operated by the Company within the continental United States and must maintain a good title. The assets cannot be sold, disposed of or repledged by the Company.

Segment Information

3 Months Ended

Mar. 31, 2025

Segment Reporting [Abstract]

Segment Information

Segment loss

Recursion operates as a single operating segment that is managed on a consolidated basis. The Company’s chief operating decision maker is its Chief Executive Officer. The Company’s chief operating decision maker uses segment net loss to evaluate the performance of its segment, analyze financial trends, compare the budget to the actual operating results and make resource allocation decisions. Segment net loss represents the Company’s consolidated net loss. All corporate costs, global function support costs, overhead costs and other shared costs are included within this segment. Other segment items primarily include general and administrative expenses including facilities, information technology, professional fees (including auditing, tax and legal) and insurance.

The following table presents Recursion’s segment net loss:


	Three months ended March 31,
(In thousands)	2025		2024
Revenue	$	14,745	$	13,794

Significant segment expenses
Salaries	83,554		50,358
Consumables	54,677		15,741
Platform	8,765		1,883
Discovery	6,287		7,809
Clinical development	10,564		12,568
Depreciation and amortization	19,331		7,377
Other segment items	22,935		14,398
Loss from operations	191,368		96,340
Other non-operating income (loss), net	(11,277)		4,188
Income tax benefit	158		779
Total segment loss	$	202,487	$	91,373

Supplemental asset information
Total expenditures for additions to long-lived assets	$	2,978	$	6,733

Additional Segment Disclosures

Recursion’s operating revenues are attributed to the following geographic areas based on the location the services are performed:


	Three months ended March 31,
(In thousands)	2025		2024
United States	$	9,482	$	13,491
United Kingdom	5,336		—
Total	$	14,818	$	13,491

Recursion generates revenue primarily from a single service, research and development services, therefore, the Company does not report additional information on revenue from external customers.

Recursion’s long-lived assets are attributed to the following geographic areas based on their location:


(In thousands)	March 31, 2025		December 31, 2024
United States	$	74,473	$	78,471
United Kingdom	49,682		56,332
Canada	2,679		2,631
Other	—		3,629

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

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+ Details

Common Stock - Public Offering of Common Stock (Narrative) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	Jun. 26, 2024	Jun. 30, 2024
Public Offering of Common Stock
Class of Stock [Line Items]
Sale of stock, underwriters option period from the date of the agreement	30 days
Class A Common Stock \| Public Offering of Common Stock
Class of Stock [Line Items]
Number of shares issued (in shares)	35.4
Price per share (in dollars per share)		$ 6.50
Net proceeds received	$ 216.4
Underwriting discounts and commissions	$ 13.6
Class A Common Stock \| Public Offering of Common Stock, Underwriting Agreement
Class of Stock [Line Items]
Number of shares issued (in shares)	30.8
Class A Common Stock \| Over-Allotment Option
Class of Stock [Line Items]
Number of shares issued (in shares)	4.6