Shares of Recursion Pharmaceuticals (NASDAQ: RXRX) tumbled 5% in Tuesday's trading session following the release of its second-quarter 2025 financial results. The clinical-stage TechBio company reported a wider-than-expected loss and increased expenses, raising concerns among investors about its cash burn rate.

For the quarter ended June 30, Recursion reported a net loss of $171.9 million, or $0.41 per share, significantly missing analyst expectations of a $0.35 loss per share. This loss also widened considerably from the $97.5 million, or $0.40 per share, reported in the same quarter last year. While revenue increased to $19.2 million from $14.4 million a year ago, beating estimates of $15.4 million, the company's escalating expenses overshadowed this growth.

The increased losses were primarily attributed to higher research and development expenses, which surged to $128.6 million from $73.9 million in Q2 2024. This spike was largely due to Recursion's agreement with Tempus and its recent business combination with Exscientia. General and administrative expenses also rose to $46.7 million from $31.8 million. The company's cash burn accelerated, with net cash used in operating activities reaching $208.4 million for the first six months of 2025, up from $184.5 million in the same period last year. Despite having a cash position of $533.8 million as of June 30, which the company believes will extend its runway into the fourth quarter of 2027, the market appears concerned about the sustainability of Recursion's operations given its increasing expenditures.