Recursion Pharmaceuticals (NASDAQ:RXRX) Releases Earnings Results

Recursion Pharmaceuticals (NASDAQ:RXRX) issued its quarterly earnings data on Wednesday. The company reported ($0.25) EPS for the quarter, missing the consensus estimate of ($0.24) by ($0.01), FiscalAI reports. The firm had revenue of $7.67 million for the quarter, compared to the consensus estimate of $10.97 million. Recursion Pharmaceuticals had a negative net margin of 842.95% and a negative return on equity of 54.33%. During the same period last year, the company posted ($0.41) earnings per share.

Here are the key takeaways from Recursion Pharmaceuticals’ conference call:

• REC-4881 showed a 43% median reduction in polyp burden after three months in the Phase II TUPELO study for FAP, with effects observed in both upper and lower GI disease. Additional data and an FDA regulatory update are expected later this year, although the registrational pathway remains under discussion.
• Roche Genentech advanced Recursion’s first neuroscience target into a joint early discovery program, providing an external proof point for the company’s ability to identify and experimentally validate previously unexplored biology. The collaboration has generated more than $216 million in upfront and milestone payments, with additional milestone potential.
• The company received FDA clearance for the IND application for REC-7735, a precision-designed PI3Kα inhibitor with more than 100-fold selectivity for the H1047R mutation, and expects to begin Phase I testing later this year. Management believes the molecule’s selectivity could improve tolerability and expand the treatable patient population, though initial data are not expected until the first half of 2028.
• Recursion lowered its 2026 cash operating expense guidance to $375 million, citing technology-enabled efficiencies while maintaining pipeline and partnership objectives. The company ended the quarter with approximately $557 million in cash and equivalents, which it expects to provide runway through early 2028.
• Management emphasized the potential durability of its AI-native platform, including more than 50 petabytes of proprietary biological data, automated experimentation, and AI agents for biology, chemistry, and clinical development. These capabilities are company claims and remain subject to validation through future clinical results and additional partnership milestones.

Recursion Pharmaceuticals Stock Down 4.0%

NASDAQ RXRX traded down $0.13 during trading hours on Wednesday, reaching $3.18. 13,775,845 shares of the company’s stock traded hands, compared to its average volume of 18,478,709. Recursion Pharmaceuticals has a 52-week low of $2.77 and a 52-week high of $7.18. The company has a debt-to-equity ratio of 0.01, a current ratio of 5.47 and a quick ratio of 5.47. The firm has a 50-day simple moving average of $3.33 and a 200 day simple moving average of $3.48. The firm has a market cap of $1.68 billion, a PE ratio of -2.65 and a beta of 1.03.

Key Recursion Pharmaceuticals News

Here are the key news stories impacting Recursion Pharmaceuticals this week:

• Positive Sentiment: Genentech partnership milestone: Genentech advanced the collaboration’s first neuroscience target into a joint early-discovery program. The move provides early validation that Recursion’s AI-enabled platform can identify novel, biologically supported drug targets. Recursion Reports Second Quarter Financial Results
• Positive Sentiment: Pipeline progress: Recursion said the FDA cleared the IND for REC-7735, a highly mutant-selective PI3Kα inhibitor, with the Phase 1/2 ZINNIA trial expected to begin in the second half of 2026. Additional REC-4881 Phase 2 data are scheduled for presentation in November. Recursion Reports Second Quarter Financial Results
• Positive Sentiment: Lower spending outlook: Management reduced its 2026 cash operating-expense guidance, potentially extending the company’s substantial cash runway and reducing near-term financing risk. Q2 2026 Earnings Call Transcript
• Neutral Sentiment: Recursion highlighted continued development across REC-1245, REC-617, REC-3565 and REC-4539, with further clinical updates expected through 2026 and 2027. The company will also participate in upcoming investor conferences.
• Negative Sentiment: Quarterly miss and declining revenue: Recursion posted a $0.25 per-share loss, versus the $0.24 consensus loss, while revenue fell to $7.67 million from $19.22 million a year earlier and missed estimates by a wide margin. Recursion Reports Q2 Loss
• Negative Sentiment: Valuation remains a concern: Analysts and commentary continue to view RXRX as expensive relative to its current revenue base, ongoing losses and long-term execution risk, despite the stock’s substantial multiyear decline. Recursion Stock Still Looks Expensive

Analysts Set New Price Targets

Several research firms have weighed in on RXRX. JPMorgan Chase & Co. dropped their price objective on Recursion Pharmaceuticals from $11.00 to $10.00 and set an “overweight” rating for the company in a report on Thursday, April 30th. Needham & Company LLC reaffirmed a “buy” rating and issued a $8.00 price target on shares of Recursion Pharmaceuticals in a research note on Thursday, May 7th. Weiss Ratings reiterated a “sell (d-)” rating on shares of Recursion Pharmaceuticals in a report on Friday, July 17th. Finally, Morgan Stanley upped their price objective on shares of Recursion Pharmaceuticals from $5.00 to $5.50 and gave the stock an “equal weight” rating in a report on Thursday, May 14th. Two research analysts have rated the stock with a Buy rating, two have given a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, the company presently has an average rating of “Hold” and an average price target of $8.10.

Insider Transactions at Recursion Pharmaceuticals

In other news, Director Blake Borgeson sold 40,000 shares of the business’s stock in a transaction that occurred on Tuesday, July 7th. The stock was sold at an average price of $3.96, for a total value of $158,400.00. Following the sale, the director directly owned 6,218,287 shares of the company’s stock, valued at $24,624,416.52. The trade was a 0.64% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Najat Khan sold 23,588 shares of the firm’s stock in a transaction that occurred on Friday, June 5th. The shares were sold at an average price of $3.58, for a total value of $84,445.04. Following the transaction, the chief executive officer directly owned 2,175,796 shares of the company’s stock, valued at approximately $7,789,349.68. This trade represents a 1.07% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders sold 101,937 shares of company stock worth $381,374. Corporate insiders own 6.65% of the company’s stock.

Institutional Investors Weigh In On Recursion Pharmaceuticals

A number of institutional investors have recently modified their holdings of the stock. NewEdge Advisors LLC raised its position in shares of Recursion Pharmaceuticals by 28.1% in the 2nd quarter. NewEdge Advisors LLC now owns 11,061 shares of the company’s stock worth $56,000 after purchasing an additional 2,428 shares during the last quarter. Quantbot Technologies LP purchased a new stake in Recursion Pharmaceuticals during the 3rd quarter valued at about $61,000. Daiwa Securities Group Inc. grew its position in Recursion Pharmaceuticals by 29.3% during the 2nd quarter. Daiwa Securities Group Inc. now owns 12,706 shares of the company’s stock valued at $64,000 after purchasing an additional 2,883 shares during the last quarter. Focus Partners Wealth bought a new stake in Recursion Pharmaceuticals during the 1st quarter valued at about $77,000. Finally, RPO LLC bought a new stake in Recursion Pharmaceuticals during the 4th quarter valued at about $62,000. 89.06% of the stock is owned by hedge funds and other institutional investors.

Recursion Pharmaceuticals Company Profile

Recursion Pharmaceuticals, Inc (NASDAQ: RXRX) is a biopharmaceutical company that combines advanced automation, artificial intelligence and high-throughput biology to discover and develop novel therapeutics. The company’s proprietary platform integrates deep-learning algorithms with large-scale cellular imaging and chemical biology, enabling the rapid identification of potential drug candidates across a range of indications. By automating complex laboratory workflows and leveraging computational models, Recursion aims to accelerate the drug discovery process and expand the scope of targets that can be addressed.

At the core of Recursion’s offering is its digital biology platform, which captures billions of cell images under varying chemical and genetic perturbations.