Recursion Pharmaceuticals (RXRX) Q3 2026 Earnings Report

The call was strongly positive, led by encouraging early clinical activity for REC-4881 and REC-1245, progress across Sanofi, Roche, and Genentech partnerships, more than $535 million in partner cash inflows, substantial platform productivity gains, a $200 million financing, and runway into 2029. The main negatives were treatment-related adverse events, dose-limiting toxicities at higher REC-1245 doses, the early and investigational nature of the clinical data, and the need for further regulatory and registrational validation. Highlights significantly outweighed the lowlights.

Recursion expects cash runway to extend into 2029; 2026 full-year cash operating expense guidance is less than $375 million, excluding partnership inflows and one-time expenses, and in 2027 cash operating expenses are expected to be less than $360 million. Sanofi’s optioned candidate is expected to begin phase I in 2027, with potential for additional partner milestones in 2027; for REC-4881, the company is targeting initiation of a registrational study in the second half of 2027, based on regulatory alignment, and expects to update FDA conversations and generate additional phase II data; for REC-1245, preliminary data from the endometrial expansion cohort are expected in the second half of 2027, along with additional clinical readouts from the rest of the portfolio.