Recursion Pharmaceuticals, Inc (RXRX)
NASDAQ:RXRX
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Recursion Pharmaceuticals
(NASDAQ:RXRX)
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Rating:59Neutral
Price Target:
$4.00
▲(5.82% Upside)
Action:Reiterated
Date:06/05/26
RXRX scores as moderate due to strong earnings-call momentum (cash runway, cost discipline, partnerships, and early clinical proof points) and improving technicals. These are materially offset by weak underlying financial performance—negative gross profit, very large losses, and heavy ongoing cash burn—plus limited valuation support from a negative P/E and no dividend.
Positive Factors
Proprietary Data Moat
Recursion’s >50 PB dataset and >10 high-dimensional biology maps create a durable data moat for ML-driven discovery. Proprietary scale improves model training, target ID, and patient stratification, increasing partner value and raising barriers for competitors over years.
Negative Factors
Heavy Cash Burn
Persistent negative operating cash flow (~-$321M TTM) and deteriorating free cash flow mean the business consumes significant cash. This increases reliance on milestone timing or external financing; delays or missed inflows could force dilutive capital raises or program curtailments, pressuring strategy.
Read all positive and negative factors
Positive Factors
Negative Factors
Proprietary Data Moat
Recursion’s >50 PB dataset and >10 high-dimensional biology maps create a durable data moat for ML-driven discovery. Proprietary scale improves model training, target ID, and patient stratification, increasing partner value and raising barriers for competitors over years.
Read all positive factors
Recursion Pharmaceuticals Key Performance Indicators (KPIs)
Any
Revenue by Segment
Breaks down revenue by different business units or product lines, highlighting which areas are driving growth and which may need strategic adjustments. This insight helps assess the company's diversification and dependency on specific segments.
Breaks down revenue by different business units or product lines, highlighting which areas are driving growth and which may need strategic adjustments. This insight helps assess the company's diversification and dependency on specific segments.
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The Fly
The FlyRecursion Pharmaceuticals (RXRX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.84B
Dividend YieldN/A
Average Volume (3M)16.21M
Price to Earnings (P/E)―
Beta (1Y)3.35
Revenue Growth11.07%
EPS Growth32.35%
CountryUS
Employees800
SectorHealthcare
Sector Strength45
IndustryBiotechnology
Share Statistics
EPS (TTM)-1.20
Shares Outstanding524,677,860
10 Day Avg. Volume22,111,363
30 Day Avg. Volume16,214,098
Financial Highlights & Ratios
PEG Ratio0.19
Price to Book (P/B)1.62
Price to Sales (P/S)24.50
P/FCF Ratio-4.84
Enterprise Value/Market Cap0.56
Enterprise Value/Revenue15.44
Enterprise Value/Gross Profit-44.82
Enterprise Value/Ebitda-2.10
Forecast
1Y Price Target
$7.38Price Target Upside95.11% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering5
EPS Forecast (FY)-0.93
Revenue Forecast (FY)$61.30M
Recursion Pharmaceuticals Business Overview & Revenue Model
Company Description
Recursion Pharmaceuticals, Inc. operates as a clinical-stage biotechnology company, engages in the decoding biology by integrating technological innovations across biology, chemistry, automation, data science, and engineering to industrialize drug...
How the Company Makes Money
Recursion makes money primarily through (1) collaboration and partnership revenue and (2) other income sources such as grants, with potential future upside from commercializing its own drug candidates if and when they receive regulatory approval.
...
Recursion Pharmaceuticals Earnings Call Summary
Earnings Call Date:May 06, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 11, 2026
Earnings Call Sentiment Positive
The call emphasized multiple clear positives: a clinical proof of concept (REC-4881), encouraging early clinical safety/PK/PD for REC-1245, first patient dosed for REC-4539, strong partnership traction (> $500M inflows, 10 milestones), platform efficiency gains (≈90% fewer compounds, ~2x faster candidate progression), and a 30% YoY reduction in cash operating expenses with $665M cash (runway into early 2028). The primary negatives are that the programs are still early (key readouts and registrational plans pending), regulatory uncertainty for first-in-disease indications, potential safety risks as dose escalation continues, and a finite runway that could be pressured by delays. Overall, the highlights materially outweigh the lowlights given the combination of clinical proofs, platform progress, partnership milestones, and cost discipline.Positive Updates
Clinical Proof of Concept for REC-4881
REC-4881 (allosteric MEK1/2 inhibitor) achieved a clinical proof of concept in FAP with significant reduction in precancerous polyps and durable responses; FDA engagement for a potential registrational path has been initiated (engagement started H1 2026).
Negative Updates
No Approved Revenue-Generating Medicines Yet
Despite clinical POC and multiple programs in clinic, Recursion has not reported any approved, revenue-generating medicines—future commercial revenues depend on successful registrational outcomes and partner opt-ins.
Read all updates
Q1-2026 Updates
Positive
Negative
Clinical Proof of Concept for REC-4881
REC-4881 (allosteric MEK1/2 inhibitor) achieved a clinical proof of concept in FAP with significant reduction in precancerous polyps and durable responses; FDA engagement for a potential registrational path has been initiated (engagement started H1 2026).
Read all positive updates
Company Guidance
Management guided that Recursion closed the quarter with $665M in cash, which they say provides runway into early 2028, and reiterated 2026 cash operating expense guidance of < $390M after achieving a ~30% year‑over‑year reduction in operating expenses; platform monetization to date includes >$500M in partner inflows and 10 milestones delivered (including a fifth Sanofi milestone this quarter). They said the company has 5 wholly‑owned programs (each with inflection points over the next 12–18 months) and expects multiple clinical readouts for every clinical‑stage program in the next 12–18 months; specific clinical metrics include REC‑1245 (16 patients across 4 dose levels, 7/16 MSI‑high, no DLTs to date, ~90% grade 1–2 GI AEs, one grade 3 event, no treatment‑related SAEs, fuller PK/PD and dose‑escalation data expected H2 2026) and REC‑4539 (first patient dosed in April after ~20 months and ~400 compounds synthesized). Platform and R&D metrics highlighted include >50 petabytes of proprietary multimodal data, >10 high‑dimensional biology maps (over half with Roche/Genentech), claims of ~90% fewer compounds synthesized versus industry benchmarks (~330 vs 2,500–5,000) and ~2× faster progression to development candidates, plus ClinTech improvements of ~30–60% faster trial enrollment and increases in eligible patient populations from ~10% to ~40%.Recursion Pharmaceuticals Financial Statement Overview
Summary
Income Statement
18
Very Negative
Balance Sheet
72
Positive
Cash Flow
24
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 66.29M | 74.68M | 58.84M | 43.88M | 39.68M | 10.00M |
| Gross Profit | -22.83M | -46.27M | 13.60M | 1.29M | -8.59M | 10.00M |
| EBITDA | -486.23M | -559.38M | -426.72M | -307.63M | -227.66M | -175.12M |
| Net Income | -559.78M | -644.76M | -463.66M | -328.07M | -239.48M | -186.48M |
Balance Sheet | ||||||
| Total Assets | 1.34B | 1.47B | 1.45B | 653.70M | 701.29M | 610.35M |
| Cash, Cash Equivalents and Short-Term Investments | 654.47M | 743.29M | 594.35M | 391.56M | 549.91M | 516.56M |
| Total Debt | 72.38M | 77.97M | 108.49M | 50.67M | 51.01M | 11.48M |
| Total Liabilities | 314.75M | 343.26M | 413.82M | 190.26M | 215.48M | 67.41M |
| Stockholders Equity | 1.02B | 1.13B | 1.03B | 463.44M | 485.81M | 542.94M |
Cash Flow | ||||||
| Free Cash Flow | -325.85M | -378.28M | -372.87M | -300.33M | -120.88M | -198.41M |
| Operating Cash Flow | -320.95M | -371.81M | -359.17M | -287.78M | -83.52M | -158.61M |
| Investing Cash Flow | -9.94M | -16.87M | 260.06M | -10.23M | 193.25M | -271.74M |
| Financing Cash Flow | 477.54M | 521.53M | 304.12M | 140.13M | 154.34M | 458.54M |
Recursion Pharmaceuticals Technical Analysis
Positive
3.78
Price Trends
3.32
Positive
3.59
Positive
4.23
Negative
Market Momentum
0.08
Negative
62.41
Neutral
72.22
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RXRX, the sentiment is Positive. The current price of 3.78 is above the 20-day moving average (MA) of 3.23, above the 50-day MA of 3.32, and below the 200-day MA of 4.23, indicating a neutral trend. The MACD of 0.08 indicates Negative momentum. The RSI at 62.41 is Neutral, neither overbought nor oversold. The STOCH value of 72.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for RXRX.
Recursion Pharmaceuticals Risk Analysis
Recursion Pharmaceuticals disclosed 107 risk factors in its most recent earnings report. Recursion Pharmaceuticals reported the most risks in the "Tech & Innovation" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Recursion Pharmaceuticals Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
64 Neutral | $2.67B | -1,195.10 | -1.41% | ― | 95.29% | 98.21% | |
59 Neutral | $1.84B | -3.59 | -54.32% | ― | 11.07% | 32.35% | |
59 Neutral | $2.56B | -56.60 | -24.26% | ― | 55.87% | 66.29% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
48 Neutral | $1.65B | -4.00 | -34.11% | ― | 78.34% | -161.91% | |
47 Neutral | $2.69B | -11.33 | -36.95% | ― | ― | -68.57% |
* Healthcare Sector Average
RXRX
Recursion Pharmaceuticals
3.80
-0.77
-16.85%
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Recursion Pharmaceuticals Corporate Events
Business Operations and StrategyFinancial Disclosures
Recursion Highlights Q1 2026 Results and Pipeline Progress
Positive
May 6, 2026
On May 6, 2026, Recursion reported first-quarter 2026 results and business updates, highlighting multiple pipeline milestones and continued advancement of its AI-native Recursion OS platform. Early Phase 1/2 data for REC-1245, a potential first-in...
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
Recursion Pharmaceuticals Announces Planned Board Leadership Transition
Neutral
Apr 30, 2026
On April 28, 2026, Recursion Pharmaceuticals announced that founder and Chair of the Board Christopher Gibson, Ph.D., informed the company he will not stand for re-election as a Class II director at the 2026 Annual Meeting of Stockholders. The com...
Business Operations and StrategyExecutive/Board Changes
Recursion Pharmaceuticals Names New Chief Medical Officer
Positive
Mar 25, 2026
On March 25, 2026, Recursion Pharmaceuticals announced that seasoned oncology drug developer Vicki Goodman, M.D., will become Chief Medical Officer effective April 6, 2026, as current CMO David Mauro, M.D., Ph.D., transitions out of the role but r...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.