Recursion Pharmaceuticals (RXRX) AI Stock Analysis

• Market Cap: $2.00B
• Dividend Yield: N/A
• Average Volume (3M): 61.90M
• Price to Earnings (P/E): ―
• Beta (1Y): 3.39
• Revenue Growth: -32.98%
• EPS Growth: -18.46%
• Country: US
• Employees: 800
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -0.36
• Shares Outstanding: 514,895,800
• 10 Day Avg. Volume: 45,276,653
• 30 Day Avg. Volume: 61,904,170
• PEG Ratio: -0.57
• Price to Book (P/B): 1.79
• Price to Sales (P/S): 31.50
• P/FCF Ratio: -4.97
• Enterprise Value/Market Cap: 0.80
• Enterprise Value/Revenue: 36.77
• Enterprise Value/Gross Profit: -39.19
• Enterprise Value/Ebitda: -2.47
• 1Y Price Target: $6.40
• Price Target Upside: 41.91% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4
• EPS Forecast (FY): -1.59
• Revenue Forecast (FY): $69.77M

• Rating: 41 Neutral
• Price Target: $4.50 ▼(-0.22% Downside)

Recursion Pharmaceuticals faces significant financial and valuation challenges, with declining revenues, persistent losses, and a negative P/E ratio. Technical indicators also suggest a bearish trend. While the company has a strong cash position and promising partnerships, these factors are overshadowed by the financial and market risks, resulting in a low overall stock score.

Positive Factors

Strong Cash Position

A strong cash position ensures operational stability and supports long-term strategic initiatives without immediate need for external funding.

Strategic Partnerships

Significant partnership inflows highlight Recursion's ability to leverage collaborations for revenue and innovation, enhancing its competitive edge.

Leadership Transition

The leadership transition to Najat Khan, with her expertise in AI and biopharma, is likely to drive strategic innovation and growth.

Negative Factors

Negative Profit Margins

Persistent negative profit margins indicate operational inefficiencies, which could hinder long-term profitability and financial health.

Cash Flow Challenges

Negative cash flows suggest liquidity issues, potentially limiting Recursion's ability to fund operations and invest in growth opportunities.

Clinical Uncertainty

Clinical uncertainty in key trials poses risks to Recursion's pipeline success and future revenue streams, impacting investor confidence.

Recursion Pharmaceuticals Business Overview & Revenue Model

Company Description

Recursion Pharmaceuticals (RXRX) is a biotechnology company that leverages advanced machine learning and high-throughput biology to discover and develop new therapeutics for various diseases. Focused primarily on rare genetic conditions and other complex diseases, Recursion employs its proprietary platform to analyze biological data, enabling the rapid identification of drug candidates. The company operates at the intersection of technology and life sciences, utilizing its core capabilities in data analysis and biological experimentation to advance its drug development pipeline.

How the Company Makes Money

Recursion Pharmaceuticals generates revenue through a combination of drug development partnerships, licensing agreements, and potential future product sales. The company collaborates with other pharmaceutical companies and research institutions, which may include co-development arrangements that provide upfront payments, milestone payments based on development progress, and royalties on future product sales. Additionally, Recursion's advanced platform allows it to create value by identifying new therapeutic targets and potential drug candidates, which can lead to strategic partnerships and collaborations with larger biopharmaceutical firms. The company's focus on rare diseases often attracts grants and funding from both public and private sources, contributing to its overall financial sustainability.

Recursion Pharmaceuticals Financial Statement Overview

Summary

Recursion Pharmaceuticals is facing significant financial challenges, with declining revenues and persistent losses impacting profitability and cash flow. While the company maintains a low level of debt, its inability to generate positive returns on equity and cash from operations poses risks to its financial stability. Continued focus on cost management and revenue growth is essential for improving financial performance.

Income Statement

Recursion Pharmaceuticals has been experiencing declining revenue, with a significant drop of 32.44% in the TTM period. The company also faces negative profit margins, with a net profit margin of -10.07% and an EBIT margin of -10.04% in the TTM. This indicates ongoing challenges in achieving profitability and managing costs effectively.

Balance Sheet

The balance sheet shows a low debt-to-equity ratio of 0.096, suggesting limited leverage, which is a positive aspect. However, the return on equity is negative at -76.07%, indicating that the company is not generating returns on shareholders' equity. The equity ratio is relatively stable, but overall financial health is impacted by persistent losses.

Cash Flow

The cash flow statement reveals a negative operating cash flow, with a ratio of -2.34 in the TTM, indicating that the company is not generating sufficient cash from operations. Although there is a slight improvement in free cash flow growth of 14.52%, the overall cash flow situation remains challenging, with free cash flow to net income ratio at 1.02.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	43.53M	58.84M	43.88M	39.68M	10.00M	3.41M
Gross Profit	-40.84M	13.60M	1.29M	-8.59M	10.00M	3.41M
EBITDA	-646.88M	-426.72M	-307.63M	-227.66M	-175.12M	-81.70M
Net Income	-715.54M	-463.66M	-328.07M	-239.48M	-186.48M	-87.01M
Balance Sheet
Total Assets	1.40B	1.45B	653.70M	701.29M	610.35M	298.58M
Cash, Cash Equivalents and Short-Term Investments	659.84M	594.35M	391.56M	549.91M	516.56M	262.13M
Total Debt	82.37M	108.49M	50.67M	51.01M	11.48M	15.66M
Total Liabilities	352.58M	413.82M	190.26M	215.48M	67.41M	504.87M
Stockholders Equity	1.05B	1.03B	463.44M	485.81M	542.94M	-206.29M
Cash Flow
Free Cash Flow	-448.04M	-372.87M	-300.33M	-120.88M	-198.41M	-52.13M
Operating Cash Flow	-441.17M	-359.17M	-287.78M	-83.52M	-158.61M	-45.40M
Investing Cash Flow	259.83M	260.06M	-10.23M	193.25M	-271.74M	-8.74M
Financing Cash Flow	400.17M	304.12M	140.13M	154.34M	458.54M	246.13M

Recursion Pharmaceuticals Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 4.51
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RXRX, the sentiment is Negative. The current price of 4.51 is below the 20-day moving average (MA) of 5.68, below the 50-day MA of 5.27, and below the 200-day MA of 5.68, indicating a bearish trend. The MACD of -0.21 indicates Positive momentum. The RSI at 36.32 is Neutral, neither overbought nor oversold. The STOCH value of 13.17 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for RXRX.

Recursion Pharmaceuticals Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ADPT	65 Neutral	$2.58B	-20.78	-37.18%	―	42.57%	60.03%
AGIO	59 Neutral	$2.37B	―	-27.57%	―	36.26%	-158.98%
ARQT	59 Neutral	$2.97B	―	-28.17%	―	129.21%	80.35%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
GLPG	47 Neutral	$2.04B	―	-16.45%	―	―	―
IRON	43 Neutral	$3.17B	―	-34.78%	―	―	-34.96%
RXRX	41 Neutral	$2.00B	―	-91.06%	―	-32.98%	-18.46%

Recursion Pharmaceuticals Corporate Events

Recursion Pharmaceuticals Announces New CEO Appointment

Recursion Pharmaceuticals announced significant leadership changes effective January 1, 2026, with Najat Khan, Ph.D., appointed as the new Chief Executive Officer and President, while Christopher Gibson, Ph.D., transitions to Chair of the Board. This leadership transition is accompanied by a strong financial performance, with the company achieving over $500 million in milestone and upfront payments from partnerships, including a recent $30 million milestone from Roche and Genentech. The company continues to advance its internal and partnered programs, leveraging its AI-driven platform, Recursion OS, to drive innovation in drug discovery and development.

The most recent analyst rating on (RXRX) stock is a Hold with a $5.50 price target. To see the full list of analyst forecasts on Recursion Pharmaceuticals stock, see the RXRX Stock Forecast page.

Roche Exercises Option with Recursion Pharmaceuticals

On October 29, 2025, Recursion Pharmaceuticals announced that Roche exercised its option for the Microglia Map, a pioneering whole genome map of brain immune cells, under their collaboration agreement. As a result, Roche will pay Recursion an Acceptance Fee of $30 million, highlighting the significant impact of this collaboration on Recursion’s operations and industry positioning.

The most recent analyst rating on (RXRX) stock is a Hold with a $7.00 price target. To see the full list of analyst forecasts on Recursion Pharmaceuticals stock, see the RXRX Stock Forecast page.

Recursion Pharmaceuticals Advances REC-4881 Study for Familial Adenomatous Polyposis

Recursion Pharmaceuticals, Inc. is currently conducting a clinical study titled ‘A Phase 1b-2, Multicenter, Trial To Evaluate The Efficacy, Safety, Pharmacokinetics, And Pharmacodynamics Of REC-4881 in Patients With Familial Adenomatous Polyposis (FAP)’. The study aims to assess the effectiveness and safety of REC-4881, a drug designed to treat Familial Adenomatous Polyposis, a hereditary condition that can lead to colorectal cancer.

Recursion Pharmaceuticals Advances with REC-1245 Cancer Study

Recursion Pharmaceuticals, Inc. is conducting a clinical study titled A Phase 1 / 2, Open-Label Study of REC-1245 in Participants With Unresectable, Locally Advanced, or Metastatic Cancer. The study aims to evaluate the safety, tolerability, pharmacokinetics, pharmacodynamics, and preliminary activity of REC-1245, an oral drug administered once daily, in patients with advanced solid tumors.

Recursion Pharmaceuticals Reports Q2 2025 Financial Results

Recursion Pharmaceuticals, Inc. is a clinical stage TechBio company that leverages advanced technology to decode biology and improve lives, primarily operating in the biotechnology sector.

Recursion Pharmaceuticals’ Earnings Call Highlights Progress and Challenges

The recent earnings call for Recursion Pharmaceuticals, Inc. painted a picture of both progress and challenges. The sentiment was largely positive, highlighting advancements in technology and strategic partnerships, particularly with Boltz-2 and the ClinTech platform. However, the company acknowledged ongoing challenges in key programs such as CDK7 and FAP, which have yet to demonstrate decisive success or clear regulatory pathways.