Recursion Pharmaceuticals (NASDAQ:RXRX) Announces Earnings Results

Recursion Pharmaceuticals (NASDAQ:RXRX) announced its earnings results on Wednesday. The company reported ($0.21) EPS for the quarter, beating the consensus estimate of ($0.28) by $0.07, FiscalAI reports. Recursion Pharmaceuticals had a negative net margin of 1,637.81% and a negative return on equity of 72.74%. The company had revenue of $35.54 million during the quarter, compared to the consensus estimate of $24.56 million. During the same quarter in the prior year, the company posted ($0.53) earnings per share. The firm’s revenue for the quarter was up 671.7% on a year-over-year basis.

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

• Recursion reported a positive clinical proof-of-concept for REC-4881 in FAP (median ~43% polyp burden reduction; ~75% responders) and plans initial FDA engagement in H1 2026, with 18+ cohort enrollment and dose-optimization underway.
• The company achieved a fifth milestone with Sanofi and has exceeded $500M in cumulative partner inflows (including ~$100M upfront and $34M in Sanofi milestones to date), which management cites as validation of platform repeatability.
• Management says its AI-enabled chemistry and integrated platform cuts discovery effort—synthesizing ~90% fewer compounds (≈330 vs ~2,500) and shortening average time to candidate to ~17 months vs industry ~42 months.
• Financial discipline reduced pro forma operating expenses ~35% YoY, the company finished 2025 with $754M in cash, guided 2026 cash operating expenses $390M, and extended runway to early 2028.
• Material execution risk remains—many programs are preclinical or early-stage (notably PI3K and ENPP1) with several upcoming go/no-go and IND decisions (H2 2026); ultimate value depends on clinical validation and regulatory outcomes.

Recursion Pharmaceuticals Trading Up 11.0%

NASDAQ:RXRX traded up $0.39 during trading hours on Wednesday, hitting $3.92. The company had a trading volume of 30,147,261 shares, compared to its average volume of 21,457,838. The company has a debt-to-equity ratio of 0.01, a current ratio of 4.60 and a quick ratio of 4.60. The stock has a 50-day moving average price of $4.22 and a 200 day moving average price of $4.72. The company has a market capitalization of $2.04 billion, a PE ratio of -2.18 and a beta of 0.95. Recursion Pharmaceuticals has a 52 week low of $2.98 and a 52 week high of $8.69.

Wall Street Analyst Weigh In

A number of analysts recently commented on the company. Morgan Stanley set a $11.00 price target on Recursion Pharmaceuticals in a research report on Wednesday, December 17th. JPMorgan Chase & Co. raised shares of Recursion Pharmaceuticals from a “neutral” rating to an “overweight” rating and raised their price target for the company from $10.00 to $11.00 in a report on Wednesday, December 17th. UBS Group set a $11.00 price objective on Recursion Pharmaceuticals in a research report on Wednesday, December 17th. Finally, Weiss Ratings restated a “sell (d-)” rating on shares of Recursion Pharmaceuticals in a research report on Thursday, January 22nd. Two investment analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, Recursion Pharmaceuticals currently has an average rating of “Hold” and an average target price of $9.40.

Insider Activity

In related news, insider Najat Khan sold 124,403 shares of the business’s stock in a transaction dated Monday, December 22nd. The shares were sold at an average price of $4.41, for a total transaction of $548,617.23. Following the transaction, the insider owned 611,135 shares in the company, valued at $2,695,105.35. The trade was a 16.91% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Blake Borgeson sold 220,000 shares of the stock in a transaction dated Tuesday, February 3rd. The shares were sold at an average price of $4.20, for a total transaction of $924,000.00. Following the sale, the director directly owned 6,429,863 shares in the company, valued at $27,005,424.60. This trade represents a 3.31% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last 90 days, insiders have sold 819,212 shares of company stock valued at $3,523,950. Corporate insiders own 8.43% of the company’s stock.

Institutional Investors Weigh In On Recursion Pharmaceuticals

A number of hedge funds have recently added to or reduced their stakes in the company. ARK Investment Management LLC increased its holdings in Recursion Pharmaceuticals by 11.2% in the fourth quarter. ARK Investment Management LLC now owns 37,316,856 shares of the company’s stock valued at $152,626,000 after buying an additional 3,771,357 shares during the last quarter. State Street Corp raised its holdings in Recursion Pharmaceuticals by 38.7% in the 4th quarter. State Street Corp now owns 25,333,888 shares of the company’s stock worth $103,616,000 after acquiring an additional 7,064,963 shares during the period. Geode Capital Management LLC boosted its stake in Recursion Pharmaceuticals by 13.6% in the 4th quarter. Geode Capital Management LLC now owns 10,934,252 shares of the company’s stock valued at $44,731,000 after buying an additional 1,310,695 shares in the last quarter. Charles Schwab Investment Management Inc. boosted its position in Recursion Pharmaceuticals by 16.0% in the fourth quarter. Charles Schwab Investment Management Inc. now owns 3,994,651 shares of the company’s stock valued at $16,338,000 after buying an additional 549,631 shares in the last quarter. Finally, Two Sigma Investments LP grew its stake in Recursion Pharmaceuticals by 109.9% during the third quarter. Two Sigma Investments LP now owns 2,450,805 shares of the company’s stock worth $11,960,000 after buying an additional 1,282,992 shares during the last quarter. Institutional investors and hedge funds own 89.06% of the company’s stock.

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.