Recursion Pharmaceuticals (NASDAQ:RXRX) Releases Earnings Results, Misses Estimates By $0.01 EPS

Recursion Pharmaceuticals (NASDAQ:RXRX) issued its quarterly earnings results on Wednesday. The company reported ($0.25) earnings per share for the quarter, missing the consensus estimate of ($0.24) by ($0.01), FiscalAI reports. The business had revenue of $7.67 million during the quarter, compared to analysts’ expectations of $10.97 million. Recursion Pharmaceuticals had a negative return on equity of 54.33% and a negative net margin of 842.95%.During the same quarter in the previous 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 Price Performance

Shares of NASDAQ:RXRX traded down $0.15 during midday trading on Wednesday, reaching $3.15. 12,818,175 shares of the company’s stock traded hands, compared to its average volume of 18,472,732. The company has a fifty day simple moving average of $3.33 and a two-hundred day simple moving average of $3.48. Recursion Pharmaceuticals has a 1 year low of $2.77 and a 1 year high of $7.18. The company has a market cap of $1.67 billion, a P/E ratio of -2.63 and a beta of 1.03. The company has a debt-to-equity ratio of 0.01, a quick ratio of 5.47 and a current ratio of 5.47.

Recursion Pharmaceuticals News Summary

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

Analyst Ratings Changes

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

Insider Activity

In other Recursion Pharmaceuticals news, Director Blake Borgeson sold 40,000 shares of Recursion Pharmaceuticals stock in a transaction dated Tuesday, July 7th. The stock was sold at an average price of $3.96, for a total value of $158,400.00. Following the completion of the transaction, 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 transaction was disclosed in a legal filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Najat Khan sold 23,588 shares of the company’s stock in a transaction dated Friday, June 5th. The stock was sold at an average price of $3.58, for a total value of $84,445.04. Following the sale, the chief executive officer owned 2,175,796 shares in the company, valued at approximately $7,789,349.68. This trade represents a 1.07% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders sold 101,937 shares of company stock worth $381,374. 6.65% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Recursion Pharmaceuticals

A number of institutional investors and hedge funds have recently bought and sold shares of the stock. NewEdge Advisors LLC lifted its holdings in Recursion Pharmaceuticals by 28.1% in the second quarter. NewEdge Advisors LLC now owns 11,061 shares of the company’s stock valued at $56,000 after acquiring an additional 2,428 shares during the period. Quantbot Technologies LP acquired a new position in shares of Recursion Pharmaceuticals in the 3rd quarter valued at $61,000. Daiwa Securities Group Inc. lifted its position in Recursion Pharmaceuticals by 29.3% during the second quarter. Daiwa Securities Group Inc. now owns 12,706 shares of the company’s stock valued at $64,000 after buying an additional 2,883 shares in the last quarter. Focus Partners Wealth acquired a new position in shares of Recursion Pharmaceuticals during the 1st quarter valued at $77,000. Finally, RPO LLC acquired a new stake in Recursion Pharmaceuticals in the 4th quarter valued at $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.