Recursion Pharmaceuticals (NASDAQ:RXRX) Posts Earnings Results, Misses Expectations By $0.01 EPS

Recursion Pharmaceuticals (NASDAQ:RXRX) released its 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 company had revenue of $7.67 million during the quarter, compared to the consensus estimate 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 period in the previous year, the firm posted ($0.41) EPS.

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 RXRX stock traded down $0.15 during midday trading on Wednesday, reaching $3.15. 12,818,175 shares of the company were exchanged, compared to its average volume of 18,472,732. The company’s 50 day moving average price is $3.33 and its two-hundred day moving average price is $3.48. The company has a debt-to-equity ratio of 0.01, a quick ratio of 5.47 and a current ratio of 5.47. The company has a market cap of $1.67 billion, a P/E ratio of -2.63 and a beta of 1.03. Recursion Pharmaceuticals has a 12 month low of $2.77 and a 12 month high of $7.18.

Insiders Place Their Bets

In other news, CEO Najat Khan sold 23,588 shares of the company’s stock in a transaction on Friday, June 5th. The stock was sold at an average price of $3.58, for a total value of $84,445.04. Following the completion of the sale, the chief executive officer owned 2,175,796 shares in the company, valued at $7,789,349.68. This represents a 1.07% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Blake Borgeson sold 40,000 shares of the company’s stock in a transaction on Tuesday, July 7th. The shares were 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 in the company, valued at $24,624,416.52. This represents a 0.64% 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 ninety days, insiders have sold 101,937 shares of company stock valued at $381,374. 6.65% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Recursion Pharmaceuticals

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. ARK Investment Management LLC raised its holdings in shares of Recursion Pharmaceuticals by 11.2% during the fourth quarter. ARK Investment Management LLC now owns 37,316,856 shares of the company’s stock worth $152,626,000 after acquiring an additional 3,771,357 shares in the last quarter. State Street Corp increased its stake in shares of Recursion Pharmaceuticals by 38.7% during the 4th quarter. State Street Corp now owns 25,333,888 shares of the company’s stock worth $103,616,000 after purchasing an additional 7,064,963 shares during the last quarter. Geode Capital Management LLC raised its holdings in shares of Recursion Pharmaceuticals by 13.6% during the 4th quarter. Geode Capital Management LLC now owns 10,934,252 shares of the company’s stock valued at $44,731,000 after purchasing an additional 1,310,695 shares in the last quarter. Charles Schwab Investment Management Inc. raised its holdings in Recursion Pharmaceuticals by 16.0% during 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 lifted its position in shares of Recursion Pharmaceuticals by 109.9% in 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. Hedge funds and other institutional investors own 89.06% of the company’s stock.

Key Stories Impacting Recursion Pharmaceuticals

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

RXRX has been the subject of several research reports. JPMorgan Chase & Co. decreased their target price on Recursion Pharmaceuticals from $11.00 to $10.00 and set an “overweight” rating for the company in a research report on Thursday, April 30th. Morgan Stanley boosted their price objective on shares of Recursion Pharmaceuticals from $5.00 to $5.50 and gave the company an “equal weight” rating in a research report on Thursday, May 14th. Weiss Ratings restated a “sell (d-)” rating on shares of Recursion Pharmaceuticals in a research note on Friday, July 17th. Finally, Needham & Company LLC reaffirmed a “buy” rating and set a $8.00 target price on shares of Recursion Pharmaceuticals in a report on Thursday, May 7th. Two analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, Recursion Pharmaceuticals presently has an average rating of “Hold” and an average price target of $8.10.

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.