Recursion Pharmaceuticals (NASDAQ:RXRX) Issues Quarterly Earnings Results

Posted by Geri Gentry on Aug 6th, 2026

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

NASDAQ:RXRX opened at $3.17 on Thursday. Recursion Pharmaceuticals has a 52 week low of $2.77 and a 52 week high of $7.18. The company has a quick ratio of 5.47, a current ratio of 5.47 and a debt-to-equity ratio of 0.01. The company has a market capitalization of $1.68 billion, a P/E ratio of -2.64 and a beta of 1.03. The stock’s fifty day moving average is $3.33 and its two-hundred day moving average is $3.47.

Wall Street Analyst Weigh In

Several research analysts have recently weighed in on RXRX shares. JPMorgan Chase & Co. lowered their price target on shares of Recursion Pharmaceuticals from $11.00 to $10.00 and set an “overweight” rating on the stock in a research report on Thursday, April 30th. Weiss Ratings restated a “sell (d-)” rating on shares of Recursion Pharmaceuticals in a research report on Friday, July 17th. Morgan Stanley lifted 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. Finally, Needham & Company LLC reiterated a “buy” rating and issued a $8.00 target price on shares of Recursion Pharmaceuticals in a report on Thursday, May 7th. Two research 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. Based on data from MarketBeat, the stock presently has an average rating of “Hold” and a consensus price target of $8.10.

View Our Latest Research Report on Recursion Pharmaceuticals

Insider Buying and Selling at Recursion Pharmaceuticals

In related news, CEO Najat Khan sold 23,588 shares of the firm’s stock in a transaction dated Friday, June 5th. The stock was sold at an average price of $3.58, for a total transaction of $84,445.04. Following the completion of the sale, the chief executive officer directly owned 2,175,796 shares of the company’s stock, valued at approximately $7,789,349.68. This trade represents a 1.07% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Blake Borgeson sold 40,000 shares of the business’s stock in a transaction dated Tuesday, July 7th. The shares were sold at an average price of $3.96, for a total transaction of $158,400.00. Following the completion of the sale, the director owned 6,218,287 shares in the company, valued at approximately $24,624,416.52. This trade represents a 0.64% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders sold 101,937 shares of company stock worth $381,374. Corporate insiders own 6.65% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds have recently bought and sold shares of RXRX. Corient Private Wealth LLC acquired a new stake in shares of Recursion Pharmaceuticals during the fourth quarter valued at about $70,000. Invesco Ltd. raised its stake in shares of Recursion Pharmaceuticals by 25.8% in the 4th quarter. Invesco Ltd. now owns 526,144 shares of the company’s stock valued at $2,152,000 after acquiring an additional 107,979 shares during the period. Mercer Global Advisors Inc. ADV lifted its holdings in shares of Recursion Pharmaceuticals by 55.5% in the 4th quarter. Mercer Global Advisors Inc. ADV now owns 25,020 shares of the company’s stock worth $100,000 after acquiring an additional 8,935 shares during the last quarter. NewEdge Advisors LLC lifted its holdings in shares of Recursion Pharmaceuticals by 149.5% in the 4th quarter. NewEdge Advisors LLC now owns 33,757 shares of the company’s stock worth $138,000 after acquiring an additional 20,226 shares during the last quarter. Finally, XTX Topco Ltd boosted its position in shares of Recursion Pharmaceuticals by 104.0% during the 4th quarter. XTX Topco Ltd now owns 47,908 shares of the company’s stock worth $196,000 after purchasing an additional 24,421 shares during the period. 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 advanced the collaboration’s first neuroscience target into a joint early-discovery program, offering early validation of Recursion’s AI-enabled platform and potential future milestone or partnership value. Recursion Reports Second Quarter Financial Results
Positive Sentiment: Recursion said the FDA cleared the IND for REC-7735, a highly selective PI3Kα H1047R inhibitor, with the Phase 1/2 ZINNIA trial expected to begin in the second half of 2026. Additional REC-4881 Phase 2 data are also scheduled for presentation in November. Pipeline and Clinical Updates
Neutral Sentiment: Management guided to approximately $375 million in 2026 cash operating expenses and highlighted continued progress across its internal pipeline, including REC-1245, REC-617, REC-3565 and REC-4539. The spending outlook may support a longer runway, but also underscores the company’s significant cash needs before products generate meaningful revenue. Recursion 2026 Cash Operating Expense Guidance
Negative Sentiment: Second-quarter revenue fell to $7.67 million from $19.22 million a year earlier and missed the $10.97 million consensus estimate by a wide margin. Recursion reported a $0.25 per-share loss, slightly worse than the expected $0.24 loss, which likely drove the negative investor reaction. Recursion Reports Second-Quarter Results
Negative Sentiment: Despite improving from a $0.41 per-share loss a year earlier, Recursion remains deeply unprofitable, with a reported negative net margin of approximately 843%. Analysts also continue to view the valuation as demanding relative to the company’s current revenue and development-stage risk. Recursion Valuation Analysis

About Recursion Pharmaceuticals

(Get Free Report)

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.