Recursion Pharmaceuticals (NASDAQ:RXRX) Announces Quarterly Earnings Results

Recursion Pharmaceuticals (NASDAQ:RXRX) posted its quarterly earnings data on Wednesday. The company reported ($0.21) EPS for the quarter, topping analysts’ consensus estimates of ($0.28) by $0.07, FiscalAI reports. Recursion Pharmaceuticals had a negative return on equity of 66.70% and a negative net margin of 863.37%.The company had revenue of $35.54 million for the quarter, compared to analyst estimates of $24.56 million. During the same quarter in the previous year, the firm earned ($0.53) earnings per share. The business’s revenue 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 Down 4.9%

NASDAQ:RXRX traded down $0.19 during mid-day trading on Friday, hitting $3.59. The company had a trading volume of 7,237,546 shares, compared to its average volume of 21,434,539. The company has a debt-to-equity ratio of 0.01, a quick ratio of 4.60 and a current ratio of 4.60. Recursion Pharmaceuticals has a fifty-two week low of $2.98 and a fifty-two week high of $7.89. The firm has a market cap of $1.86 billion, a P/E ratio of -2.42 and a beta of 0.95. The business’s fifty day moving average is $4.19 and its two-hundred day moving average is $4.71.

Insider Activity

In other news, insider Najat Khan sold 124,403 shares of the company’s stock in a transaction that occurred on Monday, December 22nd. The shares were sold at an average price of $4.41, for a total value of $548,617.23. Following the completion of the transaction, the insider owned 611,135 shares in the company, valued at $2,695,105.35. This represents a 16.91% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Blake Borgeson sold 220,000 shares of the company’s stock in a transaction on Tuesday, February 3rd. The stock was sold at an average price of $4.20, for a total transaction of $924,000.00. Following the completion of the transaction, the director directly owned 6,429,863 shares of the company’s stock, valued at approximately $27,005,424.60. The trade was a 3.31% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 819,212 shares of company stock valued at $3,523,950 in the last ninety days. 8.43% of the stock is owned by insiders.

Institutional Trading of Recursion Pharmaceuticals

A number of hedge funds and other institutional investors have recently modified their holdings of the stock. ARK Investment Management LLC lifted its holdings in Recursion Pharmaceuticals by 11.2% during the 4th quarter. ARK Investment Management LLC now owns 37,316,856 shares of the company’s stock worth $152,626,000 after purchasing an additional 3,771,357 shares during the last quarter. State Street Corp raised 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 period. Geode Capital Management LLC raised its stake in shares of Recursion Pharmaceuticals by 13.6% in the fourth 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 during the period. Charles Schwab Investment Management Inc. increased its holdings in Recursion Pharmaceuticals by 16.0% in the 4th quarter. Charles Schwab Investment Management Inc. now owns 3,994,651 shares of the company’s stock worth $16,338,000 after acquiring an additional 549,631 shares during the last quarter. Finally, Two Sigma Investments LP increased its stake 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 purchasing an additional 1,282,992 shares in the last quarter. Institutional investors and hedge funds own 89.06% of the company’s stock.

Analyst Ratings Changes

Several brokerages recently issued reports on RXRX. UBS Group set a $11.00 price target on shares of Recursion Pharmaceuticals in a research report on Wednesday, December 17th. Bank of America decreased their price target on shares of Recursion Pharmaceuticals from $7.00 to $6.00 and set a “neutral” rating on the stock in a research note on Wednesday. Weiss Ratings restated a “sell (d-)” rating on shares of Recursion Pharmaceuticals in a research report on Thursday, January 22nd. Needham & Company LLC reissued a “buy” rating and issued a $8.00 target price on shares of Recursion Pharmaceuticals in a research note on Thursday. Finally, JPMorgan Chase & Co. upgraded Recursion Pharmaceuticals from a “neutral” rating to an “overweight” rating and boosted their target price for the stock from $10.00 to $11.00 in a research report on Wednesday, December 17th. Two investment analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat.com, the company has a consensus rating of “Hold” and an average price target of $8.83.

Key Headlines Impacting Recursion Pharmaceuticals

Here are the key news stories impacting Recursion Pharmaceuticals this week:

• Positive Sentiment: Q4 beat — Recursion reported a narrower-than-expected loss (EPS -$0.21 vs. consensus -$0.28) and revenue that comfortably beat estimates, driven in part by a Roche milestone; management said the revenue jump extends runway into 2028. RXRX Q4 Loss Narrower Than Expected
• Positive Sentiment: Clinical validation milestone — Recursion highlighted progress moving programs into the clinic (notably REC-4881), supporting the narrative that its AI/biotech platform is producing drug candidates with real clinical value. Recursion Hits Clinical Milestones
• Positive Sentiment: Analyst support — Needham reaffirmed a Buy and raised a bullish $8 price target, which can fuel momentum among growth-oriented investors. Needham Buy Rating
• Neutral Sentiment: Earnings-call detail — Management emphasized partnerships, capital allocation and platform progress but acknowledged ongoing discovery challenges; the call provides color but few concrete near-term commercial catalysts. Earnings Call Highlights
• Neutral Sentiment: Full disclosure available — Transcripts and the investor presentation were posted for deeper review (useful for modelers and longer-term holders). Earnings Presentation
• Negative Sentiment: Still unprofitable with wide historical losses — despite the beat, Recursion remains loss-making and subject to binary clinical and discovery risks; consensus still expects negative EPS for the year. Zacks on Q4
• Negative Sentiment: Price technicals & liquidity — the stock remains below its 50- and 200-day moving averages and volume on the move was light versus its longer-term average, leaving it vulnerable to pullbacks if follow-through buying fades. AAII Market Note

About Recursion Pharmaceuticals

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.