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

Recursion Pharmaceuticals (NASDAQ:RXRX) announced its quarterly earnings data on Wednesday. The company reported ($0.25) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.24) by ($0.01), FiscalAI reports. The firm had revenue of $7.67 million for the quarter, compared to analysts’ expectations of $10.97 million. Recursion Pharmaceuticals had a negative net margin of 945.94% and a negative return on equity of 48.61%. During the same period in the prior year, the business 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 PI3K? 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 Trading Up 0.8%

Shares of NASDAQ RXRX traded up $0.03 during trading hours on Friday, hitting $3.21. The company’s stock had a trading volume of 5,122,206 shares, compared to its average volume of 18,390,934. Recursion Pharmaceuticals has a 12 month low of $2.77 and a 12 month high of $7.18. The stock has a market cap of $1.70 billion, a price-to-earnings ratio of -3.08 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. The business has a 50-day simple moving average of $3.32 and a 200-day simple moving average of $3.45.

Analysts Set New Price Targets

Several research analysts have commented on the stock. Needham & Company LLC reissued a “buy” rating and set a $8.00 price target on shares of Recursion Pharmaceuticals in a research note on Thursday, May 7th. Morgan Stanley increased their target price on shares of Recursion Pharmaceuticals from $5.00 to $5.50 and gave the company an “equal weight” rating in a report on Thursday, May 14th. JPMorgan Chase & Co. decreased their target price 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. Finally, Weiss Ratings restated a “sell (d-)” rating on shares of Recursion Pharmaceuticals in a research report on Friday, July 17th. Two investment analysts have rated the stock with a Buy rating, two have given a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the stock has an average rating of “Hold” and a consensus price target of $8.10.

Insider Activity at Recursion Pharmaceuticals

In other news, Director Blake Borgeson sold 30,000 shares of Recursion Pharmaceuticals stock in a transaction that occurred on Tuesday, August 4th. The stock was sold at an average price of $3.25, for a total value of $97,500.00. Following the sale, the director directly owned 6,188,287 shares in the company, valued at approximately $20,111,932.75. This trade represents a 0.48% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Najat Khan sold 23,588 shares of the business’s stock in a transaction that occurred on Friday, June 5th. The shares were sold at an average price of $3.58, for a total value of $84,445.04. Following the transaction, the chief executive officer directly owned 2,175,796 shares in the company, valued at $7,789,349.68. This trade represents a 1.07% 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 quarter, insiders sold 131,937 shares of company stock valued at $478,874. Company insiders own 6.65% of the company’s stock.

Institutional Trading of Recursion Pharmaceuticals

Institutional investors have recently added to or reduced their stakes in the business. NewEdge Advisors LLC lifted its position in Recursion Pharmaceuticals by 28.1% during the second quarter. NewEdge Advisors LLC now owns 11,061 shares of the company’s stock valued at $56,000 after purchasing an additional 2,428 shares during the last quarter. Equitable Holdings Inc. boosted its holdings in shares of Recursion Pharmaceuticals by 7.1% in the 3rd quarter. Equitable Holdings Inc. now owns 39,400 shares of the company’s stock worth $192,000 after purchasing an additional 2,600 shares during the period. Daiwa Securities Group Inc. increased its position in shares of Recursion Pharmaceuticals by 29.3% during the 2nd quarter. Daiwa Securities Group Inc. now owns 12,706 shares of the company’s stock valued at $64,000 after purchasing an additional 2,883 shares during the last quarter. Focus Partners Wealth raised its holdings in Recursion Pharmaceuticals by 29.4% during the 3rd quarter. Focus Partners Wealth now owns 18,555 shares of the company’s stock valued at $91,000 after buying an additional 4,215 shares during the period. Finally, MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its position in Recursion Pharmaceuticals by 2.6% in the third quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 208,760 shares of the company’s stock worth $1,020,000 after buying an additional 5,266 shares during the last quarter. 89.06% of the stock is currently 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.