Recursion Pharmaceuticals (NASDAQ:RXRX) Issues Quarterly Earnings Results

Key Points

• Recursion reported Q1 EPS of ($0.22), beating the consensus of ($0.30), but revenue plunged 56.8% YoY to $6.47M versus $15.78M expected, leaving the company with a very large negative net margin.
• Pipeline progress: company-reported clinical proof‑of‑concept for REC-4881 in FAP with durable polyp reductions and ongoing FDA engagement; early Phase I data for REC-1245 showed no dose‑limiting toxicities and PD target engagement with fuller readouts expected in H2, and REC-4539 has dosed its first patient with initial data due H2 2027.
• Balance sheet and market reaction: Recursion holds about $665M in cash with management saying runway into early 2028 and 2026 cash OpEx guidance under $390M; the stock traded at $3.42 (+1.3%) and the consensus analyst rating is a "Hold" (target ~$9.20) amid recent insider selling.

Recursion Pharmaceuticals (NASDAQ:RXRX - Get Free Report) announced its quarterly earnings results on Wednesday. The company reported ($0.22) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.30) by $0.08, FiscalAI reports. Recursion Pharmaceuticals had a negative net margin of 863.37% and a negative return on equity of 63.98%. The firm had revenue of $6.47 million during the quarter, compared to analysts' expectations of $15.78 million. During the same period in the prior year, the company posted ($0.50) EPS. The company's revenue was down 56.8% on a year-over-year basis.

Here are the key takeaways from Recursion Pharmaceuticals' conference call:

• REC-4881: Company-reported clinical proof-of-concept in FAP showing significant reductions in precancerous polyps with durable responses, and ongoing FDA engagement to define a potential registrational path.
• REC-1245 (RBM39 degrader): Early DAHLIA Phase I data from 16 patients report no dose-limiting toxicities, PD-confirmed target engagement and PK supportive of daily dosing, with more dose-escalation and fuller PK/PD readouts expected in H2.
• REC-4539 (LSD1 inhibitor): First patient dosed in Phase I for a molecule designed to reduce thrombocytopenia risk and that is brain-penetrant; initial PK and safety data are expected in H2 2027.
• Platform and model advances (TxPert, TxFM) and company-reported efficiency claims — e.g., >50 PB of multimodal data, ~90% fewer compounds synthesized and ~2x faster progress to development candidates — are being deployed but remain company-reported metrics to be independently validated by future outcomes.
• Financial position: $665M in cash, asserted runway into early 2028, a 30% year-over-year reduction in operating expenses, and 2026 cash OpEx guidance under $390M, which management says funds near-term milestones without additional financing.

Recursion Pharmaceuticals Stock Up 1.3%

NASDAQ RXRX traded up $0.05 on Wednesday, hitting $3.42. 14,705,881 shares of the company were exchanged, compared to its average volume of 16,692,518. The company has a market cap of $1.80 billion, a PE ratio of -2.31 and a beta of 1.05. Recursion Pharmaceuticals has a 12 month low of $2.80 and a 12 month high of $7.18. The stock has a fifty day moving average of $3.40 and a 200-day moving average of $4.16. The company has a current ratio of 5.50, a quick ratio of 5.50 and a debt-to-equity ratio of 0.01.

Analyst Upgrades and Downgrades

A number of research firms have recently commented on RXRX. Wall Street Zen lowered shares of Recursion Pharmaceuticals from a "hold" rating to a "sell" rating in a research note on Saturday, March 28th. Needham & Company LLC reaffirmed a "buy" rating and issued a $8.00 price objective on shares of Recursion Pharmaceuticals in a research note on Thursday, February 26th. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Recursion Pharmaceuticals in a research note on Tuesday, April 21st. JPMorgan Chase & Co. reduced their price objective on shares of Recursion Pharmaceuticals from $11.00 to $10.00 and set an "overweight" rating on the stock in a research note on Thursday, April 30th. Finally, Bank of America reduced their price objective 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, February 25th. Two equities research analysts have rated the stock with a Buy rating, two have given a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, Recursion Pharmaceuticals currently has a consensus rating of "Hold" and a consensus target price of $9.20.

Insider Buying and Selling

In related news, Director Blake Borgeson sold 30,000 shares of the stock in a transaction on Tuesday, April 7th. The shares were sold at an average price of $3.10, for a total transaction of $93,000.00. Following the transaction, the director directly owned 6,229,863 shares of the company's stock, valued at $19,312,575.30. This represents a 0.48% decrease in their ownership of the stock. The sale was disclosed in a legal 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, CFO Ben R. Taylor sold 13,426 shares of the stock in a transaction on Wednesday, February 18th. The stock was sold at an average price of $3.08, for a total transaction of $41,352.08. Following the transaction, the chief financial officer directly owned 1,195,349 shares in the company, valued at approximately $3,681,674.92. This represents a 1.11% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 79,680 shares of company stock valued at $256,121 over the last ninety days. 8.43% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of RXRX. State Street Corp raised its holdings in shares of Recursion Pharmaceuticals by 38.7% in the fourth quarter. State Street Corp now owns 25,333,888 shares of the company's stock valued at $103,616,000 after purchasing an additional 7,064,963 shares during the last quarter. ARK Investment Management LLC boosted its position in 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 purchasing an additional 3,771,357 shares during the period. Millennium Management LLC bought a new position in Recursion Pharmaceuticals during the fourth quarter worth about $6,118,000. Geode Capital Management LLC boosted its position in Recursion Pharmaceuticals by 13.6% during the fourth quarter. Geode Capital Management LLC now owns 10,934,252 shares of the company's stock worth $44,731,000 after purchasing an additional 1,310,695 shares during the period. Finally, Two Sigma Investments LP boosted 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 valued at $11,960,000 after acquiring an additional 1,282,992 shares during the period. Institutional investors and hedge funds own 89.06% of the company's stock.

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.

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