Recursion Pharmaceuticals (NASDAQ:RXRX) Announces Earnings Results, Beats Expectations By $0.07 EPS

Recursion Pharmaceuticals (NASDAQ:RXRX) announced its earnings results on Wednesday. The company reported ($0.21) EPS for the quarter, beating analysts’ consensus estimates of ($0.28) by $0.07, FiscalAI reports. Recursion Pharmaceuticals had a negative return on equity of 72.74% and a negative net margin of 1,637.81%.The firm had revenue of $35.54 million for the quarter, compared to analysts’ expectations of $24.56 million. During the same quarter in the prior year, the firm earned ($0.53) EPS. Recursion Pharmaceuticals’s quarterly 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 3.6%

Shares of RXRX traded down $0.14 during mid-day trading on Thursday, reaching $3.63. The company had a trading volume of 5,915,233 shares, compared to its average volume of 21,482,066. Recursion Pharmaceuticals has a fifty-two week low of $2.98 and a fifty-two week high of $8.59. The firm has a fifty day simple moving average of $4.20 and a 200-day simple moving average of $4.72. The stock has a market cap of $1.89 billion, a price-to-earnings ratio of -2.01 and a beta of 0.95. The company has a current ratio of 4.60, a quick ratio of 4.60 and a debt-to-equity ratio of 0.01.

Key Recursion Pharmaceuticals News

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

• Positive Sentiment: Q4 results beat expectations: narrower loss of $0.21/sh (vs. -$0.28 est.) and revenue of $35.5M, up ~672% YoY — a topline beat that reflects milestone payments and helped extend the company’s cash runway. Recursion Reports Q4 Beat (Zacks)
• Positive Sentiment: Clinical and partner milestones: company reported first clinical validation of its AI platform in FAP and multiple advancing programs; Recursion also noted the fifth milestone with Sanofi (totaling ~$134M in payments to date), which supports near‑term revenue visibility. Business Update & Milestones (Yahoo)
• Positive Sentiment: Analyst support: Needham reaffirmed a Buy and set an $8 price target, implying significant upside from current levels — a catalyst for investor interest if the story continues to de‑risk. Needham Reaffirmed Buy (TickerReport)
• Neutral Sentiment: Earnings call materials and transcript are available for deeper diligence (management commentary on milestones, pipeline timing and cash runway). Earnings Call Transcript (Seeking Alpha)
• Neutral Sentiment: Corporate release and slide deck detail program milestones and financials for Q4/full‑year 2025 for investors to review. Press Release & Deck (GlobeNewswire)
• Negative Sentiment: Profitability and valuation remain concerns: the company is still deeply unprofitable (very negative net margin and ROE), and analysts expect further annual losses — factors that limit multiple expansion absent clearer path to sustained profitability. Earnings Summary & Financial Metrics (MarketBeat)
• Negative Sentiment: Technical/market pressure: current price sits below key moving averages and near the one‑year low, so momentum and short‑term sentiment can remain weak even after positive operational news. Chart & Technicals (MarketBeat)

Analyst Upgrades and Downgrades

RXRX has been the subject of several analyst reports. Morgan Stanley set a $11.00 target price on shares of Recursion Pharmaceuticals in a research note on Wednesday, December 17th. JPMorgan Chase & Co. raised shares of Recursion Pharmaceuticals from a “neutral” rating to an “overweight” rating and boosted their price objective for the company from $10.00 to $11.00 in a research report on Wednesday, December 17th. Needham & Company LLC reissued a “buy” rating and set a $8.00 price objective on shares of Recursion Pharmaceuticals in a research note on Thursday. UBS Group set a $11.00 target price on shares of Recursion Pharmaceuticals in a research note on Wednesday, December 17th. Finally, Bank of America cut their price target on Recursion Pharmaceuticals from $7.00 to $6.00 and set a “neutral” rating for the company in a report on Wednesday. Two research analysts have rated the stock with a Buy rating, four have given a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, the stock currently has an average rating of “Hold” and an average price target of $8.83.

Insider Buying and Selling

In other news, CFO Ben R. Taylor sold 21,383 shares of the firm’s stock in a transaction dated Monday, December 29th. The stock was sold at an average price of $4.18, for a total value of $89,380.94. Following the transaction, the chief financial officer directly owned 761,550 shares in the company, valued at $3,183,279. This trade represents a 2.73% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, insider Najat Khan sold 124,403 shares of Recursion Pharmaceuticals stock in a transaction dated 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 directly 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 disclosure for this sale is available in the SEC filing. In the last ninety days, insiders have sold 819,212 shares of company stock valued at $3,523,950. 8.43% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several hedge funds have recently bought and sold shares of RXRX. NewEdge Advisors LLC grew its stake in Recursion Pharmaceuticals by 28.1% during the second quarter. NewEdge Advisors LLC now owns 11,061 shares of the company’s stock worth $56,000 after buying an additional 2,428 shares during the period. Equitable Holdings Inc. lifted its holdings in shares of Recursion Pharmaceuticals by 7.1% during the 3rd quarter. Equitable Holdings Inc. now owns 39,400 shares of the company’s stock valued at $192,000 after acquiring an additional 2,600 shares in the last quarter. Daiwa Securities Group Inc. boosted its position in Recursion Pharmaceuticals by 29.3% during the 2nd quarter. Daiwa Securities Group Inc. now owns 12,706 shares of the company’s stock worth $64,000 after purchasing an additional 2,883 shares during the period. Focus Partners Wealth increased its holdings in Recursion Pharmaceuticals by 29.4% in the 3rd quarter. Focus Partners Wealth now owns 18,555 shares of the company’s stock valued at $91,000 after purchasing an additional 4,215 shares in the last quarter. Finally, MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its holdings in Recursion Pharmaceuticals by 2.6% in the 3rd quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 208,760 shares of the company’s stock valued at $1,020,000 after purchasing an additional 5,266 shares in the last quarter. Hedge funds and other institutional investors own 89.06% of the company’s stock.

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.