Recursion Pharmaceuticals Inc
🔔 Watch stock
Assessment
Our Rating
A journalistic assessment by our editorial team at the time of the deep dive — it rates the company, not the entry point. Not investment advice and not a solicitation to buy or sell.
The business works in principle, but one material question is open. As long as it stays open, our findings do not carry a quality verdict.
Why this colour
Yellow because the decisive operating question is open while the substance is not acutely at risk: after twelve years the business model has not produced revenue that covers its own direct cost — in the first quarter of 2026, $6.5 million of revenue cost $12.5 million — and proof that the Recursion OS turns into approved medicines is still outstanding. Red lacks evidence: no going-concern indication, $1,024.8 million of equity, $665.2 million of liquidity against $18.7 million of financial debt, and a cash runway of roughly eight quarters (figures as of March 31, 2026 and December 31, 2025). The unremediated control weaknesses and the heavy dilution weigh on the verdict but do not tip it: the financial statements themselves carry an unqualified opinion, and only an immaterial error has resulted so far. That the stock is expensive on revenue belongs in the valuation, not in the quality light. The decision is yours.
What the thesis turns on
Assessment: Opportunities & Risks
Recursion is the anchoring trap in pure form: the annual report names the possibility of over $20 billion of future milestones — and right beside it stands $74.7 million of revenue (2025), a $644.8 million net loss and a first quarter of 2026 in which $6.5 million of revenue carried $12.5 million of direct cost. The balance sheet is robust, with $665.2 million of liquidity and almost no debt, and the company guides to a runway into early 2028; it was paid for with a share count that grew from 191.0 million to 530.8 million, and a further $300 million facility stands ready to draw. Add a control system without an auditor's opinion and a founder who has left both the executive suite and the board. Not investment advice.
Balance sheet & financing
As of March 31, 2026 the company held $665.2 million of cash including restricted cash and $1,024.8 million of equity against virtually no financial debt ($18.7 million as of December 31, 2025). At the latest quarterly operating cash burn of $81.1 million that covers roughly eight quarters; the company itself guides to a runway into early 2028.
Earning power of revenue
Revenue does not cover its own direct cost: in all four separately reported quarters to date, cost of revenue was higher — Q1 2025 ($14.7 million against $21.8 million), Q2 2025 ($19.2 million against $20.2 million), Q3 2025 ($5.2 million against $14.7 million) and Q1 2026 ($6.5 million against $12.5 million). The $3.7 million full-year 2025 gross profit ($74.7 million minus $71.0 million) derives entirely from the closing quarter. Quarterly revenue fell 56 percent as Roche project phases ran out.
Dilution
The share count (Class A, B and Exchangeable) rose from 191.0 million at the end of 2022 to 530.8 million as of March 31, 2026; 99.9 million shares were added in 2025 alone for net proceeds of $491.7 million. A further $300 million sales facility — roughly 19 percent of the market value of about $1.6 billion (data as of July 28, 2026) — sat untouched and available as of March 31, 2026.
Controls & governance
The auditor judged internal control over financial reporting not effective as of December 31, 2025; the weaknesses from the Exscientia acquisition date back to fiscal year 2024 and were still considered unremediated as of March 31, 2026. The financial statements themselves received an unqualified opinion, and only an immaterial error has resulted so far. Co-founder Christopher Gibson left the board at the annual meeting on June 17, 2026.
Platform & pipeline
There is a first clinical signal from the company's own platform: in the Phase 2 readout, REC-4881 reduced polyp burden in FAP by a median of 43 percent at week 13 and 53 percent at week 25, and engagement with the FDA on a registrational path is under way. At the same time three clinical programs were halted in May 2025, and no compound has an approval.
Partner base
Roche and Genentech, Sanofi, Bayer and Merck KGaA have together provided more than $500 million of upfront and milestone payments, most recently $30 million in October 2025. The "over $20 billion" of potential further milestones named in the annual report is fully constrained for accounting purposes; the Roche contract carries a transaction price of $210.0 million. In 2025 two customers accounted for substantially all operating revenue.
Worth Noting
Research hook: a price-to-sales ratio of about 24 alongside quarterly revenue down 56 percent (data as of July 28, 2026), plus the striking cluster of Form 144 notices in the SEC filing history since July 2026.
Data basis: annual report on Form 10-K for 2025 (filed February 25, 2026), quarterly report on Form 10-Q as of March 31, 2026 (filed May 6, 2026), plus the 10-Q reports as of June 30 and September 30, 2025 for the quarterly series, and every filing submitted afterwards through July 27, 2026. The market value from the fundamental data was cross-checked against share count times the sale price documented in the Form 144 (deviation below one percent).
Possible confusion: Recursion Pharmaceuticals, Inc. was named Recursion Pharmaceuticals, LLC before the IPO — the same entity after a pure change of legal form, not a successor company. Exscientia plc, the British drug designer acquired in 2024, has not been separately listed since.
The "over $20 billion" named in the annual report is the sum of theoretically achievable milestones across all partnership contracts and is fully constrained for accounting purposes — it is not a receivable and appears in no balance sheet line.
Stock Watch
This analysis is as of August 26, 2026. Stock Watch will tell you what's changed at RXRX since then.
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Price history
Chart
Interactive price chart (TradingView).
52-week range: 2.80 $ to 6.80 $ · Last price: 3.50 $ (As of: September 17, 2026)
Key figures
Key figures at a glance
Every figure we hold for this stock, grouped by topic. The question mark next to a label explains what the number means.
Basics
Performance
Technical Indicators
Calculated from the price history · as of 09/18/2026
Valuation
Profitability
Balance Sheet & Safety
Growth
Dividend
This stock currently pays no dividend.
Quality & Screener
Comparison
Industry comparison
The stock alongside the largest companies in the same group. The median row is the middle value of the companies shown above — not of the whole industry.
Industry: Biotechnology
| Company | Market cap ($B) | P/E | EV/EBITDA | Gross Margin % | EBIT Margin % | Sales Growth (Year) % | Perf. 1Y % |
|---|---|---|---|---|---|---|---|
| Recursion Pharmaceuticals Inc RXRX | 1.9 | – | -5.3 | -715.7 | – | 26.9 | -24.8 |
| Vertex Pharmaceuticals Inc VRTX | 130.6 | 31.3 | 24.5 | 55.0 | 38.1 | 9.6 | 33.4 |
| Regeneron Pharmaceuticals Inc REGN | 82.0 | 19.9 | 13.1 | 44.5 | 20.7 | 1.0 | 35.5 |
| Moderna Inc MRNA | 62.7 | – | 4.6 | -66.0 | -131.1 | -39.2 | 532.3 |
| argenx NV ARGX | 61.9 | 38.1 | 34.2 | 59.1 | 32.0 | 89.6 | 30.9 |
| Revolution Medicines Inc RVMD | 40.9 | – | -9.7 | -174,708.6 | 0.0 | -100.0 | 338.3 |
| BeiGene, Ltd. ONC | 40.0 | 63.1 | 34.1 | 88.9 | 19.1 | 40.2 | 6.4 |
| Alnylam Pharmaceuticals Inc ALNY | 32.6 | 61.8 | 28.4 | 79.7 | 23.0 | 65.2 | -48.1 |
| Royalty Pharma Plc RPRX | 32.5 | 31.8 | 19.6 | 95.8 | 100.3 | 5.1 | 68.6 |
| Median of companies shown | 40.9 | 34.9 | 19.6 | 55.0 | 21.8 | 9.6 | 33.4 |
Based on the most recently reported figures. Only stocks from the same trading venue are lined up, so the market caps are counted in one currency. Compare in a chart →
Fiscal years
Annual Figures
Fiscal years from the audited annual reports, oldest first. EBIT is the operating profit before interest and taxes; total assets are everything the company owns.
Revenue, operating income and net income per fiscal year $M
Revenue Operating income Net income
| Fiscal Year | Revenue ($M) | EBIT ($M) | Net Income ($M) | EPS ($) | Operating Cash Flow ($M) | Equity ($M) | Total Assets ($M) |
|---|---|---|---|---|---|---|---|
| 2019 | 2 | -62 | -63 | -0.38 | -57 | -124 | 101 |
| 2020 | 3 | -85 | -87 | -0.52 | -45 | -206 | 299 |
| 2021 | 10 | -183 | -178 | -1.05 | -159 | 543 | 610 |
| 2022 | 40 | -246 | -239 | -1.36 | -84 | 486 | 701 |
| 2023 | 44 | -350 | -328 | -1.58 | -288 | 463 | 654 |
| 2024 | 59 | -479 | -464 | -1.69 | -359 | 1,035 | 1,449 |
| 2025 | 75 | -648 | -645 | -1.44 | -372 | 1,131 | 1,474 |
Quarters
Quarterly Figures
Each bar is one quarter, the last one is the most recent. Use the switch to step through the individual figures.
Revenue & Profit
Cash Flow
Balance Sheet
Margins
Per Share
Click the chart or tab into it, then use ← and → to step through the periods.
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· Total · per year
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The figures could not be loaded right now.
Source: fundamental data
| Quarter | EPS (Earnings Per Share) | EPS YoY (%) | Sales ($M) | Sales YoY (%) | Net Margin (%) | OCF ($M) | FCF ($M) |
|---|---|---|---|---|---|---|---|
| 2024: Q4 | -0.53 | – | 5 | -57.50 | -3,966.00 | -115 | -117 |
| 2025: Q1 | -0.50 | – | 15 | 9.30 | -1,373.30 | -132 | -134 |
| 2025: Q2 | -0.41 | – | 19 | 32.60 | -899.80 | -76 | -80 |
| 2025: Q3 | -0.36 | – | 5 | -80.20 | -3,135.30 | -117 | -118 |
| 2025: Q4 | -0.21 | – | 36 | 687.80 | -304.20 | -46 | -47 |
| 2026: Q1 | -0.22 | – | 7 | -56.10 | -1,815.60 | -81 | -81 |
| 2026: Q2 | -0.25 | 39.00 | 8 | -59.70 | -1,701.30 | -106 | -106 |
What Do These Terms Mean?
- EPS (Earnings Per Share):
- Quarterly profit divided by the total share count — how much of the profit works out to a single share.
- YoY (Year over Year):
- Change versus the same quarter a year ago — this is how you compare without seasonal distortion (e.g. the holiday shopping season).
- Sales:
- All revenue for the quarter, before any costs are deducted — the top line of the income statement.
- Net Margin:
- What percentage of sales is left over as profit in the end. Negative means the company is posting a loss.
- OCF (Operating Cash Flow):
- The cash that actually flows into the till from the core business during the quarter — harder to dress up than book profit.
- FCF (Free Cash Flow):
- Operating cash flow minus capital expenditures — the money that's genuinely free to use, say for paying down debt, buybacks, or dividends.
Screening
Appears in These Scanners
This stock currently matches 8 of our scanner strategies — each hit links to the scanner.
Breakout & Setup
Momentum & Trend
Research
Risk & Weakness
Only genuine hits from verified scanners count; pure ranking metrics (P/E, P/S, and similar, which just sort the whole universe) don't count as a hit. Scanners marked in red are red-flag signals (risk/short scanners) — appearing there is not a seal of approval. View all scanners
Outlook
Analysts & Price Target
Combined picture of the price targets and recommendations of every analyst covering the stock. Price targets are expectations for the next 12 months, not promises — and they often follow the price rather than predict it.
Distribution of Recommendations
Estimates by Fiscal Year
| Fiscal Year | EPS Estimate ($) | EPS Range ($) | Revenue Estimate ($M) | Expected Growth | Analysts |
|---|---|---|---|---|---|
| 12/31/2026 | -0.92 | -0.97 – -0.89 | 43 | 35.9% | 7 |
| 12/31/2027 | -0.89 | -1.04 – -0.70 | 56 | 3.0% | 7 |
Average of the analyst estimates for the coming fiscal years. The range shows how far the most optimistic and the most cautious estimate sit apart — the wider it is, the less certain the expectation.
Valuation
What is priced in?
Free cash flow over the past twelve months is negative, which rules out a serious reverse calculation. Any growth rate only makes a negative cash flow more negative; no present value comes out of it. What the price reflects here is therefore not a stream of cash flows, but the expectation that there will be one at all.
A simplified model calculation — not a forecast and not a recommendation.
AI classification
AI Rating
Recursion verkauft KI-gestützte Wirkstoffforschung als Dienstleistung: Der gesamte ausgewiesene Umsatz stammt aus Forschungsallianzen mit Roche/Genentech, Sanofi, Bayer und Merck KGaA, in denen laut Geschäftsbericht 10-K für 2025 ausdrücklich die „AI-native“ Plattform Recursion OS die vertraglich geschuldete Leistung erbringt.
View the full file — quotes, sources, reviewed filings
„Pursuant to the Amended CLA, we will use our artificial intelligence-driven, end-to-end integrated platform to discover and validate novel targets in the oncology and immunology therapeutic areas."
Nach der geänderten Kooperations- und Lizenzvereinbarung werden wir unsere von künstlicher Intelligenz getriebene, durchgängig integrierte Plattform nutzen, um neuartige Zielstrukturen in den Therapiegebieten Onkologie und Immunologie zu entdecken und zu validieren.
10-K · 2026-02-25 · View SEC filing
„The Recursion OS is a unified, AI-native operating system for drug discovery and development that integrates biology, chemistry, and clinical execution end-to-end."
Das Recursion OS ist ein einheitliches, von Grund auf KI-basiertes Betriebssystem für Wirkstoffforschung und -entwicklung, das Biologie, Chemie und klinische Umsetzung durchgängig zusammenführt.
10-K · 2026-02-25 · View SEC filing
„In January 2022, we entered a strategic research collaboration with Sanofi to develop an AI-driven pipeline of precision-engineered, small molecule medicines."
Im Januar 2022 sind wir eine strategische Forschungskooperation mit Sanofi eingegangen, um eine KI-getriebene Pipeline präzise entworfener niedermolekularer Medikamente zu entwickeln.
10-K · 2026-02-25 · View SEC filing
„Operating revenue is generated through research and development agreements derived from strategic alliances."
Der operative Umsatz entsteht aus Forschungs- und Entwicklungsvereinbarungen, die aus strategischen Allianzen hervorgehen.
10-Q · 2026-05-06 · View SEC filing
Filings Reviewed: 10-Q 2026-05-06 · 10-K 2026-02-25 · 10-Q 2025-11-05 · 10-Q 2025-08-05 · 10-Q 2025-05-05 · 10-K 2025-02-28
Rated on July 29, 2026 · How the Rating Is Built
Growth
Growth Score
Ten checks against the annual reports — each one passed counts a point.
- Revenue grows by more than 15% a year over three years 23.5%
- More than 10% revenue growth is expected for the coming year 67.8%
- Share count grows by less than 3% a year 36.6%
- Revenue growth plus cash-flow margin add up to at least 40 ("Rule of 40") -479.6%
- Gross margin at 40% or higher and without meaningful erosion -62.0%
- Goodwill from acquisitions does not grow faster than revenue 11.0%
- Net debt below twice EBITDA 665 m net cash
- Operating cash flow covers the profits of the last three years 418 m
- Return on capital at 15% or higher, or up versus two years ago -48.9%
- Insiders hold at least 10% or are net buyers 2.3%
A criterion without figures counts neither as passed nor as failed; a score is only produced from 7 judgeable criteria upwards. Source: fundamental data. All ten criteria in detail
Quality check
AAQS
2/10The AAQS (AlleAktien Quality Score) checks 10 quality criteria on growth, profitability, and balance-sheet strength — per the methodology developed and published by AlleAktien, calculated by us from our own fundamental data. A stock counts as a quality stock from 9 out of 10 points. Where a company has a shorter listing history, we calculate over the fiscal years available (at least five).
- Sales growth 10Y > 5% 87.7%
- Exp. sales growth 3Y > 5% -13.2%
- EBIT growth 10Y > 5% –
- Exp. EBIT growth 3Y > 5% -13.2%
- Net debt < 4x EBIT –
- EBIT positive, 10Y straight 0
- Max. EBIT decline < 50% –
- Return on equity > 15% -97.9%
- ROCE > 15% -48.9%
- Expected return > 10% -30.8%
View stocks with the full AAQS score · Read the methodology at AlleAktien
Source: fundamental data
Insiders
Insider Transactions
Reportable transactions by officers and major shareholders from SEC Form 4 filings. "Other" includes things like stock grants and option exercises without a buy/sell character.
| Date | Person | Role | Type | Shares | Price | Value |
|---|---|---|---|---|---|---|
| Sep 15, 2026 | Taylor Ben R | Chief Financial Officer | Other | 5,396 | 3.41 | 18,400 |
| Sep 8, 2026 | Khan Najat | CEO and President | Sell | 22,408 | 3.52 | 78,822 |
| Sep 1, 2026 | Borgeson Blake | Director | Sell | 30,000 | 3.34 | 100,200 |
| Aug 17, 2026 | Khan Najat | CEO and President | Other | 80,498 | 3.16 | 254,374 |
| Aug 17, 2026 | Hallett David | Chief Scientific Officer | Other | 26,657 | 3.16 | 84,236 |
| Aug 17, 2026 | Taylor Ben R | Chief Financial Officer | Other | 25,018 | 3.16 | 79,057 |
| Aug 4, 2026 | Borgeson Blake | Director | Sell | 30,000 | 3.25 | 97,500 |
| Jul 7, 2026 | Borgeson Blake | Director | Sell | 40,000 | 3.96 | 158,500 |
The company
About the Company
Recursion Pharmaceuticals, Inc., ein Biotechnologieunternehmen in der klinischen Phase, beschäftigt sich mit der Entschlüsselung von Biologie und Chemie durch die Integration technologischer Innovationen aus Biologie, Chemie, Automatisierung, Datenwissenschaft und Engineering zur Industrialisierung der Wirkstoffforschung in den USA und in…
- CEO Insider Trades (12 Mo.)
- selling own stock
- Employees
- 600
- Headquarters
- Salt Lake City, UT
- Address
- 41 South Rio Grande Street, 84101 Salt Lake City, United States
- Phone
- 385 269 0203
- Website
- recursion.com
- IPO Date
- 04/16/2021
- ISIN
- US75629V1044
Management
| Name | Title | Birth Year |
|---|---|---|
| Najat Khan Ph.D. | CEO, President & Director | 1984 |
| Ben R. Taylor | CFO & President of Recursion UK | 1977 |
| Benjamin Mabey M.S. | Chief Technology Officer | 1983 |
| David Hallett Ph.D. | Chief Scientific Officer | 1969 |
| Nathan Hatfield J.D., M.B.A. | Chief Legal Officer & Corporate Secretary | – |
| Ryan Kelly | Chief Communications Officer | – |
| Erica Fox | Chief People and Impact Officer | – |
| Matthew Kinn M.B.A. | Chief Business Officer | – |
| Sid Jain | Senior Vice President of Clinical Development & Data Science | – |
| Vicki L. Goodman M.D. | Chief Medical Officer | 1971 |
Executives per the latest required filings; titles kept in their original language. Source: fundamental data.
Filings
Company Filings (8-K)
An 8-K is the filing a US company must use to disclose material events immediately — takeovers, changes at the top, major contracts or payment troubles, for instance. The links open the original document at the US Securities and Exchange Commission (SEC).
- 08/05/2026 RECURSION PHARMACEUTICALS, INC. (RXRX): Results of Operations and Financial Condition; Regulation FD Disclosure; Financial Statements and Exhibits SEC ↗
Data as of: September 17, 2026 · Source: fundamental data & SEC filings (annual and quarterly reports, 10-K/10-Q)
Note: pure fact-based analysis, not investment advice and not a solicitation to buy or sell. All figures without guarantee.