Recursion Pharmaceuticals (RXRX) AI Stock Analysis

• Market Cap: $2.17B
• Dividend Yield: N/A
• Average Volume (3M): 61.25M
• Price to Earnings (P/E): ―
• Beta (1Y): 3.26
• Revenue Growth: 30.14%
• EPS Growth: -10.08%
• Country: US
• Employees: 800
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -0.36
• Shares Outstanding: 427,312,960
• 10 Day Avg. Volume: 42,387,588
• 30 Day Avg. Volume: 61,249,880
• PEG Ratio: -0.57
• Price to Book (P/B): 1.79
• Price to Sales (P/S): 31.50
• P/FCF Ratio: -4.97
• Enterprise Value/Market Cap: 0.00
• Enterprise Value/Revenue: 0.00
• Enterprise Value/Gross Profit: 0.00
• Enterprise Value/Ebitda: 0.00
• 1Y Price Target: $6.40
• Price Target Upside: 29.03% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 41 Neutral
• Price Target: $4.50 ▼(-9.27% Downside)

Recursion Pharmaceuticals faces significant financial and valuation challenges, with declining revenues, persistent losses, and a negative P/E ratio. Technical indicators also suggest a bearish trend. While the company has a strong cash position and promising partnerships, these factors are overshadowed by the financial and market risks, resulting in a low overall stock score.

Positive Factors

Strong Cash Position

A strong cash position ensures operational stability and supports long-term strategic initiatives without immediate need for external funding.

Strategic Partnerships

Significant partnership inflows highlight Recursion's ability to leverage collaborations for revenue and innovation, enhancing its competitive edge.

Leadership Transition

The leadership transition to Najat Khan, with her expertise in AI and biopharma, is likely to drive strategic innovation and growth.

Negative Factors

Negative Profit Margins

Persistent negative profit margins indicate operational inefficiencies, which could hinder long-term profitability and financial health.

Cash Flow Challenges

Negative cash flows suggest liquidity issues, potentially limiting Recursion's ability to fund operations and invest in growth opportunities.

Clinical Uncertainty

Clinical uncertainty in key trials poses risks to Recursion's pipeline success and future revenue streams, impacting investor confidence.

Recursion Pharmaceuticals Business Overview & Revenue Model

Company Description

Recursion Pharmaceuticals, Inc. operates as a clinical-stage biotechnology company, engages in the decoding biology by integrating technological innovations across biology, chemistry, automation, data science, and engineering to industrialize drug discovery. The company develops REC-994, which is in Phase IIa clinical trial to treat cerebral cavernous malformation; REC-2282 for the treatment of neurofibromatosis type 2; REC-4881 to treat familial adenomatous polyposis; and REC-3599, which is in Phase I clinical trial to treat GM2 gangliosidosis. Its preclinical stage product includes REC-3964 to treat Clostridium difficile colitis; REC-64917 for the treat of neural or systemic inflammation; REC-65029 to treat HRD-negative ovarian cancer; REC-648918 to enhance anti-tumor immune; REC-2029 for the treatment of wnt-mutant hepatocellular carcinoma; REC-14221 to treat solid and hematological malignancies; and REC-64151 for the treatment of immune checkpoint resistance in KRAS/STK11 mutant non-small cell lung cancer. The company has collaboration and agreement with Bayer AG; the University of Utah Research Foundation; Ohio State Innovation Foundation; Chromaderm, Inc.; and Takeda Pharmaceutical Company Limited. Recursion Pharmaceuticals, Inc. was incorporated in 2013 and is headquartered in Salt Lake City, Utah.

How the Company Makes Money

Recursion Pharmaceuticals generates revenue through a combination of drug development partnerships, licensing agreements, and potential future product sales. The company collaborates with other pharmaceutical companies and research institutions, which may include co-development arrangements that provide upfront payments, milestone payments based on development progress, and royalties on future product sales. Additionally, Recursion's advanced platform allows it to create value by identifying new therapeutic targets and potential drug candidates, which can lead to strategic partnerships and collaborations with larger biopharmaceutical firms. The company's focus on rare diseases often attracts grants and funding from both public and private sources, contributing to its overall financial sustainability.

Recursion Pharmaceuticals Financial Statement Overview

Summary

Recursion Pharmaceuticals is experiencing revenue growth, but profitability remains a significant challenge. The company has a solid equity base and low leverage, which are strengths. However, negative profit margins and cash flow issues highlight the need for operational improvements and cost management to achieve financial stability.

Income Statement

Recursion Pharmaceuticals shows a consistent increase in revenue, with a TTM growth rate of 8.04%. However, the company is struggling with negative profit margins, including a gross profit margin of -3.57% and a net profit margin of -10.05% in the TTM. The EBIT and EBITDA margins are also negative, indicating operational inefficiencies. The company needs to focus on improving its cost structure to achieve profitability.

Balance Sheet

The company maintains a low debt-to-equity ratio of 0.096, suggesting conservative leverage. However, the return on equity is negative at -76.07%, reflecting significant losses relative to shareholder equity. The equity ratio stands at 70.58%, indicating a strong equity base relative to total assets, which is a positive aspect.

Cash Flow

Recursion Pharmaceuticals faces challenges with negative operating and free cash flows, with a TTM operating cash flow of -$383 million. The free cash flow growth rate is negative, and the operating cash flow to net income ratio is -2.34, indicating cash flow issues. The free cash flow to net income ratio is slightly positive at 1.02, suggesting some alignment between cash flow and reported earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	43.53M	58.84M	44.58M	39.68M	10.00M	3.41M
Gross Profit	-25.94M	13.60M	1.99M	-8.59M	896.00K	-59.91M
EBITDA	-667.78M	-426.72M	-299.57M	-227.66M	-174.42M	-81.70M
Net Income	-715.54M	-463.66M	-328.07M	-239.42M	-178.07M	-87.88M
Balance Sheet
Total Assets	1.40B	1.45B	653.70M	701.29M	610.35M	298.58M
Cash, Cash Equivalents and Short-Term Investments	659.84M	594.35M	391.56M	549.91M	516.56M	262.13M
Total Debt	82.37M	108.49M	50.67M	51.01M	11.48M	15.66M
Total Liabilities	352.58M	413.82M	190.26M	215.48M	67.41M	504.87M
Stockholders Equity	1.05B	1.03B	463.44M	485.81M	542.94M	-206.29M
Cash Flow
Free Cash Flow	-448.04M	-372.87M	-300.33M	-120.88M	-198.41M	-52.13M
Operating Cash Flow	-441.17M	-359.17M	-287.78M	-83.52M	-158.61M	-45.40M
Investing Cash Flow	259.83M	260.06M	-10.23M	193.25M	-271.74M	-8.74M
Financing Cash Flow	400.17M	304.12M	140.13M	154.34M	458.54M	246.13M

Recursion Pharmaceuticals Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 4.96
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RXRX, the sentiment is Negative. The current price of 4.96 is below the 20-day moving average (MA) of 5.83, below the 50-day MA of 5.28, and below the 200-day MA of 5.72, indicating a bearish trend. The MACD of -0.03 indicates Positive momentum. The RSI at 41.14 is Neutral, neither overbought nor oversold. The STOCH value of 5.92 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for RXRX.

Recursion Pharmaceuticals Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ADPT	65 Neutral	$2.58B	-20.78	-57.55%	―	21.60%	44.48%
AGIO	59 Neutral	$2.33B	―	-27.57%	―	36.26%	-158.98%
ARQT	59 Neutral	$2.94B	―	-28.17%	―	129.21%	80.35%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
GLPG	46 Neutral	$2.01B	―	-10.10%	―	―	―
IRON	43 Neutral	$3.22B	―	-26.36%	―	―	-22.19%
RXRX	41 Neutral	$2.17B	―	-86.34%	―	30.14%	-10.08%

Recursion Pharmaceuticals Corporate Events

Recursion Pharmaceuticals Announces New CEO Appointment

Recursion Pharmaceuticals announced significant leadership changes effective January 1, 2026, with Najat Khan, Ph.D., appointed as the new Chief Executive Officer and President, while Christopher Gibson, Ph.D., transitions to Chair of the Board. This leadership transition is accompanied by a strong financial performance, with the company achieving over $500 million in milestone and upfront payments from partnerships, including a recent $30 million milestone from Roche and Genentech. The company continues to advance its internal and partnered programs, leveraging its AI-driven platform, Recursion OS, to drive innovation in drug discovery and development.

The most recent analyst rating on (RXRX) stock is a Hold with a $5.50 price target. To see the full list of analyst forecasts on Recursion Pharmaceuticals stock, see the RXRX Stock Forecast page.

Roche Exercises Option with Recursion Pharmaceuticals

On October 29, 2025, Recursion Pharmaceuticals announced that Roche exercised its option for the Microglia Map, a pioneering whole genome map of brain immune cells, under their collaboration agreement. As a result, Roche will pay Recursion an Acceptance Fee of $30 million, highlighting the significant impact of this collaboration on Recursion’s operations and industry positioning.

The most recent analyst rating on (RXRX) stock is a Hold with a $7.00 price target. To see the full list of analyst forecasts on Recursion Pharmaceuticals stock, see the RXRX Stock Forecast page.

Recursion Pharmaceuticals Advances REC-4881 Study for Familial Adenomatous Polyposis

Recursion Pharmaceuticals, Inc. is currently conducting a clinical study titled ‘A Phase 1b-2, Multicenter, Trial To Evaluate The Efficacy, Safety, Pharmacokinetics, And Pharmacodynamics Of REC-4881 in Patients With Familial Adenomatous Polyposis (FAP)’. The study aims to assess the effectiveness and safety of REC-4881, a drug designed to treat Familial Adenomatous Polyposis, a hereditary condition that can lead to colorectal cancer.

Recursion Pharmaceuticals Advances with REC-1245 Cancer Study

Recursion Pharmaceuticals, Inc. is conducting a clinical study titled A Phase 1 / 2, Open-Label Study of REC-1245 in Participants With Unresectable, Locally Advanced, or Metastatic Cancer. The study aims to evaluate the safety, tolerability, pharmacokinetics, pharmacodynamics, and preliminary activity of REC-1245, an oral drug administered once daily, in patients with advanced solid tumors.

Recursion Pharmaceuticals Reports Q2 2025 Financial Results

Recursion Pharmaceuticals, Inc. is a clinical stage TechBio company that leverages advanced technology to decode biology and improve lives, primarily operating in the biotechnology sector.

Recursion Pharmaceuticals’ Earnings Call Highlights Progress and Challenges

The recent earnings call for Recursion Pharmaceuticals, Inc. painted a picture of both progress and challenges. The sentiment was largely positive, highlighting advancements in technology and strategic partnerships, particularly with Boltz-2 and the ClinTech platform. However, the company acknowledged ongoing challenges in key programs such as CDK7 and FAP, which have yet to demonstrate decisive success or clear regulatory pathways.