Recursion Pharmaceuticals (RXRX) AI Stock Analysis

• Market Cap: $2.78B
• Dividend Yield: N/A
• Average Volume (3M): 31.54M
• Price to Earnings (P/E): ―
• Beta (1Y): 3.28
• Revenue Growth: 29.32%
• EPS Growth: -11.00%
• Country: US
• Employees: 800
• Sector: Healthcare
• Sector Strength: 40
• Industry: Biotechnology
• EPS (TTM): -0.50
• Shares Outstanding: 425,280,640
• 10 Day Avg. Volume: 36,240,729
• 30 Day Avg. Volume: 31,542,558
• PEG Ratio: 0.56
• Price to Book (P/B): 2.27
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -5.28
• Enterprise Value/Market Cap: 0.60
• Enterprise Value/Revenue: 7.21
• Enterprise Value/Gross Profit: -36.49K
• Enterprise Value/Ebitda: -1.00
• 1Y Price Target: $6.25
• Price Target Upside: -2.80% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 5

• Rating: 61 Neutral
• Price Target: $7.00 ▲(8.86%Upside)

Recursion Pharmaceuticals' stock score is primarily influenced by technical analysis indicating strong upward momentum, offset by financial performance challenges and valuation concerns. Strategic partnerships and pipeline advancements are promising, but profitability and cash flow issues, along with a workforce reduction strategy, highlight significant risks.

Positive Factors

Partnership Success

Partnerships appear to be progressing well, with another $7M milestone received from Sanofi and potential for $300M for the program.

Pipeline Focus

The re-focusing of the pipeline is seen as a net positive that should help the market narrow in on key data sets.

Strategic Acquisition

Recursion acquired full rights to Rallybio's REV102, a preclinical oral ENPP1 inhibitor for hypophosphatasia, which could provide a strategic advantage.

Negative Factors

Cash Burn Concerns

Elevated cash burn and dilutive financing are concerning despite the potential for positive surprises from collaboration milestones.

Program Deprioritization

The discontinuation of the NF2, CCM, and C. difficile programs reflects a cut in the most advanced assets in the portfolio.

Workforce Reduction

Recursion announced a ~20% workforce reduction.

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 primarily makes money through partnerships with pharmaceutical companies and other biotech firms, where they collaborate on drug discovery and development projects using Recursion's technology platform. These partnerships often include upfront payments, milestone payments tied to the development progress, and potential royalties on products that reach the market. Additionally, the company may also generate revenue through licensing its proprietary platform and technology to other companies, enabling them to use Recursion's AI-driven insights into drug discovery and development. Significant partnerships and collaborations with leading pharmaceutical companies contribute to Recursion's revenue model, allowing them to leverage external expertise and financial resources to further their research and development activities.

Recursion Pharmaceuticals Financial Statement Overview

Summary

Recursion Pharmaceuticals demonstrates substantial revenue growth, but consistent profitability challenges persist. The company maintains a stable balance sheet with low leverage, though it relies heavily on external financing due to negative cash flows and operational inefficiencies.

Income Statement

Recursion Pharmaceuticals shows consistent revenue growth with a significant increase from $3.41 million in 2020 to $59.76 million in TTM 2025. However, the company is struggling with profitability, evidenced by negative gross profit margins and large net losses over the years. EBIT and EBITDA margins are also negative, reflecting ongoing operational challenges.

Balance Sheet

The company's balance sheet shows a relatively healthy equity position with a debt-to-equity ratio of 0.10 in TTM 2025. However, Recursion Pharmaceuticals has been accumulating losses, which could affect future equity. The equity ratio is strong, indicating a low level of leverage. There is a consistent cash reserve, but total liabilities have increased over time.

Cash Flow

The company faces negative free cash flow, but there is a significant operating cash flow improvement from -$453.99 million in 2020 to -$388.83 million in TTM 2025. The free cash flow to net income ratio indicates that cash outflows exceed income, and the company is reliant on external financing for capital needs, as seen in consistent positive financing cash flows.

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

Recursion Pharmaceuticals Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 6.43
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RXRX, the sentiment is Positive. The current price of 6.43 is above the 20-day moving average (MA) of 5.49, above the 50-day MA of 5.02, and above the 200-day MA of 6.25, indicating a bullish trend. The MACD of 0.32 indicates Negative momentum. The RSI at 67.25 is Neutral, neither overbought nor oversold. The STOCH value of 65.68 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for RXRX.

Recursion Pharmaceuticals Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HRMY	80 Outperform	$2.14B	14.19	24.71%	―	20.62%	14.08%
NAMS	62 Neutral	$2.69B	―	-31.51%	―	―	―
RXRX	61 Neutral	$2.78B	―	-86.10%	―	29.32%	-11.00%
ARQT	54 Neutral	$1.73B	―	-70.58%	―	100.03%	64.22%
Sector *	52 Neutral	$7.61B	0.04	-62.94%	2.44%	16.14%	0.33%
DNLI	45 Neutral	$2.10B	―	-35.21%	―	-100.00%	-144.79%
MTSR	40 Underperform	$4.14B	―		―	―	―

Recursion Pharmaceuticals Corporate Events

Recursion Pharmaceuticals Acquires ENPP1 Inhibitor Program

On July 8, 2025, Recursion Pharmaceuticals acquired full ownership of the ENPP1 inhibitor program, REV102, from Rallybio, aiming to develop a potential first-in-class oral treatment for hypophosphatasia (HPP), a rare genetic disorder. This acquisition is expected to accelerate the development of REV102, leveraging Recursion’s AI/experimental platform to enhance insights and delivery of the treatment, which could significantly impact patients with limited access to existing therapies and potentially reduce long-term management costs.

The most recent analyst rating on (RXRX) stock is a Hold with a $5.00 price target. To see the full list of analyst forecasts on Recursion Pharmaceuticals stock, see the RXRX Stock Forecast page.

Recursion Pharmaceuticals Holds Annual Stockholder Meeting

On June 18, 2025, Recursion Pharmaceuticals held its annual meeting of stockholders where key proposals were voted on. Stockholders elected three Class I directors to serve until 2028, approved the executive compensation plan, and ratified the appointment of PricewaterhouseCoopers LLP as the independent registered public accounting firm for 2025. These decisions are expected to influence the company’s governance and financial oversight in the coming years.

The most recent analyst rating on (RXRX) stock is a Hold with a $8.00 price target. To see the full list of analyst forecasts on Recursion Pharmaceuticals stock, see the RXRX Stock Forecast page.

Recursion Pharmaceuticals Announces Workforce Reduction Strategy

On June 10, 2025, Recursion Pharmaceuticals announced a 20% reduction in its workforce and infrastructure as part of a streamlined operating strategy. This move is expected to extend the company’s cash runway into the fourth quarter of 2027, despite incurring approximately $11 million in charges related to severance and employee benefits in 2025. The company anticipates cash burn to be under $450 million in 2025 and less than $390 million in 2026, with potential cash inflows exceeding $100 million from milestone payments by the end of 2026. These strategic changes aim to optimize Recursion’s financial position and operational efficiency, potentially impacting its market positioning and stakeholder interests.

The most recent analyst rating on (RXRX) stock is a Hold with a $8.00 price target. To see the full list of analyst forecasts on Recursion Pharmaceuticals stock, see the RXRX Stock Forecast page.

Recursion Pharmaceuticals Registers Shares for Resale

On May 9, 2025, Recursion Pharmaceuticals filed a prospectus supplement to register for resale over 4.2 million shares of its Class A common stock, which were issued to Tempus Labs as payment for annual license fees under a Master Agreement. This move, made under an exemption from registration, reflects Recursion’s strategic financial operations and its ongoing collaboration with Tempus Labs, potentially impacting its market positioning and shareholder value.

Recursion Pharmaceuticals Reports Q1 Results and Strategy Update

On May 5, 2025, Recursion Pharmaceuticals reported its first-quarter financial results and business updates, highlighting a focused R&D strategy with a streamlined portfolio in oncology and rare diseases. The company achieved a significant milestone in its collaboration with Sanofi, generating $7 million for a promising autoimmune disease treatment, and continues to advance its partnerships with Roche and Genentech in neuroscience and GI oncology. The company also announced strategic decisions to deprioritize certain programs, ensuring resources are allocated to high-potential projects, and extended its cash runway until mid-2027.