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olivLaw · US equity research

Recursion Pharmaceuticals, Inc. RXRX

Biological Products, (No Diagnostic Substances) · SIC 2836 · Vertical: Biological Products, (No Diagnostic Substances) (SIC 2836)

3.88USD+5.43% · 1 dayClose 04 Nov 2026

Recursion Pharmaceuticals is a clinical-stage biotechnology company that uses its AI platform, the Recursion OS, to discover and develop medicines, both in-house and through partnerships with large pharmaceutical companies. The company has no approved products, and its revenue comes from partner payments, with 74.7 million dollars in total revenue in 2025, so the stakes lie in validating the platform through clinical data and milestones reached.

The AI analysis may be outdated: new filings came after its sources (see the «AI analysis» section).

At the close of 04 Nov 2026, Recursion Pharmaceuticals, Inc. (RXRX) stock was 3.88 USD (+5.43% on the day), with market capitalisation 2.4 bn USD, beta 2.77, 52-week range 2.84–4.96 USD. Latest reported quarter (Q3 2026): revenue of 18.6 m USD (+258.5% YoY), net income of -119.0 m USD, diluted EPS -0.22 USD.

Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.

Market cap
2.4 bn USD
shares as of 26 Oct 2026
P/E (TTM)
unavailable
Diluted EPS TTM -0.90 · TTM to 30 Sept 2026
E/P (TTM)
-23.13%
TTM to 30 Sept 2026
Dividend yield
unavailable
Beta (2y)
2.77
Volatility (1y) 74%
52-week range
2.844.96

Price history

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Technical reading

RSI (14)
50.1
neutral
Bollinger (20, 2)
3.37 – 4.38
in the upper half of the band · %B 0.50 · band width 26.1%
SMA 50 / 200
3.77 / 3.52
uptrend (price > SMA50 > SMA200)
MACD (12, 26, 9)
0.02 / 0.04
MACD below signal

Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).

Performance

CompanyS&P 500vs S&P 500Vertical median
1 month−18.8%−1.1%−17.7 pp—
3 months+22.4%−0.5%+22.8 pp—
6 months+13.1%+4.4%+8.7 pp—
Year to date−5.1%+12.3%−17.5 pp—
1 year−22.4%+13.5%−35.9 pp+9.1%
3 years−34.3%+76.4%−110.8 pp+16.5%
5 years−79.8%+63.7%−143.5 pp—
Max drawdown (1y)
−42.7%
05 Nov 2025 → 30 Mar 2026
Max drawdown (5y)
−86.3%
07 Dec 2021 → 30 Mar 2026
Compound annual growth (5y)
−27.4%
S&P 500 +10.4%

Price returns, dividends excluded.

Quarterly results

Latest quarter: Q3 2026 · 30 Sept 2026

Revenue
18.6 m USD
+258.5% YoY
Net income
-119.0 m USD
unavailable YoY
Diluted EPS
-0.22
unavailable YoY
net / operating
-641.6% / -663.9%

Quarterly margins

Quarterly statements · USD

Fiscal yearQ4 '24Q1 '25Q2 '25Q3 '25Q4 '25Q1 '26Q2 '26Q3 '26
Revenue4.5 m14.7 m19.2 m5.2 m35.5 m6.5 m7.7 m18.6 m
Cost of revenue12.8 m21.8 m20.2 m14.7 m14.3 m12.5 m11.5 m10.0 m
Research & development98.3 m129.6 m128.6 m121.1 m95.9 m87.9 m89.6 m99.1 m
Operating income-183.8 m-191.4 m-176.2 m-172.2 m-108.3 m-128.5 m-135.0 m-123.2 m
Depreciation & amortisation13.0 m19.3 m23.8 m ≈21.0 m ≈19.5 m19.7 m18.2 m ≈16.5 m ≈
Interest expense605.0 k508.0 k480.0 k833.0 k-11.0 k350.0 k309.0 k266.0 k
Pre-tax income-178.9 m-202.6 m-171.9 m-162.3 m-108.1 m-122.1 m-131.0 m-119.0 m
Income tax7.0 k-158.0 k03.0 k20.0 k-4.6 m-1.0 k25.0 k
Net income-178.9 m-202.5 m-171.9 m-162.3 m-108.1 m-117.5 m-131.0 m-119.0 m
Diluted EPS-0.53 ≈-0.50-0.41-0.36-0.21 ≈-0.22-0.25-0.22
Operating cash flow-115.4 m-132.0 m-76.4 m ≈-117.4 m ≈-46.1 m-81.1 m-105.9 m ≈-77.4 m ≈
Capex1.3 m1.8 m3.2 m ≈243.0 k ≈1.2 m258.0 k44.0 k ≈407.0 k ≈

≈ derived quarter (cumulative difference / share-days average)

E/P over time

E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.

Fiscal years

Fiscal year2019202020212022202320242025
Revenue2.3 m4.0 m10.2 m39.8 m44.6 m58.8 m74.7 m
Revenue YoYunavailable+70.8%+156.9%+291.5%+11.9%+32.0%+26.9%
Net income-61.9 m-87.0 m-186.5 m-239.5 m-328.1 m-463.7 m-644.8 m
Net income YoYunavailableunavailableunavailableunavailableunavailableunavailableunavailable
Diluted EPS-2.87-3.99-1.49-1.36-1.58-1.69-1.44
Diluted EPS YoYunavailableunavailableunavailableunavailableunavailableunavailableunavailable
net %-2,668.3%-2,196.0%-1,832.2%-601.0%-736.0%-788.0%-863.4%
Free cash flow-61.0 m-51.2 m-198.4 m-120.6 m-299.7 m-372.9 m-378.3 m

Reported results vs expectations

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Balance sheet & financial health

Fiscal year 2025 · 31 Dec 2025

Cash
743.3 m USD
Financial debt
9.1 m USD
Net debt
-734.2 m USD
Equity
1.1 bn USD
Total assets
1.5 bn USD
Debt / equity
0.01x
Current ratio
5.50x
ROE
-59.5%
ROA
-44.1%
FCF margin
-506.5%

Financial statements (source on every figure)

Revenue and net income (USD)

Margins

Income statement · USD

Revenue
2023
44.6 m
2024
58.8 m
2025
74.7 m

SEC (XBRL)· 25 Feb 2026verified

Cost of revenue
2023
42.6 m
2024
45.2 m
2025
71.0 m

SEC (XBRL)· 25 Feb 2026verified

Gross profit
2023
2.0 m ≈
2024
13.6 m ≈
2025
3.7 m ≈

SEC (XBRL)· 25 Feb 2026derived

Research & development
2023
241.2 m
2024
314.4 m
2025
475.3 m

SEC (XBRL)· 25 Feb 2026verified

Operating income
2023
-350.1 m
2024
-479.0 m
2025
-648.1 m

SEC (XBRL)· 25 Feb 2026verified

Depreciation & amortisation
2023
24.4 m
2024
36.5 m
2025
83.7 m

SEC (XBRL)· 25 Feb 2026verified

EBITDA
2023
-325.7 m ≈
2024
-442.5 m ≈
2025
-564.4 m ≈

SEC (XBRL)· 25 Feb 2026derived

Interest expense
2023
97.0 k
2024
1.6 m
2025
1.8 m

SEC (XBRL)· 25 Feb 2026verified

Pre-tax income
2023
-332.1 m
2024
-464.8 m
2025
-644.9 m

SEC (XBRL)· 25 Feb 2026verified

Income tax
2023
-4.1 m
2024
-1.1 m
2025
-136.0 k

SEC (XBRL)· 25 Feb 2026verified

Net income
2023
-328.1 m
2024
-463.7 m
2025
-644.8 m

SEC (XBRL)· 25 Feb 2026verified

Diluted EPS
2023
-1.58
2024
-1.69
2025
-1.44

SEC (XBRL)· 25 Feb 2026verified

Weighted average diluted shares
2023
207.9 m
2024
274.2 m
2025
447.4 m

SEC (XBRL)· 25 Feb 2026verified

Balance sheet · USD

Cash
2023
391.6 m
2024
594.4 m
2025
743.3 m

SEC (XBRL)· 25 Feb 2026verified

Receivables
2023
—
2024
—
2025
—

SEC (XBRL)· 27 Feb 2023verified

Current assets
2023
438.1 m
2024
714.3 m
2025
812.8 m

SEC (XBRL)· 25 Feb 2026verified

Property, plant & equipment, net
2023
86.5 m
2024
141.1 m
2025
103.9 m

SEC (XBRL)· 25 Feb 2026verified

Goodwill
2023
52.1 m
2024
148.9 m
2025
162.2 m

SEC (XBRL)· 25 Feb 2026verified

Intangibles (excl. goodwill)
2023
36.4 m
2024
335.9 m
2025
309.9 m

SEC (XBRL)· 25 Feb 2026verified

Total assets
2023
653.7 m
2024
1.4 bn
2025
1.5 bn

SEC (XBRL)· 25 Feb 2026verified

Accounts payable
2023
4.0 m
2024
21.6 m
2025
18.1 m

SEC (XBRL)· 25 Feb 2026verified

Short-term debt
2023
41.0 k
2024
8.4 m
2025
9.1 m

SEC (XBRL)· 25 Feb 2026verified

Long-term debt
2023
—
2024
—
2025
—

SEC (XBRL)· 23 Mar 2022verified

Current liabilities
2023
93.2 m
2024
187.5 m
2025
147.7 m

SEC (XBRL)· 25 Feb 2026verified

Total liabilities
2023
190.3 m
2024
413.8 m
2025
343.3 m

SEC (XBRL)· 25 Feb 2026verified

Equity
2023
463.4 m †
2024
1.0 bn †
2025
1.1 bn †

SEC (XBRL)· 25 Feb 2026verified

Cash flow · USD

Operating cash flow
2023
-287.8 m
2024
-359.2 m
2025
-371.8 m

SEC (XBRL)· 25 Feb 2026verified

Capex
2023
12.0 m
2024
13.7 m
2025
6.5 m

SEC (XBRL)· 25 Feb 2026verified

Free cash flow
2023
-299.7 m ≈
2024
-372.9 m ≈
2025
-378.3 m ≈

SEC (XBRL)· 25 Feb 2026derived

Investing cash flow
2023
-10.2 m
2024
260.1 m
2025
-16.9 m

SEC (XBRL)· 25 Feb 2026verified

Financing cash flow
2023
140.1 m
2024
304.1 m
2025
521.5 m

SEC (XBRL)· 25 Feb 2026verified

Computed indicators

Growth

Revenue growth (YoY)
26.9%
computed by olivLawFY 2025
Revenue CAGR 3Y
23.3%
computed by olivLawFY 2022 → FY 2025
Revenue CAGR 5Y
79.9%
computed by olivLawFY 2020 → FY 2025
EBIT growth (YoY)
unavailable
the base of the ratio is not positive
Net income growth (YoY)
unavailable
the base of the ratio is not positive
Net income CAGR 3Y
unavailable
the base of the ratio is not positive
Net income CAGR 5Y
unavailable
the base of the ratio is not positive
EPS growth (YoY)
unavailable
the base of the ratio is not positive
EPS CAGR 3Y
unavailable
the base of the ratio is not positive
EPS CAGR 5Y
unavailable
the base of the ratio is not positive
FCF growth (YoY)
unavailable
the base of the ratio is not positive

Profitability

Gross margin
29.2%
computed by olivLawTTM to 30 Sept 2026
EBITDA margin
-617.2%
computed by olivLawTTM to 30 Sept 2026
EBIT margin
-725.4%
computed by olivLawTTM to 30 Sept 2026
Net margin
-697.1%
computed by olivLawTTM to 30 Sept 2026
FCF margin
-458.0%
computed by olivLawTTM to 30 Sept 2026

Returns

ROE
-48.7%
computed by olivLawTTM to 30 Sept 2026 · balance sheet at 30 Sept 2026
ROA
-36.3%
computed by olivLawTTM to 30 Sept 2026 · balance sheet at 30 Sept 2026
ROIC
-108.9%
computed by olivLawTTM to 30 Sept 2026 · balance sheet at 30 Sept 2026
ROCE
-45.0%
computed by olivLawTTM to 30 Sept 2026 · balance sheet at 30 Sept 2026
Payout ratio (EPS)
unavailable
input data missing
Payout ratio (FCF)
unavailable
input data missing

Balance sheet

Net debt
-538.0 m USD
computed by olivLawbalance sheet at 30 Sept 2026
Net debt / EBITDA
unavailable
insufficient data
Debt / equity
0.0x
computed by olivLawbalance sheet at 30 Sept 2026
Interest coverage
-541.6x
computed by olivLawTTM to 30 Sept 2026

Liquidity

Current ratio
5.0x
computed by olivLawbalance sheet at 30 Sept 2026
Quick ratio
unavailable
input data missing
Cash ratio
4.5x
computed by olivLawbalance sheet at 30 Sept 2026

Cash

Operating cash flow
-310.5 m USD
computed by olivLawTTM to 30 Sept 2026
Capital expenditure
2.0 m USD
computed by olivLawTTM to 30 Sept 2026
Free cash flow
-312.5 m USD
computed by olivLawTTM to 30 Sept 2026
FCF conversion
unavailable
insufficient data
Cash conversion
unavailable
insufficient data

Efficiency

Days sales outstanding
unavailable
input data missing
Days inventory outstanding
unavailable
input data missing
Days payables outstanding
115 days
computed by olivLawTTM to 30 Sept 2026 · balance sheet at 30 Sept 2026
Cash conversion cycle
unavailable
input data missing

Market and valuation

Market capitalisation
2.4 bn USD
computed by olivLawbalance sheet at 30 Sept 2026
Enterprise value
1.9 bn USD
computed by olivLawbalance sheet at 30 Sept 2026
Market cap / net income TTM
unavailable
insufficient data
P/E (TTM)
unavailable
insufficient data
Earnings yield
-23.1%
computed by olivLawTTM to 30 Sept 2026
P/B
2.7x
computed by olivLawbalance sheet at 30 Sept 2026
P/S
35.4x
computed by olivLawTTM to 30 Sept 2026 · balance sheet at 30 Sept 2026
EV/EBITDA
unavailable
insufficient data
EV/EBIT
unavailable
insufficient data
EV/Sales
27.5x
computed by olivLawTTM to 30 Sept 2026 · balance sheet at 30 Sept 2026
P/FCF
unavailable
the base of the ratio is not positive
FCF yield
-12.9%
computed by olivLawTTM to 30 Sept 2026 · balance sheet at 30 Sept 2026
Dividend yield
unavailable
no dividend in the structured statements; a missing line is not a confirmed zero
Shareholder yield (distributions)
unavailable
input data missing

1 indicators that do not apply to the sector.

Valuation

olivLaw classification

Insufficient data
What is missing
  • score weight coverage: 43.8% of at least 60%
  • valuation methods computed: 0 of at least 1

A scoring methodology on indicators and valuation, not investment advice.

Closing price

3.88 USD

04 Nov 2026Source: olivLaw, closing series

Market cap: 2.4 bn USD

Key indicators

Market capitalisation
2.4 bn USD
computed by olivLawbalance sheet at 30 Sept 2026
P/E (TTM)
unavailable
insufficient data
P/B
2.7x
computed by olivLawbalance sheet at 30 Sept 2026
EV/EBITDA
unavailable
insufficient data
ROE
-48.7%
computed by olivLawTTM to 30 Sept 2026 · balance sheet at 30 Sept 2026
Net margin
-697.1%
computed by olivLawTTM to 30 Sept 2026
Revenue growth (YoY)
26.9%
computed by olivLawFY 2025
Dividend yield
unavailable
no dividend in the structured statements; a missing line is not a confirmed zero

Coverage and freshness

31/37 reporting lines present
Latest full fiscal year: 2025
Latest reported period: 30 Sept 2026
Latest balance sheet date: 30 Sept 2026
Share count (cover of the latest filing), as of: 26 Oct 2026
Source: SEC (XBRL)published 02 Nov 2026
verified 906derived 74

Score by group

44% · Insufficient data

Estimated value range

unavailable — no valuation method could be computed

Valuation assumptions are editorial choices, not measured; beta is not measured.

Valuation methods

  • DCF (discounted cash flow)unavailable · the base of the ratio is not positive
  • Peers: EV/EBITDAunavailable · the base of the ratio is not positive
  • Peers: P/Eunavailable · the base of the ratio is not positive
  • Dividend discount (DDM)unavailable · the company pays no dividend: a dividend model needs an explicit initiation assumption

no valuation method could be computed

Multiple comparisons use the SIC vertical: Biological Products, (No Diagnostic Substances) (SIC 2836)

Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.

Assumptions (illustrative, editorial)

Risk-free rate
4.3%
Equity risk premium
5.0%
Beta (default)
1.00
Cost of equity
9.3%
Terminal growth
2.5%

Factor scorecard

Insufficient data

Minimum-evidence gate: score weight coverage: 43.8% of at least 60%; valuation methods computed: 0 of at least 1

FactorValueScoreWeight used
ROIC · Quality-108.9%14 (vs peers)24%
Net margin · Quality-697.1%25 (vs peers)14%
FCF conversion · Qualityunavailableunavailable—
Revenue CAGR 3Y · Growth23.3%100 (on a fixed band)19%
EPS CAGR 3Y · Growthunavailableunavailable—
Net debt / EBITDA · Balance sheetunavailableunavailable—
Interest coverage · Balance sheet-541.6x0 (on a fixed band)14%
Current ratio · Balance sheet5.0x100 (on a fixed band)10%
P/E (TTM) · Valuationunavailableunavailable—
EV/EBITDA · Valuationunavailableunavailable—
FCF yield · Valuation-12.9%0 (on a fixed band)19%
Shareholder yield (distributions) · Returnsunavailableunavailable—
Payout ratio (FCF) · Returnsunavailableunavailable—

Factors without a value were dropped; the remaining weights were renormalised.

Score groups

  • Balance sheet40/100 · 2/3 factors with a value
  • Growth· partial100/100 · 1/2 factors with a value
  • Quality18/100 · 2/3 factors with a value
  • Returns· partialunavailable · 0/2 factors with a value
  • Valuation· partial0/100 · 1/3 factors with a value

A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.

Memo

RECURSION PHARMACEUTICALS, INC. (RXRX). Latest full fiscal year: 2025; data up to 2026-09-30.

Figures computed from the financial statements: revenue 74.7 m USD in 2025; YoY growth 26.9%; net margin -697.1%; ROE -48.7%.

Valuation cannot be computed from the available data.

Insufficient data for a verdict (score weight coverage: 43.8% of at least 60%; valuation methods computed: 0 of at least 1).

Text generated deterministically from the figures shown; no language model. Not investment advice.

What supports the thesis

  • Revenue CAGR 3Y: 23.3%
  • Current ratio: 5.0x

What contradicts it

  • ROIC: -108.9%
  • Net margin: -697.1%
  • Interest coverage: -541.6x
  • FCF yield: -12.9%

Not assessed (insufficient data or a ratio without meaning): FCF conversion, EPS CAGR 3Y, Net debt / EBITDA, P/E (TTM), EV/EBITDA, Shareholder yield (distributions), Payout ratio (FCF).

Versus the vertical median

Biological Products, (No Diagnostic Substances) (SIC 2836) · same industry (4-digit SIC) · compared with 39 companies

Multiples and returns vs the median

P/E
—
vertical median 26.2x
EV/EBITDA
—
vertical median 23.5x
P/S
35.4x
vertical median 11.6x
above median (+206.2%)
P/B
2.7x
vertical median 3.6x
below median (−25.2%)
ROE
-48.7%
vertical median -36.5%
below median
Net margin
-697.1%
vertical median -101.5%
below median
EBIT margin
-725.4%
vertical median -149.0%
below median
Revenue YoY
26.9%
vertical median 6.3%
above median (+326.3%)
Net debt/EBITDA
—
vertical median 2.0x
Dividend yield
—
vertical median 1.2%

Price rebased to 100 (monthly, 5 years)

Companies in the vertical

Market capP/EROENet marginRevenue YoY1A / 3A
AMGNAmgen Inc.258.8 bn27.778.4%24.1%+10.0%+39% / +77%
GILDGilead Sciences, Inc.216.4 bn—-22.3%-12.5%+2.4%+39% / +128%
MRNAModerna, Inc.103.2 bn—-39.0%-141.4%−39.9%+895% / +233%
ARGXArgenx Se57.6 bn47.620.2%—+254.4%+2% / +107%
RVMDRevolution Medicines, Inc.43.2 bn—-93.6%-946.8%unavailable+157% / +756%
BIIBBiogen Inc.37.6 bn108.81.9%3.4%+2.2%+40% / +9%
EXELExelixis, Inc.17.8 bn21.744.3%35.5%+7.0%+65% / +234%
NBIXNeurocrine Biosciences, Inc.16.8 bn24.620.4%19.0%+21.4%+9% / +42%
HALOHalozyme Therapeutics, Inc.14.8 bn38.4173.7%24.9%+37.6%+83% / +238%
KYMRKymera Therapeutics, Inc.11.6 bn—-27.3%-341.8%−16.7%+101% / +556%
RGENRepligen Corp11.4 bn—-0.6%-1.5%+16.4%+4% / +13%
QGENQiagen N.V.11.0 bn26.211.6%20.3%+5.7%+6% / +20%
KRYSKrystal Biotech, Inc.9.2 bn42.217.5%47.9%+33.9%+43% / +198%
SCNIScinai Immunotherapeutics Ltd.6.2 bn—-91.9%-633.6%+99.2%−96% / −99%
DNLIDenali Therapeutics Inc.3.4 bn—-33.9%-1,470.5%unavailable+8% / +13%
RXRXRecursion Pharmaceuticals, Inc.2.4 bn—-48.7%-697.1%+26.9%−22% / −34%
BCRXBiocryst Pharmaceuticals, Inc.2.1 bn——-37.4%+94.1%+15% / +40%
VIRVir Biotechnology, Inc.2.0 bn—-21.8%-61.0%−7.6%+83% / +24%
EVAXEvaxion A1.2 bn—-100.2%-102.4%+125.1%−50% / −93%
DNAGinkgo Bioworks Holdings, Inc.742.2 m—-56.3%-260.0%−25.1%+26% / −77%
ATYRaTYR PHARMA INC606.2 m—-98.4%-32,003.7%−19.1%+691% / +375%
ALLOAllogene Therapeutics, Inc.411.1 m—-42.4%-3,566.7%−100.0%−18% / −49%
CCCCC4 Therapeutics, Inc.383.8 m—-48.1%-289.4%+1.0%+15% / +91%
XFORX4 Pharmaceuticals, Inc330.8 m—-80.3%-813.3%+150.0%−11% / −86%
IPSCCentury Therapeutics, Inc.302.4 m—-49.7%-100.6%+1,556.8%+206% / +22%

1- and 3-year price returns: for RXRX from daily closes (the same as the performance table), for the other companies from month-end closes.

olivLaw engine forecast

The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.

The engine has no published run for this company yet.

Valuation scenarios (editable assumptions)

Illustrative scenarios

Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.

Bear
Allowed range: -50 … 50%
Allowed range: -100 … 100%
Allowed range: 0 … 100
Allowed range: -10 … 20%
Allowed range: 0 … 100%
Base
Allowed range: -50 … 50%
Allowed range: -100 … 100%
Allowed range: 0 … 100
Allowed range: -10 … 20%
Allowed range: 0 … 100%
Bull
Allowed range: -50 … 50%
Allowed range: -100 … 100%
Allowed range: 0 … 100
Allowed range: -10 … 20%
Allowed range: 0 … 100%
Nothing is saved.

Estimated price (USD)

Estimated priceBearBaseBull
1 years
insufficient data
Total return unavailable · Per year unavailable
insufficient data
Total return unavailable · Per year unavailable
insufficient data
Total return unavailable · Per year unavailable
3 years
insufficient data
Total return unavailable · Per year unavailable
insufficient data
Total return unavailable · Per year unavailable
insufficient data
Total return unavailable · Per year unavailable
5 years
insufficient data
Total return unavailable · Per year unavailable
insufficient data
Total return unavailable · Per year unavailable
insufficient data
Total return unavailable · Per year unavailable
What moves the 3-year price the most

    AI analysis

    AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.

    Possibly outdated: the newest document it read is from 15 Oct 2026; since then the company filed 8-K (02 Nov 2026 · results), 10-Q (02 Nov 2026).

    In brief

    Recursion Pharmaceuticals is a clinical-stage biotechnology company that uses its AI platform, the Recursion OS, to discover and develop medicines, both in-house and through partnerships with large pharmaceutical companies. The company has no approved products, and its revenue comes from partner payments, with 74.7 million dollars in total revenue in 2025 1, so the stakes lie in validating the platform through clinical data and milestones reached.

    SWOT

    Strengths

    • The integrated AI platform covers the entire discovery and development chain, from biology to clinical studies 1.
    • Collaborations with large pharmaceutical companies bring payments and external validation of the technology 23.
    • The company has obtained first positive clinical data for an AI-based discovery platform, in FAP 1.

    Weaknesses

    • The company has no approved products and its revenue depends largely on partner payments 1.
    • Operating losses are significant and are expected to continue 1.
    • The company has a large accumulated deficit and depends on access to external capital 1.

    Opportunities

    • New candidates from collaborations, such as the one optioned by Sanofi, could generate additional payments 3.
    • Extending the platform to new therapies could open further partnerships.

    Threats

    • A clinical failure of a major program could reduce confidence in the platform and in partnerships.
    • Financing difficulties or shareholder dilution could limit program development.
    • Partners' decisions to delay or stop programs could reduce expected revenue 3.

    Risks

    • No approved productshigh

      The company has no medicines approved for sale and cannot guarantee it will obtain them, which makes its prospects hard to evaluate 1.

    • Continuing operating losseshigh

      The company has reported losses every year since inception and expects continued losses, without being able to predict when it will become profitable 1.

    • Need for additional capitalhigh

      The company will need additional funding; if it cannot raise it in time, it could reduce or stop programs 1.

    • Dependence on partnersmedium

      Payments and milestones depend on partners' decisions, which can delay or stop joint programs 3.

    • Shareholder dilutionmedium

      New share issuances for financing can reduce existing shareholders' stakes and may affect the share price 1.

    Investment thesis

    What would need to be true (bull case)

    • The AI platform has produced positive clinical data in FAP and could lead to a registration path for the medicine if results are maintained 12.
    • Collaborations with large companies bring payments and can validate the technology at industrial scale 23.
    • If new candidates reach clinical phases, the company could diversify risk across several programs.

    What would break the thesis

    • The company has no approved products and its revenue is still small and uncertain 1.
    • Losses and the need for funding could lead to dilution or reduced programs 1.
    • If partners decide not to continue collaborations, expected revenue could fall considerably 3.

    What to watch

    • Go/no-go decision on starting phase 1 for REC-7735 and REC-1022H26
    • Entry of the Sanofi-optioned candidate into phase 1 and other collaboration milestones2027

    Products, market & competition

    AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.

    Possibly outdated: the newest document it read is from 15 Oct 2026; since then the company filed 8-K (02 Nov 2026 · results), 10-Q (02 Nov 2026).

    The business

    Recursion presents itself as a clinical-stage TechBio company whose goal is to decode biology to radically improve lives for patients 1. Its activity rests on the Recursion Operating System, an integrated platform covering biological discovery, molecule design and clinical development 1. The company says the platform lets it synthesize considerably fewer compounds than the industry average, which could speed up discovery if these results hold 1.

    Segments

    Pharmaceutical partnerships

    Recursion has collaborations with Roche and Genentech, Sanofi, Bayer and Merck KGaA, under which it has received upfront and milestone payments 12. The Sanofi collaboration produced an option in October 2026 on a development candidate for immunology, which is expected to enter phase 1 in 2027 3. The Roche and Genentech collaboration includes payments for biological maps built by the company 2.

    Recursion OS as a technology service

    The platform is presented as a tool usable both for the company's own programs and for partners' programs, generating reusable biological data and maps 12. This dual use could diversify revenue sources, but it depends on partners continuing to accept the maps 1.

    Market context

    Recursion operates in drug discovery, where the company notes that fewer than 4% of drug discovery programs initiated result in an approved medicine 1. Its focus is mainly oncology and rare diseases, such as FAP, where the total addressable market is estimated above 10 billion dollars 2. The real commercial potential, however, depends on clinical success, which remains uncertain.

    Recursion operates in pharmaceutical drug discovery, where the company notes that fewer than 4% of drug discovery programs initiated result in an approved medicine 1. Its focus is mainly oncology and rare diseases, such as FAP, where the total addressable market is estimated above 10 billion dollars 2. The real commercial potential, however, depends on clinical success, which remains uncertain.

    Trends

    • Artificial intelligence in drug discoverytailwind

      Pharmaceutical companies increasingly use AI in discovery and development, which could raise interest in platforms such as Recursion OS 1. The company notes, however, that the extent and timing of benefits remain subject to validation 1.

    • Emphasis on clinical validationmixed

      The industry increasingly demands clinical evidence for AI platforms, and the FAP results are the first data of this kind reported by the company 1. If these results do not hold, investor and partner confidence could decline.

    • Need for additional fundingheadwind

      The company expects it will need additional capital for development and commercialization, which exposes it to conditions in financial markets 1. If financing becomes more expensive, programs could be slowed.

    • Partnerships with large pharmaceutical companiesmixed

      Collaborations with large companies bring payments and external validation, but they depend on partners' decisions to continue programs 3. A partner's decision to delay or stop a program could reduce expected revenue.

    Competitive position

    Recursion competes with other companies building AI platforms for drug discovery and with pharmaceutical firms building their own internal capabilities 1. The company argues its differentiator is end-to-end integration, from biology to patient, within one system 1. Competition at the therapy level, especially in FAP, is limited because no approved medicines exist, but competing programs could change this context.

    Recursion competes with other companies building AI platforms for drug discovery and with pharmaceutical firms building their own internal capabilities 1. The company argues its differentiator is complete integration, from biology to patient, in one system 1. Competition at the therapy level, especially in FAP, is limited because no approved medicines exist, but competing programs could change this context.

    • Sanofi

      Partner in the small-molecule collaboration in immunology and oncology, which may also compete in drug development.

    • Roche and Genentech

      Partner in neuroscience and gastrointestinal oncology, which also runs its own discovery programs.

    • Bayer

      Partner in precision oncology programs, which could develop its own alternatives.

    • Merck KGaA

      Partner in identifying targets in oncology and immunology, active in the same discovery field.

    News & filings

    In the press

    The latest news item in our archive is from 31 Oct 2026; the newest SEC filing is from 02 Nov 2026. The press archive comes from the RSS feeds we follow and does not necessarily cover the latest event — the filings alongside do.

    SEC filings

    Sources

    1. [1] Form 10-K, fiscal year ended 2025-12-31 · SEC / Recursion Pharmaceuticals, Inc. · 25 Feb 2026
    2. [2] Form 10-Q, quarter ended 2026-06-30 · SEC / Recursion Pharmaceuticals, Inc. · 05 Aug 2026
    3. [3] Form 8-K, results release (exhibit 99.1) · SEC / Recursion Pharmaceuticals, Inc. · 15 Oct 2026

    Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.