Recursion Pharmaceuticals (NASDAQ:RXRX) Shares Gap Up on Earnings Beat

Recursion Pharmaceuticals, Inc. (NASDAQ:RXRX) gapped up prior to trading on Wednesday after the company announced better than expected quarterly earnings. The stock had previously closed at $3.53, but opened at $3.91. Recursion Pharmaceuticals shares last traded at $3.9040, with a volume of 21,104,323 shares changing hands.

The company reported ($0.21) EPS for the quarter, topping the consensus estimate of ($0.28) by $0.07. Recursion Pharmaceuticals had a negative net margin of 1,637.81% and a negative return on equity of 72.74%. The business had revenue of $35.54 million during the quarter, compared to the consensus estimate of $24.56 million. During the same quarter in the previous year, the firm posted ($0.53) earnings per share. The company’s quarterly revenue was up 671.7% compared to the same quarter last year.

Recursion Pharmaceuticals News Roundup

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

• Positive Sentiment: Q4 EPS and revenue beat street expectations — Recursion reported adjusted loss of $0.21/sh vs. consensus -$0.28 and revenue of $35.5M, well above estimates, driven largely by partner milestone payments. This beat helped lift sentiment. Read More.
• Positive Sentiment: Milestones and cash runway improvement — The company disclosed milestone payments (including a fifth Sanofi milestone and Roche-related revenue) that materially increased revenues and extend runway (company commentary notes runway into 2028). That reduces near-term dilution risk. Read More.
• Positive Sentiment: Clinical validation of AI platform — Recursion highlighted its AI Operating System delivering clinical signal in FAP, showing translation from AI-driven discovery to patient outcomes, which supports the firm’s tech-to-drug narrative and long-term value proposition. Read More.
• Neutral Sentiment: Earnings call and disclosures available — Management held a Q4 call and published the full results and slide deck; details on program timelines and milestones will matter for follow-on moves. Review the transcript for guidance on 2026 priorities. Read More.
• Negative Sentiment: Company remains loss-making with wide negative margins — Despite beats, Recursion reported a substantial net loss, negative ROE and analysts continue to model negative FY EPS; long-term profitability is not yet assured. Read More.

Wall Street Analysts Forecast Growth

A number of research firms have issued reports on RXRX. Bank of America reaffirmed a “neutral” rating on shares of Recursion Pharmaceuticals in a research report on Wednesday. UBS Group set a $11.00 target price on shares of Recursion Pharmaceuticals in a report on Wednesday, December 17th. Morgan Stanley set a $11.00 price target on shares of Recursion Pharmaceuticals in a report on Wednesday, December 17th. Weiss Ratings restated a “sell (d-)” rating on shares of Recursion Pharmaceuticals in a report on Thursday, January 22nd. Finally, JPMorgan Chase & Co. raised shares of Recursion Pharmaceuticals from a “neutral” rating to an “overweight” rating and lifted their price objective for the stock from $10.00 to $11.00 in a research report on Wednesday, December 17th. Two research analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, the company presently has an average rating of “Hold” and a consensus price target of $9.40.

Insiders Place Their Bets

In related news, CFO Ben R. Taylor sold 13,426 shares of Recursion Pharmaceuticals stock in a transaction on Wednesday, February 18th. The shares were sold at an average price of $3.08, for a total transaction of $41,352.08. Following the sale, the chief financial officer directly owned 1,195,349 shares in the company, valued at $3,681,674.92. This trade represents a 1.11% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Blake Borgeson sold 220,000 shares of the business’s stock in a transaction on Tuesday, February 3rd. The shares were sold at an average price of $4.20, for a total transaction of $924,000.00. Following the completion of the sale, the director directly owned 6,429,863 shares of the company’s stock, valued at approximately $27,005,424.60. This trade represents a 3.31% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last quarter, insiders have sold 819,212 shares of company stock valued at $3,523,950. 8.43% of the stock is owned by corporate insiders.

Institutional Trading of Recursion Pharmaceuticals

Hedge funds and other institutional investors have recently made changes to their positions in the company. Invesco Ltd. lifted its holdings in shares of Recursion Pharmaceuticals by 25.8% in the 4th quarter. Invesco Ltd. now owns 526,144 shares of the company’s stock valued at $2,152,000 after purchasing an additional 107,979 shares during the last quarter. Corient Private Wealth LLC acquired a new position in Recursion Pharmaceuticals during the fourth quarter worth approximately $70,000. Mercer Global Advisors Inc. ADV lifted its stake in Recursion Pharmaceuticals by 55.5% in the fourth quarter. Mercer Global Advisors Inc. ADV now owns 25,020 shares of the company’s stock valued at $100,000 after buying an additional 8,935 shares during the last quarter. NewEdge Advisors LLC lifted its stake in Recursion Pharmaceuticals by 149.5% in the fourth quarter. NewEdge Advisors LLC now owns 33,757 shares of the company’s stock valued at $138,000 after buying an additional 20,226 shares during the last quarter. Finally, XTX Topco Ltd boosted its holdings in shares of Recursion Pharmaceuticals by 104.0% in the fourth quarter. XTX Topco Ltd now owns 47,908 shares of the company’s stock valued at $196,000 after acquiring an additional 24,421 shares during the period. Institutional investors and hedge funds own 89.06% of the company’s stock.

Recursion Pharmaceuticals Trading Up 6.8%

The business’s 50-day moving average price is $4.20 and its 200-day moving average price is $4.72. The firm has a market capitalization of $1.96 billion, a PE ratio of -2.09 and a beta of 0.95. The company has a debt-to-equity ratio of 0.01, a current ratio of 4.60 and a quick ratio of 4.60.

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.