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what it is
Recursion uses software, automation, and lab data to find drug candidates and sell that work to bigger drug companies.
how it gets paid
Last year Recursion Pharma made $75M in revenue.
why it's growing
Revenue grew 26.9% last year. 656% revenue growth matters because it proves partners are still paying.
what just happened
Latest quarter revenue hit $39M, up 656% vs. prior year, while the company still lost money.
At a glance
B+ balance sheet — decent shape, but not bulletproof
-$1.69 fy2024 eps est
$59M fy2024 rev est
n/a operating margin
2.05 beta
xvary composite: 51/100 — below average
What they do
Recursion uses software, automation, and lab data to find drug candidates and sell that work to bigger drug companies.
Recursion's edge is scale. You are not buying one molecule. You are buying an 800-employee system that blends biology, chemistry, automation, data science, and engineering in one place. Bayer, Roche/Genentech, and Takeda already partner with it, which matters because big drug companies do not hand over programs and checks unless your machine saves them time.
How they make money
$75M
annual revenue · their business grew +26.9% last year
total revenue
$75M
+26.9%
The products that matter
drug-discovery platform
AI Discovery Platform
$71M · 95% of revenue
It generated $71M last year, or 95% of total revenue, through partner deals rather than product sales. That is the cleanest possible read on where the business actually is today.
revenue engine
phase 2 oncology asset
REC-4881
2026 data catalyst
This is the lead internal credibility test. For a company with no approved drugs, a 2026 readout matters more than any claim about AI changing drug discovery.
credibility test
non-core revenue bucket
Other Revenue
$4M · 5% of revenue
This contributed just $4M and stayed flat. Small number, big implication: there is no hidden commercial business here waiting to bail out a bad trial.
small base
Key numbers
-$1.69
fy2024 eps est
$59M
fy2024 rev est
n/a
trailing p/e
n/a
dividend yield
Financial health
B+
strength
- balance sheet grade B+ — solid but not elite
- risk rank 3 — safer than 50% of stocks
- price stability 5 / 100
- long-term debt $62M (3% of capital)
B+ — functional but not a standout on the balance sheet.
Total return vs. market
Return history isn't available for RXRX right now.
source: institutional data · return history unavailable
What just happened
beat estimates
Latest quarter revenue hit $39M, up 656% vs. prior year, while the company still lost money.
Revenue growth came from collaboration work, not drug sales, because Recursion still has no approved product. The latest reported EPS was -$1.27, and the business remains deeply unprofitable despite the top-line jump.
$39M
revenue
$1.27
eps
656%
revenue growth
the number that mattered
656% revenue growth matters because it proves partners are still paying, but it does not fix a business running at a n/a operating margin.
source: company earnings report, 2026
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What could go wrong
the top risk is straightforward: the clinical readouts do not validate the platform before the cash burn forces tougher financing choices. this is a biotech where the story and the funding model are tied together.
med
No late-stage validation
The AI platform still has no Phase 3 asset or approved drug behind it. REC-4881 is in Phase 2, which means the market is still underwriting possibility rather than proof.
If the next meaningful readout disappoints, the platform premium can compress fast because there is no commercial drug business underneath it to absorb the hit.
med
Burn still dwarfs revenue
Q4 revenue was $35.5M. Q4 net loss was $108M. Even after operating expenses fell 35% from a year ago, the gap is still doing most of the storytelling.
If quarterly losses stay anywhere near $108M, management's runway claim into 2028 gets harder to trust and dilution moves from background risk to funding plan.
med
Revenue concentration in partnerships
Collaboration revenue was $71M of the $75M annual total, or 95% of the business. That means a small number of partner decisions can swing the top line.
If a large partner slows spending or exits, revenue drops immediately and the valuation looks even more detached from current economics.
95% of the $75M revenue base comes from collaborations, while one quarter produced a $108M net loss. That is not a temporary margin issue. That is the entire business model still being tested in public.
source: institutional data · regulatory filings · risk analysis
Pay attention to
catalyst
REC-4881 data in 2026
This is the first major internal proof point with real narrative weight. If the data works, the platform story gets louder. If it misses, the story gets brutally simpler.
metric
quarterly loss versus quarterly revenue
The last quarter was $35.5M of revenue against a $108M net loss. You want that gap shrinking fast, not just being explained more elegantly.
trend
collaboration revenue durability
$71M of the $75M annual base came from collaborations. Watch whether partner-funded revenue stays stable or starts acting lumpy quarter to quarter.
execution
new CEO capital discipline
Najat Khan took over on jan 1, 2026. You want fewer platform promises, tighter spending, and clearer evidence that the science is turning into investable proof.
Analyst rankings
risk profile
average
risk rank 3 — typical risk profile — neither especially safe nor risky.
chart momentum
below average
momentum rank 4 — analysts see underperformance risk in the near term.
source: institutional data
Institutional activity
institutional ownership data for RXRX is being compiled.
source: institutional data
Price targets
3-5 year target range
n/a
n/a
$4
current price
n/a
target midpoint · n/a from current
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