We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Recursion Pharmaceuticals (RXRX) Up 6.5% Since Last Earnings Report: Can It Continue?
Read MoreHide Full Article
It has been about a month since the last earnings report for Recursion Pharmaceuticals (RXRX - Free Report) . Shares have added about 6.5% in that time frame, outperforming the S&P 500.
But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Recursion Pharmaceuticals due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
RXRX Q3 Loss Narrower Than Expected, Revenues Decline Y/Y
Recursionreported a loss of 36 cents per share in the third quarter of 2025, narrower than the Zacks Consensus Estimate of a loss of 38 cents. The company had incurred a loss of 34 cents per share in the year-ago quarter.
In the absence of an approved product, Recursion Pharmaceuticals only recognizes collaboration and grant revenues from its partners. Total revenues in the reported quarter amounted to $5.2 million, down significantly year over year, primarily due to the achievement of a $30 million milestone payment for the first phenomap from Roche, which was partially recognized in the year-ago quarter. The reported figure fell short of the Zacks Consensus Estimate of $17 million.
RXRX also recognizes periodic revenues from its ongoing collaboration agreements with Sanofi, Bayer and Merck KGaA, Darmstadt, Germany.
RXRX’s Q3 Results in Detail
In the third quarter of 2025, Research and development (R&D) expenses soared 62% to $121.1 million compared with the $74.6 million reported in the year-ago period. The massive uptick in R&D expenses can be attributed to an increase in acquired in-process R&D purchases related to the acquisition of full rights to REC-102, as well as its business combination with Exscientia in November 2024.
General and administrative (G&A) expenses were $41.6 million in the reported quarter, up 10% year over year, due to the inclusion of G&A expenses from the business combination with Exscientia. Additionally, Recursion Pharmaceuticals’ cost of revenues in the reported quarter increased 22% to $14.7 million.
The company had cash, cash equivalents and restricted cash worth $667.1 million as of Sept. 30, 2025, compared with $533.8 million as of June 30, 2025. Recursion Pharmaceuticals expects its existing cash, cash equivalents and restricted cash to fuel operations through the end of 2027, based on its current business plan.
How Have Estimates Been Moving Since Then?
Since the earnings release, investors have witnessed a downward trend in estimates revision.
The consensus estimate has shifted -17.54% due to these changes.
VGM Scores
Currently, Recursion Pharmaceuticals has a subpar Growth Score of D, though it is lagging a bit on the Momentum Score front with an F. Following the exact same course, the stock was allocated a score of F on the value side, putting it in the lowest quintile for value investors.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Recursion Pharmaceuticals has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Recursion Pharmaceuticals belongs to the Zacks Medical - Biomedical and Genetics industry. Another stock from the same industry, Krystal Biotech, Inc. (KRYS - Free Report) , has gained 11% over the past month. More than a month has passed since the company reported results for the quarter ended September 2025.
Krystal Biotech reported revenues of $97.8 million in the last reported quarter, representing a year-over-year change of +16.7%. EPS of $2.66 for the same period compares with $0.91 a year ago.
For the current quarter, Krystal Biotech is expected to post earnings of $1.62 per share, indicating a change of +6.6% from the year-ago quarter. The Zacks Consensus Estimate has changed -2.4% over the last 30 days.
Krystal Biotech has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of C.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Recursion Pharmaceuticals (RXRX) Up 6.5% Since Last Earnings Report: Can It Continue?
It has been about a month since the last earnings report for Recursion Pharmaceuticals (RXRX - Free Report) . Shares have added about 6.5% in that time frame, outperforming the S&P 500.
But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Recursion Pharmaceuticals due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
RXRX Q3 Loss Narrower Than Expected, Revenues Decline Y/Y
Recursionreported a loss of 36 cents per share in the third quarter of 2025, narrower than the Zacks Consensus Estimate of a loss of 38 cents. The company had incurred a loss of 34 cents per share in the year-ago quarter.
In the absence of an approved product, Recursion Pharmaceuticals only recognizes collaboration and grant revenues from its partners. Total revenues in the reported quarter amounted to $5.2 million, down significantly year over year, primarily due to the achievement of a $30 million milestone payment for the first phenomap from Roche, which was partially recognized in the year-ago quarter. The reported figure fell short of the Zacks Consensus Estimate of $17 million.
RXRX also recognizes periodic revenues from its ongoing collaboration agreements with Sanofi, Bayer and Merck KGaA, Darmstadt, Germany.
RXRX’s Q3 Results in Detail
In the third quarter of 2025, Research and development (R&D) expenses soared 62% to $121.1 million compared with the $74.6 million reported in the year-ago period. The massive uptick in R&D expenses can be attributed to an increase in acquired in-process R&D purchases related to the acquisition of full rights to REC-102, as well as its business combination with Exscientia in November 2024.
General and administrative (G&A) expenses were $41.6 million in the reported quarter, up 10% year over year, due to the inclusion of G&A expenses from the business combination with Exscientia. Additionally, Recursion Pharmaceuticals’ cost of revenues in the reported quarter increased 22% to $14.7 million.
The company had cash, cash equivalents and restricted cash worth $667.1 million as of Sept. 30, 2025, compared with $533.8 million as of June 30, 2025. Recursion Pharmaceuticals expects its existing cash, cash equivalents and restricted cash to fuel operations through the end of 2027, based on its current business plan.
How Have Estimates Been Moving Since Then?
Since the earnings release, investors have witnessed a downward trend in estimates revision.
The consensus estimate has shifted -17.54% due to these changes.
VGM Scores
Currently, Recursion Pharmaceuticals has a subpar Growth Score of D, though it is lagging a bit on the Momentum Score front with an F. Following the exact same course, the stock was allocated a score of F on the value side, putting it in the lowest quintile for value investors.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Recursion Pharmaceuticals has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Recursion Pharmaceuticals belongs to the Zacks Medical - Biomedical and Genetics industry. Another stock from the same industry, Krystal Biotech, Inc. (KRYS - Free Report) , has gained 11% over the past month. More than a month has passed since the company reported results for the quarter ended September 2025.
Krystal Biotech reported revenues of $97.8 million in the last reported quarter, representing a year-over-year change of +16.7%. EPS of $2.66 for the same period compares with $0.91 a year ago.
For the current quarter, Krystal Biotech is expected to post earnings of $1.62 per share, indicating a change of +6.6% from the year-ago quarter. The Zacks Consensus Estimate has changed -2.4% over the last 30 days.
Krystal Biotech has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of C.