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RXRX Q1 Loss Narrower Than Expected, Revenues Decline Y/Y
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Key Takeaways
RXRX posted a Q1 loss of 22 cents per share, beating estimates despite lower revenues.
Recursion cut R&D and G&A expenses sharply, driven by lower costs and improved efficiency.
RXRX expects cash reserves to support operations into early 2028 under its current plan.
Recursion Pharmaceuticals (RXRX - Free Report) reported a loss of 22 cents per share in the first quarter of 2026, narrower than the Zacks Consensus Estimate of a loss of 30 cents. The company had incurred a loss of 50 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 for the quarter were $6 million, declining significantly year over year due to lower revenue recognized from Roche, reflecting the successful completion of certain project phases in the prior-year period. The reported figure missed the Zacks Consensus Estimate of $16 million.
RXRX also recognizes periodic revenues from its ongoing collaboration agreements with Sanofi, Bayer and Merck KGaA, Darmstadt, Germany.
RXRX’s Q1 Results in Detail
In the first quarter of 2026, Research and development (R&D) expenses decreased 32% to $87.9 million. The downtick in R&D expenses can be attributed to lower platform costs due to the timing of Tempus record purchases, along with reduced expenses from improved operating efficiency. The year-ago quarter figure also included a $27.1 million in non-cash expenses related to the use of patient-centric multimodal oncology data in the company’s R&D pipeline.
General and administrative (G&A) expenses were $34.6 million in the reported quarter, down 37% year over year, primarily due to a decrease in salaries and one-time transaction costs incurred in the prior-year quarter. Additionally, Recursion Pharmaceuticals’ cost of revenues in the reported quarter decreased 43% to $12.5 million.
The company had cash, cash equivalents and restricted cash worth $665.2 million as of March 31, 2026, compared to $753.9 million as of Dec. 31, 2025. Recursion Pharmaceuticals expects its existing cash, cash equivalents and restricted cash to fuel operations into early 2028, based on its current business plan.
RXRX shares have plunged 16.2% year to date compared with the industry’s 1.6% decline.
Image Source: Zacks Investment Research
RXRX’s Key Pipeline Updates
Following a strategic reprioritization in 2025, Recursion Pharmaceuticals has shifted its focus and resources to the development of other candidates in its clinical pipeline. Such candidates include REC-4881, which is being developed for familial adenomatous polyposis (FAP) in the phase Ib/II TUPELO study. RXRX has initiated discussions with the FDA to align on the design of a potential registrational study for REC-4881 in FAP, with an update anticipated in the second half of 2026. The company is also continuing efforts to expand the scope of the TUPELO study by including patients aged 18 and older in support of a broader development strategy.
In 2024, Recursion Pharmaceuticals initiated its phase I/II DAHLIA study of REC-1245, a new chemical entity for the treatment of biomarker-enriched solid tumors and lymphoma. RXRX reported preliminary safety and pharmacokinetic data from the DAHLIA study, demonstrating encouraging early clinical progress in targeting cancer vulnerabilities associated with replication stress and DNA repair. Per the early findings, REC-1245 was well tolerated across select solid tumors, with no dose-limiting toxicities observed to date, while pharmacokinetic and pharmacodynamic analyses demonstrated predictable dose-dependent exposure and target engagement as dose escalation continues. Additional data from the phase I portion of the DAHLIA study is expected later in 2026.
Recursion Pharmaceuticals is also developing a few other candidates, like REC-617 (advanced solid tumors), REC-4539 (solid tumors) and REC-3565 (B-cell malignancies), in separate early-stage studies.
In 2025, Recursion Pharmaceuticals acquired Rallybio’s full stake in their joint venture for developing REV102 (now REC-102) and an associated backup molecule for the treatment of hypophosphatasia, a rare and debilitating genetic disorder. REC-102, a potent and selective ENPP1 inhibitor with strong preclinical safety data, is expected to enter phase I studies by late 2026. Its oral formulation offers a major advantage over current enzyme replacement therapies, potentially improving patient adherence and reducing treatment-associated risks.
Recursion Pharmaceuticals, Inc. Price, Consensus and EPS Surprise
Over the past 60 days, estimates for Catalyst Pharmaceuticals’ 2026 EPS have declined from $2.82 to $2.79. CPRX shares have gained 30.8% year to date.
Catalyst Pharmaceuticals’ earnings beat estimates in each of the trailing four quarters, with the average surprise being 35.19%.
Over the past 60 days, estimates for Immatics’ 2026 loss per share have narrowed from $1.61 to $1.49. IMTX shares have gained 9.6% year to date.
Immatics’ earnings beat estimates in three of the trailing four quarters and missed on the remaining occasion, delivering an average negative surprise of 8.06%.
Over the past 60 days, estimates for Inovio Pharmaceuticals’ 2026 loss per share have narrowed from $1.26 to $1.06. INO shares have plunged 28.8% year to date.
Inovio Pharmaceuticals’ earnings beat estimates in each of the trailing four quarters, with the average surprise being 57.94%.
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RXRX Q1 Loss Narrower Than Expected, Revenues Decline Y/Y
Key Takeaways
Recursion Pharmaceuticals (RXRX - Free Report) reported a loss of 22 cents per share in the first quarter of 2026, narrower than the Zacks Consensus Estimate of a loss of 30 cents. The company had incurred a loss of 50 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 for the quarter were $6 million, declining significantly year over year due to lower revenue recognized from Roche, reflecting the successful completion of certain project phases in the prior-year period. The reported figure missed the Zacks Consensus Estimate of $16 million.
RXRX also recognizes periodic revenues from its ongoing collaboration agreements with Sanofi, Bayer and Merck KGaA, Darmstadt, Germany.
RXRX’s Q1 Results in Detail
In the first quarter of 2026, Research and development (R&D) expenses decreased 32% to $87.9 million. The downtick in R&D expenses can be attributed to lower platform costs due to the timing of Tempus record purchases, along with reduced expenses from improved operating efficiency. The year-ago quarter figure also included a $27.1 million in non-cash expenses related to the use of patient-centric multimodal oncology data in the company’s R&D pipeline.
General and administrative (G&A) expenses were $34.6 million in the reported quarter, down 37% year over year, primarily due to a decrease in salaries and one-time transaction costs incurred in the prior-year quarter. Additionally, Recursion Pharmaceuticals’ cost of revenues in the reported quarter decreased 43% to $12.5 million.
The company had cash, cash equivalents and restricted cash worth $665.2 million as of March 31, 2026, compared to $753.9 million as of Dec. 31, 2025. Recursion Pharmaceuticals expects its existing cash, cash equivalents and restricted cash to fuel operations into early 2028, based on its current business plan.
RXRX shares have plunged 16.2% year to date compared with the industry’s 1.6% decline.
Image Source: Zacks Investment Research
RXRX’s Key Pipeline Updates
Following a strategic reprioritization in 2025, Recursion Pharmaceuticals has shifted its focus and resources to the development of other candidates in its clinical pipeline. Such candidates include REC-4881, which is being developed for familial adenomatous polyposis (FAP) in the phase Ib/II TUPELO study. RXRX has initiated discussions with the FDA to align on the design of a potential registrational study for REC-4881 in FAP, with an update anticipated in the second half of 2026. The company is also continuing efforts to expand the scope of the TUPELO study by including patients aged 18 and older in support of a broader development strategy.
In 2024, Recursion Pharmaceuticals initiated its phase I/II DAHLIA study of REC-1245, a new chemical entity for the treatment of biomarker-enriched solid tumors and lymphoma. RXRX reported preliminary safety and pharmacokinetic data from the DAHLIA study, demonstrating encouraging early clinical progress in targeting cancer vulnerabilities associated with replication stress and DNA repair. Per the early findings, REC-1245 was well tolerated across select solid tumors, with no dose-limiting toxicities observed to date, while pharmacokinetic and pharmacodynamic analyses demonstrated predictable dose-dependent exposure and target engagement as dose escalation continues. Additional data from the phase I portion of the DAHLIA study is expected later in 2026.
Recursion Pharmaceuticals is also developing a few other candidates, like REC-617 (advanced solid tumors), REC-4539 (solid tumors) and REC-3565 (B-cell malignancies), in separate early-stage studies.
In 2025, Recursion Pharmaceuticals acquired Rallybio’s full stake in their joint venture for developing REV102 (now REC-102) and an associated backup molecule for the treatment of hypophosphatasia, a rare and debilitating genetic disorder. REC-102, a potent and selective ENPP1 inhibitor with strong preclinical safety data, is expected to enter phase I studies by late 2026. Its oral formulation offers a major advantage over current enzyme replacement therapies, potentially improving patient adherence and reducing treatment-associated risks.
Recursion Pharmaceuticals, Inc. Price, Consensus and EPS Surprise
Recursion Pharmaceuticals, Inc. price-consensus-eps-surprise-chart | Recursion Pharmaceuticals, Inc. Quote
RXRX’s Zacks Rank & Stocks to Consider
Recursion Pharmaceuticals currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the biotech sector are Catalyst Pharmaceuticals (CPRX - Free Report) , Immatics (IMTX - Free Report) and Inovio Pharmaceuticals (INO - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Over the past 60 days, estimates for Catalyst Pharmaceuticals’ 2026 EPS have declined from $2.82 to $2.79. CPRX shares have gained 30.8% year to date.
Catalyst Pharmaceuticals’ earnings beat estimates in each of the trailing four quarters, with the average surprise being 35.19%.
Over the past 60 days, estimates for Immatics’ 2026 loss per share have narrowed from $1.61 to $1.49. IMTX shares have gained 9.6% year to date.
Immatics’ earnings beat estimates in three of the trailing four quarters and missed on the remaining occasion, delivering an average negative surprise of 8.06%.
Over the past 60 days, estimates for Inovio Pharmaceuticals’ 2026 loss per share have narrowed from $1.26 to $1.06. INO shares have plunged 28.8% year to date.
Inovio Pharmaceuticals’ earnings beat estimates in each of the trailing four quarters, with the average surprise being 57.94%.