Core Insights - Recursion Pharmaceuticals has seen a 27% decline in share price year-to-date and is trading over 55% below its 52-week high of $12, yet it continues to attract interest due to its innovative AI-driven drug discovery approach [2] - The company's primary asset, Recursion OS, utilizes automation and machine learning to enhance drug discovery, potentially accelerating the development process significantly [3] - Recursion OS has commercial potential beyond the company's own projects, as it can be licensed to other pharmaceutical firms, with existing partnerships with Roche and Genentech [4] Financial Performance - Over the past four quarters, Recursion reported a net loss of $575 million, resulting in a net margin of -961%, and an operating cash flow of -$389 million, corresponding to a margin of -650% [5] - Despite operational losses, the company maintains a strong financial position with low debt of $93 million against a market capitalization of $2.1 billion, leading to a debt-to-equity ratio of 4.4% [6] - Recursion has $500 million in cash and cash equivalents, representing 38.3% of its total assets of $1.3 billion, providing a solid runway for ongoing operations [6] Growth Potential - Recursion's revenue primarily comes from collaboration agreements with pharmaceutical partners, which validate its AI-driven platform and provide immediate financial support [7] - The merger with Exscientia has resulted in a combined pipeline with projected peak sales potential exceeding $1 billion, highlighting the long-term revenue potential for investors [8][9] - The licensing of Recursion OS could serve as an additional revenue source, enhancing the company's financial outlook [9]

Key Takeaways RXRX dropped REC-994, REC-2282 and REC-3964 due to poor mid-stage study results and low efficacy. The company is now focused on REC-4881, which showed a 43% polyp reduction in early phase II data. RXRX is advancing REC-1245, REC-617, and REC-3565 as it refines its AI-driven drug development pipeline.Recursion Pharmaceuticals (RXRX) faced a massive setback in May 2025 after announcing the discontinuation of three key drug candidates — REC-994, REC-2282 and REC-3964 — due to disappointing resu ...

Company Performance - Recursion Pharmaceuticals (RXRX) closed at $5.27, reflecting a +1.15% change from the previous day, outperforming the S&P 500's daily gain of 0.83% [1] - Over the last month, the company's shares increased by 6.11%, exceeding the Medical sector's gain of 2.2% and the S&P 500's gain of 4.99% [1] Upcoming Earnings - The upcoming earnings release is projected to report earnings of -$0.34 per share, indicating a year-over-year growth of 15% [2] - Revenue is estimated at $15.58 million, representing an 8.02% increase from the prior-year quarter [2] Annual Estimates - For the annual period, the Zacks Consensus Estimates predict earnings of -$1.34 per share and revenue of $74.95 million, reflecting shifts of +20.71% and +27.38% respectively from the last year [3] - Recent adjustments to analyst estimates indicate evolving short-term business trends, with positive revisions suggesting analyst optimism about the company's profitability [3] Zacks Rank System - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), has a strong track record, with 1 stocks averaging an annual return of +25% since 1988 [5] - Recursion Pharmaceuticals currently holds a Zacks Rank of 3 (Hold), with the consensus EPS estimate moving 0.19% higher over the past month [5] Industry Context - The Medical - Biomedical and Genetics industry is part of the Medical sector and currently holds a Zacks Industry Rank of 84, placing it in the top 35% of over 250 industries [6] - Strong individual industry groups, as measured by the Zacks Industry Rank, show that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [6]

Core Insights - Recursion Pharmaceuticals (RXRX) is transforming drug discovery by utilizing artificial intelligence (AI) through its RecursionOS platform, developed with NVIDIA, to simulate compound interactions with human biology, aiming for more efficient and cost-effective drug development [1][8] - The AI platform has significant commercial potential, evidenced by partnerships with major pharmaceutical companies like Bayer and Roche, which provide recurring revenue through technology licensing [2][8] - RXRX faces competitive pressures from companies like Relay Therapeutics (RLAY) and Schrödinger (SDGR), which are also leveraging advanced technologies in drug discovery [3][4][5] Company Performance - Year-to-date, RXRX shares have decreased by 24.1%, underperforming the industry decline of 3.4% and the S&P 500 [6][7] - The company's stock is trading at a price/book value ratio of 2.23, lower than the industry average of 3.05 and significantly below its five-year mean of 3.63 [9] Financial Estimates - Loss estimates for 2025 remain constant at $1.34 per share, while 2026 estimates have improved from $1.20 to $1.08 [13] - Recent trends show a positive revision in estimates, with a 10% increase for 2026 [14]

Company Performance - Recursion Pharmaceuticals (RXRX) closed at $5.03, down 6.85% from the previous trading session, underperforming the S&P 500's daily gain of 0.52% [1] - Over the past month, the stock has appreciated by 21.35%, outperforming the Medical sector's gain of 3.5% and the S&P 500's gain of 5.95% [1] Upcoming Earnings - The company is expected to report an EPS of -$0.34, which is a 15% increase from the prior-year quarter [2] - Quarterly revenue is projected to be $15.58 million, reflecting an 8.02% increase from the year-ago period [2] Full Year Estimates - For the full year, earnings are projected at -$1.34 per share and revenue at $74.95 million, showing increases of 20.71% and 27.38% respectively from the previous year [3] Analyst Forecasts - Recent revisions to analyst forecasts for Recursion Pharmaceuticals are important as they indicate evolving short-term business trends [4] - Positive changes in estimates suggest analyst optimism regarding the company's business and profitability [4] Zacks Rank System - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), has a strong track record of outperforming, with 1 rated stocks producing an average annual return of +25% since 1988 [6] - The Zacks Consensus EPS estimate for Recursion Pharmaceuticals has shifted 0.19% upward over the past month, and the company currently holds a Zacks Rank of 3 (Hold) [6] Industry Overview - The Medical - Biomedical and Genetics industry, part of the Medical sector, has a Zacks Industry Rank of 83, placing it in the top 34% of over 250 industries [7] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [7]

Company Performance - Recursion Pharmaceuticals (RXRX) closed at $5.03, reflecting a -1.57% change from the previous day's closing price, underperforming the S&P 500's daily loss of 0.22% [1] - Over the past month, shares of Recursion Pharmaceuticals have increased by 23.28%, while the Medical sector remained flat with a 0% change and the S&P 500 gained 0.45% [1] Upcoming Financial Results - Analysts anticipate Recursion Pharmaceuticals will report earnings of -$0.34 per share, indicating a year-over-year growth of 15% [2] - The consensus estimate for revenue is projected at $15.58 million, representing an 8.02% increase compared to the same quarter last year [2] Fiscal Year Projections - For the entire fiscal year, earnings are projected at -$1.34 per share and revenue at $74.95 million, reflecting year-over-year changes of +20.71% and +27.38%, respectively [3] Analyst Estimates and Market Sentiment - Recent modifications to analyst estimates for Recursion Pharmaceuticals are crucial as they reflect near-term business trends, with positive revisions indicating optimism about the business outlook [4] - The Zacks Rank system, which evaluates estimate changes, suggests that these alterations are linked to stock price performance in the near future [5] Zacks Rank and Industry Performance - Recursion Pharmaceuticals currently holds a Zacks Rank of 3 (Hold), with the Zacks Consensus EPS estimate having increased by 0.19% over the past month [6] - The Medical - Biomedical and Genetics industry, part of the Medical sector, has a Zacks Industry Rank of 87, placing it in the top 36% of over 250 industries, indicating strong performance potential [7]

1Q25 (L)earnings MAY 2025 This presentation of Recursion Pharmaceuticals, Inc. ("Recursion," "we," "us," or "our") and any accompanying discussion contain statements that are not historical facts may be considered forward-looking statements under federal securities laws and may be identified by words such as "anticipates," "believes," "estimates," "expects," "intends," "plans," "potential," "predicts," "projects," "seeks," "should," "will," or words of similar meaning and include, but are not limited to, st ...

Core Viewpoint - Recursion Pharmaceuticals is implementing cost-saving measures, including a workforce reduction of approximately 20%, to extend its financial resources and improve investor sentiment, resulting in a stock price increase of 1.6% [1][2][7] Group 1: Cost-Saving Measures - The company announced a workforce reduction of around 20% as part of its strategy to streamline operations [4] - Recursion anticipates incurring approximately $11 million in charges related to severance payments, benefit payouts, and other restructuring costs during the current year [4] Group 2: Financial Projections - The company's cash burn is projected to be less than $450 million in 2025 and under $390 million in 2026, potentially offset by over $100 million in milestone payments expected by the end of 2026 [5] - Recursion estimates that its cash, cash equivalents, and restricted cash will exceed $500 million by the end of the current second quarter, a slight decrease from $509 million at the end of the first quarter [6] - With the planned measures, the company's cash runway is expected to last into the fourth quarter of 2027 [6]

Core Insights - The article discusses the launch of Boltz-2, an open-source biomolecular foundation model developed by MIT and Recursion, which significantly improves the accuracy and speed of predicting molecular binding affinities and structures [1][2][5]. Company and Industry Overview - Boltz-2 is a pioneering model that combines structure and binding affinity prediction, achieving near-physics-based accuracy while being over 1,000 times faster than traditional methods [5][6]. - The model is designed to enhance drug discovery processes by allowing researchers to select promising molecules more effectively, thereby improving the success rates of R&D programs [3][4]. - The open-source nature of Boltz-2, including its training code, enables scientists to customize the model for specific molecules, facilitating broader applications in both academic and commercial settings [2][4]. - Recursion, the TechBio company behind Boltz-2, utilizes advanced machine learning algorithms and operates one of the world's most powerful supercomputers, BioHive-2, to support its mission of decoding biology for improved healthcare outcomes [7][8]. - The development of Boltz-2 involved collaboration between MIT's academic expertise and Recursion's AI capabilities, highlighting the importance of partnerships in advancing biotechnological innovations [3][5].

Company Overview - Recursion Pharmaceuticals (RXRX) shares have increased by approximately 5.7% over the past month, underperforming the S&P 500 [1] - The most recent earnings report is crucial for understanding the stock's performance and potential catalysts [1] Earnings Estimates - Estimates for Recursion Pharmaceuticals have trended upward in the past month, with a consensus estimate shift of 10.13% [2] VGM Scores - The company has a poor Growth Score of F, a Momentum Score of A, and a Value Score of F, placing it in the bottom 20% for the value investment strategy [3] - The aggregate VGM Score for Recursion Pharmaceuticals is F, indicating a lack of focus on any single investment strategy [3] Outlook - The upward trend in estimates is promising, and Recursion Pharmaceuticals holds a Zacks Rank of 3 (Hold), suggesting an expectation of in-line returns in the coming months [4] Industry Comparison - Recursion Pharmaceuticals is part of the Zacks Medical - Drugs industry, where Ionis Pharmaceuticals (IONS) has gained 9.1% over the past month [5] - Ionis Pharmaceuticals reported revenues of $132 million for the last quarter, reflecting a year-over-year increase of 10.9% [5] - For the current quarter, Ionis Pharmaceuticals is expected to report a loss of $0.14 per share, indicating a 68.9% improvement from the previous year [6]