UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2024 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-40323 RECURSION PHARMACEUTICALS, INC. (Exact name of registrant as specified in its charter) Delaware 46-4099738 (State or othe ...

May 2024 Disclaimers This presentation and any accompanying discussion and documents contain information that includes or is based upon "forward-looking statements" within' Litigation Reform Act of 1995. These for ward-looking statements are based on our current expectations, estimates and projections about our industry and ou and certain assumptions we have made. The words "plan," "anticipate," "believe," "continue," "extimate," "expect," "intend," "may," "will" and similar express forward-looking statemen ...

Washington, D.C. 20549 FORM 10-K (Mark One) UNITED STATES SECURITIES AND EXCHANGE COMMISSION ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-40323 Recursion Pharmaceuticals, Inc. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorpo ...

Financial Data and Key Metrics Changes - The company reported nearly $400 million in cash at the end of 2023, indicating a healthy balance sheet moving into 2024 [79] - The company did not provide near-term revenue guidance but emphasized the potential for significant collaborations with partners like Bayer and Roche-Genentech [52][113] Business Line Data and Key Metrics Changes - The company has five Phase 2 programs either enrolling or soon to enroll patients, focusing on capital-efficient niche areas of biology [9] - The integration of the Cyclica team was completed in just 90 days, leading to advancements in the company's programs shortly after the acquisition [12][13] Market Data and Key Metrics Changes - The company has access to over 50 petabytes of proprietary biological and chemical data, which includes patient data from a partnership with Tempus [20] - The company is leveraging partnerships with major players like Roche-Genentech and Bayer to enhance its platform and pipeline [10][63] Company Strategy and Development Direction - The company aims to lead the TechBio space by creating a virtuous cycle of learning and iteration through its Recursion OS, which integrates data and technology [8][28] - The company is focused on building a robust internal pipeline while also pursuing significant partnerships to address high unmet needs in various therapeutic areas [113][114] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, highlighting the potential for significant advancements in drug discovery and development through their innovative platform [132][138] - The company acknowledges the challenges in the biopharma industry but believes that their approach will lead to a fundamental transformation over the next decade [109][117] Other Important Information - The company has developed the fastest supercomputer in the biopharma space, which is expected to enhance its predictive capabilities [31][62] - The company has generated over 1 trillion neuronal iPSC cells since 2022, positioning itself as a leading producer in this area [64] Q&A Session Summary Question: How do you plan to utilize LOWE either internally or as an external offering? - The company sees LOWE as a tool for collaboration with partners and to drive progress through its pipeline [80] Question: What proof points can you share on AI, ML, and medicine? - The company highlighted its partnership with Roche-Genentech as one of the largest in TechBio, demonstrating the potential of AI in drug discovery [94] Question: What is the backlog of projects that are in the pipeline for AI analysis? - The company aims to meet or exceed industry averages in terms of success probability and efficiency in drug development [95] Question: When will the company be profitable? - The company plans to focus on growth while managing capital effectively, with a long-term view of significant opportunities in the biopharma space [141][142] Question: What is the company vision? - The vision is to digitize the biopharma space, moving from wet lab to dry lab, where experiments validate predictions made at scale [143] Question: What can you guide on the upcoming CCM readout? - The company is excited about the potential of the CCM program and sees it as a candidate for commercialization if the data is positive [151]

Q Recursion. certain information contained in this presentation relates to or is based on studies, publications, surveys and other data obtained from thir. company's own internal estimates and research. While the company believes these third-party sources to be reliable as of this p ndependently verified, and makes no representation as to the adequacy, fairness, accuracy or completeness of, any information obtained f ddition, all of the market data included in this presentation involves a number of assumpti ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-40323 RECURSION PHARMACEUTICALS, INC. (Exact name of registrant as specified in its charter) Delaware 46-4099738 (State or ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-40323 RECURSION PHARMACEUTICALS, INC. (Exact name of registrant as specified in its charter) Delaware 46-4099738 (State or other ...

or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-40323 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2023 RECURSION PHARMACEUTICALS, INC. (Exact name of registrant as specified in its charter) (State or other jurisdiction of in ...

Risk Factors - The company faces inherent risks related to product liability exposure during human clinical trials, which could lead to substantial damages or settlement liabilities [636]. - The company relies on third parties for research and clinical trials, which may not perform satisfactorily, potentially delaying product development [637]. - The company does not own manufacturing facilities and depends on third-party manufacturers, increasing the risk of supply issues that could delay commercialization efforts [642]. - The company anticipates needing to increase product liability insurance coverage as it commences additional clinical trials and commercializes drug candidates [636]. - The company is responsible for ensuring compliance with good clinical practices (GCP) in clinical trials, and failure to comply could result in unreliable data and regulatory penalties [639]. - The company’s ability to obtain marketing approvals for drug candidates may be delayed if third parties do not fulfill their contractual obligations [640]. - The company faces risks related to compliance with U.S. and foreign regulations, which could result in significant delays and costs in obtaining regulatory approvals [698]. - Regulatory compliance failures could lead to product recalls, market withdrawals, or restrictions on marketing, adversely affecting the company's reputation and financial condition [690][691]. - The company faces risks related to employee misconduct, which could result in regulatory sanctions and damage to its reputation [724]. Intellectual Property and Patent Risks - The company’s patent applications may not issue with the necessary scope, impacting its ability to protect proprietary technology and products [651]. - The company faces challenges in maintaining patent rights due to potential changes in laws and regulations, which could limit the scope of protection against competitors [652]. - The company relies on single-source suppliers for specialized equipment and active pharmaceutical ingredients (API), which poses risks to its supply chain [649]. - The company plans to file additional patent applications in the future, but the patent prosecution process is complex and may not guarantee timely or broad protection [656]. - The company currently holds several U.S. provisional patent applications, which require timely filing of non-provisional applications to maintain priority dates [657]. - The company does not own or in-license any issued patents for key drug candidates targeting C. difficile colitis and STK11-mutant non-small cell lung cancer [658]. - There is uncertainty regarding the issuance and scope of future patent applications, which may not adequately protect drug candidates from competition [659]. - The company relies on owned or in-licensed patent filings for drug candidates, but these may not prevent competitors from using similar candidates [661]. - The company may need to license intellectual property from third parties, which may not be available on commercially reasonable terms [664]. - The company faces risks related to the protection of trade secrets and know-how, which are critical for maintaining competitive advantage [667]. - The company may be subject to claims regarding the wrongful use of third-party trade secrets, which could lead to costly litigation [668]. - The biotechnology industry is characterized by extensive patent litigation, which could distract management and impact financial resources [672]. - The company’s commercial success depends on its ability to develop and market drug candidates without infringing third-party intellectual property rights [673]. - Failure to comply with licensing agreements could result in the loss of important rights, adversely affecting the company's competitive position [679]. Regulatory and Legislative Environment - The company has received orphan drug designation from the FDA and European Commission for REC-4881, which may provide financial incentives such as grant funding and tax advantages [692]. - The orphan drug exclusivity period is seven years in the United States and ten years in Europe, but this exclusivity may not effectively protect the drug from competition [694]. - The U.S. government has rights to inventions developed with government funding, which may include a non-exclusive license for governmental purposes and could impact the company's competitive position [684][685]. - Even with priority review designation for REC-4881, there is no guarantee of expedited regulatory approval, as the FDA has broad discretion in granting such designations [704]. - The company may seek breakthrough therapy designation for its drug candidates, but such designations do not guarantee faster development or approval processes [706]. - Regulatory authorities, including the FDA and EMA, may impose additional regulations that could delay or prevent the commercialization of drug candidates [708]. - Legislative reforms in the U.S. and abroad could materially adversely affect the company's business and results of operations [709]. - The Affordable Care Act (ACA) has significantly impacted the pharmaceutical industry, including changes to Medicaid rebates and the introduction of biosimilars [712]. - The Inflation Reduction Act (IRA) may adversely affect the company's revenue generation and profitability due to provisions aimed at reducing prescription drug costs under Medicare [713]. - Compliance with healthcare laws and regulations is critical, as non-compliance could lead to significant penalties and reputational harm [714]. Financial Performance and Projections - Total revenue for 2022 was $39,843,000, a significant increase of 292% compared to $10,178,000 in 2021 [890]. - Operating revenue reached $39,681,000 in 2022, up from $10,000,000 in 2021, reflecting a growth of 296% [890]. - Research and development expenses increased to $155,696,000 in 2022, compared to $135,271,000 in 2021, representing a rise of 15% [890]. - The net loss for 2022 was $239,476,000, compared to a net loss of $186,479,000 in 2021, indicating a 28% increase in losses [890]. - Cash and cash equivalents as of December 31, 2022, were $549,912,000, up from $285,116,000 in 2021, showing an increase of 93% [887]. - Total assets grew to $701,288,000 in 2022, compared to $610,345,000 in 2021, marking an increase of 15% [887]. - Total liabilities increased significantly to $215,482,000 in 2022 from $67,407,000 in 2021, reflecting a growth of 219% [887]. - The accumulated deficit as of December 31, 2022, was $639,556,000, up from $400,080,000 in 2021, indicating a 60% increase [887]. - The company reported a comprehensive loss of $239,350,000 for 2022, compared to a comprehensive loss of $186,605,000 in 2021 [893]. - The weighted-average shares outstanding increased to 175,537,487 in 2022 from 125,348,110 in 2021, representing a growth of 40% [890]. - The company reported a net loss of $239.5 million for the year ended December 31, 2022, compared to a net loss of $186.5 million in 2021, reflecting an increase of 28.4% [900]. - Cash flows from operating activities showed a net cash used of $83.5 million in 2022, an improvement from $158.6 million in 2021 [900]. - The company generated $193.2 million in net cash from investing activities in 2022, a significant recovery from a net cash used of $271.7 million in 2021 [900]. - The company raised $143.7 million from a private placement of common stock in 2022, while it had raised $462.9 million from its initial public offering in 2021 [900]. - As of December 31, 2022, the company had cash, cash equivalents, and restricted cash totaling $559.1 million, up from $295.3 million at the end of 2021 [900]. - The company has an accumulated deficit of $639.6 million as of December 31, 2022, and expects to incur substantial operating losses in future periods [905]. - The company does not expect to generate significant revenue until it successfully completes significant drug development milestones, which may take several years [905]. - The company believes its existing cash and cash equivalents will be sufficient to fund its operating expenses and capital expenditures for at least the next 12 months [907]. Operational and Management Challenges - The company is expanding operations internationally, which requires compliance with various trade laws and regulations, increasing operational complexity and costs [700][701]. - The company anticipates significant growth in operations and employee numbers, necessitating improvements in managerial and operational systems to manage this growth effectively [738]. - Retaining key executives and qualified personnel is critical for the company's success, as it relies heavily on the expertise of its management and scientific teams [731]. - The company faces significant competition for qualified personnel in the pharmaceutical and biotechnology sectors, which may hinder its ability to attract and retain necessary talent [732]. - The loss of key employees could impede the implementation of the company's business strategy, making recruitment and retention of qualified personnel essential [733]. - Rising labor costs due to inflation and competition for talent could adversely affect the company's financial performance and cash reserves [734]. - The company may pursue acquisitions or strategic alliances to enhance its business, but successful integration and realization of expected benefits are not guaranteed [739]. Market and Stock Performance - The dual-class structure of the company's common stock limits the influence of Class A stockholders, with Dr. Gibson holding approximately 31.93% of the voting power as of December 31, 2022 [741]. - The trading price of the company's Class A common stock has been volatile, influenced by various factors including clinical trial results and market conditions [746]. - Future guidance provided by the company regarding performance is based on management's estimates and may not be independently verified, leading to potential discrepancies with actual results [758]. - The company is subject to significant business, economic, and competitive uncertainties that may affect its projections and guidance, which are inherently speculative in nature [759]. - The company is obligated to maintain effective disclosure controls and internal controls over financial reporting, with potential increases in legal and compliance costs due to regulatory requirements [760]. - The independent registered public accounting firm expressed an unqualified opinion on the effectiveness of the company's internal control over financial reporting as of December 31, 2022 [878]. - The trading market for the company's Class A common stock relies on research and reports from analysts, with potential declines in stock price if coverage decreases or evaluations are downgraded [771]. Economic and Environmental Considerations - Climate change-related risks may disrupt operations and increase costs, negatively impacting financial results [727]. - The transition to lower greenhouse gas emissions technology and related regulations could increase operational costs [729]. - The company is reviewing its impact on climate change and assessing the feasibility of achieving carbon neutrality by 2030, with potential risks to reputation and financing if commitments are not met [730].

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2022 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-40323 RECURSION PHARMACEUTICALS, INC. (Exact name of registrant as specified in its charter) Delaware 46-4099738 (State or ...