Recursion Pharmaceuticals, Inc.

What they do

Recursion operates the Recursion Operating System, which integrates multimodal biological data generation, AI-powered small molecule synthesis, and AI-enabled clinical development. It uses this platform both to advance internal drug candidates and to run discovery collaborations with partners including Roche, Genentech and Sanofi. The company has no products approved for commercial sale.

Revenue drivers

• Roche/Genentech collaboration — Recursion has received $216 million in upfront and milestone payments to date; the neuroscience collaboration includes up to 40 small molecule programs with over $300 million in potential development, commercialization and net sales milestones per program plus tiered royalties up to high single digits.
• Sanofi collaboration — Recursion and Sanofi are advancing a joint portfolio across immunology/inflammation and oncology and made progress toward development candidate milestones over the past 12 months.
• Internal pipeline — Clinical programs such as REC-4881 in familial adenomatous polyposis and REC-7735, a mutant-selective PI3K H1047R inhibitor, are company-owned assets; no product revenue is reported.
• Other partnership and milestone revenue — Annual revenue grew from $10.2M in 2021 to $74.7M in 2025, but quarterly revenue has been uneven, ranging from $5.2M to $35.5M across recent quarters.

Recent performance

Second quarter 2026 revenue was $7.7M, following $6.5M in Q1 2026 and $35.5M in Q4 2025. Full-year 2025 revenue was $74.7M, up from $58.8M in 2024. Net losses have widened each year, from $186.5M in 2021 to $644.8M in 2025, with operating cash outflow of $371.8M in 2025. As of June 30, 2026, Recursion reported $1.21B in total assets, $297.7M in total liabilities, $915.0M in shareholder equity and $545.7M in cash and equivalents.

Strategy

Recursion organizes its strategy around three pillars, the first being translation of platform insights into clinical proof points. It aims to reshape traditional drug discovery toward a T-shaped model by moving failure earlier and narrowing to candidates with higher probability of success. The company combines internal pipeline development with strategic partnerships to balance near-term proof generation against longer-term platform investment. It has reduced 2026 cash operating expense guidance to $375 million from $390 million.

Risks

• No approved products — Recursion is a clinical-stage company with no products approved by regulators for commercial sale, so it currently depends on partnership payments and financing rather than product revenue.
• Widening losses and cash burn — Net loss grew to $644.8M in 2025 and operating cash outflow to $371.8M, requiring continued capital raises or milestone inflows.
• Lumpy, milestone-dependent revenue — Quarterly revenue ranged from $5.2M to $35.5M in recent periods, reflecting dependence on the timing of collaboration milestones rather than recurring product sales.
• Unproven platform validation — The company states that the extent and timing of AI/ML benefits in drug discovery remain subject to ongoing validation and proof-of-concept, including by Recursion itself.

Outlook

Management highlighted Genentech's exercise of the first Validated Target Option in the neuroscience collaboration and the advancement of that target into a small molecule early discovery program. REC-7735 received IND clearance with a Phase 1/2 trial start expected in the second half of 2026, and additional REC-4881 Phase 2 data in FAP will be presented at a hereditary GI meeting in November 2026. The company lowered 2026 cash operating expense guidance to $375 million.