Recursion Pharmaceuticals, Inc. (RXRX) Stock Analysis 2026
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ProprietaryScore based on historical price CAGR, revenue growth, analyst upside, and valuation factors. Updated daily.
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About Recursion Pharmaceuticals, Inc.
Recursion Pharmaceuticals applies automated biology and machine learning to drug discovery, generating enormous volumes of cellular imaging data in its own laboratories and using models to identify relationships between compounds, genes, and disease phenotypes. The thesis is industrial: rather than relying on individual hypotheses, Recursion maps biological space at scale to find candidates faster and with better odds. It advances its own pipeline and partners programmes with pharmaceutical companies.
How Recursion Pharmaceuticals Makes Money
Revenue today comes almost entirely from partnerships with pharmaceutical companies — upfront payments, research funding, and milestone payments tied to programme progress — rather than from marketed products. The long-term model depends on clinical success producing either approved drugs or high-value licensing. The company is pre-commercial and cash-consuming, so runway, partnership economics, and clinical readouts determine the investment case rather than revenue growth.
Recursion Pharmaceuticals Revenue & Profitability Breakdown
This chart shows how Recursion Pharmaceuticals's revenue flows through to profit. As a financial-sector company, Recursion Pharmaceuticals doesn't report a traditional cost-of-revenue/gross-margin split, so the cascade starts from operating expenses and works down to net income — the actual profit shareholders own. A high net margin indicates efficient expense control and capital allocation.
Key Financial Metrics
Recursion Pharmaceuticals, Inc. doesn't carry a meaningful trailing P/E right now, generates $-219.5M in free cash flow, runs a debt/equity ratio of 7.28, and converts shareholder equity into profit at a -56.6% return on equity. For context: P/E ratio measures how much you pay for $1 of earnings (lower = cheaper, but fast-growing companies command higher P/E); Free Cash Flow is the cash left after running the business; Debt/Equity shows how leveraged a company is; Return on Equity shows how efficiently it turns shareholder capital into profit.
Wall Street Analyst Consensus
Wall Street analysts covering Recursion Pharmaceuticals, Inc. currently haven't converged on a clear consensus rating, with a mean 12-month price target of $7.22. Analysts set these targets after researching a company's earnings, competitive position, and industry trends — Strong Buy / Buy means the majority expect meaningful upside, while Hold means fair value near the current price rather than a sell signal.
Technical Price Signals
RXRX is currently in a mixed technical position. Moving averages smooth out day-to-day volatility to reveal the underlying trend — a Golden Cross (50MA crosses above 200MA) is a classic bullish signal, a Death Cross is bearish, though both are lagging indicators that confirm trends rather than predict them.
RXRX Investment Case: Bull vs Bear
RXRX's investment case breaks down into 4 bull points and 4 bear points below. The bull case outlines the key reasons the stock could outperform — competitive advantages, growth catalysts, and market tailwinds. The bear case highlights the most significant risks. A strong bull case with manageable bear risks typically makes for a more compelling investment.
Bull Case (Reasons to Buy)
- Pharmaceutical research and development productivity has declined for decades, so a genuinely faster discovery platform would be extraordinarily valuable.
- Proprietary, purpose-generated experimental data is a better foundation for models than public datasets that competitors also use.
- Partnerships with large pharmaceutical companies provide non-dilutive funding and external validation of the platform.
- A broad pipeline across multiple disease areas means no single clinical failure is existential.
Bear Case (Key Risks)
- The platform thesis is still unproven — no drug discovered this way has yet reached approval, which is the only real validation.
- Clinical trial failure rates remain high regardless of how a candidate was discovered, since biology, not chemistry, causes most failures.
- The business consumes substantial cash with minimal product revenue, creating recurring financing and dilution risk.
- Every major pharmaceutical company and numerous startups are pursuing computational discovery, so any advantage may prove narrow.
What to Watch: RXRX Key Metrics
RXRX Stock — Frequently Asked Questions
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