(RXRX) Recursion Pharmaceuticals - Overview
Sector: Healthcare | Industry: Biotechnology | Exchange: NASDAQ (USA) | Market Cap: 1.579m USD | Total Return: -27.4% in 12m
Avg Turnover: 43.5M
Qual. Beats: 2
Rev. Trend: 64.4%
Qual. Beats: -1
Warnings
Share dilution 31.4% YoY
Interest Coverage Ratio -340.7 is critical
Altman Z'' -12.63 < 1.0 - financial distress zone
Below Avwap Earnings
Tailwinds
Confidence
Recursion Pharmaceuticals (RXRX) is a clinical-stage biotechnology firm utilizing an industrialized drug discovery platform that integrates automation, data science, and engineering. The company’s pipeline includes several Phase 1 and Phase 2 candidates targeting familial adenomatous polyposis, solid tumors, and B-cell malignancies. This model, often referred to as TechBio, aims to reduce the high failure rates and significant capital expenditures traditionally associated with the drug development lifecycle.
The company maintains strategic collaborations with major pharmaceutical entities, including Roche, Genentech, Sanofi, and Bayer AG. These partnerships provide non-dilutive capital and validation for Recursion’s proprietary OS, which decodes biological and chemical relationships at scale. For a deeper analysis of these institutional partnerships and their impact on valuation, consider reviewing the data on ValueRay.
Headquartered in Salt Lake City, Utah, Recursion focuses on high-throughput screening to identify novel therapeutic applications for existing and new chemical entities. The companys focus on CNS-penetrant inhibitors and biomarker-enriched treatments reflects a broader industry shift toward precision medicine and computationally-driven lead optimization.
- Success of clinical trials for lead candidates REC-4881 and REC-617
- Strategic partnerships with Nvidia and Roche validate AI drug discovery platform
- High cash burn rates necessitate future equity financing or milestone payments
- Regulatory approval shifts for AI-driven drug development impact valuation multiples
- Expansion of proprietary biological and chemical datasets drives competitive advantage
| Net Income: -559.8m TTM > 0 and > 6% of Revenue |
| FCF/TA: -0.24 > 0.02 and ΔFCF/TA 6.40 > 1.0 |
| NWC/Revenue: 874.8% < 20% (prev 740.1%; Δ 134.6% < -1%) |
| CFO/TA -0.24 > 3% & CFO -321.0m > Net Income -559.8m |
| Net Debt/EBITDA: error (EBITDA <= 0) |
| Current Ratio: 5.47 > 1.5 & < 3 |
| Outstanding Shares: last quarter (529.3m) vs 12m ago 31.42% < -2% |
| Gross Margin: -34.44% > 18% (prev 0.06%; Δ -3.45k% > 0.5%) |
| Asset Turnover: 5.01% > 50% (prev 4.58%; Δ 0.44% > 0%) |
| Interest Coverage Ratio: -340.7 > 6 (EBITDA TTM -486.2m / Interest Expense TTM 1.67m) |
| A: 0.43 (Total Current Assets 709.6m - Total Current Liabilities 129.7m) / Total Assets 1.34b |
| B: -1.64 (Retained Earnings -2.19b / Total Assets 1.34b) |
| C: -0.43 (EBIT TTM -570.3m / Avg Total Assets 1.32b) |
| D: -6.88 (Book Value of Equity -2.17b / Total Liabilities 314.8m) |
| Altman-Z'' = -12.63 = D |
| DSRI: 0.27 (Receivables 13.6m/46.1m, Revenue 66.3m/59.7m) |
| GMI: 1.00 (fallback, negative margins) |
| AQI: 0.89 (AQ_t 0.35 / AQ_t-1 0.40) |
| SGI: 1.11 (Revenue 66.3m / 59.7m) |
| TATA: -0.18 (NI -559.8m - CFO -321.0m) / TA 1.34b) |
| Beneish M = -3.80 (Cap -4..+1) = AAA |
As of May 24, 2026, the stock is trading at USD 3.11 with a total of 13,052,298 shares traded.
Over the past week, the price has changed by +2.73%,
over one month by -19.30%,
over three months by -11.73% and
over the past year by -27.38%.
Recursion Pharmaceuticals has received a consensus analysts rating of 3.38. Therefore, it is recommended to hold RXRX.
- StrongBuy: 1
- Buy: 1
- Hold: 6
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 6.6 | 113.5% |
P/B = 1.5279
Revenue TTM = 66.3m USD
EBIT TTM = -570.3m USD
EBITDA TTM = -486.2m USD
Long Term Debt = 7.18m USD (from longTermDebt, last quarter)
Short Term Debt = 22.4m USD (from shortTermDebt, last quarter)
Debt = 128.3m USD (from shortLongTermDebtTotal, last quarter) + Leases 55.9m
Net Debt = -526.2m USD (calculated: Debt 128.3m - CCE 654.5m)
Enterprise Value = 1.05b USD (1.58b + Debt 128.3m - CCE 654.5m)
Interest Coverage Ratio = -340.7 (Ebit TTM -570.3m / Interest Expense TTM 1.67m)
EV/FCF = -3.23x (Enterprise Value 1.05b / FCF TTM -325.8m)
FCF Yield = -30.95% (FCF TTM -325.8m / Enterprise Value 1.05b)
FCF Margin = -491.6% (FCF TTM -325.8m / Revenue TTM 66.3m)
Net Margin = -844.5% (Net Income TTM -559.8m / Revenue TTM 66.3m)
Gross Margin = -34.44% ((Revenue TTM 66.3m - Cost of Revenue TTM 89.1m) / Revenue TTM)
Gross Margin QoQ = -92.99% (prev 24.37%)
Tobins Q-Ratio = 0.79 (Enterprise Value 1.05b / Total Assets 1.34b)
Interest Expense / Debt = 1.30% (Interest Expense 1.67m / Debt 128.3m)
Taxrate = 21.0% (US default 21%)
NOPAT = -450.5m (EBIT -570.3m * (1 - 21.00%)) [loss with tax shield]
Current Ratio = 5.47 (Total Current Assets 709.6m / Total Current Liabilities 129.7m)
Debt / Equity = 0.13 (Debt 128.3m / totalStockholderEquity, last quarter 1.02b)
Debt / EBITDA = 1.08 (negative EBITDA) (Net Debt -526.2m / EBITDA -486.2m)
Debt / FCF = 1.61 (negative FCF - burning cash) (Net Debt -526.2m / FCF TTM -325.8m)
Total Stockholder Equity = 1.03b (last 4 quarters mean from totalStockholderEquity)
RoA = -42.33% (Net Income -559.8m / Total Assets 1.34b)
RoE = -17.36% (Net Income TTM -559.8m / Total Stockholder Equity 3.22b)
RoCE = -17.65% (EBIT -570.3m / Capital Employed (Equity 3.22b + L.T.Debt 7.18m))
RoIC = -47.65% (negative operating profit) (NOPAT -450.5m / Invested Capital 945.5m)
WACC = 14.86% (E(1.58b)/V(1.71b) * Re(15.98%) + D(128.3m)/V(1.71b) * Rd(1.30%) * (1-Tc(0.21)))
Discount Rate = 15.98% (= CAPM, Blume Beta Adj.) -> capped to 13.17%
Shares (quarterly) Correlation: 100.00 | Cagr: 43.96%
[DCF] Fair Price = unknown (Cash Flow -325.8m)
EPS Correlation: N/A | EPS CAGR: N/A | SUE: 1.43 | # QB: 2
Revenue Correlation: 64.43 | Revenue CAGR: 14.26% | SUE: -1.13 | # QB: -1
EPS current Quarter (2026-06-30): EPS=-0.23 | Chg30d=+5.43% | Revisions=+33% | Analysts=6
EPS next Quarter (2026-09-30): EPS=-0.23 | Chg30d=+2.13% | Revisions=+33% | Analysts=6
EPS current Year (2026-12-31): EPS=-0.92 | Chg30d=+7.02% | Revisions=+60% | GrowthEPS=+36.3% | GrowthRev=-10.9%
EPS next Year (2027-12-31): EPS=-0.88 | Chg30d=-3.27% | Revisions=+27% | GrowthEPS=+4.2% | GrowthRev=+67.8%
[Analyst] Revisions Ratio: +60%