Recursion Pharmaceuticals (NASDAQ:RXRX) Shares Gap Up After Earnings Beat

Recursion Pharmaceuticals, Inc. (NASDAQ:RXRX) shares gapped up prior to trading on Wednesday after the company announced better than expected quarterly earnings. The stock had previously closed at $3.53, but opened at $3.91. Recursion Pharmaceuticals shares last traded at $3.9040, with a volume of 21,104,323 shares traded.

The company reported ($0.21) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.28) by $0.07. Recursion Pharmaceuticals had a negative net margin of 863.37% and a negative return on equity of 66.70%. The company had revenue of $35.54 million for the quarter, compared to analyst estimates of $24.56 million. During the same quarter in the previous year, the firm posted ($0.53) earnings per share. The company’s quarterly revenue was up 671.7% compared to the same quarter last year.

Key Stories Impacting Recursion Pharmaceuticals

Here are the key news stories impacting Recursion Pharmaceuticals this week:

• Positive Sentiment: Q4 revenue and milestone payments materially beat estimates, boosting near-term cash runway into 2028 — management cited a Roche milestone and other partner payments as drivers of the revenue jump. RXRX Q4 Loss Narrower Than Expected, Revenues Increase Y/Y, Stock Up
• Positive Sentiment: Company achieved clinical validation with the REC‑4881 program (familial amyloid polyneuropathy), supporting the thesis that Recursion’s AI/biology platform can translate into real clinical outcomes. This is a strategic inflection for a TechBio name. Recursion Pharmaceuticals (RXRX) Hits Clinical Milestones as 2025 Revenue Grows to $74.7M
• Positive Sentiment: EPS loss narrowed to $(0.21) vs. consensus $(0.28) and compared with $(0.53) a year ago; Q4 revenue was $35.54M and full‑year 2025 revenue grew to ~$74.7M — numbers that beat street expectations and reduced downside near term. Recursion Reports Q4 Loss, Beats Revenue Estimates (Zacks)
• Neutral Sentiment: Analyst package, slide deck and full earnings release are available for diligence — useful for modeling cadence of partnership milestones and cash runway assumptions. Recursion Q4 Slide Deck / Press Release
• Neutral Sentiment: Needham reaffirmed a Buy with an $8 price target (large upside vs. current levels), which can support positive sentiment among growth investors but depends on execution of partnership milestones. Needham Reaffirms Buy, $8 PT (TickerReport summary)
• Negative Sentiment: Recursion remains unprofitable with very large negative net margins and a negative ROE; EPS is still negative for the year and future valuation depends on continued milestone payments and clinical success. MarketBeat: Q4 Results and Financial Metrics
• Negative Sentiment: Independent skepticism persists — some analysts/investors warn earlier buy calls were too optimistic given execution risk and milestone timing; this can amplify downside if future partner payments or trials miss expectations. Seeking Alpha: Why My December Buy Call Was Too Optimistic

Analyst Ratings Changes

A number of research firms have recently weighed in on RXRX. Morgan Stanley set a $11.00 price objective on Recursion Pharmaceuticals in a research note on Wednesday, December 17th. Bank of America lowered their target price on Recursion Pharmaceuticals from $7.00 to $6.00 and set a “neutral” rating for the company in a research note on Wednesday. UBS Group set a $11.00 price target on Recursion Pharmaceuticals in a research report on Wednesday, December 17th. Weiss Ratings restated a “sell (d-)” rating on shares of Recursion Pharmaceuticals in a research note on Thursday, January 22nd. Finally, Needham & Company LLC reaffirmed a “buy” rating and set a $8.00 price target on shares of Recursion Pharmaceuticals in a report on Thursday. Two analysts have rated the stock with a Buy rating, four have given a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, Recursion Pharmaceuticals presently has a consensus rating of “Hold” and an average target price of $8.83.

Insider Activity

In related news, insider Najat Khan sold 124,403 shares of the stock in a transaction dated Monday, December 22nd. The shares were sold at an average price of $4.41, for a total value of $548,617.23. Following the completion of the transaction, the insider owned 611,135 shares of the company’s stock, valued at approximately $2,695,105.35. This trade represents a 16.91% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Blake Borgeson sold 220,000 shares of the firm’s stock in a transaction that occurred on Tuesday, February 3rd. The shares were sold at an average price of $4.20, for a total value of $924,000.00. Following the completion of the sale, the director directly owned 6,429,863 shares of the company’s stock, valued at $27,005,424.60. The trade was a 3.31% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders sold 819,212 shares of company stock worth $3,523,950. 8.43% of the stock is currently owned by insiders.

Institutional Trading of Recursion Pharmaceuticals

Large investors have recently modified their holdings of the company. TD Waterhouse Canada Inc. increased its position in Recursion Pharmaceuticals by 64.1% during the 2nd quarter. TD Waterhouse Canada Inc. now owns 5,631 shares of the company’s stock valued at $29,000 after purchasing an additional 2,200 shares during the period. International Assets Investment Management LLC purchased a new position in Recursion Pharmaceuticals during the fourth quarter valued at approximately $31,000. Sequoia Financial Advisors LLC bought a new position in Recursion Pharmaceuticals in the fourth quarter worth approximately $41,000. Allworth Financial LP lifted its holdings in Recursion Pharmaceuticals by 85.6% during the third quarter. Allworth Financial LP now owns 9,548 shares of the company’s stock worth $47,000 after buying an additional 4,403 shares during the period. Finally, IFP Advisors Inc boosted its position in Recursion Pharmaceuticals by 81.5% during the 3rd quarter. IFP Advisors Inc now owns 10,355 shares of the company’s stock valued at $51,000 after acquiring an additional 4,650 shares in the last quarter. Hedge funds and other institutional investors own 89.06% of the company’s stock.

Recursion Pharmaceuticals Price Performance

The stock has a fifty day moving average price of $4.19 and a 200-day moving average price of $4.71. The firm has a market capitalization of $1.96 billion, a PE ratio of -2.55 and a beta of 0.95. The company has a debt-to-equity ratio of 0.01, a quick ratio of 4.60 and a current ratio of 4.60.

About Recursion Pharmaceuticals

Recursion Pharmaceuticals, Inc (NASDAQ: RXRX) is a biopharmaceutical company that combines advanced automation, artificial intelligence and high-throughput biology to discover and develop novel therapeutics. The company’s proprietary platform integrates deep-learning algorithms with large-scale cellular imaging and chemical biology, enabling the rapid identification of potential drug candidates across a range of indications. By automating complex laboratory workflows and leveraging computational models, Recursion aims to accelerate the drug discovery process and expand the scope of targets that can be addressed.

At the core of Recursion’s offering is its digital biology platform, which captures billions of cell images under varying chemical and genetic perturbations.