It has been about a month since the last earnings report for Recursion Pharmaceuticals (RXRX). Shares have added about 16.2% in that time frame, outperforming the S&P 500.
But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Recursion Pharmaceuticals due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
RXRX Q1 Loss Narrower Than Expected, Revenues Decline Y/Y
Recursionreported a loss of 22 cents per share in the first quarter of 2026, narrower than the Zacks Consensus Estimate of a loss of 30 cents. The company had incurred a loss of 50 cents per share in the year-ago quarter.
In the absence of an approved product, Recursion Pharmaceuticals only recognizes collaboration and grant revenues from its partners. Total revenues for the quarter were $6 million, declining significantly year over year due to lower revenue recognized from Roche, reflecting the successful completion of certain project phases in the prior-year period. The reported figure missed the Zacks Consensus Estimate of $16 million.
RXRX also recognizes periodic revenues from its ongoing collaboration agreements with Sanofi, Bayer and Merck KGaA, Darmstadt, Germany.
RXRX’s Q1 Results in Detail
In the first quarter of 2026, Research and development (R&D) expenses decreased 32% to $87.9 million. The downtick in R&D expenses can be attributed to lower platform costs due to the timing of Tempus record purchases, along with reduced expenses from improved operating efficiency. The year-ago quarter figure also included a $27.1 million in non-cash expenses related to the use of patient-centric multimodal oncology data in the company’s R&D pipeline.
General and administrative (G&A) expenses were $34.6 million in the reported quarter, down 37% year over year, primarily due to a decrease in salaries and one-time transaction costs incurred in the prior-year quarter. Additionally, Recursion Pharmaceuticals’ cost of revenues in the reported quarter decreased 43% to $12.5 million.
The company had cash, cash equivalents and restricted cash worth $665.2 million as of March 31, 2026, compared to $753.9 million as of Dec. 31, 2025. Recursion Pharmaceuticals expects its existing cash, cash equivalents and restricted cash to fuel operations into early 2028, based on its current business plan.
How Have Estimates Been Moving Since Then?
Estimates review followed a downward path over the past two months.
The consensus estimate has shifted 12.93% due to these changes.
VGM Scores
Currently, Recursion Pharmaceuticals has a nice Growth Score of B, however its Momentum Score is doing a bit better with an A. However, the stock has a score of F on the value side, putting it in the bottom 20% quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Recursion Pharmaceuticals has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Recursion Pharmaceuticals is part of the Zacks Medical - Biomedical and Genetics industry. Over the past month, Illumina (ILMN), a stock from the same industry, has gained 21.2%. The company reported its results for the quarter ended March 2026 more than a month ago.
Illumina reported revenues of $1.09 billion in the last reported quarter, representing a year-over-year change of +4.8%. EPS of $1.15 for the same period compares with $0.97 a year ago.
Illumina is expected to post earnings of $1.24 per share for the current quarter, representing a year-over-year change of +4.2%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.
Illumina has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of C.
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Recursion Pharmaceuticals, Inc. (RXRX): Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).