Recursion Pharmaceuticals (RXRX) Down 16.5% Since Last Earnings Report: Can It Rebound?

A month has gone by since the last earnings report for Recursion Pharmaceuticals (RXRX). Shares have lost about 16.5% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Recursion Pharmaceuticals due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important drivers.

RXRX Q4 Loss Narrower Than Expected, Revenues Increase Y/Y

Recursionreported a loss of 21 cents per share in the fourth quarter of 2025, narrower than the Zacks Consensus Estimate of a loss of 28 cents. The company had incurred a loss of 53 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 $35.5 million, which rose sharply year over year, largely driven by a $30 million milestone payment from Roche for the second phenomap in October 2025, of which a portion was recognized in the fourth quarter. Revenues also benefited from higher contributions tied to the company’s collaboration with Sanofi. The reported figure beat the Zacks Consensus Estimate of $26 million.

RXRX’s Q4 Results in Detail

In the fourth quarter of 2025, Research and development (R&D) expenses decreased 2% to $95.9 million. The downtick in R&D expenses can be attributed to improved operating efficiency and a strategic reprioritization of the clinical portfolio in the second quarter of 2025.

General and administrative (G&A) expenses were $33.7 million in the reported quarter, down 56% year over year, primarily due to the inclusion of transaction expenses from the business combination with Exscientia in the year-ago quarter. Additionally, Recursion Pharmaceuticals’ cost of revenues in the reported quarter increased 12% to $14.3 million.

The company had cash, cash equivalents and restricted cash worth $753.9 million as of Dec. 31, 2025, compared with $667.1 million as of Sept. 30, 2025. Recursion Pharmaceuticals expects its existing cash, cash equivalents and restricted cash to fuel operations into early 2028, based on its current business plan.

RXRX’s Full-Year 2025 Results

In 2025, Recursion Pharmaceuticals recorded total revenues of $74.7 million, which increased 27% year over year and beat the Zacks Consensus Estimate of $64.6 million.

The company reported a loss per share of $1.44 in 2025, narrower than the loss of $1.69 per share incurred in 2024. The reported figure was also narrower than the Zacks Consensus Estimate of a loss of $1.59 per share.

How Have Estimates Been Moving Since Then?

Since the earnings release, investors have witnessed a upward trend in estimates revision.

VGM Scores

Currently, Recursion Pharmaceuticals has a average Growth Score of C, however its Momentum Score is doing a lot better with an A. However, the stock has a score of F on the value side, putting it in the fifth quintile for value investors.

Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been trending upward for the stock, and the magnitude of this revision indicates a downward shift. Notably, 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 belongs to the Zacks Medical - Biomedical and Genetics industry. Another stock from the same industry, Viking Therapeutics, Inc. (VKTX), has gained 3.9% over the past month. More than a month has passed since the company reported results for the quarter ended December 2025.

Viking Therapeutics reported revenues of $0 million in the last reported quarter, representing a year-over-year change of 0%. EPS of -$1.38 for the same period compares with -$0.32 a year ago.

For the current quarter, Viking Therapeutics is expected to post a loss of $1.01 per share, indicating a change of -146.3% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Viking Therapeutics. Also, the stock has a VGM Score of F.

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Recursion Pharmaceuticals, Inc. (RXRX): Free Stock Analysis Report

Viking Therapeutics, Inc. (VKTX): Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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