Recursion (NASDAQ: RXRX)

Recursion (Nasdaq: RXRX), legally Recursion Pharmaceuticals, Inc., is a clinical-stage biotechnology/"TechBio" company that integrates biology, chemistry, automation, data science and clinical development to industrialize drug discovery. Its core asset is the Recursion Operating System (Recursion OS), an AI-native, end-to-end discovery and development platform built on proprietary multimodal datasets exceeding 50 petabytes spanning phenomics, transcriptomics, proteomics, ADME and de-identified patient data. Automated wet labs using robotics and computer vision run up to millions of cell experiments per week; results feed back into the platform in an iterative "active learning" loop used to identify targets and design optimized molecules.

The company advances a wholly owned and partnered pipeline in oncology, rare disease, neuroscience, immunology and other areas. Disclosed programs include REC-4881 (MEK1/2) in a Phase 1b/2 study for familial adenomatous polyposis, REC-617 (CDK7) in the Phase 1/2 ELUCIDATE study in advanced solid tumors, REC-1245 (RBM39 degrader) in the Phase 1/2 DAHLIA study for biomarker-selected solid tumors and relapsed/refractory lymphomas, REC-3565 (MALT1) in the Phase 1 EXCELERIZE study for B-cell malignancies, REC-4539 (LSD1), REC-7735 (PI3Kα H1047R, IND cleared with Phase 1/2 initiation planned for 2H26) and REV102 (ENPP1) for hypophosphatasia in development with Rallybio. In May 2025 the company deprioritized three clinical programs (REC-2282 in NF2, REC-994 in cerebral cavernous malformation, and REC-3964 for C. difficile) after a data-driven portfolio review.

Operationally, Recursion is anchored in Salt Lake City, Utah and Milton Park, Oxfordshire, where its automated biology and chemistry laboratories operate, with additional offices in New York, Montréal and London. It reported roughly 600 employees, revenue of $74.68 million in 2025 and a net loss of $644.76 million, with cash and restricted cash of $556.8 million as of the second quarter of 2026 and stated runway into early 2028.

Founding story

Recursion was founded in 2013 after co-founder Chris Gibson recognized the potential of using cell microscopy images to train AI algorithms. The pitch to early investors was that, because structure suits function in biology, generating a massive library of biological images combined with strong computer vision could allow the decoding of biology and reduce the roughly 90% failure rate of traditional drug discovery.

Business model

Recursion develops its own investigational medicines while licensing/collaborating on its AI discovery platform with large pharmaceutical partners. Partnership revenue arises from collaboration payments and milestone achievements (for example, a $7 million fourth milestone under the Sanofi collaboration in 2025 and over $500 million cited in cumulative partnership inflows), while internal programs are advanced toward clinical proof and potential commercialization.

Reported revenue is small relative to expenses and is driven by collaboration and milestone payments from pharmaceutical partners; revenue was $74.68 million in 2025 versus $58.84 million in 2024, and $7.7 million in Q2 2026 versus $19.2 million a year earlier, against net losses of $131.0 million in Q2 2026.

Traction

Five clinical programs were reported at a pivotal stage as of Q2 2026, with over $500 million in cumulative partnership inflows. Clinical readouts include REC-4881 Phase 2 median polyp burden reductions of 43% at Week 13 and 53% at Week 25, and REC-1245 early Phase 1 safety/PK data with no dose-limiting toxicities (n=16). Genentech exercised the first Validated Target Option in the neuroscience collaboration in 2026, moving a previously unexplored target into a joint small-molecule early discovery program. The company reported speed and cost improvements versus industry averages, such as REC-617 designed in under 12 months with 136 novel molecules synthesized and REC-1245 advancing from discovery to lead drug in under 18 months.

Latest developments

In Q2 2026 (reported August 5, 2026), Genentech exercised the first Validated Target Option under the neuroscience collaboration; revenue was $7.7 million versus $19.2 million a year earlier; net loss narrowed to $131.0 million from $171.9 million; cash and restricted cash stood at $556.8 million with runway into early 2028; and 2026 cash operating expense guidance was reduced to below $375 million from below $390 million. REC-7735's IND was cleared with Phase 1/2 initiation planned for the second half of 2026. Recursion also announced first patient dosing in the Phase 1 study of REC-3565, granted inducement RSU awards to new employees in May and July 2026, and appointed Vicki Goodman, M.D., as incoming Chief Medical Officer in March 2026.