Recursion Pharmaceuticals, Inc. Class A (RXRX)

In the past six months, RXRX reached its all-time low of $3.79 on April 9, 2025. In the second quarter of 2025, Recursion reported revenue of $19.2 million, a 33% increase year-over-year, but its net loss widened by 76% to $171.9 million. In mid-2025, the company cut its workforce by 20% to reduce cash burn, projecting 2025 spending below $450 million and extending its cash runway into late 2027. On July 2, 2025, the stock dropped 6.29% to $4.77, influenced by insider selling. Insider selling continued in August 2025, with shares worth $3.26 million changing hands. On August 21, 2025, concerns arose regarding preliminary data from the REC-4881 trial. The stock trended down by 3.19% on August 29, 2025, amidst market uncertainty and insider selling. In October 2025, the stock experienced significant volatility, dropping 5.4% on October 7 but then surging 16% on October 8 due to CEO Chris Gibson's scheduled keynote appearance at an AI technology conference. Recursion's shares surged nearly 28% over the past month following its merger announcement with Exscientia, along with reports of late-stage trial achievements and new regulatory approvals for oncology products. On October 20, 2025, CEO Christopher Gibson sold 100,000 shares. The acquisition of Exscientia has generated optimism, as have expanded collaborations with Sanofi and Roche.

As a clinical-stage biotechnology company, Recursion Pharmaceuticals' revenue is primarily derived from collaboration agreements, milestone payments, and technology licensing, rather than direct sales of commercialized products or services to end-users. Therefore, traditional demand seasonality in the consumer market sense does not directly apply to Recursion Pharmaceuticals' business model.

Recursion Pharmaceuticals, Inc. (RXRX) is a clinical-stage TechBio company focused on revolutionizing drug discovery through the integration of artificial intelligence (AI), machine learning, automation, data science, and engineering, operating within the Health Care sector, specifically in the Biotechnology: Biological Products industry. The company's core asset is its high-dimensional biology platform, known as the Recursion Operating System (OS), which combines automated experimentation, advanced data science, and machine learning to accelerate drug discovery. Recursion primarily generates revenue through collaborations with major pharmaceutical and biotechnology companies, licensing its technology platform, and to a lesser extent, through government grants. Major products in its pipeline include REC-994, REC-2282, REC-4881, REC-3964, RBM39, REC-617, REC-1245, REC-64917, REC-65029, REC-648918, REC-2029, REC-14221, and REC-64151. The company also has collaborations with entities such as Bayer AG, the University of Utah Research Foundation, Ohio State Innovation Foundation, Roche & Genentech, and Takeda Pharmaceutical Company Limited.

Recursion Pharmaceuticals, Inc. is headquartered in Salt Lake City, Utah, United States. The company's operations and collaborations are primarily focused within the United States, with partnerships extending to global pharmaceutical companies.

In the past year, Recursion Pharmaceuticals has generally maintained a reputation as a pioneer in AI-powered drug discovery. The acquisition of Exscientia in December 2024 was seen as a strategic move that solidified Recursion's leading position in the industry. The company is recognized for its innovative approach to industrializing drug discovery and leveraging AI. Positive sentiment has been generated by its AI platform and expanded collaborations with pharmaceutical giants like Sanofi and Roche. CEO Chris Gibson's keynote appearance at an AI technology conference in October 2025 also contributed to renewed investor interest in the company's AI story. However, the stock has historically underperformed compared to the broader S&P 500 during market downturns, raising questions about its resilience. Concerns persist regarding the company's profitability issues and its ability to translate groundbreaking innovations into sustainable shareholder value. Insider selling by executives has raised questions about the company's future strategy and market positioning. Challenges with its pipeline, such as the mixed preliminary data for REC-4881, have also cast some doubt on therapy effectiveness.

Recursion Pharmaceuticals (RXRX) is largely owned by institutional shareholders (71.45%), with insiders holding 16.05% and retail investors 12.51%. Major institutional owners include Vanguard Group Inc., ARK Investment Management LLC, BlackRock, Inc., Baillie Gifford & Co., Softbank Group Corp., Kinnevik AB (publ), Mubadala Investment Co PJSC, State Street Corp., Novo Holdings A/S, and NVIDIA Corp. Lux Ventures IV LP is identified as the largest individual shareholder, owning 30.31 million shares, representing 6.98% of the company. CEO Christopher Gibson also holds 1.6% of the company's shares.