Key Highlights

  • Total Revenue rose to USD 18.6 million from USD 5.2 million, including a USD 10.0 million Sanofi milestone.
  • Research and development expense fell 18% to USD 99.1 million, and administrative expense fell 22% to USD 32.6 million.
  • The net loss narrowed to USD 119.0 million, or USD 0.22 per share, from USD 162.3 million, or USD 0.36.
  • Total operating costs and expenses fell to USD 141.7 million from USD 177.4 million, a decrease of about 20%.

Quarter in Numbers

Recursion Pharmaceuticals, Inc. (NASDAQ:RXRX), a drug discovery company that applies automation and machine learning, reported third-quarter 2026 total revenue of USD 18.6 million versus USD 5.2 million. Operating Revenue was USD 18.1 million versus USD 5.0 million, and the increase was primarily due to the Sanofi partnership, for which the company achieved a USD 10.0 million milestone for an immunology small molecule development candidate. Grant revenue was USD 0.5 million versus USD 0.2 million.

Cost of revenue fell to USD 10.0 million from USD 14.7 million. Research and Development expense was USD 99.1 million, a decrease of USD 21.9 million, or 18%, from USD 121.1 million. The company also revised its research and development breakout in light of the evolving composition of its activities. General and administrative expense fell USD 9.1 million, or 22%, to USD 32.6 million, driven mainly by lower infrastructure technology expense and professional service costs.

Loss and Share Count

Total operating costs and expenses were USD 141.7 million versus USD 177.4 million, so the loss from operations narrowed to USD 123.2 million from USD 172.2 million. Other income, net, was USD 4.2 million versus USD 10.0 million. The net loss was USD 119.0 million versus USD 162.3 million, equal to USD 0.22 per share versus USD 0.36. Weighted-average shares rose to about 543.0 million from 447.0 million, so the per share loss narrowed despite a larger share base. By our calculation, net loss in dollars fell 27% while the loss per share fell 39%, a difference explained by the share count.

Nine-Month Results

For the nine months, total revenue was USD 32.7 million versus USD 39.1 million, research and development expense was USD 276.6 million versus USD 379.3 million, and general and administrative expense was USD 108.7 million versus USD 142.9 million. The loss from operations narrowed to USD 386.6 million from USD 539.8 million. Other income, net, was USD 14.5 million versus USD 3.0 million, and an income tax benefit of USD 4.6 million helped the net loss narrow to USD 367.5 million, or USD 0.69 per share, from USD 536.6 million, or USD 1.27.

Operating revenue for the nine months was lower than in the prior-year period, which shows how lumpy Partnership income is: the third-quarter milestone drove the quarter's increase, but year-to-date revenue is still below the prior year.

The company said it has taken several steps in the quarter to reduce total costs, including signing three subleases covering portions of its Salt Lake City headquarters and its Toronto office. Management also continued to integrate internal controls of the acquired Exscientia Business into Recursion's existing operations as part of planned integration activities.

Spending and Milestone Indicators

Currency translation adjustments contributed USD 1.6 million to comprehensive income in the quarter versus a loss of USD 9.5 million a year earlier. Items to track include the timing of partnership milestones, the pace of further cost reductions, research spending as programs move between stages, other income as cash balances change and dilution from the rising share count.