Key Highlights

  • RXRX reported third quarter 2026 Revenue of $18.6 million, up from $5.2 million a year earlier.
  • The net loss narrowed 27% to $119.0 million, or $0.22 per share, from $162.3 million, or $0.36.
  • Research and development expense fell 18% to $99.1 million.
  • Cash and cash equivalents were $549.9 million at Sep 30, 2026, versus $743.3 million at Dec 31, 2025.
  • A Sanofi option on an immunology candidate triggered a $10 million milestone payment.

Sanofi Milestone Lifts Quarterly Revenue to $18.6 Million

Recursion Pharmaceuticals (NASDAQ:RXRX) filed its Quarterly Report on Nov 2, 2026, covering the third quarter ended Sep 30, 2026. Total revenue was $18.6 million, up from $5.2 million a year earlier, or roughly 3.6 times the prior-year level (calculated). The company attributed the increase mainly to a $10.0 million milestone from its Sanofi collaboration.

Recursion is a clinical-stage company that combines artificial intelligence, automation and biological data to discover and develop medicines. It earns revenue from collaborations with large drugmakers while advancing its own oncology and rare disease candidates.

Nine-month revenue was $32.7 million, down 16% from $39.1 million, because Roche revenue declined after project phases were completed in the prior-year period. Sanofi has optioned the first development candidate from the collaboration, an immunology molecule expected to start Phase 1 trials in 2027. Total payments from Sanofi now stand at $144 million, with more than $300 million in further milestones possible.

Loss Narrows 27% as Discovery Spending Drops 75%

The net loss was $119.0 million, or $0.22 per share, compared with $162.3 million, or $0.36, in the same quarter of 2025. The operating loss narrowed 28% to $123.2 million. Total operating costs fell 20% to $141.7 million.

Research and development expense declined to $99.1 million from $121.1 million, led by a 75% cut in internal and partnered discovery spending to $8.7 million. Clinical spending on REC-4881 rose to $5.8 million and on REC-1245 to $4.0 million. General and administrative expense fell 22% to $32.6 million, and cost of revenue dropped 32% to $10.0 million.

For the nine months, the net loss was $367.5 million, or $0.69 per share, versus $536.6 million, or $1.27. Cash used in operations was $264.5 million, compared with $325.7 million, which the company tied to lower research and administrative costs.

REC-4881 Polyp Data and REC-1245 Responses Anchor a Narrower Pipeline

On Nov 2, the company reported further Phase 1b/2 TUPELO data for REC-4881 in familial adenomatous polyposis. After 12 weeks, 87% of adult patients (13 of 15) had lower total polyp burden, with a 47% median reduction. Median reductions were 55% in the upper GI tract and 50% in the lower tract, and no new safety signals were reported.

The company expects to start a registrational trial in the second half of 2027, pending FDA discussions. For REC-1245, a Phase 1 dose-escalation study showed three partial responses in endometrial and liver cancer patients at doses of 45 mg daily or higher, with a 91.7% disease control rate. Expansion data in endometrial cancer are expected in the second half of 2027.

Recursion is focusing resources on REC-4881, REC-1245 and three other internal programs, and plans to seek partners for REC-617 and REC-3565. Genentech also exercised its first validated target option in neuroscience during the quarter.

Liquidity of $549.9 Million and a 2027 Trial Start Frame the Next Phase

Cash and cash equivalents were $549.9 million at quarter end, and management believes this funds operations for at least 12 months from the filing. The filing also states that additional financing will be needed in the future. Next markers are the registrational trial details for REC-4881 and the 2027 expansion data for REC-1245.