The clinical data for REC-4881 and REC-1245 are the primary catalysts. Watch for FDA feedback on a registrational path for REC-4881 (expected 2H 2026) and preliminary REC-1245 dose expansion data (2H 2027). The Sanofi and Genentech collaborations provide additional milestone potential. The October 2026 offering removed near-term financing risk but diluted existing holders by ~11.5%.
Price Chart
Executive Summary
Recursion Pharmaceuticals reported Q3 2026 revenue of $18.6M (vs $14.8M consensus) and GAAP EPS of -$0.22 (vs -$0.23 consensus), a beat on both lines. The company highlighted positive Phase 2 data for REC-4881 in FAP and Phase 1 data for REC-1245, appointed Fred Hassan as Board Chair, and reiterated 2026 cash operating expense guidance below $375M with cash runway into 2029 following the October 2026 follow-on offering. The combination of a revenue beat, clinical data momentum, and a well-capitalized balance sheet supports a bullish read, though the company remains pre-revenue from product sales and relies on partnership milestones.
Key Financial Metrics
Key Facts
- Q3 2026 total revenue of $18.6M, up from $5.2M in Q3 2025, driven by a $10.0M Sanofi milestone.
- GAAP net loss of $119.0M ($-0.22 per share) improved from $162.3M ($-0.36 per share) in Q3 2025.
- Cash, cash equivalents and restricted cash were $561.5M at Sep 30, 2026; pro forma $748.7M after October 2026 offering.
- REC-4881 Phase 2 TUPELO data showed 47% median total polyp burden reduction at 12 weeks, with 85% of patients below baseline 12 weeks off treatment.
- REC-1245 Phase 1 DAHLIA data showed 3 partial responses (2 confirmed) in heavily pretreated patients, with 91.7% disease control rate at doses >=45 mg.
- Sanofi optioned first development candidate from collaboration, triggering a $10M milestone; total Sanofi payments to date $144M.
- Genentech exercised first Validated Target Option under neuroscience collaboration in Q3 2026.
- Fred Hassan appointed Chair of the Board effective October 31, 2026.
- 2026 cash operating expense guidance reiterated at less than $375M; 2027 guidance at less than $360M.
- Cash runway extended into 2029 including October 2026 offering proceeds.
Financial Impact
Revenue beat of $3.8M vs consensus; net loss improved by $43.3M YoY; cash position strengthened by $187.2M net from October offering to pro forma $748.7M.
Risk Factors
- REC-4881 registrational trial initiation is pending FDA discussions and may be delayed.
- REC-1245 is in early Phase 1; dose expansion data are not expected until 2H 2027.
- The company has no approved products and relies on partnership milestones and equity offerings for funding.
- The October 2026 follow-on offering diluted existing shareholders by approximately 11.5%.
- Clinical-stage biotech risk: failure in later-stage trials could materially impact the stock.
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 8 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001601830-26-000144 |
| Exhibit: exhibit993-cgapr.htm | 0001601830-26-000144 |
| Exhibit: exhibit992-pr.htm | 0001601830-26-000144 |
| Document: a3q26finaldeck_rxrx.htm | 0001601830-26-000144 |
| Document: 0001601830-26-000144-index-headers.html | 0001601830-26-000144 |
| Document: 0001601830-26-000144-index.html | 0001601830-26-000144 |
| Document: 0001601830-26-000144.txt | 0001601830-26-000144 |
| 8-K Data (Synthetic) | 0001601830-26-000144 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Nov 4, 2026 today | Institutional Cluster | $3.78 | awaiting T+5 | awaiting T+5 | $3.93 (+3.87%) |
Nov 3, 2026 1d ago | 144 | $3.86 | awaiting T+5 | awaiting T+5 | $3.93 (+1.84%) |
Nov 2, 2026 1d ago | 8-K | No price | awaiting T+5 | awaiting T+5 | No price |
Nov 2, 2026 1d ago | Press Release | $3.81 | awaiting T+5 | awaiting T+5 | $3.93 (+3.04%) |
Nov 2, 2026 1d ago | Press Release | $3.83 | awaiting T+5 | awaiting T+5 | $3.93 (+2.59%) |
Nov 2, 2026 1d ago | Press Release | $3.81 | awaiting T+5 | awaiting T+5 | $3.93 (+3.04%) |
Oct 15, 2026 19d ago | 424B5 | $3.47 $3.58 | ▼ −3.32% | ▼ −3.23% | $3.93 (−13.30%) |
Oct 15, 2026 20d ago | 8-K | $4.16 $3.58 | ▼ −13.94% | ▼ −12.93% | $3.93 (−5.62%) |
Oct 15, 2026 20d ago | Press Release | $4.16 $3.58 | ▼ −13.94% | ▼ −12.93% | $3.93 (−5.62%) |
Oct 15, 2026 20d ago | Press Release | $4.16 $3.58 | ▲ +13.94% | ▲ +12.93% | $3.93 (+5.62%) |
US Market Status
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