The amendment reduces Recursion's cash outflow to Tempus significantly, but eliminates flexibility to exit the agreement. The TxFM license provides a new $12M revenue stream and validates Recursion's AI platform externally. Watch for the full 10-Q filing for the complete agreement text and any impact on cash runway guidance.
Price Chart
Executive Summary
Recursion Pharmaceuticals amended its Master Agreement with Tempus AI, extending the term from five to six years and eliminating Recursion's right to terminate for convenience. Annual license fees were reduced from $42M to $14M for years 3-5, with at least $4M payable in cash. Separately, Recursion granted Tempus a non-exclusive license to its TxFM RNA model for oncology use for a $12M fee, providing a new revenue stream.
Key Financial Metrics
Key Facts
- Recursion amended its Master Agreement with Tempus, extending term from 5 to 6 years and eliminating Recursion's termination-for-convenience right.
- Annual License Fees revised to $14M for years 3-5 (down from $42M), with at least $4M payable in cash; remainder in stock, cash, or combination.
- Recursion granted Tempus a non-exclusive license to its TxFM RNA foundation model for oncology use for a $12M non-refundable fee, paid in two $6M installments.
- Tempus will provide Recursion with access to de-identified pathology records with linked clinical data under the TxFM License Agreement.
- The TxFM License Agreement has a two-year term.
Financial Impact
Recursion's annual cash license fee obligation to Tempus reduced from $42M to $14M (with at least $4M cash), saving ~$28M/year in gross obligation. Recursion receives $12M in license fees from Tempus over two years.
Risk Factors
- Recursion loses the ability to terminate the Tempus agreement for convenience, locking in a long-term commitment.
- Annual license fees, though reduced, still require at least $4M in cash per year for years 3-5.
- The TxFM license is non-exclusive and limited to oncology, potentially capping upside from the model.
Investment Themes
Documents Analyzed
This report is based on 3 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001601830-26-000112 |
| Document: 0001601830-26-000112-index.html | 0001601830-26-000112 |
| Document: 0001601830-26-000112.txt | 0001601830-26-000112 |
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| Type | Now | ||||
|---|---|---|---|---|---|
Oct 15, 2026 12d ago | 424B5 | $3.47 $3.58 | ▼ −3.32% | ▼ −3.23% | $4.05 (−16.88%) |
Oct 15, 2026 12d ago | 8-K | $4.16 $3.58 | ▼ −13.94% | ▼ −12.93% | $4.05 (−2.64%) |
Oct 15, 2026 12d ago | Press Release | $4.16 $3.58 | ▼ −13.94% | ▼ −12.93% | $4.05 (−2.64%) |
Oct 15, 2026 12d ago | Press Release | $4.16 $3.58 | ▲ +13.94% | ▲ +12.93% | $4.05 (+2.64%) |
Oct 15, 2026 12d ago | Press Release | $4.16 $3.58 | ▼ −13.94% | ▼ −12.93% | $4.05 (−2.64%) |
Oct 15, 2026 12d ago | 424B5 | $4.16 $3.58 | ▲ +13.94% | ▲ +12.93% | $4.05 (+2.64%) |
Oct 6, 2026 21d ago | 144 | $4.63 $3.84 | ▼ −17.17% | ▼ −17.03% | $4.05 (−12.53%) |
Oct 6, 2026 21d ago | 144 | $4.63 $3.84 | ▼ −17.17% | ▼ −17.03% | $4.05 (−12.53%) |
Sep 21, 2026 5w ago | 8-K | $3.97 $3.70 | ▼ −6.80% | ▼ −5.78% | $4.05 (+2.02%) |
Sep 10, 2026 6w ago | Insider Cluster | $3.20 $3.83 | ▲ +19.69% | ▲ +20.03% | $4.05 (+26.56%) |
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