Overview

• US drug discovery firm's Q1 operating revenue missed analyst expectations

• Q1 net loss narrowed, helped by lower R&D and admin costs

• Company reiterates 2026 operational cash burn guidance, expects cash runway into early 2028

Outlook

• Recursion reiterates 2026 guidance of less than $390 mln operational cash burn

• Company expects cash runway to extend into early 2028 without additional financing

• Regulatory update for REC-4881 expected in 2H26; additional Phase 1 data for REC-1245 in 2H26

Result Drivers

• LOWER ROCHE REVENUE - Q1 revenue declined mainly due to less revenue recognized from Roche after completion of certain project phases in the prior period

• COST REDUCTIONS - Lower R&D and admin expenses driven by improved operating efficiency, reduced platform costs, and fewer one-time transaction costs

Company press release: ID:nGNX5ZMbJM

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q1 Operating Revenue	Miss	$6.30 mln	$15.78 mln (8 Analysts)
Q1 Net Income	Beat	-$117.50 mln	-$132.18 mln (5 Analysts)
Q1 Pretax Profit	Beat	-$122.11 mln	-$132.67 mln (3 Analysts)
Q1 Operating Income		-$128.51 mln

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 3 "strong buy" or "buy", 5 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the biotechnology & medical research peer group is "buy."

• Wall Street's median 12-month price target for Recursion Pharmaceuticals Inc is $5.00, about 48.4% above its May 5 closing price of $3.37

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