Q1 2026 results snapshot

Recursion Pharmaceuticals (RXRX) has kicked off Q1 2026 with revenue of US$6.5 million, basic EPS of US$0.22 loss, and trailing twelve month revenue of US$66.4 million against a trailing net loss of US$559.8 million. Over recent quarters, the company has seen revenue move between US$4.5 million and US$35.5 million, while quarterly basic EPS has ranged from a loss of US$0.20 to a loss of US$0.53 as the business continues to invest heavily and run at sizable losses, keeping margins firmly in the red.

See our full analysis for Recursion Pharmaceuticals.

With the headline numbers on the table, the next step is to compare these results with the key market narratives around growth potential, ongoing losses, and what that mix means for investors watching Recursion Pharmaceuticals.

TTM losses over US$559 million

• Over the last twelve months, Recursion recorded total revenue of US$66.4 million and a net loss of US$559.8 million, with basic EPS at a loss of US$1.17 on that basis.
• Consensus narrative leans on AI driven drug discovery and a growing data advantage to justify future earnings power, yet current numbers underline how early that story still is.
  • Analysts are assuming revenue growth of 50.7% a year over the next three years, while the company is still loss making and not forecast to be profitable in that period.
  • Those same expectations imply earnings of US$35.5 million by around 2028 and a very high 118.7x P/E multiple to meet a price target of US$6.57, which is a big gap from today’s loss of US$559.8 million.

High P/S multiple despite deep losses

• The stock trades on a P/S of 24.3x versus 10.8x for the US biotech industry and 16.4x for peers, even though trailing twelve month net losses are US$559.8 million.
• Bears highlight that heavy R&D spending without commercial assets leaves investors relying on funding and equity dilution, and the current valuation multiples reflect that tension.
  • Losses have grown at 34.9% a year over the past five years and forecasts still show Recursion as unprofitable over the next three years, which lines up with bearish concerns about cash burn and earnings risk.
  • Analysts also expect shares outstanding to rise 7% a year, so any future earnings have to stretch over a larger share count, another point critics use when they talk about dilution risk.

Skeptics warn the current P/S and ongoing losses leave little room for disappointment, so it can be worth seeing how the detailed bear case lines up with these Q1 numbers. 🐻 Recursion Pharmaceuticals Bear Case

DCF fair value and growth story

• The supplied DCF fair value estimate of US$9.12 sits well above the current share price of US$3.43, while revenue is forecast to grow at 31.1% a year and the company remains loss making.
• Bulls point to the AI driven Recursion OS and partnerships as reasons future cash flows could justify that DCF fair value, but today’s income statement still presents a tough hurdle.
  • On a trailing basis, revenue of US$66.4 million is being earned against a net loss of US$559.8 million, so every extra dollar of revenue currently comes with a very large loss attached.
  • Even in the more optimistic narrative, the business is not expected to be profitable within three years, which means the gap between the DCF fair value of US$9.12 and the share price rests heavily on revenue growth actually materialising.

Bulls argue that if Recursion’s AI platform eventually turns that US$559.8 million annual loss into the kind of earnings implied by growth forecasts, today’s gap to the DCF fair value could look very different, and it helps to see the full bullish thesis in one place. 🐂 Recursion Pharmaceuticals Bull Case

Next Steps

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for Recursion Pharmaceuticals on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

With both bullish and bearish stories well represented here, it is worth moving quickly to test the numbers, weigh the trade offs, and shape your own view using our breakdown of the company’s 2 key rewards and 3 important warning signs

See What Else Is Out There

Recursion is absorbing heavy losses of US$559.8 million on just US$66.4 million of revenue while analysts still expect further losses and dilution ahead.

If you want ideas where valuation rests on actual earnings and stronger fundamentals rather than steep losses and optimism, check out the 47 high quality undervalued stocks.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.