| Metric | Value ($ M) | Q1 FY26 | Q2 FY25 |
|---|---|---|---|
| Revenue | 7.67 | 18.6% | 60.1% |
| Total Income | 7.67 | 18.6% | 60.1% |
| Expenditure | 142.64 | 5.7% | 27.0% |
| PBT | -131.01 | 7.3% | 23.8% |
| Net Profit | -131.01 | 11.5% | 23.8% |
| OPM | — | ||
| NPM | — | ||
| EPS | -0.25 | 13.6% | 39.0% |
Recursion Reports Q2 2026 Financial Results and Pipeline Progress
05 Aug 2026 · 5 Aug, 4:07 pm
Summary
Recursion Pharmaceuticals reported its second quarter 2026 financial results, with total revenue of $7.7 million, a decrease from $19.2 million in the prior year period, largely due to project phase completions. The company significantly reduced its net loss to $131.0 million from $171.9 million year-over-year. Key business updates include Genentech advancing a neuroscience target into an early discovery program and the IND clearance for REC-7735, with a Phase 1/2 trial expected in the second half of 2026. Recursion also lowered its 2026 cash operating expense guidance to under $375 million and anticipates its cash runway to extend into early 2028.
Key Highlights
- 1
Genentech advanced the collaboration's first neuroscience target into a joint early discovery program, providing early evidence that Recursion's platform can generate novel, biologically validated targets for drug discovery.
- 2
REC-4881 (MEK1/2 inhibitor) will have additional Phase 2 data presented at a leading hereditary GI annual meeting in November 2026.
- 3
REC-7735 (PI3Kα H1047R inhibitor), an AI-designed PI3Kα H1047R inhibitor designed to improve therapeutic index, has received IND clearance with Phase 1/2 trial start expected in 2H26.
- 4
The company reduced its 2026 cash operating expense guidance to less than $375 million, down from less than $390 million.
- 5
Total revenue for the second quarter of 2026 was $7.7 million, compared to $19.2 million for the second quarter of 2025, primarily due to the completion of certain project phases in the prior period.
- 6
Net loss for the second quarter of 2026 was $131.0 million, an improvement from a net loss of $171.9 million for the second quarter of 2025.
- 7
Cash, cash equivalents and restricted cash were $556.8 million as of June 30, 2026, with the company expecting its cash runway to extend into early 2028.
Management Comments
Najat Khan
Recursion has reached a pivotal point where our AI-native platform is translating unique data into potential first-in-class therapeutic opportunities. The advancement of the first unexplored neuroscience target from our collaboration with Roche and Genentech into an early discovery program is an important proof point. Finding new targets in neuroscience has historically been challenging, and this milestone highlights our ability to uncover novel biology in areas where conventional approaches have struggled. We believe that combining disease-relevant data at scale, foundation models, an end-to-end learning system, and deep scientific collaboration can uncover new biology in ways that were not previously possible.
Informational and educational content only. Not investment advice.