RXRX earnings analysis
What we found in RXRX's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Recursion's Q2 revenue fell 60% year over year to $7.670 million as Roche-related revenue declined following completion of prior project phases, while the net loss improved 24% to $131.005 million through substantial platform, personnel, and Tempus-record cost reductions. Cash declined to $556.8 million from $753.9 million at year-end, although first-half operating cash burn improved by $21.327 million year over year and management expects at least 12 months of liquidity. The filing offers pipeline and partnership milestones but no explicit numeric revenue or EPS outlook; continued financing needs, volatile collaboration revenue, and unresolved control weaknesses remain key constraints.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue declined 60% year over year
- Q2 total revenue was $7.670 million, down $11.553 million, or 60%, from $19.223 million in Q2 2025. The decline reflected lower Roche revenue after certain project phases were successfully completed in the prior-year period.
- Net loss narrowed 24%
- The net loss narrowed by $40.892 million to $131.005 million from $171.897 million a year earlier. Loss from operations improved $41.259 million to $134.968 million, despite the revenue decline.
- Gross margin remained deeply negative
- Gross margin was negative 49.8%, compared with negative 4.9% in Q2 2025, as $11.491 million of cost of revenue exceeded $7.670 million of revenue. However, cost of revenue declined 43%, faster than the $11.553 million revenue decline in absolute dollars.
- R&D savings reduced operating loss
- R&D expense fell $39.022 million, or 30%, to $89.614 million, driven primarily by a $37.939 million decline in platform expense. Management specifically cited lower personnel costs and $19.6 million less spending on Tempus records purchases.
- First-half operating cash burn improved
- Operating cash use was $187.048 million in the first six months of 2026, improving from $208.375 million in the prior-year period. Investing cash use was only $2.297 million, including a $2.0 million intangible-asset purchase.
- Partner validation and liquidity runway
- The company reported $556.8 million in cash, cash equivalents and restricted cash at June 30, 2026 and said this supports operations for at least the next 12 months. Genentech exercised its first Validated Target Option; the Roche/Genentech collaboration has generated $216 million in upfront and milestone payments to date.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Cash balance fell $197.1 million in six months
- Cash, cash equivalents and restricted cash fell $197.1 million, from $753.9 million at December 31, 2025 to $556.8 million at June 30, 2026. Management says it anticipates needing additional financing in the future and had not sold any shares under its $300.0 million TD Cowen sales agreement as of June 30, 2026.
- Collaboration revenue is volatile and declining
- Operating revenue fell 62% to $7.303 million in Q2 2026 from $19.103 million in Q2 2025, owing to lower Roche revenue after prior project-phase completions. Total revenue was only $7.670 million while cost of revenue was $11.491 million.
- Sustained losses and no product revenue
- The company had a $131.005 million quarterly net loss, $248.509 million six-month net loss, and accumulated deficit of $2.3 billion at June 30, 2026. It does not expect product-sales revenue for at least several years.
- Material weaknesses remain unremediated
- Disclosure controls and procedures were ineffective as of June 30, 2026 because of material weaknesses tied to the acquired Exscientia business. Management could not conclude the weaknesses were remediated by June 30, 2026, despite implementing new ERP and purchase-to-pay systems.
- Clinical spending rose amid pipeline expansion
- Clinical R&D increased $4.093 million, or 21%, to $23.661 million in Q2 even as total R&D fell. The company expects to initiate the REC-7735 Phase 1/2 study in the second half of 2026, which could sustain clinical spending.
What they reported.
What the company itself reported, taken out of the document.
- Gross margin
- -49.8%
- Operating margin
- -1759.7%
- Segment
- Operating revenue: $7.303 million, down 62% year over year
- Segment
- Grant revenue: $0.367 million, up from $0.120 million year over year
What they said about what is next.
The 10-Q provides no numeric revenue or EPS guidance. Management states that $556.8 million of cash, cash equivalents and restricted cash at June 30, 2026 is sufficient to fund operations for at least the next 12 months, but also anticipates needing additional financing in the future.
The filing reads about the same as the one before it.
What came before.
- 10-Q · May 6, 2026
- Recursion Pharmaceuticals (RXRX) reported Q1 2026 results with total revenue of $6.5 million, significantly below the estimated $15.9 million, but the net loss of $117.5 million marked a 42% improvement compared to the…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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