Recursion (NASDAQ: RXRX) trims cash burn and advances AI-driven pipeline in Q1 2026
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
Recursion Pharmaceuticals, Inc. reported first-quarter 2026 revenue of $6.5 million, down from $14.7 million a year earlier, and a narrower net loss of $117.5 million versus $202.5 million. The company ended the quarter with $665.2 million in cash, cash equivalents and restricted cash and reiterated guidance for 2026 operational cash burn of less than $390 million, supporting runway into early 2028.
Operating efficiency improved, with research and development expenses falling to $87.9 million from $129.6 million and general and administrative expenses to $34.6 million from $54.7 million. Cash operating expense declined to $85.1 million from $120.2 million, driven by lower platform costs, improved efficiency and fewer one-time items.
The AI-driven pipeline advanced, including favorable early Phase 1 data for REC‑1245 showing it was well tolerated with no dose-limiting toxicities in 16 solid-tumor patients, strong Phase 2 efficacy signals for REC‑4881 in familial adenomatous polyposis with up to 53% median polyp reduction and 40% of patients improving in Spigelman stage, and first patient dosed in Phase 1 for REC‑4539, a brain-penetrant LSD1 inhibitor.
Positive
- None.
Negative
- None.
Insights
Recursion cut cash burn and advanced multiple AI-derived oncology programs while remaining in heavy investment mode.
Recursion posted Q1 2026 revenue of $6.5 million, mainly from collaborations, and a net loss of $117.5 million. However, research and development plus general and administrative expenses declined sharply year over year, reflecting lower platform costs and tighter operating discipline.
Net cash used in operating activities improved to $81.1 million from $132.0 million, and cash operating expense fell to $85.1 million. With $665.2 million in cash and a reiterated cash burn outlook of under $390 million for 2026, management expects runway into early 2028, supporting ongoing development without near-term financing.
Pipelined assets showed tangible progress: REC‑1245 produced early safety and pharmacokinetic data with no dose-limiting toxicities in 16 solid-tumor patients, while REC‑4881 delivered median polyp-burden reductions of 43% at Week 13 deepening to 53% at Week 25 in familial adenomatous polyposis. The first patient was dosed in the Phase 1 study of REC‑4539, and partnered programs surpassed $500 million in cumulative upfront and milestone payments.
8-K Event Classification
3 items: 2.02, 7.01, 9.01
3 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 7.01
Regulation FD Disclosure
Disclosure
Material non-public information disclosed under Regulation Fair Disclosure, often investor presentations or guidance.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Key Figures
Revenue Q1 2026: $6.5 million
Net loss Q1 2026: $117.5 million
Cash and equivalents: $665.2 million
+5 more
8 metrics
Revenue Q1 2026
$6.5 million
Total revenue for the first quarter of 2026 vs $14.7 million in Q1 2025
Net loss Q1 2026
$117.5 million
Net loss for the first quarter of 2026 vs $202.5 million in Q1 2025
Cash and equivalents
$665.2 million
Cash, cash equivalents and restricted cash as of March 31, 2026
R&D expense
$87.9 million
Research and development expenses for the first quarter of 2026 vs $129.6 million in Q1 2025
G&A expense
$34.6 million
General and administrative expenses for the first quarter of 2026 vs $54.7 million in Q1 2025
Cash operating expense
$85.1 million
Cash operating expense for Q1 2026 vs $120.2 million for Q1 2025
Net cash used in operations
$81.1 million
Net cash used in operating activities for the three months ended March 31, 2026
REC-4881 polyp reduction
43% and 53%
Median reduction in polyp burden at Week 13 and Week 25 in FAP Phase 2 study
Key Terms
familial adenomatous polyposis, RBM39 degrader, dose-limiting toxicities, non-GAAP financial measure, +2 more
6 terms
familial adenomatous polyposis medical
"REC-4881 is an allosteric MEK1/2 inhibitor being developed for familial adenomatous polyposis (FAP)"
An inherited condition caused by a gene mutation that leads to the early development of hundreds to thousands of growths (polyps) in the colon and rectum, which, if untreated, almost always progress to colorectal cancer. Investors care because it creates a clear medical need for genetic testing, ongoing monitoring, preventive surgeries and targeted therapies; like a high-risk household where early alarms and durable fixes have outsized value in diagnostics and treatment markets.
RBM39 degrader medical
"REC-1245, a potential first-in-class RBM39 degrader discovered and developed using Recursion’s platform"
dose-limiting toxicities medical
"no DLTs observed to date, supporting ongoing dose escalation"
Dose-limiting toxicities are the harmful side effects seen in early clinical trials that are severe enough to stop researchers from raising a drug’s dose. Like a car’s speed limiter marking the safe top speed, DLTs define the maximum tolerable dose, and they matter to investors because they determine whether a medicine can reach effective levels, influence development timelines, costs, and regulatory chances, and thus affect a drug’s commercial prospects.
non-GAAP financial measure financial
"operating cash expense, which is a non-GAAP financial measure"
A non-GAAP financial measure is a way companies present their financial results that excludes certain expenses or income to show how they believe their core business is performing. It matters because it can give a clearer picture of how the company is really doing, but it can also be used to make results look better than they actually are.
cash operating expense financial
"Cash operating expense, excluding partnership inflows and transaction costs, for the three months ended March 31, 2026 was $85.1 million"
Phase 1/2 DAHLIA study medical
"Early data from the ongoing Phase 1/2 DAHLIA study show"
Earnings Snapshot
Revenue: $6.5 million · Guidance included
Q1 2026
Revenue
$6.5 million
vs $14.7 million in Q1 2025
Net loss
$117.5 million
vs $202.5 million in Q1 2025
R&D expense
$87.9 million
vs $129.6 million in Q1 2025
G&A expense
$34.6 million
vs $54.7 million in Q1 2025
Net cash used in operating activities
$81.1 million
vs $132.0 million in Q1 2025
Guidance
Recursion reiterates 2026 guidance of less than $390 million operational cash burn, supporting expected cash runway into early 2028.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d)
of The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): May 6, 2026
(Exact name of registrant as specified in its charter)
| (State or other jurisdiction of incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) | ||||||||||||
(Address of principal executive offices) (Zip code)
(385 ) 269 - 0203
(Registrant’s telephone number, including area code)
Not Applicable
(Former name or former address, if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading symbol(s) | Name of each exchange on which registered | ||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 or (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02. Results of Operations and Financial Condition.
On May 6, 2026, the Company issued a press release announcing its results of operations and financial condition for the first quarter March 31, 2026. A copy of the press release is furnished as Exhibit 99.1 and is incorporated herein by reference.
Item 7.01. Regulation FD Disclosure.
On May 6, 2026, the Company released an updated corporate presentation to the investor section of the Company’s website. A copy of the presentation is attached hereto as Exhibit 99.2 to this Current Report on Form 8-K and incorporated into this Item 7.01 by reference.
The information furnished pursuant to Item 2.02 (including Exhibit 99.1) and 7.01 (including Exhibit 99.2) on this Form 8-K, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference into any other filing under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such a filing.
Forward Looking Statements
The Company cautions you that statements contained in this report includes or is based upon “forward-looking statements” within the meaning of the Securities Litigation Reform Act of 1995, including, without limitation, those regarding all actions and anticipated performance under the Tempus Agreement and the Restated Agreement, and all other statements that are not historical facts. Forward-looking statements may or may not include identifying words such as “plan,” “will,” “expect,” “anticipate,” “intend,” “believe,” “potential,” “continue,” and similar terms. These statements are subject to known or unknown risks and uncertainties that could cause actual results to differ materially from those expressed or implied in such statements such as those described under the heading “Risk Factors” in the Company’s filings with the SEC, including the Company’s most recent Annual Report on Form 10-K and all subsequently filed Quarterly Reports on Form 10-Q. All forward-looking statements are based on management’s current estimates, projections, and assumptions, and the Company undertakes no obligation to correct or update any such statements, whether as a result of new information, future developments, or otherwise, except to the extent required by applicable law.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits.
| Exhibit Number | Description | ||||
| 99.1 | Press release issued by the Company dated May 6, 2026 | ||||
| 99.2 | L(earnings) call presentation of Recursion Pharmaceuticals, Inc. dated May 6, 2026 | ||||
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) | ||||
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized on May 6, 2026.
| RECURSION PHARMACEUTICALS, INC. | ||||||||
| By: | /s/ Ben Taylor | |||||||
Ben Taylor | ||||||||
| Chief Financial Officer | ||||||||
Exhibit 99.1
Recursion Reports First Quarter Financial Results and Provides Business Update
•Multiple milestones achieved or on track across wholly owned and partnered programs
•REC-1245 (RBM39 degrader): Early clinical data in solid tumors demonstrate a well-tolerated safety profile and predictable, dose-dependent pharmacokinetics; no DLTs observed to date, supporting ongoing dose escalation
•REC-4881 (FAP / MEK1/2): Strong Phase 2 efficacy signals with FDA engagement initiated to define potential registrational pathway;update expected in 2H26
•REC-4539 (LSD1 inhibitor): First patient dosed in Phase 1; platform-derived, selective, brain-penetrant profile, designed to have a reversible mechanism to reduce on-target platelet toxicity, supporting differentiation in solid tumors and AML
•Disciplined capital execution: Reiterate 2026 guidance of <$390 million operational cash burn, supporting runway into early 2028 without additional financing
SALT LAKE CITY, May 6, 2026 (GLOBE NEWSWIRE) — Recursion (Nasdaq: RXRX) a leading clinical stage TechBio company decoding biology to radically improve lives, today reported business updates highlighting strong continued pipeline execution, clinical progress and platform advancement, as well as financial results for its first quarter ended March 31, 2026.
Recursion will host an earnings Call on May 6, 2026 at 8:00 am ET / 6:00 am MT / 1:00 pm BST from Recursion’s X, LinkedIn, and YouTube accounts giving analysts, investors, and the public the opportunity to ask questions of the company by submitting questions here: https://forms.gle/TQ4vgUTLKsFmikcu6.
“We are seeing strong momentum and execution across our portfolio, with increasing evidence that our full stack platform can translate biological and chemical insights into differentiated clinical programs,” said Najat Khan, Ph.D., Chief Executive Officer and President of Recursion. “Recent progress, including encouraging initial safety and PK data in REC-1245 and the first patient dosed in REC-4539, represents a growing set of proof points that demonstrate our ability to translate platform insights into clinical programs. This momentum reflects the strength of our end-to-end AI platform, with multiple differentiated internal and partnered programs advancing into and through the clinic."
Business Highlights
Wholly Owned Pipeline Updates
Favorable Safety and PK Data for REC-1245 (RBM39):
Preliminary safety and pharmacokinetic (PK) data from REC-1245, a potential first-in-class RBM39 degrader discovered and developed using Recursion’s platform, highlight early clinical progress for a novel approach to targeting cancer vulnerabilities linked to replication stress and DNA repair.
REC-1245 advanced from biological discovery to development candidate in 18 months, more than twice as fast as the industry average, demonstrating Recursion’s ability to identify novel targets and design differentiated molecules using its integrated AI-enabled platform.
Early data from the ongoing Phase 1/2 DAHLIA study show:
•REC-1245 was well-tolerated across select solid tumors (n=16)
•No dose-limiting toxicities (DLTs) have been observed to date, and the maximum tolerated dose has not yet been reached
•The majority of TRAEs were Grade 1 or 2, most common GI-related events were constipation, nausea, and vomiting
•Pharmacokinetic analysis demonstrates predictable, dose-dependent exposure across evaluated patients
•Pharmacodynamic assessments demonstrate target engagement
•Dose escalation is ongoing to determine the recommended Phase 2 dose for monotherapy expansion cohorts
| Treatment-Related Adverse Event (TRAE) | |||||
| Patients (n=16) | |||||
| Patients with any TRAE | 10 (62.5%) | ||||
| Grade 1-2 | 9 (56.3%) | ||||
| Grade 3 | 1 (6.2%) | ||||
| Grade 4-5 | 0 (0.0%) | ||||
Continued Momentum for REC-4881 (MEK1/2):
REC-4881 is an allosteric MEK1/2 inhibitor being developed for familial adenomatous polyposis (FAP), a genetically defined disease driven by APC loss. Based on platform insights into MAPK pathway modulation in APC-deficient systems, REC-4881 represents a targeted approach to addressing the underlying biology of disease progression:
•Phase 2 positive proof-of-concept clinical data showed a median 43% reduction in polyp burden at Week 13, deepening to 53% at Week 25 following a treatment break, with 40% of patients demonstrating improvement in Spigelman stage, supporting a differentiated and durable profile in FAP.
•Safety was consistent with MEK1/2 inhibition, with mostly Grade 1–2 TRAEs, Grade 3 events in 15.8% of patients, no Grade ≥4 TRAEs, and commonly including dermatitis acneiform/rash and increased CPK.
Recursion has initiated FDA engagement to align on a potential registrational study design, with an update expected in the second half of 2026. Expansion of TUPELO to include patients aged 18+ to support a broader development strategy is also ongoing.
First Patient Dosed in REC-4539 (LSD1 inhibitor):
REC-4539, an AI-designed, LSD1 inhibitor, highlights early progress for a differentiated approach to targeting epigenetic drivers in cancer. In April, the first patient was dosed in the ENLYGHT Phase 1 clinical study for solid tumors, including small cell lung cancer (SCLC).
REC-4539 was precision designed to have a reversible mechanism and shorter predicted human half-life to address treatment-limiting platelet toxicity observed with other LSD1 inhibitors, enabling a potentially differentiated profile across solid tumors and hematologic malignancies.
The differentiated, CNS-penetrant development candidate was delivered in approximately 20 months through Recursion’s AI-native design platform, demonstrating the Company’s ability to rapidly translate platform insights into optimized clinical candidates.
For the rest of the portfolio, programs continue to progress as planned.
Expected upcoming milestones across Recursion’s wholly-owned pipeline:
•REC-4881 (MEK1/2):
◦Regulatory update expected in 2H26
◦Additional Phase 1b/2 clinical data expected in 1H27
•REC-1245 (RBM39): Additional Phase 1 dose escalation data expected in 2H26
•REC-7735 (PI3Kα H1047R) and REC-102 (ENPP1): IND-enabling studies ongoing; data-driven go/no-go decision on Phase 1 initiation expected in 2H26
•REC-617 (CDK7): Early Phase 1 safety and PK combination data expected in 1H27
•REC-3565 (MALT1): Early Phase 1 safety and PK monotherapy data expected in 1H27
•REC-4539 (LSD1): Early Phase 1 safety and PK monotherapy data expected in 2H27
Advancing partnered discovery, with over $500 million in milestone and upfront payments achieved to date:
Meaningful upcoming milestones across partnered discovery:
Recursion continues to advance partnered programs that leverage complementary strengths of the Recursion OS.
In AI-enabled chemistry, Sanofi and Recursion joint programs continue progressing toward development candidate designation and earlier-stage milestones over the next 12 months, including programs designed against challenging targets in immunology and oncology.
In AI-enabled biology, Recursion expects to continue jointly translating insights from its large-scale maps of biology delivered to Roche and Genentech into potential target validation milestones over the next 12 months. The maps, jointly built by Recursion, Roche and Genentech are disease-relevant high-content maps built at large scale, including a Neuron map generated from a subset of 1 trillion internally manufactured iPSC-derived neuronal cells and a Microglia map generated from more than 100 billion internally manufactured iPSC-derived microglial cells. Additionally, we are combining our phenomics dataset with Roche and Genentech’s proprietary transcriptomics data to build multi-modal maps designed to explore potential novel targets and pathways by systematically linking gene perturbations to cellular phenotypes
Recursion OS Advances: Driving platform innovations, grounded in impact
Full Stack AI-powered Platform: The Recursion Operating System (OS) is continuing to drive program development by integrating AI across multimodal biology, precision design, and next-generation clinical development—enabling faster, more efficient, and more innovative drug discovery and development from biology to insight, insight to molecule, and molecule to patient.
State of the Art Transcriptomics Models: Built to better connect Recursion’s proprietary perturbational biology with patient biology to find novel insights and medicines, the integration of these models help bridge the translation gap between what we see in the lab and what matters in disease:
•TxPert, recently featured in Nature Biotechnology, is a proof-of-principle model for predicting transcriptomic responses to perturbations. The model can generalize beyond its training data, including predicting responses to unseen single-gene perturbations, novel combinations, and known perturbations in new cell types—enabling more efficient hypothesis generation and experimental prioritization, and laying the foundation for Recursion's Virtual Cell.
•TxFM, presented at the ICLR Workshop on Foundation Models for Science, is a transcriptomics foundation model designed to connect lab perturbations with patient biology within the Recursion OS. Trained on a large, curated dataset of public and proprietary data, it outperforms 16 leading foundation models and baselines, including models trained on datasets 10–100x larger. Beyond enabling target identification, mechanistic understanding, and patient stratification, TxFM's superior batch correction and denoising drive operational efficiency—reducing experimental re-runs, enabling cross-experiment comparisons, and increasing the value of every sequencing dollar spent.
First Quarter 2026 Financial Results
•Cash Position: Cash, cash equivalents and restricted cash were $665.2 million as of March 31, 2026 compared to $753.9 million as of December 31, 2025. Based on current operating plans
and with no additional financing, the Company continues to expect its cash runway to extend into early 2028.
•Revenue: Total revenue, consisting primarily of revenue from collaboration agreements, was $6.5 million for the first quarter of 2026, compared to $14.7 million for the first quarter of 2025. Roche revenue recognized was less in the current period due to the successful completion of certain project phases in the prior period.
•Research and Development Expenses: Research and development expenses decreased to $87.9 million for the first quarter of 2026, from $129.6 million for the first quarter of 2025. The decrease was primarily due to lower platform costs resulting from the timing of Tempus record purchases as well as lower costs due to improved operating efficiency. Specifically, the first quarter of 2025 included $27.1 million in non-cash expenses for the use of patient-centric multimodal oncology data within the Company’s R&D pipeline.
•General and Administrative Expenses: General and administrative expenses were $34.6 million for the first quarter of 2026 compared to $54.7 million for the first quarter of 2025. The decrease of $20.1 million relative to the three months ended March 31, 2025 was primarily driven by a decrease in salaries and one-time transaction costs incurred in the prior year.
•Net Loss: Net loss was $117.5 million for the first quarter of 2026, compared to a net loss of $202.5 million for the first quarter of 2025.
•Operational cash flows: Net cash used in operating activities was $81.1 million for the three months ended March 31, 2026, compared to net cash used in operating activities of $132.0 million for the three months ended March 31, 2025. The decrease in cash used in operating activities was primarily driven by operating efficiencies across the company and the strategic reprioritization of our clinical portfolio.
•Cash Operating Expense: Cash operating expense, excluding partnership inflows and transaction costs, for the three months ended March 31, 2026 was $85.1 million compared to $120.2 million for the three months ended March 31, 2025.
About Recursion
Recursion (NASDAQ: RXRX) is a clinical stage TechBio company decoding biology to radically improve lives. Recursion is advancing a portfolio of differentiated investigational medicines across its wholly owned and partnered pipeline in oncology, rare disease, neuroscience, immunology, and other therapeutic areas with significant unmet need. Enabling its mission is the Recursion OS, an AI-native, end-to-end drug discovery and development platform integrating biology, chemistry, and clinical development into a unified intelligence system. Powered by proprietary multimodal data, purpose-built AI models, and bilingual teams fluent in both science and AI, the Recursion OS is designed to translate complex science into medicines that matter — faster, better, and at scale — for patients who are waiting.
Recursion’s platform infrastructure is anchored in Salt Lake City, Utah and Milton Park, Oxfordshire, where its automated biology and chemistry laboratories generate proprietary data at industrial scale. Recursion also maintains offices in New York, Montréal, and London, three global hubs for talent and leadership at the intersection of AI and scientific innovation. Learn more at www.recursion.com, or connect on X and LinkedIn.
Media Contact
media@recursion.com
Investor Contact
investor@recursion.com
Recursion Pharmaceuticals, Inc.
Condensed Consolidated Statements of Operations (unaudited)
(in thousands, except share and per share amounts)
| Three months ended March 31, | |||||||||||
| 2026 | 2025 | ||||||||||
| Revenue | |||||||||||
| Operating revenue | $ | 6,301 | $ | 14,818 | |||||||
| Grant revenue | 171 | (73) | |||||||||
| Total revenue | 6,472 | 14,745 | |||||||||
| Operating costs and expenses | |||||||||||
| Cost of revenue | 12,490 | 21,829 | |||||||||
| Research and development | 87,896 | 129,634 | |||||||||
| General and administrative | 34,591 | 54,650 | |||||||||
| Total operating costs and expenses | 134,977 | 206,113 | |||||||||
| Loss from operations | (128,505) | (191,368) | |||||||||
| Other income, net | 6,397 | (11,277) | |||||||||
| Loss before income tax benefit | (122,108) | (202,645) | |||||||||
| Income tax benefit | 4,604 | 158 | |||||||||
| Net loss | $ | (117,504) | $ | (202,487) | |||||||
| Per share data | |||||||||||
| Net loss per share of Class A, B and Exchangeable common stock, basic and diluted | $ | (0.22) | $ | (0.50) | |||||||
| Weighted-average shares (Class A, B and Exchangeable) outstanding, basic and diluted | 529,303,984 | 402,771,972 | |||||||||
Recursion Pharmaceuticals, Inc.
Condensed Consolidated Balance Sheets (unaudited)
(in thousands)
| March 31, | December 31, | |||||||
| 2026 | 2025 | |||||||
| Assets | ||||||||
| Current assets | ||||||||
| Cash and cash equivalents | $ | 654,473 | $ | 743,294 | ||||
| Restricted cash | 5,511 | 4,594 | ||||||
| Other receivables | 13,585 | 24,649 | ||||||
| Prepaid data assets | 11,742 | 11,742 | ||||||
| Other current assets | 24,246 | 28,566 | ||||||
| Total current assets | 709,557 | 812,845 | ||||||
| Restricted cash, non-current | 5,196 | 6,033 | ||||||
| Property and equipment, net | 95,811 | 103,931 | ||||||
| Operating lease right-of-use assets | 42,816 | 45,339 | ||||||
| Financing lease right-of-use assets | 18,694 | 20,210 | ||||||
| Intangible assets, net | 294,073 | 309,903 | ||||||
| Goodwill | 160,170 | 162,158 | ||||||
| Deferred tax assets | 957 | 957 | ||||||
| Other assets, non-current | 12,248 | 12,754 | ||||||
| Total assets | $ | 1,339,522 | $ | 1,474,130 | ||||
| Liabilities and stockholders’ equity | ||||||||
| Current liabilities | ||||||||
| Accounts payable | $ | 20,348 | $ | 18,118 | ||||
| Accrued expenses and other liabilities | 54,205 | 70,230 | ||||||
| Unearned revenue | 32,794 | 37,605 | ||||||
| Operating lease liabilities | 13,087 | 12,663 | ||||||
| Notes payable and financing lease liabilities | 9,265 | 9,091 | ||||||
| Total current liabilities | 129,699 | 147,707 | ||||||
| Unearned revenue, non-current | 114,723 | 114,012 | ||||||
| Operating lease liabilities, non-current | 42,842 | 46,647 | ||||||
| Notes payable and financing lease liabilities, non-current | 7,181 | 9,564 | ||||||
| Deferred tax liabilities | 18,283 | 23,255 | ||||||
| Other liabilities, non-current | 2,025 | 2,080 | ||||||
| Total liabilities | 314,753 | 343,265 | ||||||
| Stockholders’ equity | ||||||||
Common stock (Class A, B and Exchangeable) | 5 | 5 | ||||||
| Additional paid-in capital | 3,191,608 | 3,170,145 | ||||||
| Accumulated deficit | (2,193,506) | (2,076,002) | ||||||
| Accumulated other comprehensive income (loss) | 26,662 | 36,717 | ||||||
| Total stockholders’ equity | 1,024,769 | 1,130,865 | ||||||
| Total liabilities and stockholders’ equity | $ | 1,339,522 | $ | 1,474,130 | ||||
Recursion Pharmaceuticals Inc
Selected Cash Flow Information (unaudited)
(in thousands)
| Three months ended March 31, | |||||||||||
| 2026 | 2025 | ||||||||||
| Net cash used in operating activities | $ | (81,101) | $ | (131,957) | |||||||
| Net cash used in investing activities | (338) | (7,270) | |||||||||
| Net cash provided by (used in) financing activities | (3,470) | 40,527 | |||||||||
| Effect of exchange rate changes on cash, cash equivalents and restricted cash | (3,832) | 4,833 | |||||||||
| Cash, cash equivalents and restricted cash, beginning of period | 753,921 | 603,024 | |||||||||
| Cash, cash equivalents and restricted cash, end of period | $ | 665,180 | $ | 509,157 | |||||||
Non-GAAP Financial Measure
The reconciliation of operating cash expense to net cash used in operating activities is provided in the following tables:
| Cash Operating Expense - Q1 2026 | (in millions) | |||||||
| Net cash used in operating activities | $ | 81.1 | * | |||||
| Add: partnership inflows | 4.0 | |||||||
| Cash Operating Expense - Q1 2026 | $ | 85.1 | ||||||
*This is from the Recursion Inc Consolidated Statement of Cash Flows for the three months ended March 31, 2026 (see above)
| Cash Operating Expense - Q1 2025 | (in millions) | |||||||
| Net cash used in operating activities | $ | 132.0 | * | |||||
| Subtract: Transaction costs | (11.8) | |||||||
| Cash Operating Expense - Q1 2025 | $ | 120.2 | ||||||
*This is from the Recursion Inc Consolidated Statement of Cash Flows for the three months ended March 31, 2025 (see above)
To supplement our financial statements prepared in accordance with U.S. GAAP, we monitor and consider operating cash expense, which is a non-GAAP financial measure. We define operating cash expense as the net cash used in operating activities, excluding non-ordinary course transaction costs and partnership cash inflows. This non-GAAP financial measure is not based on any standardized methodology prescribed by U.S. GAAP and is not necessarily comparable to similarly-titled measures presented by other companies. We believe operating cash expense to be a liquidity measure that provides useful information to management and investors about the amount of cash consumed by the operations of the business. A limitation of using this non-U.S. GAAP measure is that operating cash expense does not represent the total change in cash and cash equivalents for the period because it excludes cash provided by or used for other investing and financing activities. We account for this limitation by providing information about our capital expenditures and other investing and financing activities in the statements of cash flows in our financial statements. Additionally, we reconciled operating cash expense above to net cash used in operating activities, the most directly comparable U.S. GAAP financial measure. In addition, it is important to note that other companies, including companies in our industry, may not use operating cash expense, may calculate operating cash expense in a different manner than we do or may use other financial measures to evaluate their performance, all of which could reduce the usefulness of operating
cash expense as a comparative measure. Because of these limitations, operating cash expense should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with U.S. GAAP.
Forward-Looking Statements
This document contains information that includes or is based upon “forward-looking statements” within the meaning of the Securities Litigation Reform Act of 1995, including, without limitation, those regarding the occurrence or realization of potential milestones; the timing of data readouts and other milestones; the impact of initial safety and PK data from the REC-1245 trial on the future success of the trial; the timing and outcome of anticipated engagement with the FDA; financial position, cash runway, and cash burn; Recursion’s ability to translate platform insights into tangible proof; the impact of preclinical data on trial outcomes; Recursion's future as a leader in TechBio and ability to deliver better treatments to patients faster; expectations relating to early and late stage discovery, preclinical, and clinical programs, including timelines for commencement of and enrollment in studies, data readouts, meetings with regulators, and progression toward IND-enabling studies; expectations and developments with respect to licenses and collaborations, including option exercises by partners and the amount and timing of potential milestone payments, and the acceleration of progress across multiple partnered programs; prospective products and their potential future indications and market opportunities; developments with Recursion OS, including achieving future returns on investment in the platform and the ability to discover and develop new medicines and provide insights into patient populations; and all other statements that are not historical facts. Forward-looking statements may or may not include identifying words such as “plan,” “will,” “expect,” “anticipate,” “intend,” “believe,” “potential,” “continue,” and similar terms. These statements are subject to known or unknown risks and uncertainties that could cause actual results to differ materially from those expressed or implied in such statements, including but not limited to: challenges inherent in pharmaceutical research and development, including the timing and results of preclinical and clinical programs, where the risk of failure is high and failure can occur at any stage prior to or after regulatory approval due to lack of sufficient efficacy, safety considerations, or other factors; our ability to leverage and enhance our drug discovery platform; our ability to obtain financing for development activities and other corporate purposes; the success of our collaboration activities; our ability to obtain regulatory approval of, and ultimately commercialize, drug candidates; our ability to obtain, maintain, and enforce intellectual property protections; cyberattacks or other disruptions to our technology systems; our ability to attract, motivate, and retain key employees and manage our growth; inflation and other macroeconomic issues; and other risks and uncertainties such as those described under the heading “Risk Factors” in our filings with the U.S. Securities and Exchange Commission, including our Annual Report on Form 10-K. All forward-looking statements are based on management’s current estimates, projections, and assumptions, and Recursion undertakes no obligation to correct or update any such statements, whether as a result of new information, future developments, or otherwise, except to the extent required by applicable law.
Earnings 1Q26 MAY 6, 2026
This presentation of Recursion Pharmaceuticals, Inc. (“Recursion,” “we,” “us,” or “our”) and any accompanying discussion contain statements that are not historical facts may be considered forward-looking statements under federal securities laws and may be identified by words such as “anticipates,” “believes,” “estimates,” “expects,” “intends,” “plans,” “potential,” “predicts,” “projects,” “seeks,” “should,” “will,” or words of similar meaning and include, but are not limited to, statements regarding the impact of the acceptance of the fifth milestone by Sanofi on future developments and potential treatments; the impact of FAP trial on the Recursion OS and other clinical and preclinical programs; financial position, cash runway, and ability to reduce our cash expense; our ability to use AI to translate complex science into medicines faster and better; Recursion’s OS industrializing first- and best-in-class drug discovery; our ability to industrialize clinical development and the effect of doing so on clinical trial outcomes; the occurrence or realization of potential milestones and their potential timing or amounts; current and future preclinical and clinical studies, including timelines for enrollment in studies, data readouts, progression toward IND- enabling and other potential studies, and engagement with the FDA; advancements of and other decisions regarding our pipeline, partnerships, and data strategies; the potential size of the market opportunity for our drug candidates; outcomes and benefits from licenses, partnerships and collaborations, including option exercises by partners; the initiation, timing, progress, results, and cost of our research and development programs; advancements of our Recursion OS; and many others. Other important factors and information are contained in Recursion’s most recent Annual Report on Form 10-K, and the Company’s other filings with the U.S. Securities and Exchange Commission (the “SEC”), which can be accessed at https://ir.recursion.com, or www.sec.gov. All forward-looking statements are qualified by these cautionary statements and apply only as of the date they are made. Recursion does not undertake any obligation to update any forward- looking statement, whether as a result of new information, future events or otherwise. Certain information contained in this presentation relates to or is based on studies, publications, surveys and other data obtained from third-party sources and the company’s own internal estimates and research. While the company believes these third-party sources to be reliable as of the date of this presentation, it has not independently verified, and makes no representation as to the adequacy, fairness, accuracy or completeness of, any information obtained from third- party sources. In addition, all of the market data included in this presentation involves a number of assumptions and limitations, and there can be no guarantee as to the accuracy or reliability of such assumptions. Finally, while the company believes its own internal research is reliable, such research has not been verified by any independent source. Information contained in, or that can be accessed through our website is not a part of and is not incorporated into this presentation. Cross-trial or cross-candidate information about other investigational assets and drug candidates are not based on head-to-head studies and are presented for informational purposes; data presented are based on publicly available information for other clinical trials and other drug candidates. ® 2026 Recursion Pharmaceuticals, Inc. Recursion and its related logo are registered trademarks of Recursion Pharmaceuticals, Inc. All other trademarks are property of their respective owners. Important Information 2
Our journey: Turning Recursion’s foundation into proof with clinical and partnered programs 3 AI POTENTIAL PHASE CLINICAL & PARTNERED ASSETS Foundational Infrastructure Automated lab infrastructure to build datasets and validate model predictions Proprietary Data Engine Building and curating 50+ petabytes of multi-omic data Earliest adopter of one of biotech's most powerful supercomputers Lab in a Loop AI-guided closed-loop experimentation to validate hypotheses cheaper, faster, with focus on high quality Clinical & Partnered Advancement Several potential first-in- class and/or best-in-class clinical and partnered pipeline advancing in oncology, immunology, neuroscience, and rare disease INITIAL DISCOVERY ASSETS
Recursion today: Delivering proof with a scalable, repeatable product engine 4 CLINICAL PROOF ESTABLISHED REC-4881 for FAP demonstrates first clinical proof-of-concept with promising efficacy and durability MULTIPLE SHOTS ON GOAL 5 wholly-owned programs with defined inflection points over the next 12–18 months PROVEN PARTNER MODEL >$500M in partner inflows and 10+ milestones delivered, validating the AI engine’s ability to generate novel targets and molecules AI-NATIVE PRODUCT ENGINE BUILT FOR REPEATABILITY End-to-end engine: biology → chemistry → clinical Powered by extensive proprietary data & lab-in-a-loop DISCIPLINED CAPITAL ALLOCATION Cash runway extends into early 2028 30% reduction in cash operating expenses1 YoY 1. Cash operating expense—defined as net cash used in operating activities less partnership inflows and transaction costs—is a non-GAAP financial measure. See Appendix for reconciliation of non-GAAP financial measures.
Our focus: Advancing internal and partnered pipeline by translating our AI-native product engine into therapeutic impact 5 Integrated Wet/Dry Lab AI/ Foundation Models Super Compute Bilingual Talent Proprietary Multimodal Data Wholly owned pipeline Partnered pipeline Vertically integrated, AI- native product engine Differentiated medicines, powered by AI
6 Translating proof to products Scaling a differentiated AI- native product engine Pairing bold ambition with disciplined execution Translate deep pipeline learnings into approved, revenue-generating medicines Advance a proprietary, compounding AI capability — where every experiment makes the system smarter and the moat wider Pairing focused innovation with rigorous capital allocation, execution, and measurable milestones that build towards our goal of medicines for patients 1 2 3 Three strategic pillars driving the transition from proof to products
Wholly owned pipeline: A differentiated, platform-derived pipeline with clear catalysts and disciplined decision points 7 Disease Indication(s) Total Addressable Market1 Late Discovery Preclinical Phase 1/2 Phase 3 Differentiation REC-4881 MEK1/2 Familial adenomatous polyposis (FAP) >50,000 • Targets underlying APC biology; rapid, durable polyp reductions with class-consistent safety REC-617 CDK7 Advanced solid tumors ~150,000 • Designed for improved therapeutic window via high selectivity and shorter half-life REC-1245 RBM39 Solid tumors & lymphoma2 >100,000 • Platform-derived novel target; potential first-in- class degrader targeting DNA repair vulnerabilities in resistant tumors REC-3565 MALT1 B-cell malignancies ~41,000 • Designed to mitigate hyperbilirubinemia and enable combination therapy REC-4539 LSD1 Solid tumors & hematology oncology ~45,000 • Designed to lower risk of thrombocytopenia and be brain penetrant to address CNS metastases REC-7735 PI3Kα H1047R Solid tumors >21,000 • Highly mutant-selective PI3Kα designed to reduce hyperglycemia, discontinuations, and expand patient population REC-102 ENPP1 Hypophosphatasia (HPP) >7,800 • Potential first oral therapy to restore bone mineralization (offering alternative to injectables) Neither the safety nor efficacy of the investigational drugs described has been established 1. Addressable patient populations estimate based on annual US+EU5 and currently identified indications 2. Multiple biomarkers being explored
Wholly owned pipeline: A differentiated, platform-derived pipeline with clear catalysts and disciplined decision points 8 Disease Indication(s) Total Addressable Market1 Late Discovery Preclinical Phase 1/2 Phase 3 Recent Progress & Next Steps REC-4881 MEK1/2 Familial adenomatous polyposis (FAP) >50,000 ✓Regulatory engagement underway to define registrational path; update 2H26 REC-617 CDK7 Advanced solid tumors ~150,000 On track – early combo data expected 1H27 REC-1245 RBM39 Solid tumors & lymphoma2 >100,000 ✓Early clinical data - well-tolerated with no DLTs to date and dose dependent PK; update 2H26 REC-3565 MALT1 B-cell malignancies ~41,000 On track – mono data expected 1H27 REC-4539 LSD1 Solid tumors & hematology oncology ~45,000 ✓First patient dosed; Ph 1 dose escalation underway; mono data in 2H27 REC-7735 PI3Kα H1047R Solid tumors >21,000 On track – IND enabling go/no-go in 2H26 REC-102 ENPP1 Hypophosphatasia (HPP) >7,800 On track – IND enabling go/no-go in 2H26 5+ programs across oncology and rare disease, each with near-term read-outs and go/no go decision points 1. Addressable patient populations estimate based on annual US+EU5 and currently identified indications 2. Multiple biomarkers being explored
Partnered pipeline: Delivering AI-firsts with partners on a robust & diverse joint portfolio of programs 9 Sanofi: Potential for Recursion AI-driven molecules for difficult and diverse protein targets in I&I to reach development candidate Roche & Genentech: Translating AI-driven insights into novel biology and potential first-in-class programs Select progress-based milestones achieved: 2023 Sanofi I&I 1 program 3Q23 Roche and Genentech Neuron AI biological map 3Q24 Sanofi I&I 3 program 2Q25 Roche and Genentech Microglia AI biological map 4Q25 Sanofi Onc 2 program 1Q26 Sanofi I&I 2 program 3Q24 Sanofi Onc 1 program 3Q24 202620252024 ACCEPTED ACCEPTED ACCEPTED ACCEPTED ACCEPTEDACCEPTEDACCEPTED Roche and Genentech Small molecule validation program (one oncology indication) 3Q23 12-month outlook:
Vicki Goodman, M.D. appointed as Recursion CMO 10 • Seasoned Physician Executive: More than two decades of experience in oncology drug development and medical leadership, across Merck, Bristol Myers Squibb, GlaxoSmithKline, Exelixis, and Mural Oncology • Strategic Clinical Leadership: Former CMO and EVP; oversaw early- to late-stage clinical development, regulatory affairs, and biometrics across multi-asset pipelines • Proven Track Record: Development of KEYTRUDA® (pembrolizumab) (Merck), OPDIVO® (nivolumab) and YERVOY® (ipilimumab) (BMS), and guided dabrafenib (GSK) from early clinical expansion through regulatory approval • Regulatory Insight: Strategic background as a former Medical Officer at the U.S. Food and Drug Administration (FDA) • Clinical Foundation: M.D. from Albert Einstein College of Medicine; clinical training in internal medicine and hematology/oncology at the University of Michigan “I look forward to working with Najat, the leadership team, and the broader organization to advance the pipeline, support smart and disciplined development decisions, and help bring impactful new therapies to patients.”
REC-1245 Translating proof to products
RBM39 Degrader: Selective degradation of RBM39 impairs splicing, compromising DDR pathways and transcriptional regulation • RBM39 is a splicing factor essential for DDR network and a c-Jun/ER/PR transcriptional coactivator • Overexpression of RBM39 in many solid tumors is linked to poor survival, highlighting it as a key cancer driver1 • REC-1245-induced RBM39 degradation leads to DNA damage and cell death in several genetic backgrounds / tumor types such as those w/ DDR deficiency Biological Rationale • REC-1245 is a highly potent, first-in-class RBM39 degrader • >100,000 addressable patients across US & EU5 - solid tumor indications and lymphoma2 • Currently no RBM39 degraders approved by the FDA REC-1245 Opportunity 12 1. Cui F et al. RBM39 is a potential prognostic biomarker with functional significance in hepatocellular carcinoma. Transl Cancer Res. 2024 Apr 30;13(4); Zhang R et al. Systematic pan- cancer analysis identifies RBM39 as an immunological and prognostic biomarker. J Cell Mol Med. 2022 Sep;26(18):4859-4871 2. Multiple biomarkers being explored
REC-1245: Novel platform derived insight to unlocking comprehensive genomic instability vulnerabilities 13 1. Data not shown. 2. Cell lines were assigned to broad pathway dysregulation contexts based on 1 or more documented alteration from CCLE/GSDC databases REC-1245 induces significant tumor regressions in an ovarian CDX • Model driven by elevated replication stress Preclinical InsightRecursion OS Insight Preclinical Data Days post treatment T u m o r V o lu m e ( m m 3 ) Ovarian CDX Model: OVK18 (MSI-H) Platform-derived novel target and degrader • RBM39 loss phenocopies CDK12 deficiency • RBM39 degrader: advanced from 204 compounds to candidate in 18 months • Translates phenomic insight into mechanism, with rapid and potent RBM39 degradation in human PBMCs within 24 hours1 CDK12 RBM39CDK13 RBM39 CDK12 CDK13 In vitro: Cell viability with REC-12452 C T G I C 5 0 ( µ M ) Potential REC-1245 sensitivity based on genomic instability • Emerging preclinical data uncover replication stress and DNA repair vulnerability as potential signatures for REC-1245 sensitivity
Note: Data-cut off date 2026-03-31 Phase 1 Dose Escalation Update: Early data from monotherapy dose escalation with REC-1245 14 Ph 1A Monotherapy Dose-Escalation Continuous once-daily dosing summary Dose 1 QD Dose 2 QD Dose 3 QD Dose 4 QD Additional dose levels enrolling Primary objective • PK and safety Secondary objective • Anti-tumor activity ALL PATIENTS N=16 Age (median) 65 Range 57-77 Advanced solid tumors 16 Tumor biomarker MSI-H and/or dMMR 7 MSS 9 Prior systemic therapy lines (median) 4.5 Key inclusion criteria • Unresectable, locally recurrent, or metastatic select solid tumors or select relapsed/refractory lymphoma • Progressed following, or intolerant to, available SoC treatments ClinTech: Ongoing RWE efficacy contextualization leveraging high-fidelity longitudinal EHR and claims data
15 Note: Data-cut off date 2026-03-31; All data summaries are reported for Safety Evaluable Population Preliminary Safety Data: REC-1245 well-tolerated with no DLTs across all evaluated doses to date Treatment-Related Adverse Event (TRAE) Patients (n=16) Patients with Any TRAE 10 (62.5%) Grade 1-2 9 (56.3%) Grade 3 1 (6.2%) Grade 4-5 0 (0.0%) • REC-1245 was well-tolerated • No DLTs reported across evaluated doses to date • No serious TRAE was reported • 90%+ of TRAEs were Grade 1 or 2 o Most common GI-related: constipation (12.5%, n=2), nausea (12.5%, n=2), vomiting (12.5%, n=2) o Most common non-GI related: fatigue (18.8%, n=3) • 6.2% (n=1) of patients experienced Grade 3 nausea and vomiting Preliminary safety and tolerability summary
Preliminary PK/PD summary • Predictable, dose-dependent exposure across evaluated patients to date • PK is supportive of QD dosing and exposures continue to increase with dose • Expect to achieve exposures consistent with tumor regression in mice within the next two dose levels • Pharmacodynamic assessments demonstrate target engagement 16 Early data suggests REC-1245 has predictable, dose dependent exposure Note: Data-cut off date 2026-03-31; N=16
REC-1245 (RBM39): Insight → early proof → next steps Biological insight: Platform-derived novel target and degrader, enabling synthetic lethality in genomically unstable cancers Early clinical proof: Well-tolerated with no DLTs in early Phase 1 dose escalation; Predictable, dose- dependent exposure to date What’s next: Continued Phase 1 dose escalation; data update in 2H26 17 Insight Proof points Next steps
REC-4539 Translating proof to products
LSD1i: Promising oncology target historically blocked by class- limiting on-target toxicity and poor CNS exposure • Overexpression of LSD1, a pivotal epigenetic master regulator, promotes tumor progression and immune evasion • Potential to address high-impact indications by targeting LSD1, where current therapies often fall short • E.g., small cell lung cancer (SCLC) and acute myeloid leukemia (AML) • Opportunity to address ~45,000 patients with treatable ES-SCLC in US+EU5 currently with limited treatment options post- progression LS1 Opportunity Overcome the treatment-limiting clinical toxicity observed with prior LSD1 inhibitors, improving safety & maximizing efficacy: • By combining reversibility and short half-life • With CNS penetrance to combat metastasis 19 Challenges Prior LSD1 inhibitors have had safety liabilities and limited CNS penetrance: • On-target, dose-limiting thrombocytopenia linked to irreversible MOAs and long half lives • Limited brain penetrance impacting >50% of SCLC patients who develop brain metastases
REC-4539: AI-enabled precision design to overcome class-limiting toxicity issues 20 REC-4539 has minimal impact on platelets in an SCLC CDX • Well-tolerated, with similar preclinical efficacy to competitors2 Preclinical InsightRecursion OS Insight Preclinical Data Precision designed to combine improved safety with CNS penetrance • Leveraged AL-methods like Coverage Score1 to select unbiased, information rich hits suitable for rapid multi- parameter optimization to design a unique candidate Potential best-in-class LSD1i, with reduced risk of on-target toxicity • Shorter-predicted human half-life vs competitors plus reversible MOA to manage on-target AEs (e.g. thrombocytopenia) • Sufficient CNS exposures vs competitors 414 novel compounds to candidate ID Development Candidate (DC) Criteria: • Brain:plasma ratio: green >0.5; red <0.5 • MDCK-MDR1 efflux ratio (Pgp): green <2; yellow >2-<10; red >10 • Predicted half-life: green <24 hours; yellow 24-48h hours; red >48 hours 1. Coverage Score: A Model Agnostic Method to Efficiently Explore Chemical Space, J. Chem. Inf. Model. 2022, 62, 18, 4391–4402. 2. Efficacy data not shown. SCLC CDX Model: H1417
FPD in Phase 1 Dose Escalation: ENLYGHT Phase 1 trial in patients with select solid tumors including SCLC • Rapid data-driven program go/no-go based on clinical safety profile observed in solid tumors • REC-4539 precision designed to avoid on-target thrombocytopenia observed with competitor LSD1 inhibitors 21 ENLYGHT: Dose Determining Study of EXS74539 (REC-4539) in Participants With Select Solid Tumors; NCT07517198 1. Other solid tumor types include: Non small cell lung cancer, triple negative breast cancer, squamous cell carcinoma liver cancer, prostate, ovarian, renal, head and neck, and gastric cancers. Phase 1 Dose Escalation ENLYGHT patient population; N = ~25 • Patients with solid tumors including SCLC and high grade neuroendocrine or small cell carcinomas non-lung origin1 Dose 1 Dose 2 Dose 3 Dose 4 Dose 5+ Enrichment cohort (SCLC or high grade neuroendocrine) Next steps • Early safety and PK from monotherapy trial in 2H27
REC-4539 (LSD1): What’s next Biological insight: Shorter-predicted human half-life vs competitors plus potentially reversible MOA to manage dose-limiting thrombocytopenia Preclinical proof: Well-tolerated with minimal impact on platelets and similar preclinical efficacy to competitors in animal models What’s next: Early monotherapy safety and PK data in 2H27 22 Insight Proof points New medicines
Recursion OS Platform Scaling a differentiated AI-native product engine
30-60% faster enrollment for clinical trials 10-40% increase in eligible patient population ~90% fewer compounds synthesized2 ~2x faster candidate advancement AI-native product engine for drug discovery & development 24 1. 6 AI-derived maps of biology accepted by Roche and Genentech 2. Compared to industry average of over 2,500 compounds and 42 months 10+ high-dimensional disease maps1 Multiple novel target programs, more upcoming Vertically integrated, AI- native product engine >50 petabytes of unified, multimodal data integrated across platform
A scaled, closed-loop data engine for learning human biology Automated wet lab generates high-quality, perturbation-driven data to power predictive models 25 Wenkel F. et al, Nature Biotechnology 1 May 2026, DOI: 10.1038/s41587-026-03113-4 Recursion is a leader in generating perturbational data at scale • High content imaging/phenomics and transcriptomics provide a scalable readout of cellular state in response to chemical or genetic perturbations • Linking proprietary perturbative data with patient data creates rich, large scale multimodal data sets anchored in disease relevance • This data engine powers our state- of-the-art models to generate insights faster than traditional differential expression approaches Serves as the foundation for our AI and data moat, underpinning models like TxPert and TxFM to improve target selection, hit finding, and patient stratification
TxPert: Predicting biology before we run the experiment New model predicts transcriptomic readouts for unseen perturbations 26 Wenkel F. et al, Nature Biotechnology 1 May 2026, DOI: 10.1038/s41587-026-03113-4 TxPert predicts cellular response to unseen perturbations Learns complex biology, moving beyond simple pattern recognition • Grounded in biological knowledge graphs, including proprietary perturbation maps Generalizes beyond training data • SOTA published model in predicting unseen single perturbations; also on combinatorial effects and unseen cell contexts Approaching experimental accuracy • Predicted experimental results across 3 of 4 standard benchmark cell lines Published in Nature Biotechnology Application: Models like TxPert unlock perturbation space too vast to test experimentally—predicting and prioritizing the right experiments before running them to improve speed, cost, and probability of success
27 State-of-the-art transcriptomics foundation model Technical Achievements Model Performance TxFM outperforms 16 other foundation models and baselines Surpasses models trained on datasets 10–100x larger1 Potential to reduce experimental re-runs ✓ Removes experimental noise ✓ Learns underlying biology at scale (gene and pathway level) ✓ Connects experimental perturbations to human disease TxFM bridges the gap between lab perturbations and patient biology 1TxFM’s perturbation representations were benchmarked against 16 foundation models and strong baselines using the Bendidi et al. (2024) benchmark across three held-out cell lines (HEPG2, Jurkat, RPE1). TxFM-B outperforms the best alternative model, Arc Institute’s STATE-SE (Adduri et al., 2025), despite having nearly 4× fewer parameters and being trained on 100× less data. Kenyon-Dean, K. et al. ICLR 2026 Workshop on Foundation Models for Science. Application: TxFM with potential to unlock deeper biology to enable patient grounded target identification, MoA understanding, patient stratification TxFM: A biological foundation model that connects lab and patient biology Presented at ICLR 2026
Financials Pairing bold ambition with disciplined execution
Cash runway to deliver on upcoming milestones 29 1. Cash, cash equivalents and restricted cash 2. Cash operating expense—defined as net cash used in operating activities less partnership inflows and transaction costs—is a non-GAAP financial measure. See Appendix for reconciliation of non-GAAP financial measures. 1Q26 expense and cash1 update • ~30% reduction in YoY cash opex2 to $85m in 1Q26 • $665 million in cash1 as of March 31, 2026 1Q26 partnership highlights • 5th Sanofi milestone: $4M for a lead series in a potential first-in-class oncology program Expected cash runway into early 2028, without additional financing Reiterating 2026 cash opex guidance of <$390m
Looking ahead
Expected upcoming milestones 2026 and 2027 pipeline and partnership catalysts 31 1. Data-driven decision for potential Phase 1 initiation Translate proof to products Partner & Product catalysts – 2026 & 2027 Potential for AI-driven molecules to reach development candidate and late-stage discovery milestones Translating AI-driven insights from biology maps into potential first-in-class programs REC-4539 (LSD1i) Mono - Early safety and PK 2H 2026 1H 2026 2H 2027 1H 2027 REC-4881 (MEK1/2i) Additional clinical data REC-617 (CDK7i) Combo - early safety and PK REC-3565 (MALT1i) Mono - early safety and PK REC-4881 (MEK1/2i) Update on FDA engagement 2026 2027 Go/no-go decision1 REC-7735 (PI3K⍺ H1047Ri) REC-102 (ENPP1i) REC-1245 (RBM39 degrader) Additional Ph 1 dose escalation data REC-4881 (MEK1/2i) Initial engagement with FDA REC-1245 (RBM39 degrader) Mono - early safety and PK Scaling a differentiated AI-native product engine
32 THANK YOU
Non-GAAP Financial Measures To supplement our financial statements prepared in accordance with U.S. GAAP, we monitor and consider operating cash burn, which is a non-GAAP financial measure. We define operating cash expense as the net cash used in operating activities, excluding non-ordinary course transaction costs and partnership cash inflows. This non-GAAP financial measure is not based on any standardized methodology prescribed by U.S. GAAP and is not necessarily comparable to similarly- titled measures presented by other companies. We believe operating cash expense to be a liquidity measure that provides useful information to management and investors about the amount of cash consumed by the operations of the business. A limitation of using this non-U.S. GAAP measure is that operating cash expense does not represent the total change in cash and cash equivalents for the period because it excludes cash provided by or used for other investing and financing activities. We account for this limitation by providing information about our capital expenditures and other investing and financing activities in the statements of cash flows in our financial statements. Additionally, we reconciled operating cash burn below to net cash used in operating activities, the most directly comparable U.S. GAAP financial measure. In addition, it is important to note that other companies, including companies in our industry, may not use operating cash expense, may calculate operating cash expense in a different manner than we do or may use other financial measures to evaluate their performance, all of which could reduce the usefulness of operating cash expense as a comparative measure. Because of these limitations, operating cash burn should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with U.S. GAAP. Appendix 34
FAQ
How did Recursion Pharmaceuticals (RXRX) perform financially in Q1 2026?
Recursion reported Q1 2026 revenue of $6.5 million, mainly from collaborations, versus $14.7 million a year earlier. Net loss narrowed to $117.5 million from $202.5 million as operating expenses and cash burn declined due to efficiency gains and fewer one-time costs.
What is Recursion Pharmaceuticals’ cash position and runway after Q1 2026?
Recursion ended Q1 2026 with $665.2 million in cash, cash equivalents and restricted cash. Based on current operating plans and reiterated 2026 cash burn guidance of less than $390 million, the company expects its cash runway to extend into early 2028 without additional financing.
What progress did Recursion report for REC-4881 in familial adenomatous polyposis (FAP)?
REC-4881 showed median polyp-burden reductions of 43% at Week 13, deepening to 53% at Week 25 after a treatment break, with 40% of patients improving in Spigelman stage. Safety was consistent with MEK1/2 inhibition, and FDA engagement on a potential registrational path is underway.
Which new clinical milestones did Recursion achieve for REC-4539 in oncology?
Recursion dosed the first patient in the ENLYGHT Phase 1 study of REC-4539, a reversible, brain-penetrant LSD1 inhibitor for select solid tumors including small cell lung cancer. The candidate was designed to limit thrombocytopenia and achieve central nervous system exposure versus earlier LSD1 inhibitors.
How did Recursion’s cash operating expense change year over year in Q1 2026?
Cash operating expense, defined as net cash used in operating activities adjusted for partnership inflows and transaction costs, decreased to $85.1 million in Q1 2026 from $120.2 million in Q1 2025. Management attributes the reduction to operating efficiencies and strategic portfolio reprioritization.