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Recursion Pharmaceuticals

RXRX
15
Biotechnology · Healthcare
Price
$3.50
+0.16 (+4.79%)
Market Cap
$1.84B
Exchange
NASDAQ
Winston Score
15
Winston is worried
Weak fundamentals across most pillars.
Data as of Aug 23, 2026 · filings through Jun 30, 2026
How the score breaks down
Quality
Weak
Growth
Weak
Cash Flow
Weak
Stability
Data not available
Valuation
Data not available

Share count rising — dilution

+162.8% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 170.3M (2021) → 447.4M (2025)

Winston Score History

The full picture

Recursion Pharmaceuticals is a biotechnology company that uses artificial intelligence and large-scale lab automation to discover new drugs. Instead of testing drug candidates one at a time the traditional way, it runs millions of biological experiments and feeds the data into AI models to find potential treatments faster. The company is working on drugs for rare genetic diseases, cancer, and infectious diseases, and it partners with large pharmaceutical companies like Roche and Bayer to help them find new medicines too.

Recursion makes money through a mix of partnership deals, milestone payments, and research collaborations with big pharma companies, while also advancing its own drug pipeline. It is headquartered in Salt Lake City, Utah, and operates primarily in the United States with a growing global data and computing footprint. The company is not yet profitable and burns significant cash each year, so its biggest risk is whether its AI-driven approach will produce approved drugs before it needs to raise more money from investors.

Growth Profile

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

-59.8% YoY

YoY Growth Rate

Revenue declining

EPS Growth

+39.0% YoY

YoY Growth Rate

EPS growth accelerating

R&D Spend

$425M/ year

Rising (+35% vs prior year)

569.4% of revenue

31.6x the sector average (18%)

Investing heavily in future products and technology

Insider Activity

22.1%ownership

Flat

Insider ownership roughly steady over the past year

Cash Runway

~9 months

$546M cash & investments

Quarterly Free Cash Flow

↓ Burn rate worsening

Short runway — potential dilution ahead through share issuance

Heavy R&D investment

Recursion Pharmaceuticals is putting 569% of revenue into R&D and that number is rising. That's 31.6x the sector average.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

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Quality

Profit per sale
Gross Margin
-49.8%
Thin — -49.8% gross margin
Profit after running costs
Operating Margin
-1759.7%
Losing money on operations — -1759.7%
Return on the money invested
ROCE
-59.5%
Weak — -59.5% return on capital

Negative ROIC means the business is losing money on every dollar invested in it.

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Growth

Sales growth
Sales YoY
-14.9%
Shrinking sales (-14.9% YoY)
Profit growth
EPS YoY
N/A
Data not available
How steady the profit is
EPS Consistency
4/8 quarters
Earnings inconsistent quarter-to-quarter

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Cash Flow

Profit that turns into cash
Cash Conversion
N/A
Data not available
Spare cash per sale
FCF Margin
-790.5%
Burning cash (-790.5%)

Free cash flow is negative. They are burning cash, not generating it.

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Stability

What it owes vs what it owns
Debt / Equity
N/A
Data not available
Covers its interest
Interest Cover
N/A
Data not available

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Valuation

Price vs profit
P/E Ratio (TTM)
N/M
Negative earnings — P/E not meaningful
Cheaper or dearer next year
P/E vs Forward
N/A
not available
Data not available

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Dividends

Not applicable for this business.
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