Recursion Pharmaceuticals (RXRX) Q2 2026 earnings summary

Executive summary

• Achieved a major inflection point with five clinical-stage programs, including REC-4881 and REC-7735, and significant partnership progress with Sanofi and Roche Genentech, generating over $500 million in inflows and advancing novel neuroscience targets.

• Internal pipeline advanced with REC-4881 (FAP) showing 43% median polyp burden reduction in phase II, REC-1245 progressing with early clinical data, and REC-7735 receiving IND clearance.

• AI-native engine leverages proprietary multimodal data, lab-in-the-loop experimentation, and continuous learning to accelerate drug discovery and development.

• Leadership strengthened with appointments of Chief AI Officer and Head/SVP of Drug Design, enhancing AI and drug discovery expertise.

• Achieved $14.1M in revenue for H1 2026, down 58% year-over-year, with net loss improving to $248.5M due to lower R&D and G&A expenses.

Financial highlights

• Lowered 2026 full-year cash operating expense guidance to under $375 million, a nearly 40% reduction from 2024 pro forma expenses.

• Cash, cash equivalents, and restricted cash totaled $556.8 million as of June 30, 2026, providing an operating runway through early 2028.

• Revenue for Q2 2026 was $7.7 million, primarily from collaborations, down from $19.2 million in Q2 2025.

• R&D expenses decreased to $89.6 million in Q2 2026 from $128.6 million in Q2 2025, reflecting improved efficiency.

• Partnerships have delivered over $500 million in cash inflows, with all collaborations designed to be break-even or profitable on a direct cost basis.

Outlook and guidance

• Expect additional phase II data for REC-4881 and a regulatory update before year-end; REC-7735 phase I/II initiation planned for 2H26, with early data expected in 1H28.

• REC-1245 to provide a comprehensive update later this year.

• Anticipate further milestones with Sanofi and Roche Genentech, including new AI-designed molecules and neuroscience targets.

• Cash runway expected to extend into early 2028 based on current operating plans and no additional financing.

• Upcoming milestones include further clinical data for REC-617, REC-3565, and REC-4539 in late 2026 and 2027.