Revenue is erratic and gross margins are persistently negative, with 2026Q2 revenue of $7.7M and a gross margin of -49.8%, reflecting collaboration-dependent income that fails to cover COGS.
Recursion Pharmaceuticals, Inc. (RXRX) annual income statement — 7-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 |
|---|
| Sales/Revenue | 54.85M | 74.68M | 58.84M | 43.88M | 39.68M | 10M | 3.41M | 1.71M |
| Revenue Growth % | -14.88% | 26.92% | 34.1% | 10.57% | 296.81% | 193% | 99.47% | - |
| Cost of Goods Sold | 80.45M | 120.95M | 45.24M | 42.59M | 48.27M | 0 | 0 | 45.81M |
| COGS % of Revenue | - | 161.96% | 76.88% | 97.06% | 121.66% | - | - | 2677.32% |
| Gross Profit | -25.59M | -46.27M | 13.6M | 1.29M | -8.59M | 10M | 3.41M | -44.1M |
| Gross Margin % | -46.66% | -61.96% | 23.12% | 2.94% | -21.66% | 100% | 100% | -2577.32% |
| Gross Profit Growth % | - | -440.22% | 955.16% | 115% | -185.94% | 193% | 107.74% | - |
| Operating Expenses | 518.41M | 601.86M | 492.61M | 351.35M | 237.13M | 192.78M | 88.03M | 64.15M |
| OpEx % of Revenue | - | 805.91% | 837.21% | 800.78% | 597.6% | 1927.75% | 2579.2% | 3749.39% |
| Selling, General & Admin | 151.41M | 176.59M | 178.18M | 110.82M | 81.6M | 57.68M | 25.26M | 18.95M |
| SG&A % of Revenue | - | 236.46% | 302.83% | 252.58% | 205.64% | 576.82% | 740.05% | 1107.6% |
| Research & Development | 381.91M | 425.27M | 314.42M | 241.23M | 155.7M | 135.27M | 63.32M | 45.81M |
| R&D % of Revenue | - | 569.45% | 534.38% | 549.79% | 392.37% | 1352.71% | 1855.23% | 2677.32% |
| Other Operating Expenses | -1000K | 0 | 0 | -699K | -162K | -178K | -549K | -608K |
| Operating Income | -544.01M | -648.13M | -479M | -350.06M | -245.73M | -182.78M | -84.61M | -62.44M |
| Operating Margin % | -991.72% | -867.87% | -814.09% | -797.84% | -619.26% | -1827.75% | -2479.2% | -3649.39% |
| Operating Income Growth % | - | -35.31% | -36.83% | -42.46% | -34.44% | -116.01% | -35.51% | - |
| EBITDA | -465.65M | -564.43M | -442.51M | -325.66M | -233.97M | -174.37M | -80.67M | -58.9M |
| EBITDA Margin % | -848.87% | -755.79% | -752.07% | -742.22% | -589.63% | -1743.7% | -2363.67% | -3442.31% |
| EBITDA Growth % | 20.59% | -27.55% | -35.88% | -39.19% | -34.18% | -116.15% | -36.97% | - |
| D&A (Non-Cash Add-back) | 78.36M | 83.7M | 36.49M | 24.4M | 11.76M | 8.4M | 3.94M | 3.54M |
| EBIT | -522.81M | -643.09M | -463.22M | -332.03M | -239.42M | -183.53M | -85.65M | -61.88M |
| Net Interest Income | 21.56M | 20.98M | 14.19M | 19.02M | 6.2M | -2.88M | -1.02M | 1.11M |
| Interest Income | 23.06M | 22.79M | 15.76M | 19.12M | 6.25M | 73K | 336K | 1.74M |
| Interest Expense | 1.49M | 1.81M | 1.57M | 97K | 55K | 2.95M | 1.36M | 635K |
| Other Income/Expense | 20.54M | 3.24M | 14.22M | 17.93M | 6.25M | -3.7M | -2.39M | 562K |
| Pretax Income | -523.47M | -644.89M | -464.79M | -332.13M | -239.48M | -186.48M | -87.01M | -61.88M |
| Pretax Margin % | -954.27% | -863.53% | -789.93% | -756.97% | -603.5% | -1864.79% | -2549.25% | -3616.54% |
| Income Tax | -4.58M | -136K | -1.13M | -4.06M | 0 | 0 | 0 | 0 |
| Effective Tax Rate % | 0.88% | 0.02% | 0.24% | 1.22% | 0% | 0% | 0% | 0% |
| Net Income | -518.89M | -644.76M | -463.66M | -328.07M | -239.48M | -186.48M | -87.01M | -62.52M |
| Net Margin % | -945.92% | -863.35% | -788.02% | -747.71% | -603.5% | -1864.79% | -2549.25% | -3654.3% |
| Net Income Growth % | 20.04% | -39.06% | -41.33% | -36.99% | -28.42% | -114.33% | -39.15% | - |
| Net Income (Continuing) | -518.88M | -644.76M | -463.66M | -328.07M | -239.48M | -186.48M | -87.01M | -61.88M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -0.97 | -1.44 | -1.69 | -1.58 | -1.36 | -1.05 | -0.52 | -0.37 |
| EPS Growth % | 41.57% | 14.79% | -6.96% | -16.18% | -29.52% | -100.08% | -40.62% | - |
| EPS (Basic) | - | -1.44 | -1.69 | -1.58 | -1.36 | -1.05 | -0.52 | -0.37 |
| Diluted Shares Outstanding | 532.46M | 447.45M | 274.21M | 207.85M | 175.54M | 170.27M | 165.79M | 165.79M |
| Basic Shares Outstanding | 532.46M | 447.45M | 274.21M | 207.85M | 175.54M | 170.27M | 165.79M | 165.79M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - |
Quick answers to the most common questions about buying RXRX stock.
For fiscal year 2025, Recursion Pharmaceuticals, Inc. (RXRX) reported total revenue of $74.7M. This represents a 4264.8% increase compared to $1.7M in 2019.
Recursion Pharmaceuticals, Inc. (RXRX) reported a net loss of $644.8M for the fiscal year ending 2025.
Recursion Pharmaceuticals, Inc. (RXRX) reported an operating income of $-648.1M, resulting in an operating profit margin of -867.9%. This margin reflects the operational efficiency of the business before interest and taxes.
Recursion Pharmaceuticals, Inc. (RXRX) generated $-46.3M in gross profit for the year, representing a gross profit margin of -62.0%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Cash burn sustainability
Metrics are mathematically derived from official filings.
Revenue Volatility Masks Underlying Stagnation
Revenue swung from $26.1M in 2024Q3 to $5.2M in 2025Q3, a 80% drop, before recovering to $35.5M in 2025Q4, indicating erratic collaboration income rather than steady growth.
The quarterly revenue series shows extreme volatility, with 2025Q4's $35.5M spike likely driven by a one-time collaboration milestone, as adjacent quarters (2025Q3: $5.2M, 2026Q1: $6.5M) remain depressed. This pattern suggests revenue is not organically scaling but dependent on discrete partnership events, making growth durability questionable. Investors should monitor the frequency and size of such collaborations to assess whether the business model can generate recurring revenue.
Gross Margin Instability Reflects Cost Structure
Gross margin swung from 53.7% in 2024Q3 to -183.6% in 2024Q4, with recent quarters consistently negative, indicating COGS exceeding revenue and a lack of pricing power in early-stage biotech.
The negative gross margins in most quarters (e.g., -49.8% in 2026Q2) imply that direct costs, likely related to lab operations and data generation, are not covered by revenue. This is typical for a pre-commercial biotech, but the magnitude of the swings suggests revenue recognition is lumpy and not tied to scalable unit economics. The positive margin in 2025Q4 (24.4%) appears to be an anomaly driven by the revenue spike, not a structural improvement.
Operating Leverage Absent as Costs Outpace Revenue
Operating income deteriorated from -$96.3M in 2024Q1 to -$135.0M in 2026Q2, despite revenue fluctuations, as R&D and SG&A expenses remained elevated, indicating no operating leverage.
R&D expenses have grown from $67.6M in 2024Q1 to $89.6M in 2026Q2, while SG&A has also increased, leading to operating losses that do not improve even when revenue spikes. The lack of operating leverage is evident: even in 2025Q4 with revenue of $35.5M, operating income was -$108.3M, only slightly better than the -$98.4M in 2024Q3 with revenue of $26.1M. This suggests fixed cost base is high and scaling revenue will not quickly translate to profitability.
SBC Burden Masks True Cash Burn
Stock-based compensation averaged $25M per quarter, representing roughly 20% of operating losses, indicating reported net losses understate cash consumption and diluting shareholders.
SBC ranged from $16.1M to $41.7M per quarter, with 2026Q2's $41.7M being notably high. This non-cash expense inflates reported losses but also signals heavy equity-based compensation, which may be used to conserve cash. However, the cash burn is still substantial: operating cash flow is likely more negative than net income suggests, given the SBC add-back. Investors should focus on cash runway and dilution trends, as the company is burning through its balance sheet.
R&D Dominates Cost Structure, SG&A Volatile
R&D expenses consistently exceed $70M per quarter, reaching $129.6M in 2025Q1, while SG&A fluctuates between $31M and $77M, indicating R&D is the primary cost driver.
R&D is the largest expense line, representing over 60% of total operating costs in most quarters. The spike in R&D in 2025Q1 ($129.6M) and 2025Q2 ($128.6M) suggests increased investment in clinical trials or platform development, but this did not translate into revenue growth. SG&A also shows volatility, with 2024Q4's $77.2M being unusually high, possibly due to one-time charges. The cost structure appears to be scaling with headcount and research activities, but without corresponding revenue, the company is in a high-burn phase.
2025Q4 Revenue Spike: An Inflection or Anomaly?
2025Q4 revenue jumped to $35.5M from $5.2M in 2025Q3, a 583% increase, but gross margin only reached 24.4%, suggesting a collaboration payment rather than sustainable commercial sales.
The sharp revenue increase in 2025Q4 is the most significant inflection in the data, but its sustainability is questionable given the subsequent quarters' revenue of $6.5M and $7.7M. This pattern indicates that the company's revenue is highly dependent on partnership milestones, which are unpredictable. The lasting impact is that investors cannot rely on steady top-line growth; instead, they must evaluate the pipeline and partnership pipeline for future catalysts.
Cash Burn and Dilution Threaten Solvency
With quarterly operating losses exceeding $100M and SBC adding to dilution, RXRX's cash runway may be limited, as evidenced by the $135M operating loss in 2026Q2.
The company's cash burn is severe: operating losses have ranged from -$96M to -$191M per quarter, and with no clear path to profitability, the company will likely need to raise capital, which could be dilutive. The high SBC further dilutes existing shareholders. While the balance sheet may currently be adequate, the trajectory of cash consumption suggests that without new partnerships or financing, the company could face liquidity constraints within a few quarters. Short-sellers would highlight the unsustainable burn rate and the lack of revenue growth to offset it.