Recursion Pharmaceuticals, Inc.RXRX
NASDAQ • Healthcare
$3.12
P/E
—
PEG
—
FCF Yield
—
Rev Growth YoY
-56.1% YoY
Gross Margin
-93.0%
Health Score
3/10
D/E Ratio
0.07
Confidence
LOW
Business Snapshot
Recursion Pharmaceuticals is a clinical-stage biotechnology company applying machine learning to drug discovery. It operates in the competitive AI-driven drug development space as a challenger, without approved commercial products or recurring revenue streams. With trailing twelve-month revenue of $66.29 million and a market capitalisation not provided—indicating a micro-cap profile—the company lacks a scalable revenue base. The single defining characteristic is its heavy reliance on external partnerships and capital markets to fund deep operating losses, which totalled $-559.78 million in net income over the latest reported twelve months.
Financial Health
Gross margin is flagged as distorted at -93.0% and prior year was 24.4%, while net margin is also unreliable at -842.9% due to a data error; both figures underscore heavy operating losses. The balance sheet appears conservative with a debt/equity of 0.07x and a current ratio of 5.5x, providing short-term liquidity...
Risk Assessment
- REVENUE DECELERATION — Revenue declined 56.1% year-over-year and a further 81.8% quarter-over-quarter, indicating a severe and accelerating top-line contraction.
- FCF / CASH BURN — Free cash flow of $-378.28 million is deeply negative, requiring external capital to sustain operations and likely leading to shareholder dilution.
- VALUATION — Price/Sales of 25.18x is unsustainable for a company with a 56.1% revenue decline, suggesting a speculative premium disconnected from fundamentals.
- 52-WEEK POSITION — The current price of $3.12 sits well below the midpoint (approx. $4.99) of the 52-week range ($2.80 – $7.18) and is 56.5% below the high, reflecting persistent negative price momentum.
- TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed....