Overview

* Recursion Q2 operating revenue beats expectations, reaching $19.2 mln, per LSEG data

* Net loss widens to $171.9 mln, missing analyst estimates, per LSEG data

* Achieved $7 mln milestone payment from Sanofi partnership in Q2

Outlook

* Recursion expects cash runway to extend into Q4 2027

* Company anticipates $100 mln in partnership milestones by end of 2026

* Recursion advancing multiple programs towards development candidate designation

* Company expects REC-102 Phase 1 initiation in 2H26

Result Drivers

* SANOFI MILESTONE - Achieved $7 mln milestone payment from Sanofi partnership, reflecting progress in partnered discovery programs

* INCREASED R&D EXPENSES - R&D expenses rose due to collaboration with Tempus and acquisition of Exscientia

* PLATFORM ADVANCEMENTS - Recursion OS platform aids in drug discovery and patient targeting, supporting pipeline progress

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Beat $19.10 $15.40

Operatin mln mln (6

g Analysts

Revenue )

Q2 EPS -$0.41

Q2 Net Miss -$171.90 -$93.20

Income mln mln (4

Analysts

)

Q2 Miss -$171.90 -$140.20

Pretax mln mln (2

Profit Analysts

)

Q2 -$176.23

Operatin mln

g Income

Analyst Coverage

* The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 6 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the biotechnology & medical research peer group is "buy."

* Wall Street's median 12-month price target for Recursion Pharmaceuticals Inc ( RXRX ) is $6.50, about 10.8% above its August 4 closing price of $5.80

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)