Recursion Pharmaceuticals, Inc.

Recursion did not report quarterly revenue or EPS on the call. Key disclosed figures were: REC-4881 produced a median 43% polyp burden reduction after 3 months in the Phase II TUPELO study, with sustained reductions after 3 months off treatment; the company said it has generated more than $500 million in realized inflows from partnerships, including more than $260 million in upfront and milestone payments with Roche-Genentech and more than a dozen discovery milestones overall; management also cited more than $300 million in additional development, commercialization and sales milestones for each future small molecule program in the Roche collaboration. On cost, Ben Taylor lowered 2026 full-year cash operating expense guidance to $375 million, which he said is nearly a 40% reduction from comparable 2024 pro forma expenses. The company ended the quarter with approximately $557 million in cash and equivalents, which it believes supports operations through early 2028. Looking ahead, Recursion expects additional Phase II data for REC-4881 in November at CGA-IGC and an FDA update later this year, continued Phase I data for REC-1245 later this year, initiation of REC-7735 later this year, and potential nomination of an oral I&I development candidate with Sanofi.

Najat Khan said Recursion has moved from talking about the promise of its platform to showing that its AI-native engine can generate differentiated programs and medicines. He emphasized the company’s three-part moat: proprietary multimodal data, Lab-in-the-Loop experimentation, and conversion of those capabilities into internal and partnered assets. His tone was confident and explanatory, especially around the Genentech neuroscience target as a proof point that the engine can uncover previously unexplored biology.

Ben Taylor focused on capital discipline and operating efficiency. He said the company lowered 2026 full-year cash operating expense guidance to $375 million, describing that as about a 40% reduction versus comparable 2024 pro forma expenses, while still advancing the pipeline and partnerships. He also said Recursion ended the quarter with about $557 million in cash and equivalents, which he believes provides runway through early 2028, and noted that partnerships are structured to be breakeven or profitable on a direct cost basis from the start.

Analysts pressed on how the Roche-Genentech collaboration can serve as a template for other partners, and management said the transferable elements are the proprietary data sets, the Lab-in-the-Loop operating model, and the ability to turn validated targets into differentiated assets. Questions also focused on REC-4881’s FDA path and registrational strategy; Vicki Goodman said discussions are ongoing, there is limited regulatory precedent in FAP, and talks with FDA have been productive, especially around the primary endpoint and study design. On OpEx, management said the cut to $375 million reflects doing the same or more with less, driven by faster answer generation, more efficient compound design, and tighter outcomes-based budgeting. Analysts also asked about REC-7735’s go/no-go decision; management cited strong selectivity, no identified off-target liabilities, favorable preclinical and GLP tox data, and AI help in identifying patients and trial sites.