Recursion Pharmaceuticals to Report Q2 Earnings: What's in the Cards?

Recursion Pharmaceuticals RXRX, a TechBio company that decodes biology and chemistry to industrialize drug discovery, is expected to beat earnings when it reports second-quarter 2025 results on Aug. 5.

The Zacks Consensus Estimate is pegged at a loss of 35 cents per share. The Zacks Consensus Estimate for second-quarter revenues is pinned at $14.38 million.

Let's see how things might have shaped up for the upcoming quarterly release.

Factors to Consider

In the absence of a marketed product, Recursion Pharmaceuticals only recognizes collaboration and grant revenues from its partners.

RXRX has ongoing collaboration agreements with pharmaceutical giants, such as Roche, Bayer, Merck and Sanofi to develop candidates for several oncology indications with differentiated mechanisms of action. The company also collaborated with NVIDIA Corporation, the global leader in visual computing technologies, to develop a next-generation platform for the creation of novel therapies.

Recursion Pharmaceuticals is expected to provide updates regarding the clinical-stage pipeline programs on its second-quarter earnings call.

The company faced a significant setback in May 2025 after announcing the discontinuation of three key drug candidates — REC-994, REC-2282, and REC-3964 — as part of its broader strategic pipeline reprioritization. These candidates were being developed for cerebral cavernous malformation, neurofibromatosis type II and Clostridioides difficile infection, respectively.

RXRX shares have lost 16% year to date against the industry’s 0.5% growth.

Following the terminations, Recursion Pharmaceuticals shifted focus to more promising candidates, notably REC-4881, which is being evaluated in a phase Ib/II TUPELO study for familial adenomatous polyposis. In May 2025, the company reported preliminary data from this study, with additional data expected in the second half of 2025.

In 2024, Recursion Pharmaceuticals initiated its phase I/II DAHLIA study of REC-1245, a new chemical entity for the treatment of biomarker-enriched solid tumors and lymphoma. Data readout from the phase I portion of the DAHLIA study is expected in the first half of 2026. Recursion Pharmaceuticals is also developing a few other candidates, like REC-617 (advanced solid tumors) and REC-3565 (B-cell malignancies), in separate early-stage studies.

In July 2025, Recursion Pharmaceuticals acquired Rallybio’s full stake in their joint venture for developing REV102 and an associated backup molecule for the treatment of hypophosphatasia. REV102, a potent and selective ENPP1 inhibitor with strong preclinical safety data, is expected to enter phase I studies by late 2026. Its oral formulation offers a major advantage over current enzyme replacement therapies, potentially improving patient adherence and reducing treatment-associated risks.

RXRX’s Earnings Surprise History

Recursion Pharmaceuticals has a disappointing earnings surprise history so far. The company missed estimates on each of the trailing four reported quarters, delivering an average negative surprise of 19.55%. In the last reported quarter, the company came up with a negative surprise of 13.64%.

Earnings Whispers for RXRX

Our proven model predicts an earnings beat for Recursion Pharmaceuticals this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) increases the odds of an earnings beat. That is the case here, as you will see below. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.

Earnings ESP of RXRX: Recursion Pharmaceuticals has an Earnings ESP of +2.86% as the Most Accurate Estimate of a loss of 34 cents per share is narrower than the Zacks Consensus Estimate of a loss of 35 cents.

RXRX Zacks Rank: RXRX currently carries a Zacks Rank #3.

Recursion Pharmaceuticals, Inc. Price and Consensus

Recursion Pharmaceuticals, Inc. price-consensus-chart | Recursion Pharmaceuticals, Inc. Quote

Other Stocks to Consider

Here are some other stocks worth considering from the healthcare space, as our model shows that these also have the right combination of elements to beat on earnings this reporting cycle.

Zoetis ZTS currently has an Earnings ESP of +0.51% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

ZTS stock has lost 9.5% year to date. It beat on earnings in each of the last four quarters, delivering an average surprise of 5.21%. Zoetis is scheduled to report second-quarter earnings on Aug. 5, before the opening bell.

Acadia Pharmaceuticals ACAD has an Earnings ESP of +17.43% and a Zacks Rank #3 at present.

Shares of ACAD have gained 28.2% year to date. It beat on earnings in three of the trailing four quarters and missed once, delivering an average surprise of 19.58%. Acadia Pharmaceuticals is slated to report second-quarter results on Aug. 6, after market close.

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This article originally published on Zacks Investment Research (zacks.com).

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