Recursion Pharmaceuticals to Report Q3 Earnings: What's in the Cards?

Recursion Pharmaceuticals RXRX, a TechBio company that decodes biology and chemistry to industrialize drug discovery, is slated to report third-quarter 2025 results on Nov. 5, before the opening bell.

The Zacks Consensus Estimate is pegged at a loss of 38 cents per share. The Zacks Consensus Estimate for third-quarter revenues is pinned at $17.45 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, including 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 third-quarter earnings call.

The company faced a significant setback earlier this year after discontinuing 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 18.4% year to date against the industry’s 13.2% 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 soon.

Recursion Pharmaceuticals’ ongoing phase I/II DAHLIA study is evaluating 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, with data readouts expected in late 2025 and 2026, respectively.

In July 2025, Recursion Pharmaceuticals acquired Rallybio’s full stake in their joint venture for developing REV102 (now REC-102) and an associated backup molecule for the treatment of hypophosphatasia. REC-102, 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 20.26%. In the last reported quarter, the company delivered a negative surprise of 17.14%.

Earnings Whispers for RXRX

Our proven model does not predict 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 not 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 +18.42% as the Most Accurate Estimate of a loss of 31 cents per share is narrower than the Zacks Consensus Estimate of a loss of 38 cents.

RXRX Zacks Rank: RXRX currently carries a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank stocks here.

Recursion Pharmaceuticals, Inc. Price and Consensus

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

Stocks to Consider

Here are some drug/biotech stocks that have the right combination of elements to beat on earnings this time around:

ANI Pharmaceuticals ANIP has an Earnings ESP of +10.55% and a Zacks Rank #2 at present.

ANI Pharmaceuticals’ stock has risen 63.9% so far this year. ANIP beat earnings estimates in each of the last four reported quarters, delivering an earnings surprise of 22.66%, on average. ANI Pharmaceuticals is scheduled to report third-quarter results on Nov. 7.

CRISPR Therapeutics CRSP has an Earnings ESP of +3.53% and a Zacks Rank #3 at present.

Shares of CRSP have increased 62.5% year to date. CRISPR Therapeuticsbeat on earnings in three of the trailing four quarters and missed in one, delivering an average surprise of 18.41%.

Immunocore IMCR has an Earnings ESP of +30.39% and sports a Zacks Rank #3 at present.

Shares of IMCR have increased 12.2% year to date. Immunocore beat on earnings in three of the trailing four quarters and missed in one, delivering an average surprise of 65.14%.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

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

Zacks Investment Research