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RXRX, Recursion Pharmaceuticals Inc.

Biotechnology consumer brand Unprofitable

Recursion is a clinical-stage TechBio company with a mission to decode biology to radically improve lives.

We have advanced a portfolio of differentiated internal programs and strategic partnerships powered by our integrated drug discovery and development platform, the Recursion Operating System (OS).

All of our technologies are designed to translate complex science into medicines that matter — faster, better, and at scale — for patients who are waiting.

Latest annual: FY2025 10-K

RXRX · Recursion Pharmaceuticals Inc.

The business

What it sells, where the money comes from, the kind of company it is.

Revenue · FY2025

$75M

+26.9% YoY · 80% 5-yr CAGR

Vital signs · TTM

Cash & investments $654M

Cash burn · annual $321M

Runway 2.0 yrs

Gross margin 7%

The business in brief

read the 10-K →

What this business is and what moves its needle, from its own SEC filings.

Situation: Unprofitable. No sustained operating profit across the record; an earnings multiple has nothing to rest on. What the record does show is revenue, the gross-margin trajectory, and the burn against the cash on hand.
What moves the needle: Operating margin has run around −868% through the cycle on a 5.0% gross margin, the operating line deeply negative — so the lever is the path to a margin at all: revenue growth against the cost curve and the cash runway, not the level of a margin that isn't there yet. Stock-based pay runs about 120% of sales, a real and recurring claim on owners that the GAAP margin understates. Read this kind of business on the pipeline against the patent cliff, and pricing. On its own account, the filing leans hardest on pricing power & competition, set against the numbers in what the filing emphasizes, below.
Is it a good business?: Return on capital has rarely cleared the cost of capital (median −106%, above 15% in 0 of 4 years). Owner earnings, the cash-based check, have been thin too. This is price-taker territory, where the balance sheet and the cycle matter more than any multiple; the rest is in the 10-K.

Every line is arithmetic on the company's filings, shown in full in the sections below.

Where the money comes from

read the 10-K →

47% of revenue comes from outside the United States.

Revenue by geography, FY2025

United States53%$39M
United Kingdom47%$35M
Other0%$0

From the segment footnote of the company's own 10-K. Shares are of total revenue; the profit bar shows each segment's share of segment operating profit, before unallocated corporate costs.

The record

Ten years of arithmetic, read across the cycle.

The record, 2019–2025

realized figures from each filing · older years to the left

2019’19	2020’20	2021’21	2022’22	2023’23	2024’24	2025’25	TTMTTMMar 2026
								Income statement
$2M	$4M	$10M	$40M	$45M	$59M	$75M	$66M	RevenueRevenue
—	—	—	−21%	4%	23%	5%	7%	Gross marginGross mgn
817%	638%	567%	205%	249%	303%	236%	236%	SG&A / revenueSG&A/rev
n/m	n/m	n/m	391%	541%	534%	636%	653%	R&D / revenueR&D/rev
($62M)	($85M)	($183M)	($246M)	($350M)	($479M)	($648M)	($585M)	Operating incomeOp. inc.
n/m	n/m	n/m	−616.7%	−785.3%	−814.1%	−867.9%	−881.3%	Operating marginOp. mgn
($62M)	($87M)	($186M)	($239M)	($328M)	($464M)	($645M)	($560M)	Net incomeNet inc.
								Cash flow & returns
($57M)	($45M)	($159M)	($84M)	($288M)	($359M)	($372M)	($321M)	Operating cash flowOp. cash
$2M	$4M	$8M	$12M	$24M	$36M	$84M	$84M	DepreciationDeprec.
$963K	$33M	$5M	$116M	($38M)	($14M)	$78M	$57M	Working capital & otherWC & other
$4M	$6M	$40M	$37M	$12M	$14M	$6M	$5M	CapexCapex
168.6%	147.2%	391.0%	93.0%	26.8%	23.3%	8.7%	7.4%	Capex / revenueCapex/rev
($60M)	($49M)	($167M)	($95M)	($300M)	($373M)	($378M)	($326M)	Owner earningsOwner earn.
n/m	n/m	n/m	−239.1%	−672.4%	−633.7%	−506.5%	−490.7%	Owner earnings marginOE mgn
($61M)	($51M)	($198M)	($121M)	($300M)	($373M)	($378M)	($326M)	Free cash flowFCF
n/m	n/m	n/m	−302.6%	−672.4%	−633.7%	−506.5%	−490.7%	Free cash flow marginFCF mgn
$0	$3M	$0	$0	$0	$0	$0	$0	AcquisitionsAcquis.
—	—	-56%	—	-379%	-82%	-129%	-122%	ROICROIC
—	—	-34%	-49%	-71%	-45%	-57%	-55%	Return on equityROE
—	—	−34%	−49%	−71%	−45%	−57%	−55%	Retained to equityRetained/eq
								Balance sheet
$75M	$262M	$517M	$550M	$392M	$594M	$743M	$654M	Cash & investmentsCash+inv
—	$156K	$34K	$0	—	—	—	$0	ReceivablesReceiv.
—	$1M	$3M	$5M	$4M	$22M	$18M	$20M	Accounts payablePayables
—	($918K)	($3M)	($5M)	—	—	—	($20M)	Operating working capitalOper. WC
—	$266M	$535M	$570M	$438M	$714M	$813M	$710M	Current assetsCur. assets
—	$23M	$47M	$100M	$93M	$187M	$148M	$130M	Current liabilitiesCur. liab.
—	11.5×	11.5×	5.7×	4.7×	3.8×	5.5×	5.5×	Current ratioCurr. ratio
—	$801K	$801K	$801K	$52M	$149M	$162M	$160M	GoodwillGoodwill
—	$299M	$610M	$701M	$654M	$1.4B	$1.5B	$1.3B	Total assetsAssets
—	$11M	$723K	$536K	$1M	$19M	$10M	$7M	Total debtDebt
—	($251M)	($516M)	($549M)	($390M)	($575M)	($734M)	($647M)	Net debt / (cash)Net debt
-98.3×	-62.2×	-61.9×	-4467.8×	-3608.9×	-304.7×	-358.1×	-354.3×	Interest coverageInt. cov.
($124M)	($206M)	$543M	$486M	$463M	$1.0B	$1.1B	$1.0B	Shareholders’ equityEquity
59.7%	108.3%	145.8%	70.0%	120.0%	138.8%	148.9%	146.6%	Stock comp / revenueSBC/rev
								Per share
21.6M	21.8M	125M	176M	208M	274M	447M	529M	Shares out (diluted)Shares
$0.11	$0.18	$0.08	$0.23	$0.21	$0.21	$0.17	$0.13	Revenue / shareRev/sh
$-2.87	$-3.99	$-1.49	$-1.36	$-1.58	$-1.69	$-1.44	$-1.06	EPS (diluted)EPS
$-2.76	$-2.27	$-1.33	$-0.54	$-1.44	$-1.36	$-0.85	$-0.62	Owner earnings / shareOE/sh
$-2.83	$-2.35	$-1.58	$-0.69	$-1.44	$-1.36	$-0.85	$-0.62	Free cash flow / shareFCF/sh
$0.18	$0.27	$0.32	$0.21	$0.06	$0.05	$0.01	$0.01	Cap. spending / shareCapex/sh
$-5.76	$-9.47	$4.33	$2.77	$2.23	$3.77	$2.53	$1.94	Book value / shareBVPS

The diluted share count moved ×5.75 into 2021 — shares issued, not a split the totals corroborate — and the per-share figures carry the counts as filed.

The diluted share count moved ×1.4 into 2022 — shares issued, not a split the totals corroborate — and the per-share figures carry the counts as filed.

The diluted share count moved ×1.63 into 2025 — shares issued, not a split the totals corroborate — and the per-share figures carry the counts as filed.

Per-share growththe realized rate an owner's share compounded

	6-yr	5-yr
Revenue / share	+7.6%/yr	−1.7%/yr
Capital spending / share	−34.4%/yr	−44.2%/yr

The record, charted

FY2019–2025

Each measure over its full record; the current point and the worst year marked.

Share count

447Mpeak FY2025

ROIC

−129%low FY2023

Gross margin

5%low FY2022

Owner earnings vs. net income

Owner earningsNet income

The accountant's number, and the cash an owner can take; the gap is the tell.

($378M)owner earningsvs.($645M)net incomelow FY2025

Owner-earnings bridge

FY2021–FY2025cash-flow statement, SEC EDGAR →

Net income is the accountant's number; owner earnings is the cash an owner could take out. The walk between them, off the cash-flow statement, and whether the gap is widening or holding.

In fiscal 2025 the business turned a $645M loss into ($378M) of owner earnings: more cash than the profit line showed, after the non-cash charges and the capital it put back in.

	FY2025	FY2024	FY2023	FY2022	FY2021
Reported net income	($645M)	($464M)	($328M)	($239M)	($186M)
Depreciation & amortizationnon-cash charge added back	+$84M	+$36M	+$24M	+$12M	+$8M
Stock-based compensationreal costnon-cash, but a real cost	+$111M	+$82M	+$54M	+$28M	+$15M
Working capital & othertiming of cash in and out, other non-cash items	+$78M	−$14M	−$38M	+$116M	+$5M
Cash from operations	($372M)	($359M)	($288M)	($84M)	($159M)
Maintenance capital expenditurethe spending needed just to hold position and volume	−$6M	−$14M	−$12M	−$12M	−$8M
Owner earnings	($378M)	($373M)	($300M)	($95M)	($167M)
Growth capital expenditurediscretionary; spent to get bigger, not to stand still	—	—	—	−$25M	−$31M
Free cash flow	($378M)	($373M)	($300M)	($121M)	($198M)
Owner-earnings marginowner earnings ÷ revenue	-507%	-634%	-672%	-239%	-1641%

Owner earnings is the cash an owner could pull out without starving the business: operating cash less the capital it must spend to hold its position . The cash-flow statement also adds stock comp back as non-cash, but it is a real cost paid in shares; counted as the expense it is (less $111M), owner earnings is nearer ($490M).

Maintenance capex is estimated as depreciation where a growing business invests above it; free cash flow is the figure the scorecard's free-cash margin reads.

III

Quality & stewardship

Returns, the balance sheet, capital allocation, and pay.

Owner’s Scorecard

FY2025 10-K · source on SEC EDGAR →

Material weakness in financial controls

“We have identified material weaknesses in our internal control over financial reporting.”

The figures below are only as sound as the controls that produced them. read the note →

Will it survive?

Can it pay its interest? -358.1×

Does not cover its interest

Operating income ($648M) ÷ interest expense $2M

What this means
A full year of operating profit didn't cover the interest bill. This is the zombie zone: the business depends on refinancing, asset sales, or forbearance to service its debt.
How heavy is the debt, net of cash? +$734M

Net cash

Cash $743M − debt $10M

What this means
Cash and short-term investments exceed every dollar of debt by $734M, on net the company owes nothing, and can act from strength when others can't. Net debt is the leverage figure that matters: the cash is already set against the debt. Strategic or illiquid investments aren't counted here.
How long is cash tied up? —

Not enough data

What this means
The filing data didn't include the inputs for this check.

Is it a good business?

Return on invested capital -129%

Below average through the cycle

4-yr median, range -379%–-56%; -129% latest = NOPAT ($512M) ÷ invested capital $397M

Industry peers: median -49%

What this means
The rate the business earns on the money tied up in it, Buffett's north star, because over time a stock tracks the ROIC beneath it. Above ~15% sustained hints at a moat; a return below the cost of capital (~8%) erodes value as a business grows rather than building it — the test Buffett weighs most. The headline is the median of the last 4 years (it ran -129% most recently), so one peak or trough year doesn't set the verdict. Asset-light businesses (R&D expensed, little capital) read artificially high, pair this with Owner Earnings.
Owner-earnings margin -672%

Consumes cash through the cycle

7-yr median margin, range -2567%–-239%; latest ($378M) = operating cash ($372M) − maintenance capex $6M

Industry peers: median -392%

What this means
What an owner could take out without starving the business: operating cash less the maintenance capital it must spend to hold its position — Buffett's owner earnings. That's -507% of revenue this year, a -672% median across 7 years. Treating stock comp as the real expense it is (less $111M of SBC) leaves ($490M).
Are earnings backed by cash? ($372M)

Loss, and burning cash

Net income ($645M) · cash from operations ($372M)

In the filing’s words The filing discloses a material weakness in its financial controls — the reported numbers here, and the record built on them, are only as reliable as the controls that produced them.

What this means
The company reported a net loss, so a conversion ratio isn't meaningful. What matters then is whether operations still threw off cash, here, they did not.

How is the cash used?

Where do the earnings go? —

Not enough data

What this means
The filing data didn't include the inputs for this check.
Investing or harvesting? 0.08×

Harvesting

Capex $6M ÷ depreciation $84M

What this means
Descriptive, not a grade. Above ~1× means investing faster than assets wear out (growth, or, sustained for years, today's earnings carrying less depreciation than tomorrow's will). Below means spending less than it's wearing out (efficiency, or a melting asset base). The ratio won't tell you which; the filings will.

Graham’s defensive tests · 2 of 5 met

Graham’s numerical criteria for the defensive investor (The Intelligent Investor, ch. 14), run on the filings. A floor of safety, not a buy signal; many fine modern businesses fail his strictest liquidity rules by design.

Adequate size Miss

Revenue ≥ $2B · $75M

What this means
Big enough to weather a storm. Graham's 1972 floor was ~$100M of sales (≈ $700M today); we use a $2B revenue line as a conservative modern stand-in.
Strong liquidity Pass

Current ratio ≥ 2× · 5.50×

What this means
Current assets at least twice current liabilities, near-term bills covered without touching the business. Strict by design: many cash-rich modern firms run leaner and miss it, holding their cushion in longer-dated securities.
Conservative debt Pass

Debt ≤ working capital · $10M vs $665M WC

What this means
Graham's rule that borrowings not exceed net current assets. Capital-heavy and buyback-heavy firms routinely fail it, read it next to interest coverage, not alone.
Earnings stability Miss

A profit every year (7-yr record) · 7 loss years

What this means
Graham wanted earnings in each of the past ten years, the stability a defensive owner leans on.
Dividend record Miss

Uninterrupted dividends · none paid

What this means
An unbroken dividend was Graham's mark of durability. He wanted twenty years; the filings show about ten, and a single suspension breaks the streak. Non-payers, many fine modern compounders, fall outside his defensive net by design.
Earnings growth —

Earnings +33% over the record · —

What this means
Earnings were negative early in the record, a growth rate isn't meaningful.
Moderate price —

P/E ≤ 15 and P/E × P/B ≤ 22.5 · decided by the price

What this means
Graham's valuation gate, the wall he kept between a sound business and a sound investment. Three-year average earnings are $-0.90/share (latest year $-1.22), the averaged base the calculator's gate runs on, and book value is $2.13/share. Enter a price in “What the price implies” just below for the P/E, P/B, and whether it clears. But this is the rule Buffett outgrew: there's no hard P/E law, and a wonderful business can deserve a far richer multiple if the thesis holds, treat it as the bargain-hunter's floor, not a verdict on the price.

Durability & moat, 2019–2025

Whether the record’s returns held, and what the capital reinvested earned.

Profitable years 0 of 7

What this means
Lost money in 7 year(s), look at what happened there before trusting the average.
Return on capital ≥ 15% 0 of 4 yrs

What this means
A moat shows up as a high return on invested capital that holds year after year, not one good vintage.
Operating margin −2208% → −822% (3-yr avg ends)

What this means
Through the cycle the operating margin widened — about −2208% early to −822% lately, median −868% — pricing power intact or improving.
Reinvestment, incremental ROIC returns capital

What this means
The capital base barely grew: this business returns cash through dividends and buybacks rather than reinvesting. Judge it on the cash returned, not on compounding.
Worst year 2019 · −2692.6% op. margin

What this means
Operations went underwater in 2019, understand why before trusting the good years.
How management talks about it Promotional

What this means
The record is compounding, but the filing leans on a promoter’s vocabulary rather than the per-share, return-on-capital terms an owner uses. The results back the talk here; the register is still worth noting.

Does AI threaten the moat?

Low contestability

The moat is physical, regulated or balance-sheet-funded, the kind AI cuts costs within but does not contest.

In its own filing Named as a competitive risk

Its FY2025 10-K names artificial intelligence as a competitive threat.

“Issues relating to the use of new and evolving technologies such as AI and machine learning may cause us to experience brand or reputational harm, competitive harm, legal liability, and new or enhanced governmental or regulatory scrutiny, and we may incur additional costs to resolve such issues.…”

AI is unlikely to contest a moat that is physical, regulated or balance-sheet-funded; here it reads more as a cost tool than a threat, and the company is using it that way.

Read from the filing's own risk factors, paired with the industry's structure under its SIC code; the durability is read above, the price below.

All figures as filed; the source filing is linked above.

Current Position

as of the latest quarter, Mar 31, 2026

Can the business pay what it owes this year, off the freshest balance sheet: the quality of the assets, the debt actually coming due, and what a low ratio means here.

Current assets$710M

Cash & short-term investments$654M
Other current assets$55M

Current liabilities$130M

Accounts payable$20M
Other current liabilities$109M

Current ratio5.47×all current assets ÷ what's due · Graham looked for 2×

Quick ratio—inventory untagged this quarter, so withheld rather than shown equal to the current ratio

Cash ratio5.05×strictest: cash alone against what's due

Working capital$580Mthe cushion left after near-term bills

Cash runway2.0 yrsthe business is consuming cash; this is how long the cash on hand lasts at that rate

Revenue, latest quarter vs. a year ago−56.1%the freshest read on whether the business is still growing

Current ratio, recent quarters6.1× → 5.5×

Deeper floors

Tangible book value$571Mequity stripped of goodwill & intangibles

Net current asset value$395MGraham's net-net: current assets less all liabilities

Debt incl. operating leases$57M$56M of it operating leases

Deferred revenue$148Mcustomer cash collected before delivery; operating float

From the company's latest filing.

Acquisitions & goodwill

from the balance sheet & the 7-year cash-flow record

Goodwill grows only when a company acquires and falls only when it concedes it overpaid. The size of that bet, the cash put into buying rather than building, and how much has already been written off.

Goodwill & intangibles$472M32% of all assets; the premium carried on the balance sheet for businesses acquired

Against book equity14%goodwill is this share of book equity; the rest is the company’s own retained and paid-in capital

Cash spent acquiring$282Mover 7 years buying other businesses, against $119M of capital spent building

None written down over the record; the goodwill is still carried at full cost. That is the deals holding their value on the books so far; whether they keep doing so is the test an owner watches, since the write-down, when it comes, is the admission the price was too high.

Goodwill, acquired intangibles and equity from the latest balance sheet; acquisition spend and write-downs summed across the 7-year record, from the company's own filings.

Management, ownership & pay

read the proxy →

From the proxy: how much of the business the people running it own, and how they are paid, beside what the business earned for its owners in the same years.

Fiscal year	Chief executive	Pay, as filed	“Actually paid”	Owner earnings
2021	1.	$674k	$21.8M	($167M)
2022	1.	$6.3M	−$5.8M	($95M)
2023	1.	$8.6M	$10.7M	($300M)
2024	1.	$8.5M	$1.9M	($373M)
2025	1.	$9.6M	$3.5M	($378M)

Both pay figures are the company’s own, from the pay-versus-performance table its proxy statement files. “As filed” is the Summary Compensation Table total: salary, bonus, and equity awards at their value on the day of grant. “Actually paid” is the SEC’s prescribed recalculation, which re-marks those equity awards to what they became as they vested; it can swing far above or below the filed figure in either direction, and negative years occur. Owner earnings are the whole business's, from the record above, for the same fiscal years.

CEO pay ratio33:1
What the chief earns for every dollar the median employee makes, per the 2026 proxy. A high ratio alone settles nothing; some businesses are genuinely top-heavy in scarce skill. A runaway figure is where Buffett starts asking whether the board is doing its job.
Stock-based compensation$111M
The slice of the business handed to employees in shares this year, 149% of revenue. Buffett's oldest accounting fight: this is compensation, compensation is an expense, real whether or not the headline earnings admit it. One trap: the cash-flow statement adds SBC back, so the operating cash, and the owner earnings drawn from it, are flattered by exactly this amount; counted as the cost it is, what an owner keeps is lower.

What an owner would ask, FY2025

read the 10-K →

Which reported numbers are a judgment call?
Management names Revenue recognition, Acquisitions, Stock compensation as critical estimates
each rests partly on management's judgment; the filing's note sets out the assumptionsverify →

The questions the record and the charts do not answer on their own; each carries the figure and the place to look.

Peers, Biotechnology

The same industry, side by side on owner economics. Each figure is a through-cycle median, so a peak or trough year can’t distort it; the group median at the foot is the line to read each against.

Company	Revenue	Gross margin	Op. margin	ROIC	Owner earn. margin
IBRXImmunityBio Inc.	$113M	100%	-47374.3%	-50%	-46423%
STROSutro Biopharma Inc.	$102M	—	-142.2%	-49%	-29%
FDMT4D Molecular Therapeutics Inc.	$85M	—	-544.6%	-41%	-392%
MGTXMeiraGTx Holdings plc	$81M	—	-438.4%	-134%	-329%
AUTLAutolus Therapeutics PLC	$75M	-28%	-2385.6%	-289%	-2113%
RXRXRecursion Pharmaceuticals Inc.	$75M	5%	-867.9%	-106%	-672%
VIRVir Biotechnology Inc.	$69M	99%	-791.3%	-45%	-611%
PLXProtalix BioTherapeutics Inc. (DE)	$53M	58%	-23.5%	-1%	-33%
Group median	—	58%	-668.0%	-49%	-502%

The price

What a price has to assume.

What the price implies

reverse-DCF

Recursion Pharmaceuticals Inc. is profitable, but owner earnings are negative this year because capital spending currently outruns operating cash, a build-out, so the owner-earnings reverse-DCF has no positive base to grow. We read the price from both ends instead: type a price to see the steady-state profitability it demands, then set the mature margin you would believe and weigh the two against each other. Nothing leaves your browser unless you enter it in your notebook.

Today’s price $

The assumptions Required return 9% Years to get there 10 Revenue growth 0%

Revenue, delivered55%/yr’20→’25

Mature owner-earnings margin 15%

Enter a price to run it.

Owner earnings it must reach—

Margin the price demands—

Owner-earnings margin today−491%

Two reads of one future. From your price: the owner earnings the company must reach, valued at a mature multiple and discounted back at your rate, expressed as the margin it implies on revenue grown at your rate. From your belief: the mature margin you would credit, set on the dial above. When the margin the price demands runs above the one you would believe, you are paying for a future taken on faith. For a deep cyclical at a trough, normalized through-cycle earnings are the better lens; this mode is for the genuinely unprofitable, and for the profitable business whose capital spending currently outruns its cash.

Weigh RXRX against another business →

The owners of RXRX: the meeting and the votes →

Cite: Owner Scorecard, "Recursion Pharmaceuticals Inc. (RXRX), the owner's record," https://ownerscorecard.com/c/RXRX, data as of 2026-07-09.

Manual order: ← RXO its page in the Manual RXT →

Industry order: ← RLAY the Biotechnology chapter SLDB →