Analyst Conference Summary

biotechnology

conference date: May 6, 2026
for quarter ending: March 31, 2026 (first quarter, Q1)

Bought initial position on 12/1/2025
Forward-looking statements

Overview: Mainly early clinical stage pipeline designed by AI continues to progress.

Basic data (GAAP):

Revenue was $6.5 million, down sequentially from $35 million, and down from $15 million year-earlier.

Net Income was negative $118 million, down sequentially from negative $108 million, and up from negative $202 million year-earlier.

EPS (Earnings per Share), diluted, was negative $0.22, down sequentially from negative $0.21, and up from negative $0.50 year-earlier.

Guidance:

Cash runway to Q1 2028.

Conference Highlights:

Najat Khan, Ph.D., CEO and President said "We are seeing strong momentum and execution across our portfolio, with increasing evidence that our full stack platform can translate biological and chemical insights into differentiated clinical programs. Recent progress, including encouraging initial safety and PK data in REC-1245 and the first patient dosed in REC-4539, represents a growing set of proof points that demonstrate our ability to translate platform insights into clinical programs. This momentum reflects the strength of our end-to-end AI platform, with multiple differentiated internal and partnered programs advancing into and through the clinic."

REC-4881 shows Recursion's first clinical proof-of-concept (more below). 5 wholly-owned programs have defined inflection points over the next 12 to 18 months.

On January 1, 2026, Najat Khan was be promoted to CEO and President. Chris Gibson became Chairman of the Board. Current Chairman Rob Hershberg became Vice-Chairman. More recently, Vicki Goodman, MD, was appointed CMO.

Recursion is in discovery partnerships with Roche, Sanofi, Bayer, and Merck KGaA. In February 2026, Recursion received a $4M payment from Sanofi for the Onc 2 program. The first-in-class Sanofi-partnered oncology program is against a historically difficult and novel biological space. More milestones are expected in 2H 2026 and into 2027.

In Q1 2026 REC-4881 for FAP / MEK1/2 Phase 2 trial showed strong efficacy signals. Engaging with FDA to define a registrational pathway. Showed a median 43% reduction in polyp burden at Week 13, deepening to 53% at Week 25 (following a treatment break). 40% of patients demonstrated improvement in Spigelman stage, supporting a differentiated and durable profile in FAP (Familial adenomatous polyposis).

In Q1 2026 REC-4539, a LSD1 inhibitor for solid tumors like SCLC, and AML, dosed its first patient.

REC-7735 targetting Pl3KaH1047R is now in IND enabling studies for breast and other solid tumors with the mutations. Could initiate Phase 1 in 2H 2026.

REC-1245 in Q1 2026 reported early clinical data showing safety and dose-dependent pharmaokinetics. It entered Phase 1 in Q2 2025. It is a first-in-class RBM39 degrader, identified using phenomap-derived insight, which mimics CDK12 loss to induce replication stress and suppress DDR pathways without CDK12 related toxicities. Earlier data showed activity in tumors with replication stress and DNA repair vulnerabilities. The trial is now enrolling select tumor types to identify responsive populations.

Recursion maps of the genome gives insight into gene interactions and novel pathways, including in the immune cells of the brain. Compleated a microglial cell map. Working on two new transcriptonomics models, TxPert and TxFM.

Recursion platform is currently Recursion 2.0 (earlier did 0.1 and 1.0).

Cash ended the quarter at $665 million, down sequentially from $754 million. Cash used in operating activities was $81 million.

Total expenses were $135 million, consisting of: cost of revenue $12.5 million, R&D $88 million, G&A $35 million. Loss from operations $129 million. Other income $6 million.

Q&A selective summary:

REC-1245 color? Favorable safety and tolerability, no DLTs to date. Watching for potential heme tox, have seen none. Target engagement, 70% to 80% appears sufficient, achieved in preclinical. In next two dose levels will be where we saw tumor regressions in mice. More data later in year.

REC-4881 color? FAP patients are underserved. Main area of focus with FDA is patient population and determining a meaningful clinical endpoint. No regulatory precedent in FAP. Looking at rare disease framework, looking to closely align with FDA. Next data would be released here or at a forum. We are using AI in patient recruitment process.

Platform evolution, how do you evaluate? Looking for better molecules faster, which reduces cost. Cycle times have been cut in half, need 90% less compound synthesis to get a candidate. We integrate AI with lab work.

OpenIcon Analyst Conference Summaries Main Page

Search

More Analyst Conference Pages: