Back to top

Image: Bigstock

Recursion Pharmaceuticals to Report Q1 Earnings: What's in the Cards?

Read MoreHide Full Article

Recursion Pharmaceuticals (RXRX - Free Report) , a TechBio company that decodes biology and chemistry to industrialize drug discovery, is expected to report first-quarter 2025 results soon. (Find the latest earnings estimates and surprises on Zacks Earnings Calendar.)

The Zacks Consensus Estimate is pegged at a loss of 44 cents per share. The Zacks Consensus Estimate for first-quarter revenues is pinned at $20.15 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 in the company’s commercial portfolio, Recursion Pharmaceuticals only recognizes collaboration and grant revenues from its partners.

RXRX has ongoing collaboration agreements with pharma giants like 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 worldwide leader in visual computing technologies, to build a next-generation platform for the company to develop novel therapies.

Recursion Pharmaceuticals is expected to provide updates regarding the clinical-stage pipeline programs on its first-quarter earnings call. RXRX expects several data readouts throughout 2025.

RXRX is developing its lead candidate, REC-994, to treat cerebral cavernous malformation, a neurovascular condition that impacts approximately 360,000 symptomatic individuals in the United States and the EU.

Last year, the phase II SYCAMORE study evaluating two doses of REC-994 in CCM patients met its primary safety endpoint. Based on the success of the mid-stage study, Recursion Pharmaceuticals plans to meet with the FDA to align on a pathway for further development of REC-994 as a potential treatment for symptomatic CCM in subsequent studies. The investors can expect an update regarding the next steps in the lead program on the upcoming earnings call.

RXRX shares have plunged 14.9% year to date compared with the industry’s decline of 2.2%.

Zacks Investment Research
Image Source: Zacks Investment Research

The company’s other key pipeline candidates in mid-stage development include REC-2282 (neurofibromatosis type II), REC-4881 (familial adenomatous polyposis), REC-3964 (recurrent Clostridioides difficile infection) and REC-1245 (biomarker-enriched solid tumors and lymphoma). Recursion Pharmaceuticals is also developing a few other candidates like REC-617 (advanced solid tumors), REC-3565 (B-cell malignancies) and REC-4539 (small-cell lung cancer) in separate early-stage studies. We anticipate that RXRX will provide updates on the progress of these studies in its upcoming earnings release as well.

Research and development expenses are expected to have increased in the to-be-reported quarter due to a rise in investments in expanding and upgrading the company’s proprietary candidate development platform, as well as costs associated with funding ongoing clinical activities.

General and administrative expenses are also likely to have increased because of higher compensation to employees, along with higher software and lease expenses.

RXRX’s Earnings Surprise History

Recursion Pharmaceuticals has a disappointing earnings surprise history so far. The company beat estimates in one of the trailing four quarters and missed on the other three occasions, delivering an average negative surprise of 13.81%. In the last reported quarter, the company came up with a negative surprise of 47.22%.

Earnings Whispers for RXRX

Our proven model does not conclusively predict an earnings beat for Recursion 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 0.00% as the Most Accurate Estimate and the Zacks Consensus Estimate are both pegged at a loss of 44 cents.

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

Stocks to Consider

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

argenx (ARGX - Free Report) has an Earnings ESP of +10.92% and a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

argenx stock has lost 2.4% year to date. ARGX beat on earnings in two of the last four quarters and missed in the other two, delivering an average surprise of 345.11%.

CytomX Therapeutics (CTMX - Free Report) has an Earnings ESP of +38.89% and a Zacks Rank #2 at present.

CytomX Therapeutics shares have plunged 25.7% year to date. CTMX beat on earnings in three of the trailing four quarters and missed in the other one, delivering an average surprise of 180.70%.

Novavax (NVAX - Free Report) has an Earnings ESP of +495.75% and a Zacks Rank #3 at present.

Shares of Novavax have lost 12.1% year to date. NVAX’s earnings beat estimates in two of the trailing four quarters and missed in the other two, delivering an average negative surprise of 0.48%.

Published in