RXRX

Recursion is a pre-commercial "TechBio" with zero product revenue and, by its own filing, no expectation of drug sales "in the foreseeable future." The $74.7M of FY2025 revenue (+26.9%) is collaboration/milestone income (e.g., $134M received from Sanofi to date), not a sellable product line, so the headline 26.1x P/S is economically meaningless. Against that revenue the company ran a -$648M operating loss and a -$645M net loss that widened 39% YoY, with R&D alone of $475M (+51%). Margins of roughly -860% and ROE of -57% aren't a valuation question — they signal a company whose entire value rests on future clinical outcomes that the provided data cannot price.

The balance sheet is the one genuine strength: $1.13B equity, just $343M total liabilities (0.30x liabilities/equity), negligible debt and $743M cash. But operating cash burn was -$372M in FY2025, implying only ~2 years of runway before another raise — and the filing is explicit that it "will need to raise substantial additional funding" through "equity offerings, debt financings, and strategic collaborations." That intent is already visible in the numbers: shares outstanding jumped 33.1% in a single year and the accumulated deficit reached -$2.08B. A retail holder should expect continued, material dilution that works directly against the share price.