RECURSION PHARMACEUTICALS, INC. Fair Value Disclosure
| Basis of fair value measurement | ||||||||||||||
| (in thousands) | December 31, 2025 | Level 1 | Level 2 | Level 3 | ||||||||||
| Assets | ||||||||||||||
Cash and cash equivalents: | ||||||||||||||
Cash | $ | 72,627 | $ | 72,627 | $ | — | $ | — | ||||||
| Money market funds | 670,667 | 670,667 | — | — | ||||||||||
| Restricted cash | 10,627 | 10,627 | — | — | ||||||||||
Total | $ | 753,921 | $ | 753,921 | $ | — | $ | — | ||||||
| Basis of fair value measurement | ||||||||||||||
| (in thousands) | December 31, 2024 | Level 1 | Level 2 | Level 3 | ||||||||||
| Assets | ||||||||||||||
Cash and cash equivalents: | ||||||||||||||
Cash | $ | 198,050 | $ | 198,050 | $ | — | $ | — | ||||||
| Money market funds | 235,812 | 235,812 | — | — | ||||||||||
| Bank deposits | 160,487 | 160,487 | — | — | ||||||||||
| Restricted cash | 8,675 | 8,675 | — | — | ||||||||||
Total | $ | 603,024 | $ | 603,024 | $ | — | $ | — | ||||||
| Book values | Fair values | ||||||||||||||||
| (in thousands) | December 31, 2025 | December 31, 2024 | December 31, 2025 | December 31, 2024 | |||||||||||||
| Liabilities | |||||||||||||||||
| Notes payable and financing lease liabilities, current | $ | 9,091 | $ | 8,425 | $ | 9,091 | $ | 8,425 | |||||||||
| Notes payable and financing lease liabilities, non-current | 9,564 | 19,022 | 9,564 | 19,022 | |||||||||||||
| Total liabilities | $ | 18,655 | $ | 27,447 | $ | 18,655 | $ | 27,447 | |||||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 25, 2026 | Showing above |
| 2024 | Feb 28, 2025 | |
| 2023 | Feb 29, 2024 | |
| 2022 | Feb 27, 2023 | |
| 2021 | Mar 23, 2022 | |
About Fair Value Disclosures
Fair value disclosures classify all assets and liabilities measured at fair value into a three-level hierarchy: Level 1 (quoted market prices), Level 2 (observable inputs like yield curves), and Level 3 (unobservable inputs requiring management estimates). The proportion of Level 3 assets directly reflects how much of the balance sheet depends on internal models rather than market evidence.
Key signals: a growing Level 3 balance relative to total fair-value assets increases valuation uncertainty and earnings volatility risk. Watch for transfers between levels — assets moving from Level 2 to Level 3 often signal deteriorating market liquidity. Unrealized gains and losses on Level 3 positions flow through earnings or other comprehensive income, so large swings deserve scrutiny. For financial institutions, examine the sensitivity disclosures that show how Level 3 valuations change under alternative assumptions. Compare the fair value of debt against its carrying amount to gauge hidden leverage.