RECURSION PHARMACEUTICALS, INC.RXRX

RECURSION PHARMACEUTICALS, INC. Goodwill & Intangibles Disclosure

10-KFiled Feb 25, 20262 min read
Goodwill and Intangible Assets
Goodwill

The following table summarizes the changes in the carrying amount of goodwill:

(in thousands)
Balance as of December 31, 2023
$52,056 
Additions from acquisitions97,735 
Foreign currency translation adjustments(918)
Balance as of December 31, 2024
148,873 
Additions from acquisitions5,947 
Foreign currency translation adjustments7,338 
Balance as of December 31, 2025
$162,158 

The additions to goodwill related to the acquisition of Exscientia. See Note 4, “Acquisitions” for additional details. No goodwill impairment was recorded during the years ended December 31, 2025, 2024 and 2023.

Intangible Assets, Net

The following table summarizes intangible assets:

December 31, 2025December 31, 2024
(in thousands)Gross carrying amountAccumulated AmortizationNet carrying amountGross carrying amountAccumulated AmortizationNet carrying amount
Definite-lived technology intangible assets$236,497 $(69,156)$167,341 $224,362 $(24,544)$199,818 
Definite-lived licensed intangible assets11,158 (6,619)4,539 9,350 (2,088)7,262 
Indefinite-lived intangible assets138,023 — 138,023 128,775 — 128,775 
Total intangible assets$385,678 $(75,775)$309,903 $362,487 $(26,632)$335,855 

Amortization expense was $50.3 million, $18.8 million and $8.5 million during the years ended December 31, 2025, 2024 and 2023, respectively. Amortization expense was primarily included in “Research and Development” in the Consolidated Statements of Operations. Amortization expense for the definite-lived intangible assets will be recognized over approximately the next five years.
The estimated annual amortization expense for the definite-lived intangible assets recorded as of December 31, 2025 is as follows:

(in thousands)20262027202820292030
Estimated annual amortization expense$41,005 $32,616 $30,340 $30,333 $30,333 

The indefinite-lived intangible assets primarily represent in-process research and development (IPR&D) intangibles acquired in business combinations. See Note 4, “Acquisitions” for additional details on the intangible assets acquired. No indefinite-lived intangible asset impairment charges were recorded during the years ended December 31, 2025, 2024 and 2023.

Historical Timeline

Fiscal YearFiled
2025Feb 25, 2026Showing above
2024Feb 28, 2025
2023Feb 29, 2024
2022Feb 27, 2023
2021Mar 23, 2022

About Goodwill & Intangibles Disclosures

Goodwill and intangible asset disclosures reveal the premium paid in acquisitions and how management assesses whether that premium retains its value. Since goodwill is no longer amortized under US GAAP, the annual impairment test is the only mechanism that adjusts carrying values downward — making the assumptions behind that test critically important for investors.

Key signals: a history of goodwill impairments suggests management consistently overpays for acquisitions. Watch the gap between reporting unit fair value and carrying amount — when fair value exceeds carrying amount by less than 10-20%, a small decline in business performance could trigger a write-down. For finite-lived intangibles, examine useful life assumptions across customer relationships, technology, and trade names; aggressive estimates inflate near-term earnings. Compare total intangibles-to-total-assets ratios against peers to assess acquisition dependency. Rising goodwill as a percentage of equity can signal balance sheet fragility.

Other Available Disclosures

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