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Stock-Based Compensation
 9 Months Ended
Sep. 30, 2025
Share-Based Payment Arrangement [Abstract]  
Stock-Based Compensation Stock-Based Compensation
In April 2021, the Board of Directors and the stockholders of the Company adopted the 2021 Equity Incentive Plan (the 2021 Plan). The Company may grant stock options, restricted stock units (RSUs), stock appreciation rights, restricted stock awards and other forms of stock-based compensation. As of September 30, 2025, 13.3 million shares of Class A common stock were available for grant in the 2021 plan. In November 2024, the Board of Directors and the stockholders of the Company adopted the 2024 Inducement Equity Incentive Plan (the 2024 Plan) as part of the Exscientia acquisition. See Note 4, “Acquisitions” for additional information. As of September 30, 2025, 11.3 million shares of Class A common stock were available for grant in the 2024 plan.

The following table presents the classification of stock-based compensation expense for employees and non-employees within the Condensed Consolidated Statements of Operations:

Three months ended September 30,Nine months ended September 30,
(in thousands)
2025202420252024
Cost of revenue
$964 $1,153 $4,727 $2,600 
Research and development14,906 9,194 46,795 25,141 
General and administrative9,174 7,396 34,911 21,470 
Total$25,044 $17,743 $86,433 $49,211 

Stock Options

Stock options are primarily granted to executive leaders at the Company, generally vest over four years and expire no later than 10 years from the date of grant.

Stock option activity during the nine months ended September 30, 2025 was as follows:

 (in thousands except share data and per share amounts)
Shares 
Weighted-Average Exercise
Price
Weighted-Average Remaining Contractual Life (in years)
Aggregate Intrinsic Value
Outstanding as of December 31, 202421,941,495 $5.40 7.9$62,685 
Granted3,340,822 7.08 
Cancelled(2,305,626)8.81 
Exercised(4,519,592)1.08 24,350 
Outstanding as of September 30, 202518,457,099 $6.52 7.2$20,246 
Exercisable as of September 30, 202510,189,094 $6.64 5.9$14,363 
The fair value of options granted to employees is calculated on the grant date using the Black-Scholes option valuation model. The weighted-average grant-date fair values of stock options granted during the nine months ended September 30, 2025 and 2024 were $4.47 and $5.88, respectively.

The following weighted-average assumptions were used to calculate the grant-date fair value of stock options:

Nine months ended September 30,
 20252024
Expected term (in years)
5.56.2
Expected volatility
66%65%
Expected dividend yield
— — 
Risk-free interest rate
4.0%4.2%

As of September 30, 2025, $36.7 million of unrecognized compensation cost related to stock options is expected to be recognized as expense over approximately the next three years.

RSUs

Equity awards granted to employees primarily consist of RSUs and generally vest over four years. The weighted-average grant-date fair value of RSUs generally is determined based on the number of units granted and the quoted price of Recursion’s common stock on the date of grant.

The following table summarizes Recursion’s RSU activity during the nine months ended September 30, 2025:

Stock unitsWeighted-average grant date fair value
Outstanding as of December 31, 202427,304,229 $7.47 
Granted14,980,106 5.86 
Vested(6,742,946)7.62 
Forfeited(4,898,723)7.72 
Outstanding as of September 30, 202530,642,666 $6.61 

The fair market value of RSUs vested was $50.8 million during the nine months ended September 30, 2025. As of September 30, 2025, $188.1 million of unrecognized compensation cost related to RSUs is expected to be recognized as expense over approximately the next three years.