Schrodinger Inc
NASDAQ:SDGR

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Schrodinger Inc
NASDAQ:SDGR
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Price: 17.64 USD -4.23% Market Closed
Market Cap: 1.3B USD

Schrodinger Inc
Investor Relations

In the bustling realm of computational chemistry, Schrödinger Inc. has carved a unique niche, transforming the way pharmaceutical and biotechnology companies approach drug discovery. Founded in 1990, the company has become synonymous with innovation, leveraging powerful physics-based software platforms that simulate molecular interactions at an atomic level. By providing researchers with tools to predict the behavior of complex biological systems, Schrödinger effectively bridges the gap between traditional experimental methods and cutting-edge computational techniques. Their flagship product, the Schrödinger platform, is instrumental in accelerating the drug discovery process, allowing scientists to virtually test countless compounds before selecting the most promising candidates for laboratory synthesis and testing. This capability significantly reduces the time and cost involved in bringing new drugs to market, providing tremendous value to its clients in the pharmaceutical industry.

Schrödinger's financial success stems from its diversified business model, which includes software licensing, collaborative research and development projects, and, interestingly, strategic investments in biotech firms. The company licenses its software to a broad range of industries, from pharmaceuticals to materials science, generating a steady stream of revenue. Meanwhile, their collaborative projects enable Schrödinger to participate in revenue sharing or milestone payments based on the compounds developed using their technology. Additionally, by investing in biotech companies utilizing their software, Schrödinger not only fosters innovation but also stands to gain financially from any commercial success. This multifaceted approach not only secures their leadership in the industry but also ensures a robust growth trajectory, as they continue to expand the horizons of computational science.

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Last Earnings Call
Fiscal Period
Q3 2025
Call Date
Nov 5, 2025
AI Summary
Q3 2025

Revenue Growth: Schrodinger delivered total Q3 revenue of $54.3 million, up 54% year-over-year, driven by strong performance in both software and drug discovery.

Software Strength: Software revenue grew 28% YoY to $40.9 million, slightly exceeding expectations, though growth was mainly from existing customers.

Guidance Adjustment: 2025 software revenue growth guidance was lowered to 8–13% from 10–15% due to delayed pharma scale-up opportunities and industry headwinds.

Cost Reductions: Operating expenses fell 14% YoY, with significant progress on a $30 million expense reduction plan and a further $40 million in savings from exiting independent clinical development.

Drug Discovery Upside: Drug discovery revenue surged to $13.5 million, and full-year guidance was raised to $49–52 million (from $45–50 million) due to strong collaborations.

Profitability Focus: Management emphasized a shift toward profitability, with actions taken to improve the long-term profitability profile and reduce cash burn.

Pipeline Update: SGR-1505 data will be presented at ASH, with new efficacy reported in aggressive lymphoma; SGR-3515 data readout delayed to 1H 2026.

Strategic Shift: Company will no longer advance programs into the clinic independently, focusing instead on early-stage partnerships to drive value.

Key Financials
Total Revenue
$54.3 million
Software Revenue
$40.9 million
Drug Discovery Revenue
$13.5 million
Software Gross Margin
73%
R&D Expenses
$42.8 million
Sales and Marketing Expense
$9.5 million
G&A Expense
$21.7 million
Total Operating Expenses
$74 million
Other Income
$13 million gain
Net Loss
$33 million or $0.45 per diluted share
Cash and Equivalents
$401 million as of September 30
Fully Diluted Share Count
73.6 million
Earnings Call Recording
Other Earnings Calls

Management

Dr. Ramy Farid Ph.D.
CEO, President & Director
No Bio Available
Dr. Richard A. Friesner Ph.D.
Co-Founder, Scientific Advisory Chairman and Director
No Bio Available
Dr. Geoffrey Craig Porges MBBS
Executive VP & CFO
No Bio Available
Dr. Robert Lorne Abel Ph.D.
Executive VP, Chief Scientific Officer of Platform and Head of Modeling R&D
No Bio Available
Dr. Karen Akinsanya Ph.D.
President of Research & Development Therapeutics
No Bio Available
Dr. Margaret Han Dugan M.D.
Chief Medical Officer
No Bio Available
Prof. William Goddard III
Co-Founder & Scientific Advisor
No Bio Available
Mr. Kenneth Patrick Lorton
Executive VP, CTO & COO of Software
No Bio Available
Mr. Shane Brauner
Executive VP & Chief Information Officer
No Bio Available
Ms. Jaren Irene Madden
Senior Vice President of Investor Relations & Corporate Affairs
No Bio Available

Contacts

Address
NEW YORK
New York City
1540 Broadway, 24Th Floor
Contacts
+15032991150.0
www.schrodinger.com