Schrödinger Reports Third Quarter 2025 Financial Results
Third Quarter Total Revenue of
Updates 2025 Financial Guidance
"Schrödinger delivered a solid third quarter with software revenue growth of
“In our therapeutics portfolio, we are continuing to make strong progress advancing our collaborations and have increased our expectations for drug discovery revenue this year. Beyond our planned clinical investments to complete the Phase 1 dose-escalation studies for SGR-1505 and SGR-3515, we do not intend to advance discovery programs into the clinic independently. This shift toward a discovery-focused therapeutics R&D model has the potential to deliver significant long-term value through licensing, new ventures, and discovery collaborations,” Dr. Farid continued. “These actions, coupled with expense-reduction measures we undertook earlier this year, are expected to result in savings of approximately
Third Quarter 2025 Financial Results
-
Total revenue for the third quarter increased
54% to$54.3 million $35.3 million -
Software revenue for the third quarter increased
28% to$40.9 million $31.9 million -
Drug discovery revenue was
$13.5 million $3.4 million -
Software gross margin for both the third quarter of 2025 and the third quarter of 2024 was
73% . -
Operating expenses were
$74.0 million $86.2 million -
Other income was
$13.3 million $30.2 million -
Net loss for the third quarter was
$32.8 million $38.1 million -
Cash, cash equivalents, restricted cash and marketable securities were
$401.0 million $367.5 million
|
Three Months Ended |
|||||||||
September 30, |
||||||||||
|
|
2025 |
|
|
|
2024 |
|
|
% Change |
|
|
(in millions) |
|
|
|||||||
Total revenue |
$ |
54.3 |
|
|
$ |
35.3 |
|
|
54 |
% |
Software revenue |
|
40.9 |
|
|
|
31.9 |
|
|
28 |
% |
Drug discovery revenue |
|
13.5 |
|
|
|
3.4 |
|
|
295 |
% |
Software gross margin |
|
73 |
% |
|
|
73 |
% |
|
|
|
Operating expenses |
$ |
74.0 |
|
|
$ |
86.2 |
|
|
(14 |
)% |
Other income |
$ |
13.3 |
|
|
$ |
30.2 |
|
|
— |
|
Net loss |
$ |
(32.8 |
) |
|
$ |
(38.1 |
) |
|
— |
|
For the three and nine months ended September 30, 2025 Schrödinger reported a GAAP net loss of
2025 Financial Outlook
Today Schrödinger updated its 2025 full-year guidance for software revenue growth, drug discovery revenue, and software gross margin. The company’s financial expectations for the fiscal year ending December 31, 2025 are as follows:
-
Software revenue growth is now expected to range from
8% to13% compared to the prior expectation of10% to15% . -
Drug discovery revenue is now expected to range from
$49 million $52 million $45 million $50 million -
Software gross margin is now expected to range from
73% to75% compared to the prior expectation of74% to75% . - Operating expenses in 2025 are expected to be lower than 2024.
- Cash used for operating activities in 2025 is expected to be significantly lower than cash used for operating activities in 2024.
Key Highlights
Pipeline
- The company is continuing to progress the Phase 1 clinical study of SGR-3515, the company’s Wee1/Myt1 co-inhibitor, in patients with advanced solid tumors. Initial clinical data are now expected in the first half of 2026 as the company works toward completing dose escalation.
- In November, Schrödinger announced that new data on SGR-1505, the company’s MALT-1 inhibitor, will be presented during a poster session at the American Society of Hematology 67th Annual Meeting taking place December 6-9, 2025. The data characterize the mutational profile and clinical response to SGR-1505 treatment in patients who have relapsed or become refractory to Bruton tyrosine kinase inhibitors (BTKi) treatment or who have been double-exposed to BTKi and B-cell lymphoma 2 inhibitors. These data demonstrate that SGR-1505 represents a promising therapeutic option for patients who become resistant to standard-of-care therapies. The company is completing the Phase 1 package and continues to explore strategic opportunities to advance the development of SGR-1505.
In October, the
Additionally, Schrödinger scientists recently published research in the Journal of Medicinal Chemistry highlighting the power of integrating physics-based modeling and machine learning to accelerate the discovery of SGR-1505.
- In October, Schrödinger presented initial preclinical data for SGR-5573, the company’s potent, selective, brain-penetrant inhibitor of osimertinib-resistant EGFR variants at the European Society of Medical Oncology Congress. The data demonstrated that SGR-5573 is potent against resistant EGFR variants, has strong wild-type selectivity, and has robust anti-tumor activity in preclinical brain metastases models.
- Schrödinger recently selected SGR-6016, a brain-penetrant NLRP3 inhibitor development candidate. SGR-6016, the company’s fifth development candidate since 2021, is structurally distinct from known NLRP3 inhibitors, with a favorable preclinical potency, selectivity, and preliminary safety profile.
Platform
- In August, Schrödinger scientists published research in Nature Communications describing computational approaches to achieve kinome-wide selectivity in drug discovery campaigns, using the discovery of selective Wee1 kinase inhibitors as a case study, and to provide a general roadmap to accelerate drug discovery campaigns.
Collaborations
-
In October, Copernic Catalysts announced the creation of a new, more efficient, ammonia synthesis catalyst. This new chemistry reduces energy consumption used in ammonia production by up to
47% , representing substantial cost savings and environmental benefits for industrial producers. Copernic and Schrödinger are collaborating on this research, and Schrödinger holds an equity position in Copernic. - Also in October, scientists from Nimbus, a company co-founded by Schrödinger, and Takeda published results from the Phase 2b study of zasocitinib, an investigational TYK2 inhibitor, in patients with active psoriatic arthritis. In the trial, a statistically significant proportion of patients receiving zasocitinib achieved an American College of Rheumatology 20 response at week 12 versus placebo with no new safety signals observed. A Phase 3 study of zasocitinib in patients with psoriasis is ongoing.
Webcast and Conference Call Information
Schrödinger will host a conference call to discuss its third quarter 2025 financial results on Wednesday, November 5, 2025, at 4:30 p.m. ET. The live webcast can be accessed under “Events & Presentations” in the investors section of Schrödinger’s website, https://ir.schrodinger.com/news-and-events/event-calendar. To participate in the live call, please register for the call here. It is recommended that participants register at least 15 minutes in advance of the call. Once registered, participants will receive the dial-in information. The archived webcast will be available on Schrödinger’s website for approximately 90 days following the event.
Non-GAAP Information
Included in this press release is certain financial information that has not been prepared in accordance with generally accepted accounting principles in
Other companies in Schrödinger’s industry may calculate non-GAAP net income (loss) and non-GAAP net income (loss) per share, differently than we do, limiting their usefulness as comparative measures. For a reconciliation of non-GAAP net income (loss) and non-GAAP net income (loss) per share to GAAP net income (loss) and GAAP net income (loss) per share, respectively, please refer to the tables at the end of this press release.
About Schrödinger
Schrödinger is transforming molecular discovery with its computational platform, which enables the discovery of novel, highly optimized molecules for drug development and materials design. Schrödinger’s software platform is built on more than 30 years of R&D investment and is licensed by biotechnology, pharmaceutical and industrial companies, and academic institutions around the world. Schrödinger also leverages the platform to advance a portfolio of collaborative and internal programs. Founded in 1990, Schrödinger has approximately 800 employees operating from 15 locations globally. To learn more, visit www.schrodinger.com, follow us on LinkedIn and Instagram, or visit our blog, Extrapolations.com.
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995 including, but not limited to those statements regarding Schrödinger’s expectations about the speed and capacity of its computational platform, its financial outlook for the fiscal year ending December 31, 2025, its plans to continue to invest in research and its strategic plans to accelerate the growth of its software business and advance its collaborative and proprietary drug discovery programs, its ability to realize potential benefits and estimated savings from the restructuring and other cost reductions, including the phasing out of independent clinical development activities, the long-term potential of its business, its ability to improve and advance the science underlying its platform, including its ability to improve drug discovery, the initiation, timing, progress, and results of its proprietary drug discovery programs and product candidates and the drug discovery programs and product candidates of its collaborators, the clinical potential and favorable properties of its product candidates, including SGR-1505 and SGR-3515, its MALT1 and Wee1/Myt1 inhibitors, the clinical potential and favorable properties of its collaborators’ product candidates, the potential for SGR-1505 to be used for the treatment of relapsed/refractory B-cell malignancies, including Waldenström macroglobulinemia, its plans to explore strategic opportunities for the continued clinical development of SGR-1505, potential partnering and other business development activities for its programs, including SGR-6016, as well as expectations related to the use of its cash, cash equivalents and marketable securities. Statements including words such as “aim,” “anticipate,” “believe,” “contemplate,” “continue,” “could,” “estimate,” “expect,” “goal,” “intend,” “may,” “might,” “plan,” “potential,” “predict,” “project,” “should,” “target,” “will,” “would” and statements in the future tense are forward-looking statements. These forward-looking statements reflect Schrödinger’s current views about its plans, intentions, expectations, strategies and prospects, which are based on the information currently available to the company and on assumptions the company has made. Actual results may differ materially from those described in these forward-looking statements and are subject to a variety of assumptions, uncertainties, risks and important factors that are beyond Schrödinger’s control, including the demand for its software platform, its ability to further develop its computational platform, its reliance upon third-party providers of cloud-based infrastructure to host its software solutions, factors adversely affecting the life sciences industry, fluctuations in the value of the
Condensed Consolidated Statements of Operations (Unaudited) (in thousands, except for share and per share amounts) |
|||||||||||||||
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
||||||||||||
|
|
2025 |
|
|
|
2024 |
|
|
|
2025 |
|
|
|
2024 |
|
Revenues: |
|
|
|
|
|
|
|
||||||||
Software products and services |
$ |
40,858 |
|
|
$ |
31,884 |
|
|
$ |
130,218 |
|
|
$ |
100,703 |
|
Drug discovery |
|
13,466 |
|
|
|
3,406 |
|
|
|
38,416 |
|
|
|
18,519 |
|
Total revenues |
|
54,324 |
|
|
|
35,290 |
|
|
|
168,634 |
|
|
|
119,222 |
|
Cost of revenues: |
|
|
|
|
|
|
|
||||||||
Software products and services |
|
11,111 |
|
|
|
8,479 |
|
|
|
37,662 |
|
|
|
23,622 |
|
Drug discovery |
|
15,174 |
|
|
|
9,083 |
|
|
|
45,651 |
|
|
|
27,647 |
|
Total cost of revenues |
|
26,285 |
|
|
|
17,562 |
|
|
|
83,313 |
|
|
|
51,269 |
|
Gross profit |
|
28,039 |
|
|
|
17,728 |
|
|
|
85,321 |
|
|
|
67,953 |
|
Operating expenses: |
|
|
|
|
|
|
|
||||||||
Research and development |
|
42,757 |
|
|
|
50,977 |
|
|
|
131,739 |
|
|
|
152,423 |
|
Sales and marketing |
|
9,524 |
|
|
|
10,349 |
|
|
|
30,625 |
|
|
|
30,213 |
|
General and administrative |
|
21,705 |
|
|
|
24,824 |
|
|
|
72,696 |
|
|
|
73,901 |
|
Total operating expenses |
|
73,986 |
|
|
|
86,150 |
|
|
|
235,060 |
|
|
|
256,537 |
|
Loss from operations |
|
(45,947 |
) |
|
|
(68,422 |
) |
|
|
(149,739 |
) |
|
|
(188,584 |
) |
Other income: |
|
|
|
|
|
|
|
||||||||
Gain (loss) on equity investments |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Change in fair value of equity investments |
|
9,691 |
|
|
|
25,459 |
|
|
|
1,175 |
|
|
|
27,763 |
|
Other income |
|
3,623 |
|
|
|
4,737 |
|
|
|
13,265 |
|
|
|
14,363 |
|
Total other income |
|
13,314 |
|
|
|
30,196 |
|
|
|
14,440 |
|
|
|
42,126 |
|
Loss before income taxes |
|
(32,633 |
) |
|
|
(38,226 |
) |
|
|
(135,299 |
) |
|
|
(146,458 |
) |
Income tax expense (benefit) |
|
162 |
|
|
|
(90 |
) |
|
|
477 |
|
|
|
449 |
|
Net loss |
$ |
(32,795 |
) |
|
$ |
(38,136 |
) |
|
$ |
(135,776 |
) |
|
$ |
(146,907 |
) |
Net loss per share of common and limited common stockholders, basic and diluted: |
$ |
(0.45 |
) |
|
$ |
(0.52 |
) |
|
$ |
(1.85 |
) |
|
$ |
(2.02 |
) |
Weighted average shares used to compute net loss per share of common and limited common stockholders, basic and diluted: |
|
73,613,090 |
|
|
|
72,813,006 |
|
|
|
73,368,247 |
|
|
|
72,606,033 |
|
Condensed Consolidated Balance Sheets (Unaudited) (in thousands, except for share and per share amounts) |
|||||||
Assets |
September 30, 2025 |
|
December 31, 2024 |
||||
Current assets: |
|
|
|
||||
Cash and cash equivalents |
$ |
172,120 |
|
|
$ |
147,326 |
|
Restricted cash |
|
9,753 |
|
|
|
15,331 |
|
Marketable securities |
|
219,113 |
|
|
|
204,798 |
|
Accounts receivable, net of allowance for doubtful accounts of |
|
29,384 |
|
|
|
235,692 |
|
Unbilled and other receivables, net of allowance for unbilled receivables of |
|
28,016 |
|
|
|
19,641 |
|
Prepaid expenses |
|
13,336 |
|
|
|
12,205 |
|
Total current assets |
|
471,722 |
|
|
|
634,993 |
|
Property and equipment, net |
|
20,738 |
|
|
|
24,196 |
|
Equity investments |
|
44,382 |
|
|
|
43,208 |
|
Goodwill |
|
4,791 |
|
|
|
4,791 |
|
Right of use assets - operating leases |
|
105,107 |
|
|
|
111,883 |
|
Other assets |
|
6,920 |
|
|
|
4,155 |
|
Total assets |
$ |
653,660 |
|
|
$ |
823,226 |
|
Liabilities and Stockholders' Equity: |
|
|
|
||||
Current liabilities: |
|
|
|
||||
Accounts payable |
|
9,218 |
|
|
$ |
10,666 |
|
Accrued payroll, taxes, and benefits |
|
27,986 |
|
|
|
42,110 |
|
Deferred revenue |
|
82,283 |
|
|
|
111,944 |
|
Lease liabilities - operating leases |
|
16,740 |
|
|
|
16,755 |
|
Other accrued liabilities |
|
8,886 |
|
|
|
10,272 |
|
Total current liabilities |
|
145,113 |
|
|
|
191,747 |
|
Deferred revenue, long-term |
|
92,390 |
|
|
|
108,814 |
|
Lease liabilities - operating leases, long-term |
|
94,694 |
|
|
|
101,074 |
|
Other liabilities, long-term |
|
111 |
|
|
|
146 |
|
Total liabilities |
|
332,308 |
|
|
|
401,781 |
|
Stockholders' equity: |
|
|
|
||||
Preferred stock, |
|
— |
|
|
|
— |
|
Common stock, |
|
645 |
|
|
|
637 |
|
Limited common stock, |
|
92 |
|
|
|
92 |
|
Additional paid-in capital |
|
981,853 |
|
|
|
946,037 |
|
Accumulated deficit |
|
(661,317 |
) |
|
|
(525,541 |
) |
Accumulated other comprehensive income |
|
79 |
|
|
|
220 |
|
Total stockholders' equity |
|
321,352 |
|
|
|
421,445 |
|
Total liabilities and stockholders' equity |
$ |
653,660 |
|
|
$ |
823,226 |
|
Condensed Consolidated Statements of Cash Flows (Unaudited) (in thousands) |
|||||||
|
Nine Months Ended September 30, |
||||||
|
|
2025 |
|
|
|
2024 |
|
Cash flows from operating activities: |
|
|
|
||||
Net loss |
$ |
(135,776 |
) |
|
$ |
(146,907 |
) |
Adjustments to reconcile net loss to net cash used in operating activities: |
|
|
|
||||
(Gain) loss on equity investments |
|
— |
|
|
|
— |
|
Fair value adjustments of equity investments |
|
(1,175 |
) |
|
|
(27,763 |
) |
Depreciation and amortization |
|
4,585 |
|
|
|
4,395 |
|
Stock-based compensation |
|
33,047 |
|
|
|
37,424 |
|
Noncash investment accretion |
|
(2,347 |
) |
|
|
(6,260 |
) |
Loss on disposal of property and equipment |
|
20 |
|
|
|
8 |
|
Decrease (increase) in assets: |
|
|
|
||||
Accounts receivable, net |
|
206,308 |
|
|
|
52,711 |
|
Unbilled and other receivables |
|
(8,375 |
) |
|
|
(8,418 |
) |
Reduction in the carrying amount of right of use assets - operating leases |
|
6,776 |
|
|
|
7,914 |
|
Prepaid expenses and other assets |
|
(3,896 |
) |
|
|
(5,314 |
) |
(Decrease) increase in liabilities: |
|
|
|
||||
Accounts payable |
|
(1,302 |
) |
|
|
(5,442 |
) |
Accrued payroll, taxes, and benefits |
|
(14,124 |
) |
|
|
1,848 |
|
Deferred revenue |
|
(46,085 |
) |
|
|
(18,301 |
) |
Lease liabilities - operating leases |
|
(6,395 |
) |
|
|
(7,738 |
) |
Other accrued liabilities |
|
(1,269 |
) |
|
|
(4,412 |
) |
Net cash provided by (used in) operating activities |
|
29,992 |
|
|
|
(126,255 |
) |
Cash flows from investing activities: |
|
|
|
||||
Purchases of property and equipment |
|
(1,401 |
) |
|
|
(6,438 |
) |
Purchases of equity investments |
|
— |
|
|
|
(3,000 |
) |
Proceeds from disposition and sale of equity investments |
|
— |
|
|
|
48,798 |
|
Purchases of marketable securities |
|
(243,707 |
) |
|
|
(187,466 |
) |
Proceeds from maturity of marketable securities |
|
231,598 |
|
|
|
273,467 |
|
Net cash (used in) provided by investing activities |
|
(13,510 |
) |
|
|
125,361 |
|
Cash flows from financing activities: |
|
|
|
||||
Proceeds from issuances of common stock upon stock option exercises |
|
2,777 |
|
|
|
1,356 |
|
Principal payments on finance leases |
|
(43 |
) |
|
|
(43 |
) |
Proceeds from issuance of common stock in ATM offering, net |
|
— |
|
|
|
8,691 |
|
Net cash provided by financing activities |
|
2,734 |
|
|
|
10,004 |
|
Net increase in cash and cash equivalents and restricted cash |
|
19,216 |
|
|
|
9,110 |
|
Cash and cash equivalents and restricted cash, beginning of period |
|
162,657 |
|
|
|
161,066 |
|
Cash and cash equivalents and restricted cash, end of period |
$ |
181,873 |
|
|
$ |
170,176 |
|
|
|
|
|
||||
Supplemental disclosure of cash flow and noncash information |
|
|
|
||||
Cash paid for income taxes |
$ |
650 |
|
|
$ |
847 |
|
Supplemental disclosure of non-cash investing and financing activities |
|
|
|
||||
Purchases of property and equipment in accounts payable |
|
16 |
|
|
|
30 |
|
Purchases of property and equipment in accrued liabilities |
|
6 |
|
|
|
138 |
|
Acquisition of right of use assets - operating leases, contingency resolution |
|
— |
|
|
|
2,848 |
|
Reconciliation of GAAP to Non-GAAP Financial Measures (Unaudited) |
|||||||||||||||
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||
September 30, |
|
September 30, |
|||||||||||||
|
|
2025 |
|
|
|
2024 |
|
|
|
2025 |
|
|
|
2024 |
|
|
(in thousands, except per share data) |
||||||||||||||
Net loss (GAAP) |
$ |
(32,795 |
) |
|
$ |
(38,136 |
) |
|
$ |
(135,776 |
) |
|
$ |
(146,907 |
) |
Income tax expense (benefit) |
|
162 |
|
|
|
(90 |
) |
|
|
477 |
|
|
|
449 |
|
(Gain) loss on equity investments |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Change in fair value |
|
(9,691 |
) |
|
|
(25,459 |
) |
|
|
(1,175 |
) |
|
|
(27,763 |
) |
Non-GAAP net loss |
$ |
(42,324 |
) |
|
$ |
(63,685 |
) |
|
$ |
(136,474 |
) |
|
$ |
(174,221 |
) |
Non-GAAP net loss per share of common and limited common stockholders, basic and diluted: |
$ |
(0.57 |
) |
|
$ |
(0.87 |
) |
|
$ |
(1.86 |
) |
|
$ |
(2.40 |
) |
Weighted average shares used to compute non-GAAP net loss per share of common and limited common stockholders, basic and diluted: |
|
73,613,090 |
|
|
|
72,813,006 |
|
|
|
73,368,247 |
|
|
|
72,606,033 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20251105438747/en/
Jaren Madden (Investors and Media)
Schrödinger, Inc.
617-286-6264
Matthew Luchini (Investors)
Schrödinger, Inc.
matthew.luchini@schrodinger.com
917-719-0636
Allie Nicodemo (Media)
Schrödinger, Inc.
allie.nicodemo@schrodinger.com
617-356-2325
Source: Schrödinger
