What is the market's earnings forecast for Schrodinger next quarter?

What factors drove the changes in Schrodinger's revenue and profit?

What does Schrodinger do and what are its main business segments?

What were the key takeaways from Schrodinger’s earnings call?

What is the revenue and EPS growth rate for Schrodinger year over year?

What is Schrodinger's gross profit margin?

Did Schrodinger beat or miss consensus estimates last quarter?

What guidance did Schrodinger's management provide for the next earnings period?

- **2025 Growth**: 23% total revenue growth, $198.5 million software ACV, 15% top 20 pharma growth, and 7% commercial expansion.
- **Hosted Transition**: 23% hosted revenue in 2025, targeting 75% by 2028 for predictable financials. 2026 ACV guidance $218-228 million (+10-15%).
- **AI & New Products**: Predictive tox beta success; 2026 launches to drive growth in biologics, toxicology, and materials science.
- **Therapeutics Momentum**: 25 active programs, 7 in clinical trials, and $56 million 2025 drug discovery revenue. 2028 target: $50 million annual drug discovery revenue.
- **2028 Financial Goals**: Positive adjusted EBITDA, 75% hosted revenue, and high 70s gross margin.

**【CEO Summary Section】**
- Schrodinger achieved 23% total revenue growth in 2025, driven by software and drug discovery segments. Software ACV reached $198.5 million, with 15% growth in top 20 pharma customers and 7% in commercial markets.
- CEO emphasized the physics-first AI strategy, highlighting predictive toxicology beta success and new product launches. 2026 targets include 10-15% software ACV growth and $50 million annual drug discovery revenue.
- Transition to hosted contracts expected to accelerate, with 75% hosted revenue by 2028, supporting more predictable financials.

**【CFO Financial Commentary】**
- Full-year 2025: GAAP net loss $103 million, software revenue $199.5 million (+11%), drug discovery $56.4 million (+118%). Gross margin 74%, operating expenses $310 million (-9%).
- Q4 2025: Software revenue $69.3 million (-13% YoY) due to hosted transition, ACV $198.5 million (+4%). 2026 ACV guidance $218-228 million (+10-15%).
- 2028 goals: Positive adjusted EBITDA, 75% hosted revenue, and gross margin return to high 70s.

**【Therapeutics Portfolio Review】**
- Therapeutics pipeline includes 25 active programs across collaborations, with 7 in clinical trials. Notable progress: Takeda's zasocitinib Phase 3 data, Structure Therapeutics' amylin Phase I, and Schrodinger's Phase I studies for SGR-1505/3515.
- Modality switch programs (e.g., oral GLP-1) target large markets with lower clinical risk, generating up to $5 billion in potential milestones and royalties.

**【Q&A Highlights】**
- **Hosted Transition Impact**: 23% of software revenue now hosted, with 1% hosted increase reducing current-year revenue by $2-3 million. 2026 Q1 ACV guidance $24-28 million reflects seasonality and transition.
- **AI & Customer Engagement**: Pharma increasingly prefers hosted solutions; Schrodinger integrates with Anthropic for AI-driven drug discovery. Predictive tox beta outperformed expectations, targeting new budgets and existing customers.
- **Therapeutics Strategy**: Focused on high-value collaborations and wholly-owned programs, with $56 million 2025 drug discovery revenue driven by milestones and royalties.
- **Financial Outlook**: 2028 EBITDA breakeven assumes biotech recovery; no buybacks planned, prioritizing growth investments.

Schrödinger, Inc.(SDGR)-20260226-2025 Q4 Earnings call transcript

- **Revenue Growth**: Q3 2025 total revenue $54.3M (+54% YoY); software $40.9M (+28% YoY). 
- **Strategic Shift**: Ceasing internal clinical trials to save $70M/year, focusing on discovery partnerships. 
- **Pipeline Updates**: SGR-1505 shows complete response in aggressive lymphoma; SGR-3515 Phase I data delayed to H1 2026. 
- **Financial Health**: Net loss $33M (-18% YoY); $401M cash. 
- **Guidance**: Software growth 8-13% (prev 10-15%); drug discovery $49-52M. 
- **Innovation**: Predictive toxicology beta expands to 50+ kinases; NLRP3 inhibitor with brain penetration. 


**【CEO Summary Section】**
- Total Q3 2025 revenue: $54.3 million (54% YoY growth). Software revenue: $40.9 million (28% YoY), driven by hosted contracts and predictive toxicology grants. Drug discovery revenue: $13.5 million (357% YoY). 
- Updated software revenue guidance: 8-13% YoY (prev 10-15%) due to delayed pharma scale-up opportunities. 
- Strategic shift: Ceasing internal clinical development to focus on discovery partnerships, saving $70 million annually. 
- Predictive toxicology beta expansion: 50+ kinases and anti-targets; long-term monetization potential. 
- Pipeline updates: SGR-1505 MALT1 inhibitor Phase I data at ASH; SGR-3515 Wee1/Myt1 co-inhibitor Phase I data delayed to H1 2026. 

**【CFO Financial Commentary】**
- Q3 2025: Net loss $33 million (-18% YoY); cash $401 million. 
- Expense reductions: $30 million announced in May, with $15 million realized; full $30M impact in 2026. 
- Updated guidance: Drug discovery revenue $49-52 million (prev $45-50M); software gross margin 73-75% (prev 74-75%). 
- R&D expenses: $42.8 million (-16% YoY); G&A $21.7 million (-13% YoY). 
- 2025 outlook: Software growth 8-13%, drug discovery $49-52M, cash used in ops lower than 2024. 

**【Therapeutics R&D & Pipeline Updates】**
- SGR-1505: ASH 2025 update includes aggressive lymphoma complete response and BTK/BCL2 resistance data. 
- SGR-3515: Phase I data delayed to H1 2026 for thorough analysis. 
- NLRP3 inhibitor SGR-6016: Brain-penetrant, low-dose candidate; early partner discussions. 
- 15 programs eligible for milestones/royalties; $600M+ generated from collaborations since 2020. 

**【Q&A Highlights】**
- **Operational Efficiency**: $70M annual savings from ceasing clinical dev; no GAAP profitability target. 
- **Software Growth**: Biotech sector recovery signals; 2025 software growth 8-13% reflects macro challenges. 
- **Predictive Toxicology**: Beta phase interest strong; monetization timeline TBD. 
- **Clinical Strategy**: Discovery partnerships (e.g., Novartis $150M upfront) drive value without clinical risk. 
- **Pipeline Management**: Focused on high-value targets like EGFR, MALT1, and NLRP3. 


Schrödinger, Inc. (SDGR) Q3 2025 Earnings Call Transcript

- **Revenue Growth**: Q2 2025 total revenue up 16% YoY to $54.8M, driven by software (+15%) and drug discovery (+19%).
- **Clinical Success**: SGR-1505 Phase I data shows responses in CLL and WM; exploring partnerships for mid/late-stage development.
- **Financial Health**: GAAP net loss $43M (vs. $54M in Q2 2024); operating expenses down 6% YoY. Cash remains strong at $462M.
- **Strategic Moves**: Predictive toxicology beta released; $30M expense reduction plan driving 2025 cost savings.
- **Pipeline Expansion**: 15 clinical-stage assets; collaborations with top pharma partners to advance 150+ discovery programs.

**【CEO Summary Section】**
- Q2 2025 total revenue: $54.8 million (16% YoY growth), driven by software ($40.5M, +15%) and drug discovery ($14.2M, +19%).
- Software growth reflects renewals and scale-ups; drug discovery benefits from Novartis collaboration.
- Phase I data for SGR-1505 shows encouraging responses in CLL and WM; exploring strategic partnerships for mid/late-stage development.
- Predictive toxicology beta released, supporting FDA's alternative methods initiative.

**【CFO Financial Commentary】**
- GAAP net loss: $43 million (vs. $54M in Q2 2024), with software gross margin at 68% (down from 80% due to predictive tox costs).
- R&D expenses: $43.1 million (-15% YoY) due to $30M expense reduction plan.
- Operating expenses: $79 million (-6% YoY), with cash of $462M remaining strong.
- 2025 guidance: software revenue +10-15%, drug discovery $45-50M; Q3 software $36-40M.

**【Therapeutics R&D Update】**
- 15 development candidates in clinical stages; 6 in Phase II, 1 in Phase III.
- SGR-1505 Phase I data: 3/17 CLL and 5/5 WM responses; Fast Track designation for WM.
- SGR-2921 (CDC7) and SGR-3515 (Wee1/Myt1) Phase I data expected Q4 2025.
- Expanded collaborations with Lilly, Otsuka, and Novo Nordisk; 150+ discovery programs.

**【Q&A Highlights】**
- **Customer Renewals**: Pharma discussions positive; biotech segment challenging. 2025 renewals mostly Q4, with scale-up potential.
- **Predictive Tox**: Beta adoption strong; separately priced add-on module. Gross margin impact from Gates grant expected until Q3 2026.
- **Pipeline Strategy**: Out-licensing SGR-1505 to accelerate hematology development; similar approach for SGR-2921/3515.
- **Restructuring Impact**: $30M expense savings driving 2025 operating expenses below 2024 levels.


Schrödinger, Inc. (SDGR) Q2 2025 Earnings Call Transcript

- **Revenue Growth Accelerates**: Q1 2025 total revenue up 63% YoY to $59.6 million, driven by 46% software growth and 3x drug discovery expansion.
- **Breakthrough Predictive Tox Solution**: Beta testing begins Q4 2025 for off-target toxicity modeling, targeting 50+ proteins.
- **Clinical Milestones Ahead**: Three Phase 1 programs (SGR-1505, SGR-2921, SGR-3515) to report data Q2-Q4 2025, starting with SGR-1505 at EHA in June.
- **Financial Strength**: $144 million Q1 net cash inflow, 5% YoY operating expense decline, and 2025 software revenue growth guided at 10-15%.
- **FDA Alignment**: Predictive tox initiative aligns with FDA's goal to reduce animal testing, with 50+ off-target models already integrated into R&D.

**【CEO Summary Section】**
- Q1 2025 total revenue reached $59.6 million, up 63% YoY, driven by 46% growth in software revenue ($48.8 million) and 3x growth in drug discovery revenue ($10.7 million). Key contributors include Novartis collaboration upfront payments and expanded contracts.
- Introduced predictive toxicology beta solution targeting 50+ off-targets, with plans for customer testing later this year. Software updates include crystal structure prediction, protein degrader modeling, and T-cell receptor prediction capabilities.
- Three lead clinical programs (SGR-1505, SGR-2921, SGR-3515) expected to report Phase 1 data Q2-Q4 2025, with SGR-1505 data at EHA in June.

**【CFO Financial Commentary】**
- Q1 GAAP net loss: $60 million (-$0.82/share) vs. $54.7 million (-$0.76/share) in Q1 2024. Non-GAAP metrics not disclosed, but CFO emphasized strong cash flow ($144 million net inflow) from Novartis payment and receivables collections.
- Software gross margin 72% (vs. 76% Q1 2024) due to Gates grant cost impact. Full-year software gross margin guided to 74-75%.
- Operating expenses down 5% YoY to $82 million, driven by R&D cost shift to collaborations. 2025 software revenue growth outlook maintained at 10-15%, drug discovery $45-50 million.

**【R&D & Therapeutics Update】**
- Three Phase 1 programs progressing:
  - SGR-1505 (MALT1 inhibitor): EHA data mid-June, focusing on safety, PK/PD, and preliminary efficacy in B-cell malignancies.
  - SGR-2921 (CDC7 inhibitor): AML/MDS dose escalation study.
  - SGR-3515 (Wee1/Myt1 co-inhibitor): Solid tumor trials with optimized dosing schedule.
- Preclinical data highlights: SGR-3515 shows improved anti-tumor activity vs. competitors; SGR-4174 (SOS1 inhibitor) demonstrates differentiated potency and tolerability.

**【Q&A Key Themes】**
1. **Clinical Data Expectations**: SGR-1505 Phase 1 data to focus on safety and PK/PD, with efficacy signals. No combination therapy plans yet.
2. **Predictive Tox Pricing**: Will assess customer feedback during beta testing before setting pricing.
3. **Market Competition**: Large pharma customers view Schrödinger as "must-have" tool, with no AI-driven disruption concerns. 2025 cash burn expected to be lower than 2024.
4. **FDA Animal Testing Guidance**: Predictive tox solution aligns with FDA goals, with 50+ off-target models already enabled in internal programs.
5. **Pipeline Expansion**: R&D investment focused on preclinical programs, with potential partnerships for later-stage assets. No immediate plans for increased cash burn.


Schrödinger, Inc. (SDGR) Q1 2025 Earnings Call Transcript

- **Software Growth Accelerates**: 13% YoY software revenue to $180M, with Q4 hosted revenue up 86%. 2025 targets 10-15% growth, reducing Q4 concentration via hosted expansion.
- **Predictive Tox Impact**: $19.5M Gates Foundation project drives 2025 drug discovery revenue ($45-50M) and reduces gross margin to 74-75%.
- **Clinical Milestones**: Three Phase 1 programs (MALT1, CDC7, Wee1/Myt1) set for H2 2025 data reads. Predictive tox tool now models 50+ off-targets, enhancing drug discovery efficiency.
- **Partnership Momentum**: New Novartis deal (+$15M upfront), Lilly expansion, and Otsuka collaboration fuel pipeline diversification. 2025 R&D shifts to cost of goods for predictive tox, aligning expenses with strategic initiatives.


**【CEO Summary Section】**
- **2024 Performance Highlights**: Total revenue of $208 million, with software revenue growing 13% to $180 million. Q4 software revenue rose 16% to $79.7 million, driven by hosted contracts. Key metrics include 100% retention for customers with ACV ≥$500k and total ACV up 24% to $191 million.
- **2025 Outlook**: Target 10-15% software growth, with hosted revenue reducing Q4 concentration. New product launches include predictive toxicology (50+ off-targets modeled) and enhanced biologics tools. Clinical milestones include Phase 1 data for three programs.

**【CFO Financial Commentary】**
- **Q4 2024 Results**: Total revenue $88.3 million (+19% YoY), software gross margin 83%, drug discovery revenue $8.7 million (+60% YoY). Full-year software gross margin 79.5%, down from 81.5% due to predictive tox costs.
- **2025 Guidance**: Software revenue $202-213 million (10-15% growth), drug discovery $45-50 million. Hosted revenue to rise to 25-30% of software, reducing Q4 weighting. Operating expenses to grow <5%, with R&D shifting to cost of goods for predictive tox.
- **Liquidity**: $367 million cash at end-Q4, +$150 million from Novartis in January. Net cash use in 2025 expected lower than 2024.

**【R&D & Clinical Updates】**
- **Pipeline Progress**: Three Phase 1 programs (MALT1, CDC7, Wee1/Myt1) with data expected H2 2025. New collaborations with Novartis, Otsuka, and Lilly expand pipeline. Predictive tox project with Gates Foundation contributes $19.5 million over 2024-2026.
- **Partnerships**: Expanded agreements with Otsuka and Lilly, adding high-value targets. Internal programs like EGFR C797S advance to development candidate stage.

**【Q&A Key Takeaways】**
- **Drug Discovery Revenue**: 2025 guidance ($45-50M) driven by Novartis upfront ($15M+), Lilly expansion, and Otsuka progress. Predictive tox costs will reduce gross margin to 74-75%.
- **Hosted Migration**: 20% of software revenue from hosted in 2024, targeting 25-30% in 2025. On-prem renewals offset churn in small biotech segment.
- **China Exposure**: <5% revenue, no near-term growth expectations. Focus on large pharma adoption in US/Europe.
- **MALT1 Strategy**: Phase 1 data in Q2 will inform partnership strategy. Internal focus on completing dose escalation and PK/PD analysis.


Actual	-0.34	-0.05	0.05	-0.11	0	-0.49	-0.49	-0.44	-0.48	-0.67	-0.56	-0.39	1.75	0.06	-0.86	-0.32	-0.76	-0.74	-0.52	-0.55	-0.82	-0.59	-0.45	0.45
Forecast	-0.2275	-0.2775	-0.0575	-0.075	-0.15	-0.268	-0.374	-0.33	-0.4681	-0.5428	-0.6314	-0.5013	1.2846	-0.5079	-0.6872	-0.4001	-0.7422	-0.832	-0.6329	-0.4243	-0.7259	-0.7678	-0.717	-0.1843
Surprise	-49.45%	+81.98%	+186.96%	-46.67%	+100.00%	-82.84%	-31.02%	-33.33%	-2.54%	-23.43%	+11.31%	+22.20%	+36.23%	+111.81%	-25.15%	+20.02%	-2.40%	+11.06%	+17.84%	-29.63%	-12.96%	+23.16%	+37.24%	+344.17%

SDGR

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SDGR Q4 2025 Earnings

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SDGR

SDGR fundamentals

SDGR Q4 2025 Earnings

Earnings Call

SDGR Earnings Call Summary for Q4/20254:30 PM on Feb 25, 2026

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SDGR Earnings Call Summary for Q2/20254:30 PM on Aug 6, 2025

SDGR Earnings Call Summary for Q1/20254:30 PM on May 7, 2025

SDGR Earnings Call Summary for Q4/20244:30 PM on Feb 26, 2025

You can ask Aime