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- **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

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

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Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

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Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

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Interest Income

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Net Income from Continuing Operations

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Other Items Before Net Income

Net Income

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Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

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Other Comprehensive Income

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SDGR

SDGR fundamentals

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