Schrodinger, Inc. (SDGR)

Price$20.09Cached quoteAs of 2026-09-06 04:51 UTC

AI: Fair-priced

Price checkThe shares look fairly priced because strong liquidity offsets a still-expensive loss-making business.

About 74.8 million shares imply a market value near $1.42 billion. After subtracting $414 million of cash and marketable securities, the operating business costs roughly four times its trailing $259 million revenue, before lease obligations. That is not obviously cheap for a company with a $90 million first-half operating loss, yet the liquid assets provide meaningful protection. The valuation appears balanced, provided software contracts keep growing by roughly 10% to 15% and losses continue narrowing.

Big pictureRevenue has recovered and losses are narrowing, but dependable profits remain unproven.

Revenue rose 23%, from $208 million in 2024 to $256 million in 2025, while the operating loss improved from $209 million to $167 million. First-half 2026 revenue increased 3%, and the operating loss narrowed to $90 million from $104 million. However, 2025 operating cash flow was only $14 million, followed by $49 million of cash use in first-half 2026. Drug milestones and customer payment timing make results uneven, so one profitable or cash-positive period does not establish durable earnings.

Business strengthGrowing software use and substantial cash support the business, while milestone income remains unpredictable.

Annual contract value, meaning the billed value of software contracts, reached $196 million over four quarters excluding grants. Second-quarter contract value grew 23% on that basis, although reported software revenue fell 10% during the shift toward hosted delivery. Software gross margin was a healthy 71%. Cash and marketable securities totaled $414 million against about $108 million of lease-related obligations. Conversely, second-quarter drug-discovery revenue included a $10 million milestone, illustrating why that revenue stream can swing sharply between periods.

What could change the storyBroader software adoption could justify more value, while persistent cash losses or dilution would weaken it.

The bull case needs Bunsen and hosted software to lift contract growth above the guided 10% to 15%, without reversing recent expense reductions. A valuable drug partnership would add upside without requiring Schrödinger to fund later trials alone. The bear case strengthens if annual contract growth slips below 10% or annual cash use remains near $100 million. Common shares increased about 1.1 million, or 1.7%, during first-half 2026, while stock compensation was $17.9 million; continued dilution matters because there are no buybacks or dividends.

AI: News

Faster contract growthSoftware commitments accelerated and costs declined, although reported software revenue still fell during the hosting transition.

On August 5, Schrödinger reported second-quarter annual contract value of $29.6 million, up 27%, while total revenue rose 8% to $58.9 million. Operating expenses fell 6%, narrowing the operating loss to $41.5 million from $52.9 million. Software revenue declined 10% as hosted contracts changed revenue timing. Management retained 10% to 15% full-year contract growth guidance and raised drug-discovery revenue guidance by $10 million after an Ajax-related milestone.

Bunsen gains major customerBristol Myers Squibb agreed to deploy Bunsen broadly, providing an important test of commercial demand.

Schrödinger launched Bunsen in early access on July 27 and announced a large-scale Bristol Myers Squibb deployment on August 5. The software automates planning, execution, and interpretation of molecular simulations, while NVIDIA and Google Cloud provide supporting computing tools. Wider usage could benefit Schrödinger’s throughput-based licensing model and expand access beyond specialist chemists. However, the companies disclosed no contract value, and full commercial release is only expected by the end of 2026.

Tectora spinout fundedOutside investors funded two early drug programs, preserving possible upside while sharing development risk.

On September 9, Schrödinger co-founded Tectora Therapeutics with New Enterprise Associates and RA Capital, which supplied a $55 million initial investment. Schrödinger contributed two early immunology programs in exchange for an equity stake, possible milestones, and royalties. Tectora will also use Schrödinger’s platform and discovery staff. The structure can move some funding burden outside Schrödinger while retaining future economics, but program ownership, equity value, milestone amounts, and clinical timelines were not disclosed.

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Revenue

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Net income

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Free cash flow

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Total cash / debt

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Financial statements

	2025	2024	2023	2022	2021	2020	2019
Revenue	$255.9M	$207.5M	$216.7M	$181.0M	$137.9M	$108.1M	$85.5M
Gross profit	$142.6M	$132.1M	$140.7M	$101.0M	$65.6M	$63.5M	$49.1M
Gross margin	55.74%	63.64%	64.93%	55.83%	47.57%	58.72%	57.39%
Research & development	$173.1M	$201.8M	$181.8M	$126.4M	$90.9M	$64.7M	$39.4M
Operating expenses	$309.5M	$341.4M	$318.1M	$247.8M	$177.1M	$124.4M	$87.8M
Operating income	−$166.9M	−$209.3M	−$177.4M	−$146.8M	−$111.4M	−$60.9M	−$38.7M
Operating margin	−65.23%	−100.85%	−81.90%	−81.13%	−80.80%	−56.35%	−45.26%
EBITDA	−$160.9M	−$203.1M	−$171.9M	−$142.5M	−$108.6M	−$57.3M	−$35.1M
EBITDA margin	−62.87%	−97.88%	−79.34%	−78.73%	−78.73%	−52.97%	−41.00%
Net income	−$103.3M	−$187.1M	$40.7M	−$149.2M	−$100.4M	−$24.5M	−$24.6M
Net profit margin	−40.36%	−90.16%	18.79%	−82.44%	−72.78%	−22.63%	−28.72%
Basic EPSper basic share	-$1.41	-$2.57	$0.57	-$2.10	-$1.42	-$0.41	-$4.09
Diluted EPSper diluted share	-$1.41	-$2.57	$0.54	-$2.10	-$1.42	-$0.41	-$4.09

Review official source filings ↗

Owners

Reported shareholders

Reference date Jun 30, 2026

Reported holdings Number of shares

View holders

Top 20 reported holders of SDGR
Holder	Shares held
BlackRock, Inc.	10.52M
GATES FOUNDATION TRUST	6.98M
Rubric Capital Management LP	6.4M
VANGUARD PORTFOLIO MANAGEMENT LLC	3.79M
Sumitomo Mitsui Trust Group, Inc.	2.71M
Amova Asset Management Americas, Inc.	2.71M
VANGUARD CAPITAL MANAGEMENT LLC	2.69M
STATE STREET CORP	2.3M
UBS AM, a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC	2.22M
ARK Investment Management LLC	2.15M
AQR CAPITAL MANAGEMENT LLC	1.96M
GEODE CAPITAL MANAGEMENT, LLC	1.47M
Friesner Richard	1.41M
MORGAN STANLEY	1.25M
UBS Group AG	964.13K
CITADEL ADVISORS LLC	895.78K
MASSACHUSETTS FINANCIAL SERVICES CO /MA/	866.94K
GOLDMAN SACHS GROUP INC	732.9K
NORTHERN TRUST CORP	649.52K
DIMENSIONAL FUND ADVISORS LP	636.37K

Bars compare reported share counts. A matching total for this share class and reporting period is unavailable, so percentages are not shown.

Source: SEC Form 13F ↗Updated Sep 29, 2026 · Quarterly data

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys0$0.00 disclosed value

Sells (SEC code S)29$2.18M disclosed value

Transaction	Insider	Type	Shares	Price	Value	Owned after
Apr 17, 2026Form 4 · 10b5-1	Farid RamyPresident & CEO	SellCommon Stock	43.0K	$12.21	$525.0K	330.8K
Apr 16, 2026Form 4 · 10b5-1	Jain RachitEVP & CFO	SellCommon Stock	844	$12.75	$10.8K	51.8K
Apr 16, 2026Form 4 · 10b5-1	Farid RamyPresident & CEO	SellCommon Stock	43.0K	$12.33	$530.2K	330.8K
Mar 6, 2026Form 4 · 10b5-1	Herman JennyCAO	SellCommon Stock	608	$12.84	$7.8K	34.8K
Mar 5, 2026Form 4 · 10b5-1	Jain RachitEVP & CFO	SellCommon Stock	1.6K	$12.90	$21.0K	52.6K