tiprankstipranks
Trending News
More News >
Schrodinger (SDGR)
NASDAQ:SDGR
US Market
Advertisement

Schrodinger (SDGR) AI Stock Analysis

Compare
2,025 Followers

Top Page

SDGR

Schrodinger

(NASDAQ:SDGR)

Rating:50Neutral
Price Target:
$20.00
▲(4.55% Upside)
Schrodinger's overall stock score reflects a mixed outlook. Financial performance is hindered by profitability challenges, while technical indicators suggest bearish momentum. Valuation is unattractive due to negative earnings. However, the earnings call and corporate events provide some optimism for future growth, driven by revenue increases and strategic initiatives.
Positive Factors
Financial Performance
There is expected downward pressure on OpEx and improving margins over the next 2 years.
Product Development
Schrodinger's highly anticipated predictive tox software is now in beta testing with select biopharma customers and could be launched later this year or next year.
Strategic Developments
Termination is viewed as prudent and consistent with the case for SDGR to focus on the core business.
Negative Factors
Clinical Trials
Development for SGR-2921 will be discontinued after two clinical trial patient deaths were caused by the treatment.
Competitive Position
Setbacks for ‘1505 and ‘2921 significantly weaken the argument that Schrödinger’s computational discovery platform can provide material benefits.
Market Sentiment
Shares are down over 10% as concerns arise about bilirubin levels potentially indicating a liver toxicity signal for the MALT1 class.

Schrodinger (SDGR) vs. SPDR S&P 500 ETF (SPY)

Schrodinger Business Overview & Revenue Model

Company DescriptionSchrodinger (SDGR) is a technology company that specializes in computational software solutions for the life sciences and materials science sectors. The company develops advanced molecular simulation software, enabling customers to accelerate their research and development processes, particularly in drug discovery and materials design. Schrodinger's platform helps scientists achieve more accurate predictions of molecular behavior, thereby reducing the need for physical experiments.
How the Company Makes MoneySchrodinger generates revenue through the sale of its software products and licenses. Customers, which include pharmaceutical companies, biotechnology firms, academic institutions, and industrial corporations, pay for access to Schrodinger's computational platform and tools. The company also engages in collaborative projects and partnerships, where it provides its software and expertise in exchange for milestone payments, royalties, or co-development opportunities. Additionally, Schrodinger might participate in equity investments or joint ventures with other companies to further expand its revenue streams.

Schrodinger Key Performance Indicators (KPIs)

Any
Any
Software Products and Services Revenue Breakdown
Software Products and Services Revenue Breakdown
Details revenue from software products and services, offering a view into the company's technological capabilities and market demand for its digital solutions.
Chart InsightsSchrödinger's software revenue has shown notable volatility but surged significantly in Q1 2025, driven by larger customer renewals and strategic collaborations, notably with Novartis. Despite a decline in professional services and lower software gross margins, the company's focus on expanding partnerships and enhancing software capabilities is paying off. Drug discovery revenue also saw a substantial increase, reflecting successful milestone achievements. Overall, Schrödinger's strategic initiatives are translating into robust revenue growth, positioning the company for continued success in 2025.
Data provided by:Main Street Data

Schrodinger Earnings Call Summary

Earnings Call Date:Aug 06, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Nov 12, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted significant revenue growth and strong pipeline progress, alongside effective expense management and a robust cash position. However, these positives were offset by challenges in maintaining software gross margins, difficulties in the biotech segment, and continued net losses. The sentiment is balanced with notable progress and ongoing challenges.
Q2-2025 Updates
Positive Updates
Revenue Growth
Total revenue was $54.8 million in the second quarter, a 16% increase from the second quarter of 2024. Software revenue was $40.5 million, representing 15% year-over-year growth, while drug discovery revenue was $14.2 million, a 19% increase compared to Q2 2024.
Strong Pipeline Progress
15 development candidates from the collaborative and proprietary portfolio have entered Phase I clinical development, with six advancing to Phase II and one in Phase III. Notable progress was made with SGR-1505, showing best-in-class potential and receiving FDA Fast Track designation.
Expense Management
R&D expenses decreased by over 15%, and total operating expenses were $79 million, a decrease of 6% compared to Q2 2024, largely due to a $30 million expense reduction initiative.
Cash Position
The company remains well-capitalized with $462 million in cash and equivalents as of June 30, 2025.
Negative Updates
Lower Software Gross Margin
Software gross margin was 68% compared to 80% in Q2 of 2024, reflecting a change in revenue mix and investment in the predictive toxicology initiative.
Challenges in Biotech Segment
The biotech segment of the market has been challenging, impacted by the macroeconomic landscape, affecting customer adoption and growth.
Continued Net Loss
The company reported a net loss of $43 million or $0.59 per share, compared to a net loss of $54 million or $0.74 per share in Q2 2024.
Company Guidance
During Schrodinger's second-quarter 2025 financial call, the company provided key guidance metrics and updates on its strategic initiatives. Total revenue for the quarter was reported at $54.8 million, marking a 16% increase compared to the same period in 2024. Software revenue accounted for $40.5 million, growing by 15% year-over-year, while drug discovery revenue reached $14.2 million. The company reaffirmed its full-year guidance, projecting software revenue growth between 10% to 15% and drug discovery revenue between $45 million to $50 million. Schrodinger highlighted its ongoing progress in the development of its proprietary drugs, including SGR-1505, SGR-2921, and SGR-3515, with expectations to present initial Phase I data for the latter two in the fourth quarter. The company continues to make enhancements to its software platform and is advancing its predictive toxicology initiative, aligning with the FDA's push for new alternative methods to reduce animal testing. Operating expenses were reported at $79 million, a decrease of 6% from the previous year, attributed to a $30 million expense reduction initiative. Schrodinger remains well-capitalized with $462 million in cash and equivalents, and is exploring strategic opportunities for partnership and out-licensing to accelerate the development of its drug programs.

Schrodinger Financial Statement Overview

Summary
Schrödinger's financial performance is mixed. The company has strong gross margins and a solid balance sheet with low leverage. However, consistent net losses and slow revenue growth are significant challenges. Recent improvements in cash flow are promising, but sustainable profitability remains a key focus.
Income Statement
45
Neutral
The income statement shows mixed performance. Gross profit margin remains healthy at 62.6% for TTM (Trailing-Twelve-Months), indicating efficient cost management. However, the company has consistently reported net losses, with a negative net profit margin of -83.4% in TTM. Revenue growth has been slow, with a modest increase of approximately 11% from 2022 to 2024. EBIT and EBITDA margins are negative, reflecting ongoing operational challenges.
Balance Sheet
55
Neutral
The balance sheet reveals a solid equity base with an equity ratio of 50.3% for TTM, suggesting a stable financial structure. The debt-to-equity ratio is manageable at 0.31, indicating a conservative leverage approach. However, return on equity is negative due to net losses, impacting overall profitability.
Cash Flow
60
Neutral
Cash flow analysis shows improvement, with positive free cash flow in the TTM at $22.2 million, compared to negative free cash flow in previous years. The operating cash flow to net income ratio is positive, indicating cash flow generation despite net losses. However, historical negative operating cash flows highlight potential cash flow management issues.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue237.92M207.54M216.67M180.96M137.93M108.09M
Gross Profit139.14M132.08M140.69M101.02M65.62M63.47M
EBITDA-176.47M-209.30M-171.90M-142.47M-108.60M-57.26M
Net Income-181.33M-187.12M40.72M-149.19M-101.22M-26.64M
Balance Sheet
Total Assets688.24M823.23M802.96M688.59M756.49M746.26M
Cash, Cash Equivalents and Short-Term Investments462.26M352.12M463.00M451.09M576.48M642.69M
Total Debt114.31M117.83M127.88M116.49M79.87M11.76M
Total Liabilities345.37M401.78M254.40M240.68M199.40M122.24M
Stockholders Equity342.87M421.44M548.56M447.89M557.07M624.01M
Cash Flow
Free Cash Flow24.37M-164.68M-150.14M-127.70M-77.84M14.22M
Operating Cash Flow27.50M-157.37M-136.73M-119.68M-70.67M16.76M
Investing Cash Flow89.21M148.84M193.03M90.02M-16.81M-381.72M
Financing Cash Flow2.94M10.12M9.05M2.11M7.95M541.27M

Schrodinger Technical Analysis

Technical Analysis Sentiment
Negative
Last Price19.13
Price Trends
50DMA
20.42
Negative
100DMA
22.00
Negative
200DMA
21.83
Negative
Market Momentum
MACD
-0.35
Negative
RSI
42.78
Neutral
STOCH
22.15
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SDGR, the sentiment is Negative. The current price of 19.13 is below the 20-day moving average (MA) of 19.44, below the 50-day MA of 20.42, and below the 200-day MA of 21.83, indicating a bearish trend. The MACD of -0.35 indicates Negative momentum. The RSI at 42.78 is Neutral, neither overbought nor oversold. The STOCH value of 22.15 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SDGR.

Schrodinger Risk Analysis

Schrodinger disclosed 87 risk factors in its most recent earnings report. Schrodinger reported the most risks in the "Tech & Innovation" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Schrodinger Peers Comparison

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
$44.26B55.9913.70%15.33%30.51%
65
Neutral
$1.70B212.960.76%11.61%
60
Neutral
$284.19M47.47-41.49%0.43%20.01%-750.59%
52
Neutral
$571.35M-64.27%-5.24%23.59%
51
Neutral
$7.95B-0.40-41.67%2.21%22.29%-1.85%
51
Neutral
$230.45M-74.09%7.31%-7.49%
50
Neutral
$1.40B-44.40%18.59%10.96%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SDGR
Schrodinger
19.13
-0.95
-4.73%
SLP
Simulations Plus
13.84
-19.95
-59.04%
VEEV
Veeva Systems
272.93
50.34
22.62%
CERT
Certara
10.52
-0.95
-8.28%
SOPH
SOPHiA GENETICS
3.24
-0.45
-12.20%
DH
Definitive Healthcare Corp
4.00
-0.29
-6.76%

Schrodinger Corporate Events

Executive/Board ChangesShareholder Meetings
Schrodinger Announces Board Elections and Approvals
Neutral
Jun 18, 2025

At the 2025 Annual Meeting of Stockholders held on June 18, 2025, Schrödinger, Inc. announced the election of four Class II directors, the approval of executive compensation, and the ratification of KPMG LLP as the independent registered public accounting firm for the fiscal year ending December 31, 2025. The election saw Jeffrey Chodakewitz, Michael Lynton, Nancy A. Thornberry, and Bridget van Kralingen appointed to the board for a three-year term. The executive compensation package received approval, and KPMG LLP’s appointment was ratified, indicating continued confidence in the company’s leadership and financial oversight.

The most recent analyst rating on (SDGR) stock is a Buy with a $30.00 price target. To see the full list of analyst forecasts on Schrodinger stock, see the SDGR Stock Forecast page.

Executive/Board Changes
Schrödinger Appoints Richie Jain as New CFO
Positive
May 20, 2025

On May 16, 2025, Schrödinger, Inc. appointed Richie Jain as the new Executive Vice President, Chief Financial Officer, and Treasurer, succeeding Geoffrey Porges. Mr. Jain, who previously served as Senior Vice President of Strategic Finance, brings extensive experience from his tenure at Morgan Stanley. His appointment is expected to strengthen the company’s financial leadership and strategic planning capabilities. The transition includes a comprehensive compensation package and stock options, with Dr. Porges remaining as an advisor until June 6, 2025, to ensure a smooth transition.

The most recent analyst rating on (SDGR) stock is a Buy with a $30.00 price target. To see the full list of analyst forecasts on Schrodinger stock, see the SDGR Stock Forecast page.

Business Operations and Strategy
Schrödinger Announces Workforce Reduction Amid Restructuring
Negative
May 19, 2025

On May 19, 2025, Schrödinger, Inc. announced a restructuring of its operations aimed at reducing its workforce by approximately 60 employees, which is about 7% of its full-time staff. This move is part of a broader effort to cut costs and improve cash flow, with the company expecting to incur $3 million in restructuring charges within the fiscal year ending December 31, 2025. The restructuring is anticipated to reduce operating expenses by $30 million annually, with half of the savings resulting from the workforce reduction.

The most recent analyst rating on (SDGR) stock is a Buy with a $30.00 price target. To see the full list of analyst forecasts on Schrodinger stock, see the SDGR Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 14, 2025