Schrodinger, Inc. (SDGR)
NASDAQ:SDGR
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Schrodinger
(NASDAQ:SDGR)
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Rating:53Neutral
Price Target:
$13.50
▲(17.19% Upside)
Action:Reiterated
Date:05/09/26
SDGR scores in the low-to-mid range primarily due to weak financial performance—ongoing losses, TTM revenue contraction, and renewed cash burn. The score is supported by constructive near-term technicals and a generally positive earnings-call backdrop (maintained ACV guidance, product momentum, expense discipline, and a strong cash position), while valuation remains constrained by negative earnings and no dividend support.
Positive Factors
ACV growth & visibility
Sustained ACV growth and explicit multi-quarter guidance strengthen recurring revenue visibility and predictability. Durable ACV expansion implies healthier subscription retention and upsell potential, improving revenue steadiness and planning over the next 2–6 months despite recognition timing shifts.
Negative Factors
Return to cash burn
Recurrent negative operating cash flow increases dependence on reserves or external funding. If negative cash generation persists, it can force dilution, slow investments, or constrain BD activities. This is a material multi‑quarter risk to sustainable operations absent sustained revenue recovery.
Read all positive and negative factors
Positive Factors
Negative Factors
ACV growth & visibility
Sustained ACV growth and explicit multi-quarter guidance strengthen recurring revenue visibility and predictability. Durable ACV expansion implies healthier subscription retention and upsell potential, improving revenue steadiness and planning over the next 2–6 months despite recognition timing shifts.
Read all positive factors
Schrodinger Key Performance Indicators (KPIs)
Any
Revenue by Geography
Breaks down sales by region to identify where customers and growth are concentrated and to assess exposure to local regulatory, currency, and market cycles. Shifts across regions can signal new market penetration or rising risk from dependence on a particular geography or customer base.
Breaks down sales by region to identify where customers and growth are concentrated and to assess exposure to local regulatory, currency, and market cycles. Shifts across regions can signal new market penetration or rising risk from dependence on a particular geography or customer base.
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The Fly
The FlySchrodinger (SDGR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$920.56M
Dividend YieldN/A
Average Volume (3M)1.52M
Price to Earnings (P/E)―
Beta (1Y)1.72
Revenue Growth10.59%
EPS Growth46.79%
CountryUS
Employees891
SectorHealthcare
Sector Strength45
IndustryMedical - Healthcare Information Services
Share Statistics
EPS (TTM)-1.41
Shares Outstanding65,556,530
10 Day Avg. Volume1,408,385
30 Day Avg. Volume1,520,363
Financial Highlights & Ratios
PEG Ratio0.28
Price to Book (P/B)3.61
Price to Sales (P/S)5.13
P/FCF Ratio105.42
Enterprise Value/Market Cap0.83
Enterprise Value/Revenue3.01
Enterprise Value/Gross Profit5.44
Enterprise Value/Ebitda-9.00
Forecast
1Y Price Target
$18.80Price Target Upside63.19% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering7
EPS Forecast (FY)-2.17
Revenue Forecast (FY)$248.40M
Schrodinger Business Overview & Revenue Model
Company Description
Schrödinger, Inc., together with its subsidiaries, provides physics-based software platform that enables discovery of novel molecules for drug development and materials applications. The company operates in two segments, Software and Drug Discover...
How the Company Makes Money
Schrödinger primarily generates revenue from two main sources: (1) Software revenue and (2) Drug discovery-related revenue.
1) Software revenue (commercial and academic customers)
- Software subscriptions and licenses: The core of the software bu...
Schrodinger Earnings Call Summary
Earnings Call Date:May 05, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 05, 2026
Earnings Call Sentiment Positive
The call highlights robust top-line momentum (ACV growth of 12%), a large year-over-year surge in drug discovery revenue (~124%), strong product and R&D validation (Ajax acquisition, multiple exits, clinical data), meaningful progress migrating customers to hosted licensing, and an upcoming AI-driven product (Bunsen) expected to increase throughput and long‑term monetization. Offsetting these positives are near-term revenue recognition headwinds from the hosted transition, notable margin compression (software gross margin down 11 points), a steep drop in contribution revenue after a grant completed, and an ongoing net loss ($60M Q1), though management is exercising expense discipline and maintains guidance with a solid cash position (~$406M). On balance, the strategic wins, product momentum, and financial visibility (ACV guidance) materially outweigh the near-term recognition and margin challenges.Positive Updates
Annual Contract Value (ACV) Growth
ACV of $28.4 million in Q1 2026, a 12% increase year-over-year from $25.4 million in Q1 2025. Full-year ACV guidance maintained at $218M–$228M (10%–15% growth). Q2 ACV guide $19M–$23M (excludes contribution ACV).
Negative Updates
Software Gross Margin Compression
Software gross margin declined to 69% in Q1 2026 from 80% in Q1 2025 (down 11 percentage points, ~-13.8% relative), primarily due to the accelerated transition to hosted licensing which recognizes revenue ratably rather than upfront.
Read all updates
Q1-2026 Updates
Positive
Negative
Annual Contract Value (ACV) Growth
ACV of $28.4 million in Q1 2026, a 12% increase year-over-year from $25.4 million in Q1 2025. Full-year ACV guidance maintained at $218M–$228M (10%–15% growth). Q2 ACV guide $19M–$23M (excludes contribution ACV).
Read all positive updates
Company Guidance
Management maintained full‑year 2026 guidance, forecasting ACV of $218–$228M (10–15% growth) with Q2 ACV guidance of $19–$23M (excluding contribution ACV; Q2 2025 was $23.3M including $5M contribution). Q1 operating metrics included ACV $28.4M (+12% vs. $25.4M), total revenue $58.6M, software revenue $35.6M (hosted $12.1M, 34% of software; hosted = 27% on a trailing four‑quarter basis), drug discovery revenue $22.9M (vs. $10.2M), contribution revenue $0.1M (vs. $4.3M), software gross margin 69% (vs. 80% prior year), total operating expenses $78M (down 4% vs. $82M), total other expenses $11M, net loss $60M, cash and marketable securities ~$406M, and fully diluted share count 74M. For the full year they expect drug discovery revenue $55–$65M, clinical R&D of roughly $10–$15M as clinical activities wind down, operating expenses to be below 2025 levels, and a multi‑year target of ~75% hosted software mix.Schrodinger Financial Statement Overview
Summary
Income Statement
34
Negative
Balance Sheet
63
Positive
Cash Flow
28
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 254.91M | 255.87M | 207.54M | 216.67M | 180.96M | 137.93M |
| Gross Profit | 141.04M | 142.61M | 132.08M | 140.69M | 101.02M | 65.62M |
| EBITDA | -85.22M | -96.30M | -203.14M | -171.90M | -142.47M | -108.60M |
| Net Income | -103.48M | -103.27M | -187.12M | 40.72M | -149.19M | -100.39M |
Balance Sheet | ||||||
| Total Assets | 634.19M | 726.16M | 823.23M | 802.96M | 688.59M | 756.49M |
| Cash, Cash Equivalents and Short-Term Investments | 398.96M | 395.46M | 352.12M | 463.00M | 451.09M | 576.48M |
| Total Debt | 106.96M | 109.23M | 117.83M | 127.88M | 116.49M | 79.87M |
| Total Liabilities | 320.64M | 362.11M | 401.78M | 254.40M | 240.68M | 199.40M |
| Stockholders Equity | 313.55M | 364.05M | 421.44M | 548.56M | 447.89M | 557.07M |
Cash Flow | ||||||
| Free Cash Flow | -148.35M | 12.46M | -164.68M | -150.14M | -127.70M | -77.84M |
| Operating Cash Flow | -145.00M | 13.90M | -157.37M | -136.73M | -119.68M | -70.67M |
| Investing Cash Flow | 71.86M | 57.90M | 148.84M | 193.03M | 90.02M | -16.81M |
| Financing Cash Flow | 3.09M | 2.93M | 10.12M | 9.05M | 2.11M | 7.95M |
Schrodinger Technical Analysis
Negative
11.52
Price Trends
12.09
Positive
13.41
Negative
16.28
Negative
Market Momentum
0.04
Positive
49.66
Neutral
25.30
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 11.52 is below the 20-day moving average (MA) of 12.38, below the 50-day MA of 12.09, and below the 200-day MA of 16.28, indicating a neutral trend. The MACD of 0.04 indicates Positive momentum. The RSI at 49.66 is Neutral, neither overbought nor oversold. The STOCH value of 25.30 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
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
66 Neutral | $2.03B | 33.30 | 1.64% | ― | 7.86% | -2.92% | |
57 Neutral | $726.49M | -25.65 | -1.43% | ― | 6.40% | -477.58% | |
56 Neutral | $3.04B | -50.55 | -2.86% | ― | 2.26% | 86.67% | |
54 Neutral | $349.03M | -4.56 | -140.63% | ― | 20.85% | -18.60% | |
53 Neutral | $920.56M | -3.50 | -30.85% | ― | 10.59% | 46.79% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
49 Neutral | $123.52M | -0.23 | -67.07% | ― | -3.89% | 63.03% |
* Healthcare Sector Average
SDGR
Schrodinger
12.32
-8.19
-39.93%
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44.72
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23.98
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188.22%
CERT
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4.67
-6.50
-58.19%
SOPH
SOPHiA GENETICS
4.87
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DH
Definitive Healthcare Corp
0.86
-2.28
-72.64%
Schrodinger Corporate Events
Executive/Board Changes
Schrödinger Promotes Therese Abrams to Principal Accounting Officer
Positive
Mar 12, 2026
On March 8, 2026, Schrödinger, Inc. appointed Vice President and Corporate Controller Therese Abrams as its principal accounting officer, formalizing the role for a long-serving finance executive who has held a series of senior financial and ...
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.