Schrodinger, Inc. (SDGR)
NASDAQ:SDGR
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Schrodinger
(NASDAQ:SDGR)
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Rating:52Neutral
Price Target:
$11.00
▼(-4.51% Downside)
Action:ReiteratedDate:03/13/26
The score is held back primarily by uneven financial performance (losses, prior cash burn, and growth volatility) and a weak technical trend (below key moving averages with negative MACD). Offsetting these are constructive earnings-call signals (ACV growth outlook, cost discipline, strong cash position) and a relatively modest P/E, though near-term revenue/margin volatility from the hosted transition limits upside to the rating.
Positive Factors
Software ACV Scale
A nearly $200M software ACV base provides durable, subscription-like revenue that supports predictable cash flow and renewals. Enterprise ACV growth and higher average commercial ACV indicate deeper account penetration, strengthening long-term revenue visibility and upsell potential.
Negative Factors
Hosted Transition Revenue Recognition
The structural shift to hosted contracts materially changes timing of revenue recognition, creating persistent reported revenue headwinds and near-term margin compression. This reduces reported growth visibility and makes year-to-year comparisons and operating leverage harder to realize during the multi-year transition.
Read all positive and negative factors
Positive Factors
Negative Factors
Software ACV Scale
A nearly $200M software ACV base provides durable, subscription-like revenue that supports predictable cash flow and renewals. Enterprise ACV growth and higher average commercial ACV indicate deeper account penetration, strengthening long-term revenue visibility and upsell potential.
Read all positive factors
Schrodinger (SDGR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$848.99M
Dividend YieldN/A
Average Volume (3M)1.18M
Price to Earnings (P/E)10.1
Beta (1Y)1.69
Revenue Growth32.90%
EPS Growth1.85%
CountryUS
Employees891
SectorHealthcare
Sector Strength45
IndustryMedical - Healthcare Information Services
Share Statistics
EPS (TTM)0.45
Shares Outstanding64,660,910
10 Day Avg. Volume781,838
30 Day Avg. Volume1,178,724
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 Cap0.86
Enterprise Value/Revenue2.84
Enterprise Value/Gross Profit5.10
Enterprise Value/Ebitda-8.49
Forecast
1Y Price Target
$17.67Price Target Upside53.39% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)-2
Revenue Forecast (FY)$253.87M
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 makes money through (1) software revenue and (2) drug discovery revenue.
1) Software revenue (core, recurring): The company sells access to its Schrödinger software platform mainly via licenses/subscriptions to pharmaceutic...
Schrodinger Key Performance Indicators (KPIs)
Any
Revenue by Geography
Breaks down revenue across different regions, revealing where the company is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Breaks down revenue across different regions, revealing where the company is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Data provided by:
The Fly
The FlySchrodinger Earnings Call Summary
Earnings Call Date:Feb 25, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 06, 2026
Earnings Call Sentiment Positive
The call presented multiple strong operational and financial highlights—notably 23% total revenue growth, scaling software ACV (~$200M), substantial drug discovery revenue acceleration, improved loss reduction, a strong cash position (~$402M), and a clear strategic plan to move to hosted contracts and achieve positive adjusted EBITDA by 2028. Key product and pipeline progress (predictive toxicology beta, Phase I readouts, partner clinical/transaction milestones) support long-term value. Near-term challenges include a Q4 software revenue decline driven by the accounting effects of an accelerated hosted transition, a drop in net dollar retention to 100%, a full‑year software gross margin decline to 74%, and limited guidance on reported revenue for 2026—all of which create near-term variability and margin compression. On balance, the call emphasized sustainable growth drivers, disciplined cost management, and a credible path to profitability that outweigh the short-term accounting and macro headwinds.Positive Updates
Strong Full-Year Revenue Growth
Total revenue of $256 million in 2025, representing 23% year-over-year growth.
Negative Updates
Q4 Software Revenue Decline
Software revenue in Q4 2025 was $69.3 million, down 13% versus Q4 2024, largely due to timing and revenue recognition impacts from customers moving from on-prem to hosted deployments.
Read all updates
Q4-2025 Updates
Positive
Negative
Strong Full-Year Revenue Growth
Total revenue of $256 million in 2025, representing 23% year-over-year growth.
Read all positive updates
Company Guidance
Schrödinger guided to 2026 ACV of $218–$228M (10–15% growth) with Q1 ACV of $24–$28M (vs $25M in Q1‑2025; implies trailing‑4‑quarter ACV of ~$197–201M), 2026 drug‑discovery revenue of $55–$65M (with ~$50M/year as a longer‑term target), and a multi‑year objective of 10–15% annual software ACV growth through 2028 while completing a shift to ~75% hosted software revenue by 2028 (23% hosted in 2025); management warned the hosted transition will cause near‑term revenue recognition volatility (each 1‑point increase in hosted mix ≈ $2–3M less current‑year recognized revenue) and compress gross margin/adjusted EBITDA in the near term but expects gross margin to return to the high‑70s and to reach positive adjusted EBITDA by end‑2028. Supporting metrics from 2025: total revenue $256M (+23%), software revenue $199.5M (software ACV $198.5M), drug‑discovery revenue $56.4M, cash ≈ $402M, total ACV up to $198.5M (+4% YoY) with commercial ACV $177.4M (+7%), top‑20 pharma ACV +15%, average commercial ACV $3.9M (+16%), net dollar retention 100%, gross dollar retention 96%, Q4 software revenue $69.3M (−13% YoY), software gross margin 74% (2025) and Q4 gross margin ~81%, and 2025 operating expenses of $310M (≈9% lower vs 2024).Schrodinger Financial Statement Overview
Summary
Income Statement
34
Negative
Balance Sheet
63
Positive
Cash Flow
47
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 255.87M | 207.54M | 216.67M | 180.96M | 137.93M |
| Gross Profit | 142.61M | 132.08M | 140.69M | 101.02M | 65.62M |
| EBITDA | -96.30M | -203.14M | -171.90M | -142.47M | -108.60M |
| Net Income | -103.27M | -187.12M | 40.72M | -149.19M | -100.39M |
Balance Sheet | |||||
| Total Assets | 726.16M | 823.23M | 802.96M | 688.59M | 756.49M |
| Cash, Cash Equivalents and Short-Term Investments | 395.46M | 352.12M | 463.00M | 451.09M | 576.48M |
| Total Debt | 109.23M | 117.83M | 127.88M | 116.49M | 79.87M |
| Total Liabilities | 362.11M | 401.78M | 254.40M | 240.68M | 199.40M |
| Stockholders Equity | 364.05M | 421.44M | 548.56M | 447.89M | 557.07M |
Cash Flow | |||||
| Free Cash Flow | 12.46M | -164.68M | -150.14M | -127.70M | -77.84M |
| Operating Cash Flow | 13.90M | -157.37M | -136.73M | -119.68M | -70.67M |
| Investing Cash Flow | 57.90M | 148.84M | 193.03M | 90.02M | -16.81M |
| Financing Cash Flow | 2.93M | 10.12M | 9.05M | 2.11M | 7.95M |
Schrodinger Technical Analysis
Negative
11.52
Price Trends
12.36
Negative
15.02
Negative
17.61
Negative
Market Momentum
-0.37
Negative
42.22
Neutral
49.89
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 11.80, below the 50-day MA of 12.36, and below the 200-day MA of 17.61, indicating a bearish trend. The MACD of -0.37 indicates Negative momentum. The RSI at 42.22 is Neutral, neither overbought nor oversold. The STOCH value of 49.89 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 |
|---|---|---|---|---|---|---|---|
61 Neutral | $864.13M | -885.94 | -0.15% | ― | 11.47% | ― | |
55 Neutral | $2.94B | -46.73 | -5.69% | ― | 1.92% | 59.18% | |
54 Neutral | $1.62B | 1,014.72 | 0.17% | ― | 10.67% | ― | |
52 Neutral | $848.99M | 10.10 | -29.47% | ― | 32.90% | 1.85% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
48 Neutral | $348.31M | -3.99 | -116.98% | ― | 13.66% | -2.65% | |
46 Neutral | $148.52M | -2.20 | -47.69% | ― | -5.30% | 46.01% |
* Healthcare Sector Average
SDGR
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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.