Schrodinger Inc

schrodinger.com

What Do They Do?

Sells molecule-discovery software and services to biopharmaceutical and industrial companies, academic institutions, and government laboratories, and uses its platform to discover drug candidates with biopharmaceutical collaborators and for its own pipeline.

How Do They Make Money?

Customers pay for software licenses, hosted access, maintenance and services; software license fees are usually paid upfront or annually, while hosted access and maintenance are paid over the contract term. Drug discovery collaborators pay for research, generally upfront or periodically, and may also pay milestones, fees and royalties.

FY2025 revenue by product or service revenue

Segment	Share	Revenue	How money arrives
Software products and services Mix	78% FY2022: 75%		Mix
Drug discovery	22% FY2022: 25%

Who Are Their Customers?

Software is sold through the company's sales organization in the U.S., Europe, Japan, India and South Korea, and through distribution channels in other markets; drug discovery programs are conducted with biopharmaceutical collaborators.

Customers above 10% of revenue, FY2025

of revenue from one customer

FY2024: 10% from one customer

Do Revenues Turn Into Profits?

Not on paper. It lost $103.3M in FY2025, but brought in more cash than it spent: $12.5M of free cash flow.

Operating income, FY2025

−65% of revenue

▼ −20% (Loss) vs FY2024 (−$209.3M, −101%)

Net income, FY2025

−40% of revenue

▼ −45% (Loss) vs FY2024 (−$187.1M, −90%)

Free cash flow, FY2025

5% of revenue

▲ Now profitable vs FY2024 (−$164.7M, −79%)

How Are They Changing?

Since the FY2025 annual report

Latest quarter: Q2 FY2026, the three months to Jun 30, 2026

Revenue: ▲ +8%; vs $54.8M in Q2 FY2025
Net income: ▲ Now profitable; vs −$43.2M in Q2 FY2025

Software products and services share of revenue vs 65.8% in Q2 FY2025

Growing. Revenue grew 86% in 4 years, from $137.9M in FY2021 to $255.9M in FY2025, about 17% a year.

Proprietary drug programs The latest report plans to seek partners for its ongoing clinical programs and says it will not independently advance other preclinical programs into clinical trials; the older report planned to advance additional wholly owned programs.

Revenue over time

Software products and services Drug discovery

$500M$250M$0

FY2021 FY2022 FY2023 FY2024 FY2025

Who Do They Compete With?

Competes with BIOVIA, Dassault Systèmes, Chemical Computing Group (US), Cresset Biomolecular Discovery, Cadence Design Systems, Optibrium, Cyrus Biotechnology, Molsoft, Insilico Medicine, Iktos, XtalPi, AbCellera, Inductive Bio, Chemaxon, Revvity, Simulations Plus, Materials Design, Certara USA, Dotmatics, and AbbVie

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