Schrödinger Inc (NASDAQ: SDGR) is a computational drug discovery and materials science software company that licenses a physics-based platform to biopharmaceutical companies, industrial firms, academic institutions, and government laboratories. Revenue comes from two streams: software licensing fees and drug discovery collaborations, including milestone payments and royalties. In FY2025, the top 20 pharmaceutical companies (by 2024 revenue) collectively accounted for $73.7 million, or 37%, of software revenue and $80.8 million, or 41%, of annual contract value. The company also runs proprietary drug discovery programs, with two candidates, SGR-1505 and SGR-3515, in Phase 1 clinical trials as of the filing date. A November 2024 collaboration with Novartis Pharma AG makes Schrödinger eligible for up to $2.272 billion in milestone payments across initial programs, plus tiered royalties on net sales ranging from mid-single-digits to low double-digits, with no milestone revenue recognized as of December 31, 2025. Founded in 1990 and headquartered in New York, the company operates globally across pharmaceutical, biotech, industrial, and academic end markets.

Revenue model

Software licensing fees collected on an annual contract value basis from biopharmaceutical companies, industrial customers, academic institutions, and government labs. Drug discovery collaboration revenue from agreements with biopharmaceutical partners, including potential milestone payments and royalties on commercialized products.

Products and services

Physics-based computational platform for molecule discovery, design, and optimization across all stages of drug and materials development. Products include computational predictive modeling technology and an enterprise informatics platform. A predictive toxicology solution covering approximately 50 representative kinases was in beta as of the filing date, with commercial launch targeted for 2026. Proprietary drug discovery programs include SGR-1505 and SGR-3515, both in Phase 1 clinical trials.

Customers and end markets

Top 20 global pharmaceutical companies by 2024 revenue accounted for 37% of software revenue and 41% of ACV in FY2025. For FY2025, 27 commercial customers held an ACV of at least $1.0 million, with average ACV per such customer of $3.9 million. Additional customer types include biotech companies, industrial companies, academic institutions, and government laboratories.

Value-chain role

Platform technology provider and software licensor to drug discovery organizations. Also acts as drug discovery collaborator alongside biopharmaceutical partners and as a drug developer for its own proprietary pipeline.

Geographic exposure

Global customer base described in the filing; no specific country or regional revenue breakdown provided in the excerpts.

Source: SEC 10-K, filed 2026-02-25

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