Schrodinger, Inc.
Schrodinger, Inc. develops computational software used to model molecules and support drug discovery for biopharmaceutical companies, academic researchers, and selected materials science users. The company also pursues proprietary drug discovery programs that use the same physics-based platform to identify and optimize new therapeutic candidates.
Fiscal year 2025 · change from previous year
Development 2020–2025
Business
Share of revenueComputational tools used to accelerate molecule discovery, design, and optimization.
Partner-funded discovery programs with milestones, research funding, and related services.
Ad hoc scientific and technical services supporting customer deployments and workflows.
Non-reciprocal funding tied to specific platform expansion initiatives.
Products
Reported · share of revenue- Revenue From Contract with Customer Before Software Contribution71.7 %
- Hosted Software17.6 %
- Maintenance10.7 %
Source: 10-K FY2025, revenue the company reports per product line (SEC XBRL). Shares are of the lines shown and add up to 100 %.
Customers
Schrodinger sells primarily to pharmaceutical and biotechnology companies that use its software to speed early-stage research and improve decision-making in discovery programs. It also serves academic institutions worldwide and a growing set of materials science customers that use the platform for simulation and design workflows.
Buy enterprise software licenses to support target identification, design, and optimization across discovery teams.
Use the platform for discovery workflows and to access advanced modeling capabilities without building them internally.
Use the software for research and training, helping broaden adoption and scientific familiarity.
Apply the platform to simulation and design problems outside life sciences.
Provide research funding and milestone-based payments for partnered therapeutic programs.
Strategy
Schrodinger’s strategy is to expand adoption of its computational platform across drug discovery and adjacent scientific markets while deepening usage within large pharma accounts. It also advances proprietary drug discovery programs selectively, using partnerships, out-licensing, or internal development where appropriate to maximize value from its platform and pipeline.
Enterprise adoption drives recurring license revenue and expands platform usage across discovery teams.
Materials science expands the addressable market and reduces dependence on drug discovery alone.
Partnerships can fund development and reduce capital intensity while preserving upside.
Geography
Q1/2026Schrodinger operates globally, with direct sales coverage across the United States, the European Union, the United Kingdom, Japan, India, and South Korea. It also uses distributors in other markets, including China, which broadens reach but adds cross-border commercial and regulatory complexity.
Share of the revenue the company reports by geography.
Risks
The business depends on retaining and expanding a relatively concentrated base of pharmaceutical customers, so competitive displacement or lower renewal rates would pressure software growth. Its proprietary drug discovery efforts also carry scientific, regulatory, and financing risk, while international operations expose the company to cross-border execution and compliance challenges.
- Capital needs and dilution riskImpact: HighLikelihood: High
The company may need external financing to support software development and drug discovery activities.
Exposure: Corporate funding
- Customer retention and expansion riskImpact: HighLikelihood: Medium
A meaningful share of software revenue comes from a limited number of large commercial accounts, so churn or downsizing would affect recurring revenue.
Exposure: Commercial software cohort
- Competition from AI and internal discovery platformsImpact: HighLikelihood: Medium
Pharma companies can build tools internally or adopt alternative AI-based discovery solutions.
Exposure: Software and drug discovery
- Clinical and preclinical program failureImpact: HighLikelihood: Low
Proprietary assets depend on scientific success, regulatory progress, and partner interest.
Exposure - International operating riskImpact: MediumLikelihood: Medium
Global sales, distributors, and cross-border customers create legal, tax, and execution complexity.
Exposure
Accounting
Judgemental itemsDifferent contract types require different timing and allocation judgments, affecting reported revenue and comparability.
Impact: Software licenses, collaboration milestones, and contribution funding
Management must estimate the constraint on variable consideration and the extent of progress on collaboration work.
Impact: Drug discovery revenue timing
Changes in the value of strategic investments can move other income and create volatility outside core operations.
Impact: Other income (expense)
License renewals, milestone events, and ad hoc services can shift revenue between periods.
Impact: Period-to-period comparability
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Last updated: 24/09/2026