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.

−62,9 %

55,7 %

−40,4 %

+23,3 %

2.75

— Schrodinger, Inc.
	%
Software solutions	70% Computational tools used to accelerate molecule discovery, design, and optimization.
Drug discovery collaborations	25% Partner-funded discovery programs with milestones, research funding, and related services.
Professional services	3% Ad hoc scientific and technical services supporting customer deployments and workflows.
Software contribution revenue	2% Non-reciprocal funding tied to specific platform expansion initiatives.

Schrodinger sells primarily to pharmaceutical and biotechnology companies that use its software to speed early-stage...

Large pharmaceutical companiesprimary
Buy enterprise software licenses to support target identification, design, and optimization across discovery teams.
Biotechnology companiesprimary
Use the platform for discovery workflows and to access advanced modeling capabilities without building them internally.
Academic institutionssecondary
Use the software for research and training, helping broaden adoption and scientific familiarity.
Materials science customersemerging
Apply the platform to simulation and design problems outside life sciences.
Drug discovery collaboratorssecondary
Provide research funding and milestone-based payments for partnered therapeutic programs.

Schrodinger operates globally, with direct sales coverage across the United States, the European Union, the United...

•United States is a core commercial market and operating base
•Europe and the UK support pharma customer access and academic adoption
•Japan, India, and South Korea extend direct sales coverage in Asia
•China is served partly through distributors rather than direct sales
•Global customer base supports both software and collaboration revenue

Schrodinger’s strategy is to expand adoption of its computational platform across drug discovery and adjacent...

Grow software penetration in large pharma and biotechshort-term

Enterprise adoption drives recurring license revenue and expands platform usage across discovery teams.

Broaden use cases beyond life sciencesmedium-term

Materials science expands the addressable market and reduces dependence on drug discovery alone.

Advance proprietary programs through partnershipsmedium-term

Partnerships can fund development and reduce capital intensity while preserving upside.

The business depends on retaining and expanding a relatively concentrated base of pharmaceutical customers, so...

high

Customer retention and expansion risk

A meaningful share of software revenue comes from a limited number of large commercial accounts, so churn or downsizing would affect recurring revenue.

Scope: Commercial software cohort
Materiality: high

high

Competition from AI and internal discovery platforms

Pharma companies can build tools internally or adopt alternative AI-based discovery solutions.

Scope: Software and drug discovery
Materiality: high

high

Clinical and preclinical program failure

Proprietary assets depend on scientific success, regulatory progress, and partner interest.

Scope: SGR-1505, SGR-3515 and other programs
Materiality: high

high

Capital needs and dilution risk

The company may need external financing to support software development and drug discovery activities.

Scope: Corporate funding
Materiality: high

medium

International operating risk

Global sales, distributors, and cross-border customers create legal, tax, and execution complexity.

Scope: Europe, Asia, China
Materiality: medium

Revenue recognition for software and collaborations

Software licenses, collaboration milestones, and contribution funding

Variable consideration and progress measurement

Drug discovery revenue timing

Fair value measurement of equity investments

Other income (expense)

Quarterly revenue timing

Period-to-period comparability

Schrodinger, Inc.

Customer retention and expansion risk

Competition from AI and internal discovery platforms

Clinical and preclinical program failure

Capital needs and dilution risk

International operating risk

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