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
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
2.75
| % | |
|---|---|
| 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...
01
Grow software penetration in large pharma and biotechshort-term
Enterprise adoption drives recurring license revenue and expands platform usage across discovery teams.
02
Broaden use cases beyond life sciencesmedium-term
Materials science expands the addressable market and reduces dependence on drug discovery alone.
03
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...
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
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
Capital needs and dilution risk
The company may need external financing to support software development and drug discovery activities.
- Scope
- Corporate funding
- Materiality
- high
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
: 29.4.2026