Start here if you're new
what it is
Schrodinger sells software that helps drug companies design molecules, then uses the same tools to chase its own drug wins.
how it gets paid
Last year Schrodinger made $256M in revenue.
why it's growing
Revenue grew 23.3% last year. $169M matters because it shows Schrodinger can post huge quarters.
what just happened
Revenue hit $169M, up 210% vs. prior year, but EPS still landed at -$1.85.
At a glance
B+ balance sheet — decent shape, but not bulletproof
40/100 earnings predictability — expect surprises
-$2.57 fy2024 eps est
$208M fy2024 rev est
65.2% operating margin
xvary composite: 50/100 — below average
What they do
Schrodinger sells software that helps drug companies design molecules, then uses the same tools to chase its own drug wins.
You do not casually swap out the physics engine your scientists already trust. Schrodinger ended 2024 with $256 million in revenue and guided 2026 software ACV to $218 million-$228 million, up 10%-15% vs. prior year. ACV → annual contract value → money customers commit for software access; so what: the software side looks sticky even while the drug side stays lumpy.
How they make money
$256M
annual revenue · their business grew +23.3% last year
total revenue
$256M
+23.3%
The products that matter
molecular modeling software
Maestro
$218M–$228M ACV guide
This is the front door to the platform. Management guided 2026 ACV to $218M–$228M, which implies 10%–15% growth and tells you where the steadier part of the story is supposed to come from.
core software engine
partnerships and milestones
Drug Discovery Collaborations
$30M–$35M outlook
This piece can create upside, but it is the volatile one. The latest guide calls for $30M–$35M, which is why investors are focusing more on software execution than biotech optionality.
lumpy revenue
Key numbers
-$2.57
fy2024 eps est
$208M
fy2024 rev est
50.6%
gross margin
Gross profit kept about 50.6% of each revenue dollar.
n/a
dividend yield
Financial health
B+
strength
- balance sheet grade B+ — solid but not elite
- risk rank 3 — safer than 50% of stocks
- price stability 5 / 100
- long-term debt $95M (9% of capital)
B+ — functional but not a standout on the balance sheet.
Total return vs. market
Return history isn't available for SDGR right now.
source: institutional data · return history unavailable
What just happened
beat estimates
Revenue hit $169M, up 210% vs. prior year, but EPS still landed at -$1.85.
The company showed that milestone and collaboration revenue can create giant top-line swings. Gross margin was 50.6%, but that still was not enough to overcome the cost base.
$169M
revenue
$1.85
eps
50.6%
gross margin
the number that mattered
$169M matters because it shows Schrodinger can post huge quarters, but the -$1.85 EPS shows those spikes still do not translate into durable profits.
source: company earnings report, 2026
Get this snapshot in your inbox
This page, delivered free — plus weekly updates when the numbers change. plain english, no spam.
weekly updates
earnings alerts
plain english
no spam
What could go wrong
the top risk is the software transition not becoming recurring enough fast enough.
med
Hosted rollout execution
Management is shifting customers toward a hosted SaaS model. That can improve delivery and retention over time, but transitions like this often make near-term revenue recognition and renewal trends harder to read.
If ACV fails to land inside the $218M–$228M guide, the clean-software part of the thesis starts looking less clean.
med
Falling drug discovery revenue
The latest outlook for drug discovery is $30M–$35M. That is a visible step down from the growth tone implied by the 23% full-year revenue increase.
On a $256M revenue base, that segment is roughly 12%–14% of the story. Small enough to survive, large enough to damage sentiment.
med
Low predictability means the stock can punish misses
A 40 / 100 earnings predictability score, 1.65 beta, and 5 / 100 price stability score all say the same thing. This is not a company the market grades gently when expectations reset.
Even with $395M in cash and a B+ balance sheet, the share price can move far more than the fundamentals do in a single quarter.
The combined risk picture is clear: software has to grow into the $218M–$228M guide while drug discovery stabilizes above the $30M–$35M range. If one slips and the other does not compensate, the valuation story gets thinner fast.
source: institutional data · regulatory filings · risk analysis
Pay attention to
metric
2026 software ACV guide
The company guided to $218M–$228M in ACV, or 10%–15% growth. That is the cleanest scorecard for whether the software piece is actually strengthening.
risk
Drug discovery floor
The current outlook is $30M–$35M. If that line keeps shrinking, investors will give less credit to the optional biotech upside and more weight to execution risk.
calendar
Next quarter's first read on the reset
After a Q4 revenue print of $87.2M and EPS of $0.45, the next update matters because you need to see whether the strong quarter was momentum or timing.
trend
Volatility versus fundamentals
A 1.65 beta and 5 / 100 price stability score mean the stock can move harder than the business does. If you own it, expect the tape to overreact before the numbers fully settle.
Analyst rankings
earnings predictability
40 / 100
In human-speak: analysts do not view this as a smooth quarterly story. Expect revisions and occasional whiplash.
balance sheet grade
B+
That means the finances are workable, helped by $395M in cash against $95M in long-term debt. Safe enough to keep investing, not strong enough to ignore execution.
risk rank
3
A middle-of-the-road risk score does not mean a calm stock. The 1.65 beta and 5 / 100 price stability reading tell you where the turbulence shows up.
source: institutional data
Institutional activity
institutional ownership data for SDGR is being compiled.
source: institutional data
Price targets
3-5 year target range
n/a
n/a
$19
current price
n/a
target midpoint · n/a from current
Want the deeper analysis?
The full deep dive: dcf model, scenario analysis, competitive moat breakdown, and quarterly tracking — everything on this page, taken further.
see plans from $5/moThe deep dive