Schrödinger Reports Second Quarter 2025 Financial Results
Second Quarter Total Revenue of
Maintains Full Year 2025 Revenue Growth Guidance and Lowers Operating Expense Guidance
Company to Complete Phase 1 Data Package for SGR-1505 While Exploring Strategic Opportunities for Clinical Development
Initial Clinical Data for SGR-3515 and SGR-2921 Expected in Fourth Quarter of 2025
"In a highly dynamic macroenvironment, our ability to deliver solid second quarter results and maintain our 2025 revenue growth guidance is a testament to our strong customer relationships and the demand for proven computational technologies to accelerate molecular discovery,” said
Earlier this year, Schrödinger presented initial Phase 1 data for SGR-1505 in patients with relapsed/refractory B-cell malignancies. SGR-1505 was observed to be well tolerated and clinically active with responses observed in multiple histologies, including in patients with chronic lymphocytic leukemia and Waldenström macroglobulinemia.
“We are very pleased with the initial Phase 1 SGR-1505 data we presented last month at EHA and ICML. We are exploring strategic opportunities for SGR-1505 with the goals of accelerating the clinical development of this potential best-in-class molecule and maximizing benefit to patients globally,” stated
Second Quarter 2025 Financial Results
-
Total revenue for the second quarter increased 16% to
$54.8 million , compared to$47.3 million in the second quarter of 2024. -
Software revenue for the second quarter increased 15% to
$40.5 million , compared to$35.4 million in the second quarter of 2024. The increase was primarily due to increases in revenue recognized from hosted contracts and contribution revenue, partially offset by revenue from multi-year on-premise contracts signed in the prior year. -
Drug discovery revenue was
$14.2 million for the second quarter, compared to$11.9 million in the second quarter of 2024. - Software gross margin was 68% for the second quarter, compared to 80% in the second quarter of 2024, primarily reflecting the costs associated with the company’s predictive toxicology initiative.
-
Operating expenses were
$79.1 million for the second quarter, compared to$84.1 million for the second quarter of 2024. The decrease was due to lower R&D expenses. -
Other income was
$10.0 million for the second quarter, which included changes in fair value of equity investments and interest income/expense, compared to other expense of$1.2 million for the second quarter of 2024. -
Net loss for the second quarter was
$43.2 million , compared to$54.0 million in the second quarter of 2024.
|
Three Months Ended |
|||||||||
|
||||||||||
|
|
2025 |
|
|
|
2024 |
|
|
% Change |
|
|
(in millions) |
|
|
|||||||
Total revenue |
$ |
54.8 |
|
|
$ |
47.3 |
|
|
16 |
% |
Software revenue |
|
40.5 |
|
|
|
35.4 |
|
|
15 |
% |
Drug discovery revenue |
|
14.2 |
|
|
|
11.9 |
|
|
19 |
% |
Software gross margin |
|
68 |
% |
|
|
80 |
% |
|
|
|
Operating expenses |
$ |
79.1 |
|
|
$ |
84.1 |
|
|
(6.0 |
)% |
Other income (expense) |
$ |
10.0 |
|
|
$ |
(1.2 |
) |
|
— |
|
Net loss |
$ |
(43.2 |
) |
|
$ |
(54.0 |
) |
|
— |
|
For the three and six months ended
2025 Financial Outlook
As of
- Software revenue growth is expected to range from 10% to 15%.
-
Drug discovery revenue is expected to range from
$45 million to$50 million . - Software gross margin is expected to range from 74% to 75%.
- Operating expenses in 2025 are now expected to be lower than 2024.
- Cash used for operating activities in 2025 is expected to be significantly lower than cash used for operating activities in 2024.
For the third quarter of 2025, software revenue is expected to range from
Key Highlights
Proprietary and Collaborative Pipeline
-
In June, Schrödinger presented encouraging initial Phase 1 clinical data for SGR-1505, the company’s MALT1 inhibitor in patients with relapsed/refractory B-cell malignancies. These data were presented at the European Hematology Association Annual
Congress and International Conference on Malignant Lymphoma. Also in June, SGR-1505 received Fast Track Designation from the FDA for the treatment of adult patients with Waldenström macroglobulinemia that have failed at least two lines of therapy, including a Bruton’s tyrosine kinase (BTK) inhibitor. Schrödinger is completing the Phase 1 package and expects to meet with the FDA later this year to discuss the recommended Phase 2 dose. The company is also exploring strategic opportunities to advance the development of SGR-1505.
- Schrödinger is continuing to progress the Phase 1 clinical study of SGR-2921, the company’s CDC7 inhibitor, in patients with acute myeloid leukemia (AML) and myelodysplastic syndrome (MDS). Initial clinical data from this study are expected in the fourth quarter of 2025.
- Schrödinger is continuing to progress the Phase 1 clinical study of SGR-3515, the company’s Wee1/Myt1 co-inhibitor, in patients with advanced solid tumors. Initial clinical data from this study are expected in the fourth quarter of 2025.
- In July, Schrödinger announced an expanded research collaboration with Ajax Therapeutics, a company co-founded by Schrödinger. The expansion adds a new Janus kinase (JAK) target to the collaboration. Under the terms of the amended collaboration agreement, Schrödinger is eligible to receive discovery and development milestones for the new target similar to the terms of the original collaboration agreement. Schrödinger is also eligible to receive sales milestones and single-digit royalties on net sales of any products emerging from the additional target.
Platform
-
Scientists at Schrödinger, Sanofi, Galapagos and UCB published an industry perspective on computational hit-finding in the
Journal of Medicinal Chemistry . The paper highlights how recent breakthroughs in computational power, AI, and expansive chemical libraries are reshaping virtual screening and hit identification, and emphasizes the importance of accurate physics-based methods, including Schrödinger’s FEP+.
Corporate
-
In May, the company completed a review of the organization and implemented several changes to improve its operating expense profile and reduce cash burn, including a reduction in force of approximately 7% of full-time employees, which is expected to reduce operating expenses by approximately
$30 million on an annualized basis. Separately, Schrödinger announced the appointment ofRichie Jain to chief financial officer, the addition ofMannix Aklian as chief commercial officer, global head of software sales and marketing, and the expansion of Karen Akinsanya’s role to president, head of therapeutics R&D and chief strategy officer, partnerships.
Webcast and Conference Call Information
Schrödinger will host a conference call to discuss its second quarter 2025 financial results on
Non-GAAP Information
Included in this press release is certain financial information that has not been prepared in accordance with generally accepted accounting principles in
Other companies in Schrödinger’s industry may calculate non-GAAP net income (loss) and non-GAAP net income (loss) per share, differently than we do, limiting their usefulness as comparative measures. For a reconciliation of non-GAAP net income (loss) and non-GAAP net income (loss) per share to GAAP net income (loss) and GAAP net income (loss) per share, respectively, please refer to the tables at the end of this press release.
About Schrödinger
Schrödinger is transforming molecular discovery with its computational platform, which enables the discovery of novel, highly optimized molecules for drug development and materials design. Schrödinger’s software platform is built on more than 30 years of R&D investment and is licensed by biotechnology, pharmaceutical and industrial companies, and academic institutions around the world. Schrödinger also leverages the platform to advance a portfolio of collaborative and proprietary programs and is advancing three clinical-stage oncology programs. Founded in 1990, Schrödinger has approximately 800 employees operating from 15 locations globally. To learn more, visit www.schrodinger.com, follow us on LinkedIn and Instagram, or visit our blog, Extrapolations.com.
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995 including, but not limited to those statements regarding Schrödinger’s expectations about the speed and capacity of its computational platform, its financial outlook for the fiscal year ending
Condensed Consolidated Statements of Operations (Unaudited) (in thousands, except for share and per share amounts) |
|||||||||||||||
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
|
|
2025 |
|
|
|
2024 |
|
|
|
2025 |
|
|
|
2024 |
|
Revenues: |
|
|
|
|
|
|
|
||||||||
Software products and services |
$ |
40,544 |
|
|
$ |
35,404 |
|
|
$ |
89,360 |
|
|
$ |
68,819 |
|
Drug discovery |
|
14,215 |
|
|
|
11,930 |
|
|
|
24,950 |
|
|
|
15,113 |
|
Total revenues |
|
54,759 |
|
|
|
47,334 |
|
|
|
114,310 |
|
|
|
83,932 |
|
Cost of revenues: |
|
|
|
|
|
|
|
||||||||
Software products and services |
|
13,029 |
|
|
|
7,167 |
|
|
|
26,551 |
|
|
|
15,143 |
|
Drug discovery |
|
15,572 |
|
|
|
8,832 |
|
|
|
30,477 |
|
|
|
18,564 |
|
Total cost of revenues |
|
28,601 |
|
|
|
15,999 |
|
|
|
57,028 |
|
|
|
33,707 |
|
Gross profit |
|
26,158 |
|
|
|
31,335 |
|
|
|
57,282 |
|
|
|
50,225 |
|
Operating expenses: |
|
|
|
|
|
|
|
||||||||
Research and development |
|
43,138 |
|
|
|
50,835 |
|
|
|
88,982 |
|
|
|
101,446 |
|
Sales and marketing |
|
10,734 |
|
|
|
9,693 |
|
|
|
21,101 |
|
|
|
19,864 |
|
General and administrative |
|
25,189 |
|
|
|
23,536 |
|
|
|
50,991 |
|
|
|
49,077 |
|
Total operating expenses |
|
79,061 |
|
|
|
84,064 |
|
|
|
161,074 |
|
|
|
170,387 |
|
Loss from operations |
|
(52,903 |
) |
|
|
(52,729 |
) |
|
|
(103,792 |
) |
|
|
(120,162 |
) |
Other income (expense): |
|
|
|
|
|
|
|
||||||||
Gain on equity investments |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Change in fair value of equity investments |
|
4,579 |
|
|
|
(5,833 |
) |
|
|
(8,516 |
) |
|
|
2,304 |
|
Other income |
|
5,438 |
|
|
|
4,598 |
|
|
|
9,642 |
|
|
|
9,626 |
|
Total other income (expense) |
|
10,017 |
|
|
|
(1,235 |
) |
|
|
1,126 |
|
|
|
11,930 |
|
Loss before income taxes |
|
(42,886 |
) |
|
|
(53,964 |
) |
|
|
(102,666 |
) |
|
|
(108,232 |
) |
Income tax expense |
|
287 |
|
|
|
83 |
|
|
|
315 |
|
|
|
539 |
|
Net loss |
$ |
(43,173 |
) |
|
$ |
(54,047 |
) |
|
$ |
(102,981 |
) |
|
$ |
(108,771 |
) |
Net loss per share of common and limited common stockholders, basic and diluted: |
$ |
(0.59 |
) |
|
$ |
(0.74 |
) |
|
$ |
(1.41 |
) |
|
$ |
(1.50 |
) |
Weighted average shares used to compute net loss per share of common and limited common stockholders, basic and diluted: |
|
73,427,635 |
|
|
|
72,711,685 |
|
|
|
73,243,797 |
|
|
|
72,501,409 |
|
Condensed Consolidated Balance Sheets (Unaudited) (in thousands, except for share and per share amounts) |
|||||||
Assets |
|
|
|
||||
Current assets: |
|
|
|
||||
Cash and cash equivalents |
$ |
219,901 |
|
|
$ |
147,326 |
|
Restricted cash |
|
12,079 |
|
|
|
15,331 |
|
Marketable securities |
|
230,284 |
|
|
|
204,798 |
|
Accounts receivable, net of allowance for doubtful accounts of |
|
10,073 |
|
|
|
235,692 |
|
Unbilled and other receivables, net of allowance for unbilled receivables of |
|
26,711 |
|
|
|
19,641 |
|
Prepaid expenses |
|
14,947 |
|
|
|
12,205 |
|
Total current assets |
|
513,995 |
|
|
|
634,993 |
|
Property and equipment, net |
|
21,709 |
|
|
|
24,196 |
|
Equity investments |
|
34,691 |
|
|
|
43,208 |
|
|
|
4,791 |
|
|
|
4,791 |
|
Right of use assets - operating leases |
|
107,346 |
|
|
|
111,883 |
|
Other assets |
|
5,712 |
|
|
|
4,155 |
|
Total assets |
$ |
688,244 |
|
|
$ |
823,226 |
|
Liabilities and Stockholders' Equity: |
|
|
|
||||
Current liabilities: |
|
|
|
||||
Accounts payable |
|
8,800 |
|
|
$ |
10,666 |
|
Accrued payroll, taxes, and benefits |
|
25,322 |
|
|
|
42,110 |
|
Deferred revenue |
|
94,543 |
|
|
|
111,944 |
|
Lease liabilities - operating leases |
|
16,841 |
|
|
|
16,755 |
|
Other accrued liabilities |
|
10,263 |
|
|
|
10,272 |
|
Total current liabilities |
|
155,769 |
|
|
|
191,747 |
|
Deferred revenue, long-term |
|
91,995 |
|
|
|
108,814 |
|
Lease liabilities - operating leases, long-term |
|
97,472 |
|
|
|
101,074 |
|
Other liabilities, long-term |
|
136 |
|
|
|
146 |
|
Total liabilities |
|
345,372 |
|
|
|
401,781 |
|
Stockholders' equity: |
|
|
|
||||
Preferred stock, |
|
— |
|
|
|
— |
|
Common stock, |
|
644 |
|
|
|
637 |
|
Limited common stock, |
|
92 |
|
|
|
92 |
|
Additional paid-in capital |
|
970,687 |
|
|
|
946,037 |
|
Accumulated deficit |
|
(628,522 |
) |
|
|
(525,541 |
) |
Accumulated other comprehensive (loss) income |
|
(29 |
) |
|
|
220 |
|
Total stockholders' equity |
|
342,872 |
|
|
|
421,445 |
|
Total liabilities and stockholders' equity |
$ |
688,244 |
|
|
$ |
823,226 |
|
Condensed Consolidated Statements of Cash Flows (Unaudited) (in thousands) |
|||||||
|
Six Months Ended |
||||||
|
|
2025 |
|
|
|
2024 |
|
Cash flows from operating activities: |
|
|
|
||||
Net loss |
$ |
(102,981 |
) |
|
$ |
(108,771 |
) |
Adjustments to reconcile net loss to net cash used in operating activities: |
|
|
|
||||
Gain on equity investments |
|
— |
|
|
|
— |
|
Fair value adjustments of equity investments |
|
8,516 |
|
|
|
(2,304 |
) |
Depreciation and amortization |
|
3,120 |
|
|
|
2,837 |
|
Stock-based compensation |
|
22,201 |
|
|
|
25,026 |
|
Noncash investment accretion |
|
(1,676 |
) |
|
|
(4,706 |
) |
Loss on disposal of property and equipment |
|
20 |
|
|
|
7 |
|
Decrease (increase) in assets: |
|
|
|
||||
Accounts receivable, net |
|
225,619 |
|
|
|
54,143 |
|
Unbilled and other receivables |
|
(7,070 |
) |
|
|
(17,197 |
) |
Reduction in the carrying amount of right of use assets - operating leases |
|
4,537 |
|
|
|
4,205 |
|
Prepaid expenses and other assets |
|
(4,299 |
) |
|
|
(6,118 |
) |
(Decrease) increase in liabilities: |
|
|
|
||||
Accounts payable |
|
(1,737 |
) |
|
|
(8,941 |
) |
Accrued payroll, taxes, and benefits |
|
(16,788 |
) |
|
|
(7,443 |
) |
Deferred revenue |
|
(34,220 |
) |
|
|
(17,395 |
) |
Lease liabilities - operating leases |
|
(3,516 |
) |
|
|
(3,953 |
) |
Other accrued liabilities |
|
139 |
|
|
|
(2,389 |
) |
Net cash provided by (used in) operating activities |
|
91,865 |
|
|
|
(92,999 |
) |
Cash flows from investing activities: |
|
|
|
||||
Purchases of property and equipment |
|
(910 |
) |
|
|
(5,096 |
) |
Purchases of equity investments |
|
— |
|
|
|
(3,000 |
) |
Purchases of marketable securities |
|
(166,062 |
) |
|
|
(153,513 |
) |
Proceeds from maturity of marketable securities |
|
142,003 |
|
|
|
196,266 |
|
Net cash (used in) provided by investing activities |
|
(24,969 |
) |
|
|
34,657 |
|
Cash flows from financing activities: |
|
|
|
||||
Proceeds from issuances of common stock upon stock option exercises |
|
2,456 |
|
|
|
950 |
|
Principal payments on finance leases |
|
(29 |
) |
|
|
(29 |
) |
Payment of offering costs |
|
— |
|
|
|
— |
|
Proceeds from issuance of common stock in ATM offering |
|
— |
|
|
|
8,691 |
|
Net cash provided by financing activities |
|
2,427 |
|
|
|
9,612 |
|
Net increase (decrease) in cash and cash equivalents and restricted cash |
|
69,323 |
|
|
|
(48,730 |
) |
Cash and cash equivalents and restricted cash, beginning of period |
|
162,657 |
|
|
|
161,066 |
|
Cash and cash equivalents and restricted cash, end of period |
$ |
231,980 |
|
|
$ |
112,336 |
|
|
|
|
|
||||
Supplemental disclosure of cash flow and noncash information |
|
|
|
||||
Cash paid for income taxes |
$ |
365 |
|
|
$ |
439 |
|
Supplemental disclosure of non-cash investing and financing activities |
|
|
|
||||
Purchases of property and equipment in accounts payable |
|
34 |
|
|
|
435 |
|
Purchases of property and equipment in accrued liabilities |
|
— |
|
|
|
331 |
|
Acquisition of right of use assets - operating leases, contingency resolution |
|
— |
|
|
|
2,848 |
|
Reconciliation of GAAP to Non-GAAP Financial Measures (Unaudited) |
|||||||||||||||
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
|
|
|
|||||||||||||
|
|
2025 |
|
|
|
2024 |
|
|
|
2025 |
|
|
|
2024 |
|
|
(in thousands, except per share data) |
||||||||||||||
Net loss (GAAP) |
$ |
(43,173 |
) |
|
$ |
(54,047 |
) |
|
$ |
(102,981 |
) |
|
$ |
(108,771 |
) |
Income tax expense |
|
287 |
|
|
|
83 |
|
|
|
315 |
|
|
|
539 |
|
Gain on equity investment |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Change in fair value |
|
(4,579 |
) |
|
|
5,833 |
|
|
|
8,516 |
|
|
|
(2,304 |
) |
Non-GAAP net loss |
$ |
(47,465 |
) |
|
$ |
(48,131 |
) |
|
$ |
(94,150 |
) |
|
$ |
(110,536 |
) |
Non-GAAP net loss per share of common and limited common stockholders, basic and diluted: |
$ |
(0.65 |
) |
|
$ |
(0.66 |
) |
|
$ |
(1.29 |
) |
|
$ |
(1.52 |
) |
Weighted average shares used to compute non-GAAP net loss per share of common and limited common stockholders, basic and diluted: |
|
73,427,635 |
|
|
|
72,711,685 |
|
|
|
73,243,797 |
|
|
|
72,501,409 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20250806269302/en/
Schrödinger, Inc.
matthew.luchini@schrodinger.com
917-719-0636
Schrödinger, Inc.
allie.nicodemo@schrodinger.com
617-356-2325
Source: Schrödinger