Schrodinger, Inc. (NASDAQ: SDGR)

Schrödinger, Inc. transforms therapeutics and materials discovery through a physics based computational platform. The company licenses its software to biopharmaceutical and industrial companies, academic institutions, and government laboratories worldwide. It also uses the platform to advance collaborative drug discovery programs with partners and to develop a pipeline of proprietary drug candidates. The platform’s ability to predict molecular properties with high accuracy reduces reliance on costly trial and error experiments.

The company generates revenue primarily from licensing its computational software and from drug discovery collaborations. Software licensing provides recurring fees based on number of calculations and access to tools such as Free Energy Perturbation and virtual screening. Drug discovery revenue comes from upfront payments, milestone payments and royalties under agreements with partners, as well as occasional equity proceeds. In 2025 software revenue reached $199.5 million and drug discovery revenue was $56.4 million, contributing to total revenue of $255.9 million. The software business benefits from high renewal rates and expanding contracts with existing customers, which drives steady growth in annual contract value.

The company operates through the following segments: Software and Drug Discovery.

• Software: Provides a suite of computational tools that accelerate molecule discovery, design and optimization for drug development and materials science applications. The platform includes virtual screening, free energy calculations, protein structure optimization and data visualization, and is licensed to biopharmaceutical, industrial, academic and government customers.

• Drug Discovery: Conducts collaborative research with biopharma partners and advances a proprietary pipeline of therapeutic candidates. Activities include target identification, hit to lead optimization, preclinical studies and early phase clinical trials for programs such as SGR 1505 and SGR 3515.

Schrödinger, Inc. holds a leading position in physics based computational drug discovery and is considered ahead of many peers that rely primarily on machine learning approaches. Its platform combines physics based methods with machine learning to deliver speed scale and accuracy that traditional methods lack. Competitors include BIOVIA Chemical Computing Group Cresset Biomolecular Discovery Cadence Design Systems Optibrium and others, but the company’s deep expertise in physics and its integrated platform give it a distinct advantage.

The company serves a diverse customer base that includes all of the top twenty pharmaceutical companies by revenue, major biopharma firms such as Novartis, BMS, Lilly and Otsuka, numerous biotech partners like Ajax Therapeutics and Bright Angel Therapeutics, academic institutions worldwide and government laboratories. It also supplies software to materials science customers in sectors such as aerospace, energy, semiconductors and consumer goods.