Schrodinger Inc
Q2 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +2.86%.
Did SDGR Beat Earnings? Q2 2025 Results
Schrödinger delivered a mixed second quarter, clearing Wall Street's revenue bar while falling just short on the bottom line, as the computational drug discovery company navigated a period of meaningful operational transition. Revenue rose 15.7% year-over-year to $54.76 million, beating the $51.98 million consensus by 5.35%, lifted by a 15% gain in software revenue to $40.54 million and a 19% jump in drug discovery revenue to $14.21 million. Yet the earnings picture was cloudier, with a non-GAAP loss of $0.65 per share missing the $0.64 consensus estimate, even as the GAAP net loss narrowed to $43.17 million from $54.05 million a year ago. The most pressing story, however, came from the pipeline, where the company has since discontinued its CDC7 inhibitor SGR-2921 following patient deaths in a Phase 1 trial. Management maintained full-year software revenue growth guidance of 10%-15% and drug discovery revenue of $45 to $50 million, while guiding operating expenses lower than 2024, aided in part by a completed 7% workforce reduction expected to generate roughly $30 million in annualized savings.
- Software revenue growth driven by increases in hosted contract revenue and contribution revenue
- Drug discovery revenue increased 19% year-over-year
- Other income of $10 million including favorable fair value changes in equity investments
- Lower R&D expenses contributed to reduced operating expenses
“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. In addition to progressing several collaborative programs in our pipeline, we achieved an important milestone with the presentation of encouraging initial data for our MALT1 inhibitor, SGR-1505, and we expect to report initial data from our other two clinical programs in the fourth quarter.”
Schrodinger CEO, on the earnings call
Forward Guidance & Outlook
For full-year 2025, Schrödinger maintains software revenue growth guidance of 10%-15% and drug discovery revenue of $45-$50 million. Software gross margin is expected at 74%-75%. Operating expenses are now expected to be lower than 2024 (previously guided more broadly), and cash used for operating activities is expected to be significantly lower than 2024. For Q3 2025, software revenue is expected to range from $36 million to $40 million. The company expects to report initial clinical data for SGR-2921 and SGR-3515 in Q4 2025 and plans to complete the SGR-1505 Phase 1 package and meet with the FDA to discuss Phase 2 dosing.
SDGR YoY Financials
SDGR Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.