Schrodinger

SDGR Q3 2025 Earnings

Reported Nov 5, 2025 at 4:09 PM ET · SEC Source

Q3 25 EPS

$-0.57

BEAT +21.05%

Est. $-0.72

Q3 25 Revenue

$54.3M

BEAT +10.17%

Est. $49.3M

vs S&P Since Q3 25

-33.5%

TRAILING MARKET

SDGR -24.1% vs S&P +9.4%

Market Reaction

Did SDGR Beat Earnings? Q3 2025 Results

Schrödinger posted a notably strong third quarter, with losses narrower than feared and revenue well ahead of expectations, as the computational drug discovery company demonstrated momentum on both its software and therapeutics fronts. The company re… Read more Schrödinger posted a notably strong third quarter, with losses narrower than feared and revenue well ahead of expectations, as the computational drug discovery company demonstrated momentum on both its software and therapeutics fronts. The company reported a non-GAAP loss of $0.57 per share, beating the $0.72 consensus estimate by 21.05%, while revenue of $54.32 million topped the $49.31 million forecast by 10.17% and surged 53.9% year-over-year. The primary driver of that top-line acceleration was a nearly four-fold jump in drug discovery revenue to $13.47 million, fueled by recognition of upfront payments from advancing collaborations, which complemented steady 28% growth in the core software business. The quarter also marked a strategic inflection point, as CEO Ramy Farid announced Schrödinger will pivot away from independent clinical development toward a discovery-focused model, a shift expected to generate roughly $70 million in savings. Looking ahead, the company trimmed its 2025 software revenue growth outlook to 8%-13% while raising drug discovery revenue guidance to $49-$52 million, with analysts subsequently cutting loss-per-share estimates for 2026 in response to the leaner cost structure.

Key Takeaways

  • 28% growth in software revenue reflecting increasing demand for computational platform
  • Drug discovery revenue up 295% driven by recognition of upfront payments from advancing collaborations
  • 14% reduction in operating expenses due to lower R&D expenditure and employee-related expenses
  • Growth in both hosted and on-premise software contracts
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SDGR YoY Financials

Q3 2025 vs Q3 2024, source: SEC Filings

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SDGR Revenue by Segment

With YoY comparisons, source: SEC Filings

Q2 25 Q1 26

“Schrödinger delivered a solid third quarter with software revenue growth of 28%, reflecting the industry's increasing demand for our leading computational platform. While we are encouraged by the continued high level of customer engagement as the macroeconomic pressures that have affected the industry stabilize, we have lowered our software revenue growth guidance by two percent to 8% to 13%. This updated guidance reflects current expectations regarding the timing of pharma scale-up opportunities.”

— Ramy Farid, Q3 2025 Earnings Press Release