Schrodinger (SDGR) Q3 2025 Earnings
How Did SDGR Stock React to Q3 2025 Earnings?
S&P 500 over the same 30 days: +1.90%.
Did SDGR Beat Earnings? Q3 2025 Results
Yes. Schrodinger reported Q3 2025 earnings of $-0.57 a share on Nov 5, 2025, beating the $-0.72 consensus estimate by 21.1%. Revenue was $54.3M against a $49.3M estimate.
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.
- 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
“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.”
Schrodinger CEO, on the earnings call
What Was Schrodinger's Outlook in Q3 2025?
Schrödinger updated its 2025 full-year guidance: software revenue growth is now expected at 8%-13% (down from 10%-15%), reflecting timing of pharma scale-up opportunities. Drug discovery revenue guidance was raised to $49-$52 million (from $45-$50 million). Software gross margin is expected at 73%-75% (narrowed from 74%-75%). Operating expenses in 2025 are expected to be lower than 2024. Cash used for operating activities in 2025 is expected to be significantly lower than 2024. The company is shifting to a discovery-focused therapeutics R&D model, which combined with earlier expense-reduction measures, is expected to generate approximately $70 million in savings.
SDGR YoY Financials
| Metric | Q3 2025 | Q3 2024 | Year over year |
|---|---|---|---|
| Revenue | $54.3M | $35.3M | +53.9% |
| Gross Profit | $28.0M | $17.7M | +58.2% |
| Operating Income | −$45.9M | −$34.6M | +32.9% |
| Net Income | −$32.8M | −$28.8M | +14.0% |
SDGR Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.