Schrodinger, Inc. Reports Strong Q3 Revenue Growth

Schrodinger, Inc. ((SDGR)) has held its Q3 earnings call. Read on for the main highlights of the call.

During Schrodinger, Inc.’s latest earnings call, the company conveyed a mixed sentiment. While there was significant revenue growth and improvements in operational efficiency, challenges in maintaining software revenue growth expectations and industry-related delays were noted. Despite a robust cash position, the company reported a net loss, reflecting both achievements and hurdles in the current financial landscape.

Significant Revenue Growth

Schrodinger, Inc. reported a total revenue of $54 million for Q3 2025, marking an impressive 54% increase from the same period last year. The software segment contributed $40.9 million, growing by 28% year-over-year, underscoring the company’s strong market presence and demand for its offerings.

Drug Discovery Revenue Surge

The drug discovery division experienced a remarkable surge, with revenue reaching $13.5 million, up from $3.4 million in Q3 2024. This growth highlights successful execution across collaborations and a strengthening position in the drug discovery market.

Operational Efficiency and Expense Management

Schrodinger demonstrated improved operational efficiency, with R&D expenses decreasing by 16% to $42.8 million. Overall operating expenses also fell by 14% compared to Q3 2024, reflecting effective cost management strategies.

Strong Cash Position

The company maintained a strong cash position, with $401 million in cash and equivalents as of September 30, 2025. This financial stability provides a solid foundation for future investments and strategic initiatives.

Reduced Software Revenue Growth Guidance

Schrodinger revised its 2025 software revenue growth guidance to 8%-13%, down from the previous 10%-15%. This adjustment was attributed to a slowdown in pharma discussions, impacting future revenue expectations.

Net Loss

Despite the revenue growth, Schrodinger reported a net loss of $33 million, or $0.45 per diluted share, compared to a net loss of $38 million, or $0.52 per diluted share, in Q3 2024. This indicates ongoing financial challenges despite operational improvements.

Pharmaceutical Scale-Up Delays

Delays in pharmaceutical scale-up opportunities, driven by macroeconomic pressures and industry challenges, contributed to the reduced guidance. These delays underscore the complexities faced in the pharmaceutical sector.

Forward-Looking Guidance

Looking ahead, Schrodinger expects total revenue growth, with software revenue slightly surpassing expectations and drug discovery revenue projected to reach $49-$52 million. Despite the revised software revenue guidance, the company remains optimistic about its collaborative programs and market position.

In summary, Schrodinger, Inc.’s earnings call painted a picture of robust revenue growth and operational efficiency, tempered by challenges in software revenue growth and industry delays. The company’s strong cash position and strategic adjustments in guidance reflect its proactive approach to navigating the current economic landscape.