Schrodinger (SDGR) AI Stock Analysis

• Market Cap: $1.51B
• Dividend Yield: N/A
• Average Volume (3M): 1.19M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.84
• Revenue Growth: 18.59%
• EPS Growth: 10.96%
• Country: US
• Employees: 891
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Healthcare Information Services
• EPS (TTM): -0.59
• Shares Outstanding: 64,441,780
• 10 Day Avg. Volume: 1,360,004
• 30 Day Avg. Volume: 1,193,503
• PEG Ratio: 0.01
• Price to Book (P/B): 3.33
• Price to Sales (P/S): 6.75
• P/FCF Ratio: -8.51
• Enterprise Value/Market Cap: 0.75
• Enterprise Value/Revenue: 4.75
• Enterprise Value/Gross Profit: 8.12
• Enterprise Value/Ebitda: -6.40
• 1Y Price Target: $25.25
• Price Target Upside: 23.41% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9

• Rating: 55 Neutral
• Price Target: $22.50 ▲(9.97% Upside)

Schrodinger's overall stock score reflects a mixed financial performance with ongoing profitability challenges, balanced by positive technical indicators and significant revenue growth highlighted in the earnings call. The valuation remains a concern due to negative earnings, but strategic initiatives and a strong cash position provide some optimism for future growth.

Positive Factors

Revenue Growth

Consistent revenue growth, particularly in software and drug discovery, indicates strong market demand and effective business strategies, supporting long-term expansion.

Strong Pipeline Progress

Robust pipeline progress, including FDA Fast Track designation for SGR-1505, enhances Schrodinger's competitive edge and potential for future revenue streams.

Expense Management

Effective expense management, including significant R&D cost reductions, improves operational efficiency and supports sustainable financial health.

Negative Factors

Lower Software Gross Margin

Declining software gross margins due to revenue mix changes and investments may pressure profitability, affecting long-term financial performance.

Challenges in Biotech Segment

Difficulties in the biotech segment, influenced by macroeconomic factors, could hinder customer adoption and growth, impacting future revenue potential.

Continued Net Loss

Ongoing net losses highlight profitability challenges, which may affect cash flow and limit investment in growth initiatives, impacting long-term viability.

Schrodinger Business Overview & Revenue Model

Company Description

Schrodinger, Inc. is a technology company that focuses on advancing drug discovery and materials science by leveraging computational modeling and simulation. The company operates primarily in the life sciences and materials science sectors, providing software solutions and services that enhance the efficiency and effectiveness of research and development processes. Schrodinger's core products include its computational platform, which integrates physics-based simulations with machine learning to assist researchers in designing new molecules for pharmaceuticals and materials.

How the Company Makes Money

Schrodinger generates revenue through a combination of software licensing, subscription fees for its computational platform, and collaborations with pharmaceutical and biotechnology companies. Key revenue streams include the sale of licenses to its software products, which provide users access to its advanced predictive modeling tools, as well as consulting services that help clients optimize their research workflows. Additionally, Schrodinger has established significant partnerships with major pharmaceutical companies, contributing to its earnings through collaborative research agreements and milestone payments tied to the development of drug candidates. These partnerships often lead to shared outcomes, allowing Schrodinger to benefit from the success of its clients' products in the market.

Schrodinger Financial Statement Overview

Summary

Schrodinger's financial performance is mixed. The company shows modest revenue growth and a healthy gross profit margin. However, significant profitability challenges persist, with negative net income and operational inefficiencies. The balance sheet is moderately leveraged, but the negative return on equity is concerning. Cash flow trends show some improvement, but operational cash flow remains a challenge.

Income Statement

Schrodinger's income statement shows a mixed performance. The company has achieved a modest revenue growth of 3.22% TTM, indicating some positive momentum. However, the net profit margin is significantly negative at -76.22%, reflecting ongoing profitability challenges. The gross profit margin is relatively healthy at 58.48%, but the negative EBIT and EBITDA margins highlight operational inefficiencies.

Balance Sheet

The balance sheet presents a moderate financial position. The debt-to-equity ratio is manageable at 0.33, suggesting a reasonable level of leverage. However, the return on equity is negative at -45.70%, indicating that the company is not generating positive returns for shareholders. The equity ratio stands at 49.82%, showing a balanced capital structure.

Cash Flow

Cash flow analysis reveals some positive trends, with a free cash flow growth rate of 9.98% TTM. However, the operating cash flow to net income ratio is low at 0.18, indicating potential cash flow challenges. The free cash flow to net income ratio is relatively strong at 0.89, suggesting that the company is generating cash relative to its net losses.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	237.92M	207.54M	216.67M	180.96M	137.93M	108.09M
Gross Profit	139.14M	132.08M	140.69M	101.02M	65.62M	63.47M
EBITDA	-176.47M	-209.30M	-171.90M	-142.47M	-108.60M	-57.26M
Net Income	-181.33M	-187.12M	40.72M	-149.19M	-101.22M	-26.64M
Balance Sheet
Total Assets	688.24M	823.23M	802.96M	688.59M	756.49M	746.26M
Cash, Cash Equivalents and Short-Term Investments	462.26M	352.12M	463.00M	451.09M	576.48M	642.69M
Total Debt	114.31M	117.83M	127.88M	116.49M	79.87M	11.76M
Total Liabilities	345.37M	401.78M	254.40M	240.68M	199.40M	122.24M
Stockholders Equity	342.87M	421.44M	548.56M	447.89M	557.07M	624.01M
Cash Flow
Free Cash Flow	24.37M	-164.68M	-150.14M	-127.70M	-77.84M	14.22M
Operating Cash Flow	27.50M	-157.37M	-136.73M	-119.68M	-70.67M	16.76M
Investing Cash Flow	89.21M	148.84M	193.03M	90.02M	-16.81M	-381.72M
Financing Cash Flow	2.94M	10.12M	9.05M	2.11M	7.95M	541.27M

Schrodinger Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 20.46
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SDGR, the sentiment is Positive. The current price of 20.46 is below the 20-day moving average (MA) of 20.80, above the 50-day MA of 20.01, and below the 200-day MA of 21.75, indicating a neutral trend. The MACD of 0.37 indicates Positive momentum. The RSI at 51.90 is Neutral, neither overbought nor oversold. The STOCH value of 34.31 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SDGR.

Schrodinger Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OMCL	―	$1.54B	68.07	1.87%	―	6.39%	―
CERT	―	$1.82B	229.96	0.76%	―	11.61%	―
SOPH	―	$287.21M	-3.87	-74.09%	―	7.31%	-7.49%
SDGR	―	$1.51B	―	-44.40%	―	18.59%	10.96%
TXG	―	$1.55B	―	-11.30%	―	2.02%	65.33%
Sector *	―	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
DH	―	$408.92M	―	-64.27%	―	-5.24%	23.59%

Schrodinger Corporate Events

Schrodinger Announces CFO Geoffrey Porges’ Departure

On September 5, 2025, Schrödinger, Inc. formalized the separation of Geoffrey Porges as Executive Vice President and Chief Financial Officer through a Separation Agreement. This agreement entitles Dr. Porges to various payments and benefits, including salary continuation, COBRA premium payments, and accelerated vesting of stock options, contingent upon his compliance with the agreement’s terms and non-revocation during a specified period.

The most recent analyst rating on (SDGR) stock is a Buy with a $27.00 price target. To see the full list of analyst forecasts on Schrodinger stock, see the SDGR Stock Forecast page.

Schrodinger, Inc. Earnings Call: Growth Amid Challenges

Schrodinger, Inc.’s recent earnings call painted a picture of cautious optimism, underscored by strong revenue growth and promising pipeline advancements. The company demonstrated effective cost management and strategic collaborations, although it faced challenges such as a decline in software gross margins, continued net losses, and a challenging biotech sector landscape. Despite these hurdles, the overall sentiment remained positive, with a focus on future potential.

Schrödinger, Inc. Reports Strong Q2 2025 Results

Schrödinger, Inc. is a company specializing in computational technology for molecular discovery, primarily serving the biotechnology and pharmaceutical sectors with a unique platform that accelerates drug development and materials design.