On November 4, 2026 Schrödinger, Inc. (Nasdaq: SDGR) reported financial results for the quarter ended September 30, 2026.

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"We are very pleased with our third quarter performance, delivering 17% ACV growth, $24 million of drug discovery revenue, and raising our full-year ACV and drug discovery revenue outlook. Our strong performance highlights the power of our industry-leading platform and also our business model in which our software and drug discovery businesses reinforce each other," said Ramy Farid, Ph.D., chief executive officer of Schrödinger. "Applying our platform to complex drug discovery and materials science challenges gives us direct insight that continuously enhances our computational platform. At the same time, our sustained track record of delivering on high-impact programs gives our partners the confidence to expand their software commitments. The continuous feedback loop is building durable value across our business."

Third Quarter 2026 Operating and Financial Highlights (comparisons are to third quarter 2025, unless otherwise noted)
•ACV was $44.7 million, a 17% increase, and $214 million on a trailing four-quarter basis.
•ACV excluding contribution increased 24%.
•Software revenue was $38.2 million, a 6% increase.
•Hosted software revenue was $17.2 million, a 49% increase.
•Hosted software revenue was 45% of total software revenue, and 32% on a trailing four-quarter basis.
•Drug discovery revenue was $24.2 million compared to $13.0 million, primarily due to the recognition of a milestone payment from Structure Therapeutics.
•Total revenue was $64.5 million, a 19% increase.
•Software gross margin was 75%, a 2% decrease reflecting the company’s ongoing transition to hosted licenses.
•Operating expenses were $64.4 million, a 13% decrease.
•Other expense, which includes changes in fair value of equity investments and interest income/expense, was $11.4 million, primarily due to changes in the market value of the company’s equity positions.
•Net loss was $37.7 million, compared to a net loss of $32.8 million.
•Cash, cash equivalents, restricted cash and marketable securities were $373 million.

Schrödinger presents contribution revenue and cost of revenue separately from software and drug discovery revenue and cost of revenues. Prior periods have been reclassified to conform to this presentation to facilitate year-over-year comparability.

2026 Financial and Operational Outlook
As of November 4, 2026, Schrödinger provided the following financial guidance for the fiscal year ending December 31, 2026:
•ACV is expected to range from $222 million to $232 million, representing 12-17% growth over 2025, compared to the prior expectation of $218 million to $228 million or 10-15% growth over 2025.
•Drug discovery revenue is expected to range from $75 million to $85 million, compared to the prior expectation of $65 million to $75 million.
•Operating expenses are expected to be less than 2025.

Recent Highlights

Platform
•In October, Schrödinger scientists published research in Nature using machine learning force fields to reveal key atomic-scale insights into the structure of lithium-ion battery electrolytes. This new computational approach to understanding battery electrolytes has the potential to transform battery development from empirical trial-and-error toward predictive design to high-throughput, rational, computationally driven design for higher-capacity, faster-charging, and longer-lasting batteries.

•Schrödinger researchers published research in JACS Au using Absolute Binding Free Energy Perturbation (AB-FEP) to predict how small molecules interact with integrin proteins, which are targets for a broad range of diseases, including autoimmune disorders. This method outperformed traditional techniques by precisely classifying whether a ligand stabilizes integrins in an active or inactive state, a key factor in developing safer, more effective therapeutics.

•Schrödinger scientists published research in The Journal of Physical Chemistry C, describing a computational method to accurately predict the glass transition temperature of organic electronic materials, which is crucial for ensuring the stability and performance of devices like OLED displays. The approach achieved accuracy comparable to experimental methods, enabling rapid screening of new materials early in the design process, which can significantly accelerate the development of next-generation organic electronics.

Therapeutics Portfolio
•In September, Schrödinger announced a licensing and collaboration agreement with Tectora Therapeutics, a new biotechnology company it co-founded with New Enterprise Associates and RA Capital Management, focused on developing innovative therapies for immunology and inflammation. In connection with Tectora’s $55 million Series A financing, Schrödinger contributed two high-value, early-stage small molecule programs (SDGR-4594 and SDGR-8139) in exchange for an equity stake, as well as eligibility for future milestones and royalties. Tectora will also partner with Schrödinger’s drug discovery experts and leverage Schrödinger’s computational platform at scale to further advance these programs to clinical candidates.

•In September, Takeda announced the Food and Drug Administration accepted its New Drug Application under Priority Review for zasocitinib (TAK-279), the company’s oral tyrosine kinase 2 (TYK2) inhibitor for the treatment of moderate-to-severe plaque psoriasis. Zasocitinib was co-invented by Schrödinger and Nimbus and subsequently acquired by Takeda.

•In September, Schrödinger received a milestone payment from Structure Therapeutics, a company it co-founded, associated with Structure’s Phase 1/2a study of ACCG-2671, its oral small molecule amylin candidate for the treatment of obesity and metabolic diseases.

•In November, Schrödinger announced that updated Phase 1 data for SGR-1505 will be presented in an oral session at the American Society of Hematology (ASH) (Free ASH Whitepaper) Annual Meeting taking place December 12-15, 2026, in New Orleans.

Webcast and Conference Call Information
Schrödinger will host a conference call to discuss its third quarter 2026 financial results on Wednesday, November 4, 2026, at 4:30 p.m. ET. The live webcast can be accessed under "Events & Presentations" in the investors section of Schrödinger’s website, View Source To participate in the live call, please register for the call here. It is recommended that participants register at least 15 minutes in advance of the call. Once registered, participants will receive the dial-in information. The archived webcast will be available on Schrödinger’s website for approximately 90 days following the event.

(Press release, Schrodinger, NOV 4, 2026, View Source [SID1234674193])