Schrödinger, Inc. reported a total revenue of $58.9 million for the second quarter of 2026, marking an 8% increase from $54.8 million in the same period last year. The company's revenue growth was primarily driven by a significant rise in drug discovery revenue, which surged 65% to $23.0 million, compared to $13.9 million in the prior year. This increase was largely attributed to a $10 million milestone payment received from Eli Lilly & Company following its acquisition of Ajax Therapeutics, a company co-founded by Schrödinger. However, software products and services revenue declined by 10% to $32.5 million, reflecting a shift in customer preferences from on-premise software licenses to hosted solutions.
In terms of profitability, Schrödinger reported a net income of $6.0 million for the second quarter of 2026, a significant turnaround from a net loss of $43.2 million in the same quarter of 2025. This improvement was largely due to the aforementioned milestone payment and a favorable change in the fair value of equity investments, which contributed $45.9 million to other income. The company’s accumulated deficit increased to $682.9 million as of June 30, 2026, reflecting its ongoing investment in research and development.
Operationally, Schrödinger continues to focus on expanding its software and drug discovery segments. The company has been transitioning customers from on-premise software arrangements to hosted software contracts, which is expected to impact revenue recognition patterns in the near term. The annual contract value (ACV) for the second quarter was reported at $29.6 million, up from $23.3 million a year earlier, indicating a growing customer base and increased spending from existing clients. The company also reported a total employee headcount of 400 as of June 30, 2026, reflecting its commitment to scaling operations.
Looking ahead, Schrödinger plans to leverage its computational platform to advance proprietary drug discovery programs while exploring strategic partnerships to maximize the potential of its drug candidates. The company has initiated Phase 1 clinical trials for its SGR-1505 and SGR-3515 programs and aims to continue its collaboration with major biopharmaceutical companies. However, the company acknowledges the need for additional capital to fund its operations and may seek further financing to support its growth initiatives. The outlook remains cautious, with management highlighting the inherent uncertainties in drug development and market conditions that could impact future performance.
About Schrodinger, Inc.
Schrödinger, Inc. develops physics-based computational software for drug discovery and materials science. Its platform accelerates molecule design, prediction, and optimization, serving biopharmaceutical, industrial, and academic markets worldwide. The company collaborates with leading pharma firms, licensing its solutions and advancing proprietary drug programs. Its competitive edge lies in high-accuracy simulations, large-scale molecule evaluation, and a broad pipeline of collaborative and internal therapeutics.
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