Schrödinger Reports 63% Revenue Growth to $59.6 Million, Net Loss Increases

Schrödinger, Inc. reported significant financial growth in its latest quarterly filing, with total revenues reaching $59.6 million for the three months ended March 31, 2025, a 63% increase from $36.6 million in the same period last year. The software products and services segment contributed $48.8 million, up 46% year-over-year, while drug discovery revenues surged 237% to $10.7 million. Despite this revenue growth, the company recorded a net loss of $59.8 million, compared to a loss of $54.7 million in the prior year, reflecting ongoing investments in research and development and operational expansion.

The company’s operational metrics indicate a strategic focus on enhancing its software offerings and drug discovery capabilities. The number of shares outstanding as of April 30, 2025, was 64,212,693 common shares and 9,164,193 limited common shares. The increase in customer engagement is evident, with notable growth in both existing and new customer contracts, particularly in the hosted software segment, which saw increased spending from existing clients and new customer acquisitions.

Schrödinger has also made strides in its drug discovery initiatives, with collaborations with major pharmaceutical companies like Novartis and Bristol-Myers Squibb. The company is currently advancing several proprietary drug candidates, including SGR-1505 and SGR-2921, which have received investigational new drug applications from the FDA. The ongoing Phase 1 clinical trials for these candidates are expected to yield initial data in the second half of 2025, further enhancing the company's pipeline.

The filing highlights the company's commitment to expanding its computational platform, with a recent initiative funded by a $19.5 million grant from the Bill & Melinda Gates Foundation aimed at predicting toxicity in drug development. This strategic move is part of Schrödinger's broader goal to leverage its technology for both drug discovery and materials science applications, potentially increasing its market share in these sectors.

Looking ahead, Schrödinger anticipates continued investment in its software and drug discovery programs, with expectations of increased operating expenses. The company believes its existing cash reserves, totaling $512.1 million as of March 31, 2025, will be sufficient to fund operations for at least the next 24 months. However, the company acknowledges the potential need for additional capital to support its growth initiatives and navigate the competitive landscape of the biopharmaceutical industry.