At a glance
Schrodinger Inc is worth $2.31B. Revenue grew 23.3% to $255.9M in fiscal 2025, at a loss; over 5 years it has grown 18.8% a year. It pays no dividend. The stock returned +41.8% over the past year with dividends reinvested and −10.9% a year over five years, against +11.5% and +11.7% for the S&P 500. At its worst it fell 45.3% in the 2020 crash (S&P 500: 33.7%) and 40.8% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 2 months and 12 months after the lows.
The business in plain English
Schrödinger makes software that predicts how a molecule will behave before anyone makes it. Its tools use computer models built on the laws of physics, so chemists can test designs on screen and make only the most promising ones in the lab. Drug companies use the software to design medicines, and industrial firms use it for materials in fields such as aerospace, energy, semiconductors and chemicals. Universities and government labs also license it.
Software is the core business. It brought in $199.5 million in 2025, or 78% of total revenue of $255.9 million, and all of the top 20 drug companies by 2024 revenue licensed it. Drug discovery supplied the remaining 22%, or $56.4 million. In this business, Schrödinger helps partners such as Novartis find new drug molecules. It earns upfront fees, research payments and milestones (payments due when a program hits set goals), plus possible royalties (a share of sales) if a drug reaches the market.
The company also runs its own drug programs, with two cancer drug candidates in Phase 1 trials, the first stage of testing in people. It has no approved drugs of its own. By region, the United States provided 59.8% of 2025 revenue, Europe, the Middle East and Africa 29.4%, and Asia-Pacific 10.2%.
Price history
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SDGR +41.8% over the year to Oct 28, 2026, total return with dividends reinvested.
How it makes money
By business segment
| Software | $199.5M | 78% |
| Drug discovery | $56.4M | 22% |
By geography
| United States | $153.0M | 59.8% |
| EMEA | $75.2M | 29.4% |
| APAC | $26.2M | 10.2% |
| Rest of World | $1.6M | 0.6% |
Latest results
- In Q2 FY2026 (ended Jun 30, 2026), revenue was $58.9M, up 7.5% from a year earlier, and net income was $6.0M.
- For fiscal 2025, revenue was $255.9M (+23.3% year over year; +18.8% a year from FY2020 to FY2025) with a -40.4% net margin.
Financial health check
| Revenue growth a year (FY2020–FY2025) | +18.8% good |
|---|---|
| Operating margin | -65.2% weak |
| Free cash flow margin | 4.9% watch |
| Return on equity (FY2025) | -28.4% weak |
| Return on assets (FY2025) | -14.2% weak |
| Cash and investments | $413.7M (no borrowings found in the filings) good |
| Fiscal year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2020 | $108.1M | $-24.5M | $14.2M |
| FY2021 | $137.9M | $-100.4M | $-77.8M |
| FY2022 | $181.0M | $-149.2M | $-127.7M |
| FY2023 | $216.7M | $40.7M | $-150.1M |
| FY2024 | $207.5M | $-187.1M | $-164.7M |
| FY2025 | $255.9M | $-103.3M | $12.5M |
Valuation snapshot
| Market value | $2.31B |
|---|---|
| P/E ratio | — |
| Dividend yield | None |
Rank among 1514 US companies
Price behavior
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | |
|---|---|---|---|---|---|
| SDGR price data to Oct 28, 2026 | +72.7% | +41.8% | +12.6% | -10.9% | — |
Show as a table
| Year | Price data |
|---|---|
| 2026 (to date) | +72.7% |
| 2025 | -7.3% |
| 2024 | -46.1% |
| 2023 | +91.5% |
| 2022 | -46.3% |
| 2021 | -56.0% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Gained 19.8% over that stretch · deepest drop along the way 45.3%, back to its old high 1.8 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 34.7% over that stretch · deepest drop along the way 40.8%, back to its old high 12.4 months after the low |
Insider activity
Form 4 filings from 2025-10-29 to 2026-10-29 (25 read): 0 open-market purchases and 15 sales ($2.2M), 15 of them under pre-arranged 10b5-1 trading plans.
| Date | Insider | Type | Value |
|---|---|---|---|
| Sep 17, 2026 | Karen Akinsanya See Remarks | sell (plan) | $648K |
| Apr 16, 2026 | Ramy Farid President & CEO, Director | sell (plan) | $530K |
| Apr 17, 2026 | Ramy Farid President & CEO, Director | sell (plan) | $525K |
| Sep 17, 2026 | Karen Akinsanya See Remarks | sell (plan) | $280K |
| Mar 2, 2026 | Ramy Farid President & CEO, Director | sell (plan) | $66K |
Who owns it
Large shareholders (13G filings)
| BlackRock, Inc. | 12.7% | Jun 30, 2025 |
| Rubric Capital Management LP | 9.28% | Mar 31, 2026 |
| Vanguard Portfolio Management | 6.04% | Mar 31, 2026 |
| Sumitomo Mitsui Trust Group, Inc. | 4.9% | Mar 31, 2026 |
ETFs with the most weight in SDGR
| ARKG ARK Genomic Revolution ETF | 4.79% |
| HEAL Global X HealthTech ETF | 1.56% |
| WDNA WisdomTree BioRevolution Fund | 0.98% |
| EKG First Trust Nasdaq Lux Digital Health Solutions ETF | 0.5% |
| MMSC First Trust Multi-Manager Small Cap Opportunities ETF | 0.45% |
| HAPS Harbor Human Capital Factor US Small Cap ETF | 0.25% |
| IHF iShares U.S. Healthcare Providers ETF | 0.16% |
| FYC First Trust Small Cap Growth AlphaDEX Fund | 0.13% |
What could go wrong
- Early drug programs may fail. Its own drug candidates are only in first-stage human trials. In August 2025 it dropped SGR-2921, a leukemia candidate, after the drug was considered to have contributed to two patient deaths.
- Partner milestone payments are uncertain. Drug discovery revenue depends on partners advancing programs, which Schrödinger does not control. The Novartis deal offers up to $2.272 billion in milestones, but none had been recognized as revenue as of December 31, 2025.
- Heavy reliance on drug industry budgets. Life sciences companies supply a large share of software revenue. The top 20 drug companies alone provided 37% of it in 2025, so a downturn in that industry could slow software sales.
- Customers may not renew or expand. Software revenue relies on license renewals. Customers with annual contracts worth at least $1.0 million fell to 27 in 2025 from 29 in 2024, even as their average contract grew.
- Years of losses expected to continue. Schrödinger lost $103.3 million in 2025 and $187.1 million in 2024. Its accumulated deficit, the running total of past losses, hit $628.8 million at end-2025, and it expects more losses for several years.
- More fundraising could dilute shareholders. The company says it will likely need more capital. Issuing new shares would shrink existing owners' slice of the company, and partner deals could require giving up rights to technology or drug programs.
Recent events
- Quarterly results released
- Investor presentation or announcement
- Executive or board change; Shareholder vote results
- Executive or board change
- Executive or board change; Investor presentation or announcement
- Quarterly results released
- Executive or board change
- Quarterly results released
- Quarterly results released
For income and retirement investors
Schrödinger pays no dividend. It paid none and repurchased no shares from fiscal 2021 through fiscal 2025, so there is no dividend record to judge. The company lost $103.3 million in 2025 and expects losses for several more years. An income investor would get no regular cash from this stock; any return would depend on the share price rising.
The share price has swung sharply. In the 2020 COVID crash it fell 45.3% between February 24 and March 18, 2020, then regained its earlier high by May 11, 2020. In the 2022 bear market, a prolonged market slide, it dropped 40.8% between March 1 and May 11, 2022 and took about 12.4 months to recover. As of October 28, 2026, its deepest fall from a peak in 6.7 years of trading was 90.2%, and it had lost about 44% over five years. A single stock like this carries more risk than a diversified fund.
Questions investors ask
How does Schrödinger make money?
Mostly by licensing its molecule-design software. In 2025, software brought in $199.5 million, or 78% of total revenue of $255.9 million. The other 22%, or $56.4 million, came from drug discovery partnerships, where partners such as Novartis pay for research work and make milestone payments when programs reach set goals. Schrödinger could also earn royalties, a share of sales, if partner drugs reach the market. It has no approved drugs of its own.
Does Schrödinger pay a dividend?
No. Schrödinger paid no dividends and repurchased no shares from fiscal 2021 through fiscal 2025. It lost $103.3 million in 2025 and says it expects losses over the next several years as it spends on its software platform and drug research. Investors who rely on portfolio income would get no regular cash from this stock. Any return would depend on the share price, which has been very volatile.
Is Schrödinger profitable?
Not on a full-year basis. Schrödinger lost $103.3 million in 2025 and $187.1 million in 2024. Its only profitable year from 2020 through 2025 was 2023, when it earned $40.7 million, mainly from gains on stakes it held in partner companies. On the other hand, free cash flow (cash from operations minus capital spending) was a positive $12.5 million in 2025, and the quarter ended June 30, 2026 showed net income of $6.0 million.
What drugs is Schrödinger developing?
Two cancer drug candidates of its own, both in early human testing, according to its annual report filed February 25, 2026. SGR-1505, a MALT1 inhibitor, is in a Phase 1 trial (the first stage of testing in people) for B-cell blood cancers that have returned or resisted treatment. SGR-3515, a Wee1/Myt1 inhibitor, is in a Phase 1 trial for advanced solid tumors. The company plans to seek partners to take both further. It has no approved drugs and dropped SGR-2921 in August 2025.
Is Schrödinger stock volatile?
Yes, very. As of October 28, 2026, its one-year volatility, a measure of how widely the price swings, was 63.1% and its beta was 1.52, meaning it tended to move about 1.5 times as much as the overall market. The shares fell 56% in 2021 and 46% in 2022, rose 92% in 2023, fell 46% in 2024 and 7% in 2025, and gained about 73% from the start of 2026 through October 28. Over five years they lost about 44% in total.