Schrödinger, Inc. (NASDAQ: SDGR) Q2 2025 Earnings | 08/07/2025

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Schrödinger, Inc. reported its second-quarter 2025 financial results, delivering a 16% year-over-year increase in total revenue to $54.8 million, surpassing analyst expectations. Software revenue grew 15% to $40.5 million, driven by strong demand for the company’s computational platform and hosted contracts, including support from the Gates Foundation. Drug discovery revenue rose 19% to $14.2 million, reflecting increased collaboration activity. The company narrowed its net loss to $43.2 million, or $0.59 per share, a 20% improvement from the $54.0 million loss in the prior year period. Operating expenses declined 6% to $79.1 million, aided by a $30 million expense reduction initiative and cost restructuring that included a 7% workforce reduction. Research and development expenses decreased 15% to $43.1 million, reflecting efficiency gains and the shift of certain costs into software cost of goods sold. Schrödinger highlighted progress in its proprietary drug pipeline with encouraging Phase 1 data for SGR-1505, a MALT1 inhibitor, showing promising monotherapy signals in advanced B-cell malignancies. Additional clinical data for SGR-2921 (CDC7 inhibitor) and SGR-3515 (Wee1/Myt1 inhibitor) are expected in Q4 2025. The company also launched a beta version of a virtual kinase panel and expanded predictive toxicology capabilities to reduce animal testing in drug development, aligning with FDA modernization efforts. Management maintained full-year 2025 revenue guidance, expecting 10-15% software revenue growth and drug discovery revenue between $45 million and $50 million. Q3 2025 guidance forecasts software revenue of $36 to $40 million. The company is optimistic about renewal momentum and platform enhancements but highlighted risks from competitive pressures and the challenge of scaling its drug discovery programs. About Inside Ticker: Inside Ticker delivers timely, in-depth financial news and earnings analysis to empower investors with actionable insights on global companies across sectors. For comprehensive video analysis and real-time updates, visit https://www.insideticker.com/. #Schrödinger #SDGR #Q22025 #Earnings #FinancialResults #RevenueGrowth #NetLoss #EPS #SoftwareRevenue #DrugDiscovery #MALT1Inhibitor #SGR1505 #SGR2921 #SGR3515 #ClinicalTrials #Phase1Data #ComputationalChemistry #DrugDevelopment #PredictiveToxicology #FDACompliance #ResearchAndDevelopment #ExpenseReduction #WorkforceReduction #PlatformEnhancements #Biopharma #Biotech #Pharmaceuticals #Innovation #TechGrowth #InvestorUpdates #InsideTicker #NASDAQ