Schrödinger, Inc., along with its subsidiaries, develops a physics-based computational platform that supports the discovery of novel molecules for pharmaceutical and materials science applications. The company operates through two primary segments: Software and Drug Discovery.

• CEO Statement- Schrödinger delivered a strong third-quarter performance, highlighted by 28% growth in software revenue, reflecting increasing industry demand for its leading computational platform, said Ramy Farid, Ph.D., Chief Executive Officer of Schrödinger. 

• He noted that customer engagement remains high as macroeconomic pressures affecting the industry begin to stabilize. However, the company has revised its software revenue growth guidance downward by two percentage points to a range of 8% to 13%, reflecting updated expectations regarding the timing of pharmaceutical scale-up opportunities.

• Total revenue for the third quarter increased 54% year over year to $54.3 million, reflecting strong overall business growth compared with the same period in the prior year.

• Software revenue rose 28% to $40.9 million, driven by increased demand for both hosted and on-premise solutions and continued expansion of the company’s customer base.

• Drug discovery revenue increased to $13.5 million, primarily due to the recognition of upfront payments associated with the advancement of existing collaboration agreements.

• Software gross margin remained stable at 73%, demonstrating continued operating efficiency and consistent profitability within the software segment.

• Operating expenses declined to $74.0 million, largely as a result of lower research and development spending and reduced employee-related costs.

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