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, /PRNewswire/ -- USA News Group News Commentary - Artificial intelligence is moving from the edges of drug discovery toward its center, and the market built around it is expanding quickly. Grand View Research values the global AI in drug discovery market at approximately $2.9 billion in 2026 and projects it will reach roughly $13.8 billion by 2033, a compound annual growth rate (CAGR) of about 24.8%. That growth is running into a constraint no algorithm has solved. AI-driven biotech still has to be paid for, and how a company funds the build is becoming as closely watched as what it builds. Active Companies from around the markets with current developments this week include: MindWalk Holdings Corp. (NASDAQ: HYFT), Tempus AI, Inc. (NASDAQ: TEM), Palantir Technologies Inc. (NASDAQ: PLTR), Moderna, Inc. (NASDAQ: MRNA), and Schrödinger, Inc. (NASDAQ: SDGR).

Forecasts vary widely depending on how the category is drawn, but they point the same way. Global Market Insights sizes the market at about $4.0 billion in 2026 and projects approximately $43.9 billion by 2035, a CAGR of roughly 30.5%, citing generative AI, predictive analytics and multi-omics data integration as the drivers.

The capital behind those forecasts has been uneven. Law firm Gibson Dunn's 2026 life sciences outlook describes a bifurcated but improving equity market, built on catalyst-driven follow-on financings, alongside a continued expansion of non-dilutive and alternative financing. Goodwin has reported that royalty financings in biopharma totaled roughly $29.4 billion from 2020 through 2024, more than double the amount raised over the prior five years, as companies looked for capital without the dilution of an equity raise.

The terms attached to that money matter as much as the amount. In its Summer 2026 life sciences financing review, Covington & Burling noted that recent U.S. court decisions have led most synthetic royalty and drug development financings to require security over intellectual property and other product assets. For an AI-native company whose value sits in its data, models and patents, whether capital takes a lien on those assets is not a footnote.

Against that backdrop, one Nasdaq-listed Bio-Native AI company has announced a financing structured to avoid both dilution and asset security.

MindWalk Holdings Corp. (NASDAQ: HYFT) Secures $30 Million Unsecured Credit Facility at 7.00% With No Financial Covenants and No Dilution

Binding commitment with Sanabil (Cayman) for a senior unsecured revolving credit facility of up to $30 millionFixed 7.00% annual interest, accruing only on amounts drawn, plus a one-time 1.00% opening feeNo lien, pledge or security interest over any MindWalk asset, and no financial maintenance covenantNo warrants, no conversion feature, and no restriction on MindWalk's equity programs36-month term, extendable by 12 months by agreement at no fee; prepayable at par at any timeMindWalk Holdings Corp. announced that it has entered into a binding commitment with Sanabil (Cayman) for a senior unsecured revolving credit facility of up to $30 million. The facility carries a fixed interest rate of 7.00% per annum, accruing only on amounts actually drawn. According to the Company, there is no unused line fee, no financial maintenance covenant, no warrants and no conversion feature, and MindWalk grants no security over any of its assets. Obligations rank pari passu with MindWalk's other unsecured debt. Further information is available through the Company's investor relations site.

"This facility funds our biologics programs and our commercial build without issuing a single share," said Jennifer Bath, PhD, CEO and President of MindWalk Holdings Corp. "We chose debt over equity here for a straightforward reason. We were not prepared to sell any part of this business at the current share price, and we did not have to. Sanabil took no warrants, no conversion feature, and no security over any asset we own, so the full benefit of executing our plan stays with the shareholders who own it today. Our commercial model is recurring and backloaded by design, and this gives us the balance sheet to carry across that curve on our own terms."

Under the key terms outlined by the Company, amounts repaid may be reborrowed, and interest plus the one-time opening fee are the only amounts payable, with no commitment fee, extension fee or prepayment penalty. Draws require three business days' notice, with a $250,000 minimum and up to $7.5 million per quarter, and unused quarterly capacity carries forward. Commitments can be reduced in $1 million steps at no cost, and MindWalk is never obliged to borrow. Reporting is satisfied by the Company's SEC filings. The terms also include no material-adverse-change condition to closing and no default triggered by a material adverse effect, with share price, market conditions, sector conditions and clinical or regulatory outcomes expressly excluded.

The lender side carries its own restrictions. Sanabil is barred from shorting or hedging MindWalk shares and from trading on material non-public information, and assignment of the facility is restricted, including to competitors and to any person who would become a 5% holder.

The Company ties the structure directly to how it earns revenue. MindWalk describes its commercial model as recurring and backloaded by design: ReefIQ™ engagements enrich the underlying biological representation as programs run on it, and LensAI™ engagements deepen as customers move from evaluation into production workflows, so contract economics accrue across the life of an engagement rather than at signature. The facility is intended to fund operations and program execution across that recognition curve without issuing equity. The Company notes that the facility takes no lien over MindWalk's patents, source code, model weights, training data or datasets. Proceeds are available for working capital and general corporate purposes.

That representation is the asset the structure is built to protect. MindWalk describes itself as a Bio-Native AI company building the BioIntelligence infrastructure that life sciences AI and agentic AI require. At its core is HYFT® Technology, a proprietary, function-aware representation of biology that, refined over 20 years of curation, forms a biological representation of 660 million patterns and 25 billion relationships. It underpins ReefIQ, the biological context layer for life sciences, and LensAI, the reasoning and application layer for target discovery, candidate diligence, portfolio decision support and agentic AI workflows. In its fiscal 2026 results, released July 22, 2026 for the year ended April 30, 2026, the Company reported revenue up 46%.

The parties will negotiate a definitive credit agreement consistent with the term sheet, which MindWalk expects to file as a material contract exhibit with its next periodic report.

There are several risks associated with the Company's plans. The facility is a binding commitment under a term sheet, and a definitive credit agreement has not yet been negotiated or executed, so final terms may differ; the Company's own forward-looking statements identify the risk that the agreement is not executed, or not executed by the target closing date, and the risk that it does not satisfy the conditions to closing and to drawing. Amounts drawn must be serviced and repaid, and the Company identifies further risks including acceleration of outstanding amounts and termination of undrawn commitments on an event of default, and a prepayment event requiring repayment within 30 days if a change of control or a delisting of its common shares occurs. Revenue under MindWalk's commercial agreements is weighted to later periods of each engagement and may not be recognized on the timetable or in the amounts expected, contracted engagements may not be renewed or expanded, and additional capital may not be available on acceptable terms. Information about the lender is limited to the Company's own description. Investors should review MindWalk's Annual Report on Form 20-F and other filings on SEDAR and EDGAR.

Read this and more news at: https://usanewsgroup.com

In other industry developments and happenings in the market this week include:

Tempus AI, Inc. (NASDAQ: TEM)

Tempus AI, Inc. (NASDAQ: TEM), a technology company leading the adoption of AI to advance precision medicine, recently reported second-quarter 2026 revenue of $382.5 million, up 22% year over year, with its Data Licensing and Modeling (Insights) revenue up 36%. The company said it signed roughly $200 million in new Data and Applications licenses during the quarter, and raised its full-year 2026 revenue guidance to $1.595 billion to $1.605 billion.

Tempus has been busy on the capital side as well. During the first half it completed a $460 million offering of 0.0% convertible senior notes due 2032, and its cash flow statement shows it repaid its revolving credit facility and long-term debt over the same period. It ended June with $820.7 million in cash and marketable securities. On July 20, 2026, it agreed to acquire Personalis for $16.25 per share, approximately $1.5 billion in enterprise value, with closing expected in late Q4 2026 or early 2027.

"Our strategy is working given the investments we have made in AI over the past several years are driving some of the best growth rates we have seen in our two largest businesses - Oncology Diagnostics and Data Licensing," said Eric Lefkofsky, Founder and CEO of Tempus.

Palantir Technologies Inc. (NASDAQ: PLTR)

Palantir Technologies Inc. (Nasdaq: PLTR), whose software platforms are deployed across government and commercial enterprises, holds the same instrument MindWalk has just secured and has never needed to use it. As of June 30, 2026, Palantir reported no outstanding debt balances and $500 million of available and undrawn revolving commitments under its credit facility, alongside $2.03 billion in cash and cash equivalents and $7.38 billion in marketable securities.

The scale explains the posture. Palantir reported second-quarter 2026 revenue of $1.935 billion, up 93% year over year, with United States commercial revenue up 149% to $764 million, net income of $1.066 billion and diluted earnings per share of $0.41. First-half operating cash flow reached $2.12 billion. The company raised full-year 2026 revenue guidance to between $8.15 billion and $8.158 billion and adjusted free cash flow guidance to between $4.5 billion and $4.7 billion, and disclosed remaining performance obligations of $4.9 billion. It also entered a long-term cloud hosting commitment of at least $5.6 billion in minimum spend through February 2036, a reminder that an undrawn facility is a buffer rather than a substitute for the obligations a platform business takes on.

"Forget consensus," Chief Executive Officer Alex Karp told CNBC following the results. "To my knowledge, no businesses at our scale has even grown half this much."

Moderna, Inc. (NASDAQ: MRNA)

Moderna, Inc. (Nasdaq: MRNA), the mRNA platform company, is running the opposite play: drawing on a credit facility while cutting the cost base it has to service. The company has projected year-end 2026 cash and investments of $4.5 billion to $5.0 billion, a figure it states excludes any further drawdowns from the $0.9 billion remaining available under its credit facility. It ended the second quarter with $6.9 billion in cash and investments.

The cost discipline is the story underneath that. Moderna reduced cash costs by 10% year over year in the second quarter and lowered full-year 2026 cash cost guidance to approximately $4 billion, with GAAP operating expenses of approximately $4.7 billion excluding a non-recurring litigation settlement charge, each roughly $0.2 billion better than prior guidance. Research and development expenses fell $256 million, or 16%, across the first half. That follows approximately $2.2 billion of annual operating expense reductions delivered in 2025.

Second-quarter revenue of $145 million exceeded the top of the company's range against a net loss of $782 million, an improvement of 5% on the prior year, and the company paid $950 million in July in connection with a litigation settlement. Moderna reiterated a target of up to 10% revenue growth for 2026. For a company of that size, a partially drawn facility sitting alongside a shrinking cost base is a different use of the same instrument MindWalk has just put in place at a far earlier stage.

Schrödinger, Inc. (NASDAQ: SDGR)

Schrödinger, Inc. (NASDAQ: SDGR), whose physics-based computational platform is licensed by biotechnology, pharmaceutical and industrial companies and academic institutions, is putting outside capital to work on its own discoveries. On September 9, 2026, it announced a licensing and collaboration agreement with Tectora Therapeutics, an immunology and inflammation company it co-founded with New Enterprise Associates and RA Capital Management, which concurrently closed a $55 million Series A. Schrödinger contributed two early-stage programs, SDGR-4594 and SDGR-8139, in exchange for an equity stake in Tectora and eligibility for future milestones and royalties.

Karen Akinsanya, Ph.D., Schrödinger's President, Therapeutics R&D and Chief Strategy Officer, Partnerships, pointed to the company's record of building programs for licensing or launching companies with venture partners, including Nimbus, Morphic, Structure and Ajax, which she said "have collectively generated over $750 million in proceeds to Schrödinger."

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The credit facility described in this publication is a binding commitment under a term sheet; a definitive credit agreement has not been executed, its final terms may differ from those described, and there is no assurance that it will be executed or that any amount will be drawn. Borrowing under the facility would create interest and repayment obligations, and the facility is subject to events of default, acceleration and mandatory prepayment provisions as described in the Company's disclosures. Information regarding the lender is limited to the Company's description and has not been independently verified by the publisher. Any MindWalk product candidates or therapeutic programs are investigational and have not been approved by the U.S. Food and Drug Administration or any other regulatory authority, and descriptions of the Company's technology, commercial model and revenue timing reflect the Company's own statements. Eagle Eye Disclosure. 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Jupiter Topco LLC bought a new stake in shares of Schrodinger, Inc. (NASDAQ:SDGR – Free Report) during the second quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The fund bought 28,299 shares of the company’s stock, valued at approximately $460,000.

A number of other hedge funds and other institutional investors have also recently modified their holdings of SDGR. BlackRock Inc. purchased a new position in Schrodinger during the 2nd quarter valued at about $170,978,000. Rubric Capital Management LP grew its holdings in Schrodinger by 43.8% in the first quarter. Rubric Capital Management LP now owns 6,000,000 shares of the company’s stock worth $68,160,000 after purchasing an additional 1,828,502 shares during the period. Millennium Management LLC grew its holdings in Schrodinger by 1,075.8% in the third quarter. Millennium Management LLC now owns 1,551,721 shares of the company’s stock worth $31,128,000 after purchasing an additional 1,419,750 shares during the period. Lazard Asset Management LLC increased its stake in shares of Schrodinger by 65.3% during the third quarter. Lazard Asset Management LLC now owns 2,346,441 shares of the company’s stock valued at $47,070,000 after purchasing an additional 927,234 shares in the last quarter. Finally, Bank of America Corp DE increased its stake in shares of Schrodinger by 428.3% during the second quarter. Bank of America Corp DE now owns 606,916 shares of the company’s stock valued at $12,211,000 after purchasing an additional 492,032 shares in the last quarter. 79.05% of the stock is owned by hedge funds and other institutional investors.

Analyst Ratings Changes SDGR has been the topic of a number of analyst reports. UBS Group started coverage on Schrodinger in a research report on Friday, August 14th. They issued a “neutral” rating and a $19.00 price target on the stock. Weiss Ratings raised Schrodinger from a “sell (e+)” rating to a “sell (d-)” rating in a research report on Thursday, August 27th. Morgan Stanley lowered their price objective on Schrodinger from $19.00 to $17.00 and set an “equal weight” rating for the company in a research note on Thursday, May 14th. Finally, Wall Street Zen raised Schrodinger from a “strong sell” rating to a “hold” rating in a report on Saturday, August 8th. Three analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Hold” and a consensus target price of $20.50.

Get Our Latest Research Report on SDGR Schrodinger Price Performance Shares of NASDAQ:SDGR opened at $20.09 on Tuesday. Schrodinger, Inc. has a 1 year low of $10.94 and a 1 year high of $23.02. The company has a market cap of $1.48 billion, a P/E ratio of -27.15 and a beta of 1.69. The stock’s fifty day moving average price is $17.41 and its 200-day moving average price is $14.51.

Schrodinger (NASDAQ:SDGR – Get Free Report) last issued its earnings results on Wednesday, August 5th. The company reported $0.08 earnings per share for the quarter, topping analysts’ consensus estimates of ($0.41) by $0.49. The business had revenue of $58.89 million during the quarter, compared to analyst estimates of $47.19 million. Schrodinger had a negative return on equity of 16.37% and a negative net margin of 20.98%.Schrodinger’s revenue was up 7.5% on a year-over-year basis. During the same quarter in the previous year, the firm earned ($0.65) EPS. On average, sell-side analysts anticipate that Schrodinger, Inc. will post -1.55 earnings per share for the current year.

Schrodinger Company Profile (Free Report)

Schrödinger, Inc is a life sciences and materials discovery company that specializes in the application of physics-based computational platforms to accelerate drug discovery and advanced materials design. Founded in 1990 by Professor Richard A. Friesner, Schrödinger has developed a suite of proprietary software tools—such as Maestro for molecular modeling, Glide for molecular docking and Jaguar for quantum chemistry calculations—that enable scientists to predict molecular behavior with high accuracy.

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BlackRock Inc. purchased a new position in Schrodinger, Inc. (NASDAQ:SDGR – Free Report) during the 2nd quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The fund purchased 10,521,724 shares of the company’s stock, valued at approximately $170,978,000. BlackRock Inc. owned about 14.25% of Schrodinger as of its most recent filing with the Securities & Exchange Commission.

A number of other institutional investors and hedge funds also recently modified their holdings of the stock. EverSource Wealth Advisors LLC lifted its stake in Schrodinger by 722.8% in the 4th quarter. EverSource Wealth Advisors LLC now owns 1,374 shares of the company’s stock worth $25,000 after acquiring an additional 1,207 shares in the last quarter. Los Angeles Capital Management LLC acquired a new stake in Schrodinger in the 4th quarter worth approximately $26,000. Hantz Financial Services Inc. lifted its stake in shares of Schrodinger by 5,025.8% in the fourth quarter. Hantz Financial Services Inc. now owns 1,589 shares of the company’s stock worth $28,000 after buying an additional 1,558 shares during the last quarter. Fideuram Intesa Sanpaolo Private Banking S.P.A. acquired a new position in shares of Schrodinger during the 4th quarter worth about $36,000. Finally, State of Wyoming bought a new stake in Schrodinger in the 2nd quarter valued at $39,000. Institutional investors and hedge funds own 79.05% of the company’s stock.

Schrodinger Stock Down 3.5% Shares of SDGR stock opened at $19.70 on Friday. Schrodinger, Inc. has a 12-month low of $10.94 and a 12-month high of $23.02. The firm has a fifty day moving average of $16.89 and a 200-day moving average of $14.15. The company has a market capitalization of $1.45 billion, a price-to-earnings ratio of -26.62 and a beta of 1.63.

Schrodinger (NASDAQ:SDGR – Get Free Report) last released its earnings results on Wednesday, August 5th. The company reported $0.08 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of ($0.41) by $0.49. Schrodinger had a negative return on equity of 16.37% and a negative net margin of 20.98%.The firm had revenue of $58.89 million during the quarter, compared to analysts’ expectations of $47.19 million. During the same quarter in the prior year, the company earned ($0.65) EPS. The company’s revenue was up 7.5% on a year-over-year basis. On average, equities analysts expect that Schrodinger, Inc. will post -1.89 EPS for the current year. Analyst Ratings Changes SDGR has been the topic of several recent analyst reports. UBS Group assumed coverage on Schrodinger in a research note on Friday, August 14th. They issued a “neutral” rating and a $19.00 price target on the stock. Weiss Ratings raised shares of Schrodinger from a “sell (e+)” rating to a “sell (d-)” rating in a research note on Thursday. Morgan Stanley reduced their target price on shares of Schrodinger from $19.00 to $17.00 and set an “equal weight” rating on the stock in a research note on Thursday, May 14th. Finally, Wall Street Zen raised shares of Schrodinger from a “strong sell” rating to a “hold” rating in a research note on Saturday, August 8th. Three research analysts have rated the stock with a Buy rating, three have given a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, the company has an average rating of “Hold” and an average target price of $20.50.

View Our Latest Analysis on SDGR

Schrodinger Company Profile (Free Report)

Schrödinger, Inc is a life sciences and materials discovery company that specializes in the application of physics-based computational platforms to accelerate drug discovery and advanced materials design. Founded in 1990 by Professor Richard A. Friesner, Schrödinger has developed a suite of proprietary software tools—such as Maestro for molecular modeling, Glide for molecular docking and Jaguar for quantum chemistry calculations—that enable scientists to predict molecular behavior with high accuracy.

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Posted by Defense World Staff on Aug 14th, 2026

Weave Communications (NYSE:WEAV – Get Free Report) and Schrodinger (NASDAQ:SDGR – Get Free Report) are both small-cap healthcare companies, but which is the better stock? We will contrast the two businesses based on the strength of their valuation, risk, earnings, institutional ownership, analyst recommendations, profitability and dividends.

Institutional and Insider Ownership 86.8% of Weave Communications shares are owned by institutional investors. Comparatively, 79.0% of Schrodinger shares are owned by institutional investors. 16.4% of Weave Communications shares are owned by insiders. Comparatively, 10.1% of Schrodinger shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Ratings This is a summary of current recommendations and price targets for Weave Communications and Schrodinger, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score Weave Communications 1 1 3 0 2.40 Schrodinger 1 4 3 0 2.25 Weave Communications currently has a consensus target price of $8.33, suggesting a potential upside of 56.44%. Schrodinger has a consensus target price of $19.57, suggesting a potential upside of 6.02%. Given Weave Communications’ stronger consensus rating and higher probable upside, equities analysts plainly believe Weave Communications is more favorable than Schrodinger.

Volatility and Risk Weave Communications has a beta of 1.67, suggesting that its stock price is 67% more volatile than the S&P 500. Comparatively, Schrodinger has a beta of 1.63, suggesting that its stock price is 63% more volatile than the S&P 500.

Earnings & Valuation This table compares Weave Communications and Schrodinger”s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio Weave Communications $239.02 million 1.78 -$28.05 million ($0.25) -21.31 Schrodinger $255.87 million 5.33 -$103.26 million ($0.74) -24.95 Weave Communications has higher earnings, but lower revenue than Schrodinger. Schrodinger is trading at a lower price-to-earnings ratio than Weave Communications, indicating that it is currently the more affordable of the two stocks.

Profitability This table compares Weave Communications and Schrodinger’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets Weave Communications -7.97% -21.37% -8.44% Schrodinger -20.98% -16.37% -8.19% Summary Weave Communications beats Schrodinger on 9 of the 13 factors compared between the two stocks.

About Weave Communications (Get Free Report)

Weave Communications, Inc. provides a customer experience and payments software platform in the United States and Canada. Its platform enables small and medium-sized healthcare businesses to maximize the value of their patient interactions and minimize the time and effort spent on manual or mundane tasks. The company's products include Unified Phone Number; Customized Phone System, a smarter phone system to identify whether incoming calls are from new or current patients, provide information at every call, and manages heavy call times; Softphones to make and receive calls from anywhere with an internet connection; Text Messaging to communicate with patients; Missed Call Text to take action in real time upon notification of a missed call; Missed Text Auto-Reply; Team Chat, a group messaging solution that helps practitioners and their staff communicate with each other from their work stations; and Weave Mobile App; It also offers Weave Reviews and Respond Assistant to request, collect, monitor, and respond to reviews; Weave Email Marketing and Email Assistant; Text Connect to interact with their existing and potential patients online directly through their websites; Weave Payments, a payment processing solution; Practice Analytics provides real-time data on patient retention, appointment scheduling, treatment acceptance rates, and revenue generation; and Call Intelligence. In addition, the company provides Digital Forms to collect patient information; Insurance Verification that provides patient insurance plan details; and Scheduling to send automatic scheduling reminders through text message. It serves customers in dental, optometry, veterinary, medical, plastic surgery, physical therapy, medical spa, and other medical specialty industries. The company was formerly known as Recall Solutions, LLC and changed its name to Weave Communications, Inc. in October 2015. Weave Communications, Inc. was founded in 2008 and is headquartered in Lehi, Utah.

About Schrodinger (Get Free Report)

Schrödinger, Inc., together with its subsidiaries, develops physics-based computational platform that enables discovery of novel molecules for drug development and materials applications. The company operates in two segments, Software and Drug Discovery. The Software segment is focused on licensing its software to transform molecular discovery for life sciences and materials science industries. The Drug Discovery segment focuses on building a portfolio of preclinical and clinical programs, internally and through collaborations. The company serves biopharmaceutical and industrial companies, academic institutions, and government laboratories worldwide. Schrödinger, Inc. was incorporated in 1990 and is based in New York, New York.

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NEW YORK--(BUSINESS WIRE)--Schrödinger, Inc. (Nasdaq: SDGR) today reported that on August 12, 2026, the company granted restricted stock units (RSUs) with respect to 3,315 shares of the company’s common stock to two newly hired employees. These grants were made pursuant to the company’s 2021 Inducement Equity Incentive Plan, were approved by the compensation committee of the board of directors pursuant to a delegation by the company’s board of directors, and were made as a material inducement to such employees’ acceptance of employment with the company in accordance with Nasdaq Listing Rule 5635(c)(4) as a component of his or her employment compensation.

The RSUs vest over four years, with 25 percent of such RSUs vesting when such employee completes 12 months of continuous service measured from the vesting commencement date, and the balance of the RSUs vesting in a series of successive equal yearly installments of 1/4 of the original number of RSUs upon each such employee’s completion of each additional year of service over the three-year period following the first anniversary of the vesting commencement date.

The inducement grants are subject to the terms and conditions of award agreements covering the grants and the company’s 2021 Inducement Equity Incentive Plan.

About Schrödinger
Schrödinger is transforming molecular discovery with its computational platform, which enables the discovery of novel, highly optimized molecules for drug development and materials design. Schrödinger’s software platform is built on more than 30 years of R&D investment and is licensed by biotechnology, pharmaceutical and industrial companies, and academic institutions around the world. Schrödinger also leverages the platform to advance a portfolio of collaborative and proprietary programs. To learn more, visit www.schrodinger.com, follow us on LinkedIn, or visit our blog, Extrapolations.com.

Schrodinger (NASDAQ:SDGR) said second-quarter annual contract value growth accelerated as demand broadened across large pharmaceutical customers, biotechnology companies and materials-science customers, while the company launched early access for Bunsen, its agentic AI co-scientist.

Second-quarter ACV was $29.6 million, up 27% from a year earlier. ACV excluding contribution revenue was $22.6 million, an increase of 23% year over year and at the upper end of the company’s expectations, Chief Financial Officer Richie Jain said. First-half ACV totaled $58 million, representing 19% growth from the comparable 2025 period, while trailing four-quarter ACV reached $208 million.

“The biopharma industry is increasingly recognizing that a computationally driven predict-first approach is a critical driver for accelerating drug discovery timelines and improving probabilities of success,” President and CEO Ramy Farid said.

Revenue, Profitability and Cash Position Total revenue for the second quarter was $58.9 million. Software revenue was $32.5 million, including $15.2 million of hosted revenue, or 47% of the software total. That compared with hosted revenue representing 31% of software revenue in the second quarter of 2025.

Jain said the company’s planned transition toward hosted licenses continues to affect reported revenue growth because hosted-contract revenue is recognized ratably over the contract term rather than primarily upfront. Schrodinger said each 1-percentage-point increase in hosted revenue can temporarily reduce reported revenue by $2 million to $3 million, depending on renewal timing and contract duration.

Software gross margin was 71%, compared with 76% a year earlier, reflecting the hosted-licensing transition. Contribution revenue was $3.4 million, down from $4.8 million in the prior-year quarter, primarily because initial Gates Foundation funding for the company’s Predictive Toxicology initiative had been completed. The decline was partly offset by a Gates Ventures grant supporting battery research.

Drug discovery revenue increased to $23 million from $13.9 million in the prior-year period, primarily due to a $10 million collaboration milestone from Ajax Therapeutics. Total other income was $48.9 million, primarily associated with the completion of Eli Lilly’s acquisition of Ajax.

Operating expenses declined 6% year over year to $74 million, which Jain attributed to lower headcount, contract research organization costs and professional-services fees. The company reported net income of $6 million, compared with a net loss of $43 million in the second quarter of 2025, and ended the quarter with $419 million in cash and marketable securities.

Bunsen Launch and Software Strategy Schrodinger launched Bunsen in early access during the quarter. Farid described the product as an AI co-scientist designed to execute the company’s validated computational methods and complex multistep workflows. The company said Bunsen can help computational chemists work more efficiently while enabling more drug hunters to use advanced simulations.

Bristol Myers Squibb, a longtime customer and collaborator, is deploying Bunsen and expanding use of Schrodinger’s platform across its research organization under a new strategic software agreement. The agreement combines Bunsen with the company’s computational technologies for large-scale chemical exploration.

Farid said the company expects to capture value from increased use of its platform through its throughput-based licensing model. He also said collaborations with NVIDIA and Google Cloud are providing additional tools and compute resources for Bunsen’s early-access program.

Management said Bunsen is already being used internally in the therapeutics organization. Karen Akinsanya, president, head of therapeutics research and development, and chief strategy officer for partnerships, said the AI system has accelerated workflows involving target analysis, structural biology, and analysis of DMPK, pharmacology and toxicology data.

Chief Technology and COO Pat Lorton said Bunsen can monitor computational jobs, identify failures and attempt restarts, potentially improving utilization of computing resources outside normal working hours.

New Products and Market Demand Schrodinger cited its Predictive Toxicology solution as an emerging contributor to ACV growth. The technology is intended to predict off-target binding risks before synthesis, allowing customers to address potential safety issues earlier in drug discovery. Farid said commercial evaluations are progressing well, though the company did not disclose the specific ACV contribution from the product.

Farid also identified RetroSynth as another new product contributing to growth and said it is included in the Bristol Myers Squibb agreement. He said new products, along with increased usage by existing customers, are a major component of the company’s growth strategy.

On market conditions, Farid said the biotechnology sector has improved compared with last year. He pointed to an increase in biotechnology IPO activity and said the company has seen fewer customers struggling to raise funds than it did in 2025.

Guidance and Therapeutics Portfolio Schrodinger maintained its full-year 2026 ACV guidance of $218 million to $228 million, representing growth of 10% to 15% from 2025. Jain noted that the fourth quarter is typically the company’s largest ACV quarter and generally accounts for more than half of annual ACV.

The company raised its full-year drug discovery revenue outlook to $65 million to $75 million, from a prior range of $55 million to $65 million, reflecting recognition of the Ajax milestone. It expects 2026 operating expenses to be lower than in 2025.

For the third quarter, Schrodinger expects ACV excluding contribution of $41 million to $45 million, compared with $38.3 million in the third quarter of 2025, which included $2.2 million of contribution ACV.

Akinsanya also highlighted Schrodinger’s July collaboration with Simcere Pharmaceutical Group, under which the company is eligible for development and commercial milestones and tiered royalties on net sales. She said the company has realized more than $750 million from therapeutic activities since 2020, including collaborations, co-invented drugs and co-founded companies. She also cited phase I data presented in June for Ajax asset AJ11095, a Type II JAK inhibitor, as initial clinical evidence supporting its intended differentiated target profile.

About Schrodinger (NASDAQ:SDGR) Schrödinger, Inc is a life sciences and materials discovery company that specializes in the application of physics-based computational platforms to accelerate drug discovery and advanced materials design. Founded in 1990 by Professor Richard A. Friesner, Schrödinger has developed a suite of proprietary software tools—such as Maestro for molecular modeling, Glide for molecular docking and Jaguar for quantum chemistry calculations—that enable scientists to predict molecular behavior with high accuracy.

3 Momentum Stocks That Could Soar Post-Market VolatilitySchrodinger NASDAQ: SDGR said second-quarter annual contract value growth accelerated as demand broadened across large pharmaceutical customers, biotechnology companies and materials-science customers, while the company launched early access for Bunsen, its agentic AI co-scientist.

Second-quarter ACV was $29.6 million, up 27% from a year earlier. ACV excluding contribution revenue was $22.6 million, an increase of 23% year over year and at the upper end of the company’s expectations, Chief Financial Officer Richie Jain said. First-half ACV totaled $58 million, representing 19% growth from the comparable 2025 period, while trailing four-quarter ACV reached $208 million.

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AI Pharma: 2 Paths to AI-Powered Drug Investment“The biopharma industry is increasingly recognizing that a computationally driven predict-first approach is a critical driver for accelerating drug discovery timelines and improving probabilities of success,” President and CEO Ramy Farid said.

Revenue, Profitability and Cash Position Total revenue for the second quarter was $58.9 million. Software revenue was $32.5 million, including $15.2 million of hosted revenue, or 47% of the software total. That compared with hosted revenue representing 31% of software revenue in the second quarter of 2025.

Simulations Plus Stock Drops 15% Despite EPS BeatJain said the company’s planned transition toward hosted licenses continues to affect reported revenue growth because hosted-contract revenue is recognized ratably over the contract term rather than primarily upfront. Schrodinger said each 1-percentage-point increase in hosted revenue can temporarily reduce reported revenue by $2 million to $3 million, depending on renewal timing and contract duration.

Software gross margin was 71%, compared with 76% a year earlier, reflecting the hosted-licensing transition. Contribution revenue was $3.4 million, down from $4.8 million in the prior-year quarter, primarily because initial Gates Foundation funding for the company’s Predictive Toxicology initiative had been completed. The decline was partly offset by a Gates Ventures grant supporting battery research.

Drug discovery revenue increased to $23 million from $13.9 million in the prior-year period, primarily due to a $10 million collaboration milestone from Ajax Therapeutics. Total other income was $48.9 million, primarily associated with the completion of Eli Lilly’s acquisition of Ajax.

Operating expenses declined 6% year over year to $74 million, which Jain attributed to lower headcount, contract research organization costs and professional-services fees. The company reported net income of $6 million, compared with a net loss of $43 million in the second quarter of 2025, and ended the quarter with $419 million in cash and marketable securities.

Bunsen Launch and Software Strategy Schrodinger launched Bunsen in early access during the quarter. Farid described the product as an AI co-scientist designed to execute the company’s validated computational methods and complex multistep workflows. The company said Bunsen can help computational chemists work more efficiently while enabling more drug hunters to use advanced simulations.

Bristol Myers Squibb, a longtime customer and collaborator, is deploying Bunsen and expanding use of Schrodinger’s platform across its research organization under a new strategic software agreement. The agreement combines Bunsen with the company’s computational technologies for large-scale chemical exploration.

Farid said the company expects to capture value from increased use of its platform through its throughput-based licensing model. He also said collaborations with NVIDIA and Google Cloud are providing additional tools and compute resources for Bunsen’s early-access program.

Management said Bunsen is already being used internally in the therapeutics organization. Karen Akinsanya, president, head of therapeutics research and development, and chief strategy officer for partnerships, said the AI system has accelerated workflows involving target analysis, structural biology, and analysis of DMPK, pharmacology and toxicology data.

Chief Technology and COO Pat Lorton said Bunsen can monitor computational jobs, identify failures and attempt restarts, potentially improving utilization of computing resources outside normal working hours.

New Products and Market Demand Schrodinger cited its Predictive Toxicology solution as an emerging contributor to ACV growth. The technology is intended to predict off-target binding risks before synthesis, allowing customers to address potential safety issues earlier in drug discovery. Farid said commercial evaluations are progressing well, though the company did not disclose the specific ACV contribution from the product.

Farid also identified RetroSynth as another new product contributing to growth and said it is included in the Bristol Myers Squibb agreement. He said new products, along with increased usage by existing customers, are a major component of the company’s growth strategy.

On market conditions, Farid said the biotechnology sector has improved compared with last year. He pointed to an increase in biotechnology IPO activity and said the company has seen fewer customers struggling to raise funds than it did in 2025.

Guidance and Therapeutics Portfolio Schrodinger maintained its full-year 2026 ACV guidance of $218 million to $228 million, representing growth of 10% to 15% from 2025. Jain noted that the fourth quarter is typically the company’s largest ACV quarter and generally accounts for more than half of annual ACV.

The company raised its full-year drug discovery revenue outlook to $65 million to $75 million, from a prior range of $55 million to $65 million, reflecting recognition of the Ajax milestone. It expects 2026 operating expenses to be lower than in 2025.

For the third quarter, Schrodinger expects ACV excluding contribution of $41 million to $45 million, compared with $38.3 million in the third quarter of 2025, which included $2.2 million of contribution ACV.

Akinsanya also highlighted Schrodinger’s July collaboration with Simcere Pharmaceutical Group, under which the company is eligible for development and commercial milestones and tiered royalties on net sales. She said the company has realized more than $750 million from therapeutic activities since 2020, including collaborations, co-invented drugs and co-founded companies. She also cited phase I data presented in June for Ajax asset AJ11095, a Type II JAK inhibitor, as initial clinical evidence supporting its intended differentiated target profile.

About Schrodinger (NASDAQ:SDGR)Schrödinger, Inc is a life sciences and materials discovery company that specializes in the application of physics-based computational platforms to accelerate drug discovery and advanced materials design. Founded in 1990 by Professor Richard A. Friesner, Schrödinger has developed a suite of proprietary software tools—such as Maestro for molecular modeling, Glide for molecular docking and Jaguar for quantum chemistry calculations—that enable scientists to predict molecular behavior with high accuracy.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].

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NEW YORK--(BUSINESS WIRE)-- #AgenticAI--Schrödinger, Inc. announced a strategic agreement with BMS to deploy Bunsen, Schrödinger's agentic AI co-scientist, within its research organization.

NEW YORK--(BUSINESS WIRE)---- $SDGR #BunsenAI--Schrödinger, Inc. today announced the launch of its early access version of Bunsen, its new agentic AI co-scientist.

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NEW YORK--(BUSINESS WIRE)--Schrödinger, Inc. (Nasdaq: SDGR) will report its second quarter 2026 financial results on Wednesday, August 5, 2026, after the financial markets close. The company will host a conference call and webcast at 4:30 p.m. ET.

The live webcast can be accessed in the “Investors” section of Schrödinger’s website and will be archived for approximately 90 days following the event.

About Schrödinger
Schrödinger is transforming molecular discovery with its computational platform, which enables the discovery of novel, highly optimized molecules for drug development and materials design. Schrödinger’s software platform is built on more than 30 years of R&D investment and is licensed by biotechnology, pharmaceutical and industrial companies, and academic institutions around the world. Schrödinger also leverages the platform to advance a portfolio of collaborative and proprietary programs. To learn more, visit www.schrodinger.com, follow us on LinkedIn, or visit our blog, Extrapolations.com.

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NEW YORK--(BUSINESS WIRE)--Schrödinger, Inc. (Nasdaq: SDGR) today reported that on July 16, 2026, the company granted restricted stock units (RSUs) with respect to 3,691 shares of the company's common stock to four newly hired employees. These grants were made pursuant to the company's 2021 Inducement Equity Incentive Plan, were approved by the compensation committee of the board of directors pursuant to a delegation by the company's board of directors, and were made as a material inducement to.

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NEW YORK--(BUSINESS WIRE)--Schrödinger, Inc. (Nasdaq: SDGR) today reported that on June 12, 2026, the company granted restricted stock units (RSUs) with respect to 10,771 shares of the company’s common stock to seven newly hired employees. These grants were made pursuant to the company’s 2021 Inducement Equity Incentive Plan, were approved by the compensation committee of the board of directors pursuant to a delegation by the company’s board of directors, and were made as a material inducement to such employees’ acceptance of employment with the company in accordance with Nasdaq Listing Rule 5635(c)(4) as a component of his or her employment compensation.

The RSUs vest over four years, with 25 percent of such RSUs vesting when such employee completes 12 months of continuous service measured from the vesting commencement date, and the balance of the RSUs vesting in a series of successive equal yearly installments of 1/4 of the original number of RSUs upon each such employee’s completion of each additional year of service over the three-year period following the first anniversary of the vesting commencement date.

The inducement grants are subject to the terms and conditions of award agreements covering the grants and the company’s 2021 Inducement Equity Incentive Plan.

About Schrödinger

Schrödinger is transforming molecular discovery with its computational platform, which enables the discovery of novel, highly optimized molecules for drug development and materials design. Schrödinger’s software platform is built on more than 30 years of R&D investment and is licensed by biotechnology, pharmaceutical and industrial companies, and academic institutions around the world. Schrödinger also leverages the platform to advance a portfolio of collaborative and proprietary programs. Founded in 1990, Schrödinger has approximately 800 employees operating from 15 locations globally. To learn more, visit www.schrodinger.com, follow us on LinkedIn, or visit our blog, Extrapolations.com.

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NEW YORK--(BUSINESS WIRE)--Schrödinger, Inc. (Nasdaq: SDGR) today reported that on March 14, 2026, the company granted (i) a non-statutory stock option to purchase 1,950 shares of the company’s common stock to one newly hired employee and (ii) restricted stock units (RSUs) with respect to 4,375 shares of the company’s common stock to two newly hired employees. These grants were made pursuant to the company’s 2021 Inducement Equity Incentive Plan, were approved by the compensation committee of the board of directors pursuant to a delegation by the company’s board of directors, and were made as a material inducement to such employees’ acceptance of employment with the company in accordance with Nasdaq Listing Rule 5635(c)(4) as a component of his or her employment compensation.

The stock option has an exercise price of $12.51 per share, equal to the closing price of the company’s common stock on March 13, 2026. The stock option has a ten-year term and vests over four years, with 25 percent of the shares underlying the option vesting when such employee completes 12 months of continuous service measured from the employment start date and the balance of the shares vesting in a series of successive equal monthly installments of 1/48 of the original number of shares upon the employee’s completion of each additional month of service over the 36-month period following the first anniversary of the employment start date.

The RSUs vest over four years, with 25 percent of such RSUs vesting when such employee completes 12 months of continuous service measured from the vesting commencement date, and the balance of the RSUs vesting in a series of successive equal yearly installments of 1/4 of the original number of RSUs upon each such employee’s completion of each additional year of service over the three-year period following the first anniversary of the vesting commencement date.

The inducement grants are subject to the terms and conditions of award agreements covering the grants and the company’s 2021 Inducement Equity Incentive Plan.

About Schrödinger

Schrödinger is transforming molecular discovery with its computational platform, which enables the discovery of novel, highly optimized molecules for drug development and materials design. Schrödinger’s software platform is built on more than 30 years of R&D investment and is licensed by biotechnology, pharmaceutical and industrial companies, and academic institutions around the world. Schrödinger also leverages the platform to advance a portfolio of collaborative and proprietary programs. Founded in 1990, Schrödinger has approximately 800 employees operating from 15 locations globally. To learn more, visit www.schrodinger.com, follow us on LinkedIn, or visit our blog, Extrapolations.com.

More News From Schrödinger

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Schrodinger, Inc. (NASDAQ: SDGR - Get Free Report) has been given an average recommendation of "Hold" by the nine ratings firms that are presently covering the firm, MarketBeat reports. One research analyst has rated the stock with a sell rating, four have given a hold rating and four have given a buy rating to the company.

Posted by Defense World Staff on Apr 19th, 2026

Schrodinger, Inc. (NASDAQ:SDGR – Get Free Report) CEO Ramy Farid sold 43,000 shares of the company’s stock in a transaction on Thursday, April 16th. The shares were sold at an average price of $12.33, for a total value of $530,190.00. Following the transaction, the chief executive officer directly owned 330,824 shares in the company, valued at $4,079,059.92. The trade was a 11.50% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Ramy Farid also recently made the following trade(s):

On Thursday, March 5th, Ramy Farid sold 3,661 shares of Schrodinger stock. The shares were sold at an average price of $12.91, for a total value of $47,263.51. Schrodinger Trading Up 2.3% NASDAQ:SDGR opened at $12.34 on Friday. The firm has a market capitalization of $910.94 million, a price-to-earnings ratio of -8.69 and a beta of 1.62. Schrodinger, Inc. has a 1-year low of $10.94 and a 1-year high of $27.63. The business’s fifty day moving average price is $11.98 and its 200 day moving average price is $16.02.

Schrodinger (NASDAQ:SDGR – Get Free Report) last posted its quarterly earnings results on Wednesday, February 25th. The company reported $0.44 earnings per share for the quarter, beating the consensus estimate of ($0.13) by $0.57. The firm had revenue of $87.24 million for the quarter, compared to analyst estimates of $83.66 million. Schrodinger had a negative return on equity of 29.47% and a negative net margin of 40.37%.Schrodinger’s quarterly revenue was up 4.7% on a year-over-year basis. During the same period in the previous year, the firm earned ($0.24) earnings per share. Equities analysts forecast that Schrodinger, Inc. will post -2.37 earnings per share for the current year.

Wall Street Analysts Forecast Growth Several brokerages have weighed in on SDGR. Wall Street Zen raised Schrodinger from a “sell” rating to a “hold” rating in a research report on Saturday, January 31st. Weiss Ratings reaffirmed a “sell (e+)” rating on shares of Schrodinger in a research report on Friday, January 9th. TD Cowen reaffirmed a “buy” rating on shares of Schrodinger in a research report on Thursday, January 8th. UBS Group dropped their target price on Schrodinger from $18.00 to $13.00 and set a “neutral” rating on the stock in a research report on Tuesday, March 17th. Finally, KeyCorp dropped their target price on Schrodinger from $25.00 to $20.00 and set an “overweight” rating on the stock in a research report on Wednesday, April 8th. Four investment analysts have rated the stock with a Buy rating, four have given a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, the stock currently has a consensus rating of “Hold” and an average price target of $20.50.

Get Our Latest Stock Analysis on Schrodinger

Institutional Inflows and Outflows Hedge funds have recently bought and sold shares of the company. Vanguard Group Inc. increased its holdings in shares of Schrodinger by 2.0% during the 4th quarter. Vanguard Group Inc. now owns 6,464,426 shares of the company’s stock valued at $115,584,000 after acquiring an additional 125,349 shares during the last quarter. Rubric Capital Management LP increased its holdings in shares of Schrodinger by 5.4% during the 3rd quarter. Rubric Capital Management LP now owns 5,268,817 shares of the company’s stock valued at $105,692,000 after acquiring an additional 268,817 shares during the last quarter. Sumitomo Mitsui Trust Group Inc. increased its holdings in shares of Schrodinger by 3.5% during the 4th quarter. Sumitomo Mitsui Trust Group Inc. now owns 4,714,767 shares of the company’s stock valued at $84,300,000 after acquiring an additional 160,198 shares during the last quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC increased its holdings in shares of Schrodinger by 12.5% during the 4th quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 3,717,890 shares of the company’s stock valued at $66,476,000 after acquiring an additional 414,231 shares during the last quarter. Finally, Amova Asset Management Americas Inc. increased its holdings in shares of Schrodinger by 6.8% during the 4th quarter. Amova Asset Management Americas Inc. now owns 2,819,670 shares of the company’s stock valued at $50,359,000 after acquiring an additional 180,735 shares during the last quarter. 79.05% of the stock is owned by institutional investors and hedge funds.

Schrodinger Company Profile (Get Free Report)

Schrödinger, Inc is a life sciences and materials discovery company that specializes in the application of physics-based computational platforms to accelerate drug discovery and advanced materials design. Founded in 1990 by Professor Richard A. Friesner, Schrödinger has developed a suite of proprietary software tools—such as Maestro for molecular modeling, Glide for molecular docking and Jaguar for quantum chemistry calculations—that enable scientists to predict molecular behavior with high accuracy.

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On April 22, 2026, Schrodinger Inc SDGR shares fell 4.1% today, bringing the current price to $12.35. The stock has experienced a 52-week range between $10.95 and $27.63, reflecting significant volatility and a downward trend over the past year.

GF Value™ verdict: Current price of $12.35 vs GF Value™ of $28.77, indicating a 57.1% upside.GF Score™: 69/100, which suggests the stock is performing above average relative to its peers.Most notable signal: Insiders sold $1.4M in the last 3 months, with no buying activity reported. Is SDGR Overvalued or Undervalued? According to the GF Value™, Schrodinger Inc is currently undervalued, with a fair value estimate of $28.77 compared to its current price of $12.35. This represents a significant margin of safety of 57.1%. Despite the apparent undervaluation, the GF Valuation label indicates that SDGR may be a possible value trap, suggesting investors should approach with caution. GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates.

The current undervaluation of SDGR presents a potential opportunity for investors who are willing to navigate the risks associated with the company's financial strength and historical performance. However, it is crucial to consider the current market conditions and the stock's recent performance, which shows a year-to-date decline of 30.9% and a staggering 52.5% drop over the past year.

How Does SDGR's Valuation Compare to Its History? Metric Current Historical P/E (TTM) Not Available 55.5x Since the P/E (TTM) for Schrodinger Inc is not currently available, this section cannot provide a direct comparison with its historical valuation. However, the historical 5-year median P/E of 55.5x suggests that if the stock were to gain traction, it could potentially exceed its previous valuation levels. This lack of data means that the P/E analysis does not directly affirm or contradict the GF Value™ verdict of undervaluation.

What Does SDGR's GF Score™ Tell Us? Metric Rating GF Score™ 69 Financial Strength 5/10 Profitability 3/10 Growth 9/10 Valuation 2/10 Momentum 4/10 The GF Score™ of 69/100 indicates that Schrodinger Inc is performing above average compared to its peers, primarily driven by its strong growth rank of 9/10. However, areas of concern include its financial strength (5/10) and valuation rank (2/10), suggesting that while the company has growth potential, it may struggle with profitability and current valuation metrics.

What Are Insiders Doing with SDGR Stock? Recent insider activity shows that insiders have sold $1.4 million worth of shares in the last three months, with no buying reported. This trend may indicate a lack of confidence among insiders regarding the company's short-term performance. The absence of insider buying could be a red flag for potential investors, as it suggests that those closest to the company do not see immediate value at current price levels.

What This Means for Investors Based on the GF Value™ analysis, Schrodinger Inc is currently undervalued. However, potential investors should be cautious due to the company's financial strength and the warning of a possible value trap. The significant insider selling further complicates the investment outlook, suggesting that while the stock may present a buying opportunity, it comes with considerable risks.

For the complete analysis, visit the Schrodinger Inc SDGR stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.

Frequently Asked Questions What is SDGR's GF Score™?

SDGR's GF Score™ is 69/100, indicating that the stock is performing above average relative to its peers based on key metrics.

Is SDGR overvalued or undervalued?

SDGR is currently undervalued with a GF Value™ of $28.77 compared to its current price of $12.35, suggesting a significant upside potential.

What is SDGR's P/E ratio?

The P/E ratio for SDGR is not currently available; however, its historical 5-year median P/E is 55.5x, indicating that the stock has previously traded at higher valuation levels.

This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].

First Quarter ACV of $28 Million, Representing 12% Growth

Continued Momentum in Transition to Hosted Software Licensing

Schrödinger to Launch Bunsen, an Agentic AI Co-Scientist, This Summer

Lilly’s Announced $2.3 Billion Acquisition of Ajax Validates Schrödinger’s Track Record of High-Value Collaborations

NEW YORK--(BUSINESS WIRE)--Schrödinger, Inc. (Nasdaq: SDGR) today announced financial results for the quarter ended March 31, 2026.

“Our first quarter results show strong growth in both ACV and drug discovery revenue. ACV growth of 12 percent was driven by usage scale-ups and new deployments; we are also pleased with our progress transitioning customers to hosted licensing. The biopharmaceutical funding environment is improving, and the depth of customer engagement reflects the critical importance of our computational platform that integrates ground truth simulation with leading edge AI. We have a strong commitment to technology leadership and are excited about the release this summer of Bunsen, an agentic AI co-scientist designed to autonomously execute complex molecular discovery workflows and expand utilization to a broader user base,” said Ramy Farid, Ph.D., chief executive officer of Schrödinger. “We also continue to see the impact of our platform through the success of our co-founded companies. Lilly’s announced acquisition of Ajax Therapeutics, in which we have an approximately six percent equity stake, marks another multi-billion dollar acquisition of a Schrödinger co-discovered molecule. This milestone reinforces the strength of our platform, team and integrated business model.”

First Quarter 2026 Operating and Financial Highlights (comparisons are to first quarter 2025, unless otherwise noted)

ACV was $28.4 million, a 12% increase, and $201 million on a trailing four-quarter basis. Software revenue was $35.6 million, a 21% decrease, reflecting the company’s planned accelerated transition to hosted software licensing. Drug discovery revenue was $22.9 million compared to $10.2 million, due to the accelerated recognition of deferred revenue associated with the continued progress of the company’s collaboration portfolio and the discontinuation of one collaboration program. Contribution revenue was $0.1 million, compared to $4.3 million, primarily due to completion of the predictive toxicology grant. Total revenue was $58.6 million, a 2% decrease. Software gross margin was 69%, reflecting the company’s planned accelerated transition to hosted software licensing. Operating expenses were $78.3 million, a 4% decrease. Other expenses, which include changes in fair value of equity investments and interest income/expense, were $10.8 million. Net loss was $60.0 million, compared to $59.8 million. Cash, cash equivalents, restricted cash and marketable securities were $406 million at the end of the first quarter of 2026. Schrödinger now presents contribution revenue and cost of revenue separately from software and drug discovery revenue and cost of revenues. Prior periods have been reclassified to conform to this presentation to facilitate year-over-year comparability.

2026 Financial and Operational Outlook

As of May 5, 2026, Schrödinger maintained its previously issued financial guidance for the fiscal year ending December 31, 2026:

ACV is expected to range from $218 million to $228 million, representing 10-15% growth over 2025. Drug discovery revenue is expected to range from $55 million to $65 million. Operating expenses are expected to be less than 2025. For the second quarter of 2026, ACV is expected to range from $19 million to $23 million, exclusive of contribution ACV, compared to $23.3 million in the second quarter of 2025, which included $5.0 million of contribution ACV.

Recent Highlights

Platform

Today Schrödinger announced plans for release of an early-access version of Bunsen, its new agentic AI co-scientist, this summer. Bunsen autonomously executes complex molecular discovery workflows, expanding the user base and enhancing productivity across Schrödinger’s industry-leading computational platform. Bunsen allows for greater throughput and utilization of Schrödinger’s predict-first approaches, accelerating discovery timelines and improving project outcomes. Schrödinger’s materials science and therapeutics teams have been using Bunsen internally to enhance productivity across research projects. In April, researchers at Schrödinger and Bristol Myers Squibb published the discovery of a series of potent sterile alpha and TIR motif containing 1 (SARM1) inhibitors as a potential treatment for neurodegenerative diseases. The inhibitors were identified through a unique workflow for free-energy perturbation (FEP+). This computational approach identified molecules with unique binding properties while establishing precise dose levels to optimize safety profiles. In March, researchers at Schrödinger and Lilly published a simulation method that predicts the viscosity and injectability of antibody-based drugs by mapping interactions between individual amino acids. This computational approach replaces resource-intensive physical experiments by identifying the specific points of contact where proteins interact with one another. By computationally determining how different additives improve drug consistency, the new method can significantly accelerate the development of subcutaneous treatments. Therapeutics Portfolio

In April, Ajax Therapeutics, a company co-founded by Schrödinger, announced its sale to Lilly for up to $2.3 billion in cash, inclusive of an upfront payment and subsequent payments upon the achievement of certain clinical and regulatory milestones. AJ1-11095, an investigational, once-daily oral, first-in-class Type II JAK2 inhibitor, was designed in collaboration with Schrödinger. As of December 31, 2025, Schrödinger had a 5.8% equity stake in Ajax. Schrödinger is exploring strategic partnerships for mid-and late-stage development of SGR-1505, its differentiated MALT1 inhibitor, and SGR-3515, its Wee1/Myt1 dual inhibitor. In April, Schrödinger presented preliminary Phase 1 clinical data for SGR-3515 at the American Association for Cancer Research (AACR) Annual Meeting. The initial data demonstrated that SGR-3515 was generally well-tolerated on an intermittent dosing schedule and achieved a 65% disease control rate among evaluable participants at doses of 100 mg or higher. Data most recently presented at the American Society of Hematology (ASH) Annual Meeting demonstrated that SGR-1505 was generally well tolerated and clinically active in patients with relapsed/refractory B-cell malignancies, including a 100% response rate in patients with Waldenström macroglobulinemia (WM). SGR-1505 has FDA Fast Track and Orphan Drug Designations for WM.

In March, Structure Therapeutics, a collaborator and company co-founded by Schrödinger, announced positive topline results from its Phase 2 clinical program for aleniglipron, its once-daily oral GLP-1 receptor agonist for the treatment of obesity. Schrödinger has an equity stake in Structure. Webcast and Conference Call Information

Schrödinger will host a conference call to discuss its first quarter 2026 financial results on Tuesday, May 5, 2026, at 4:30 p.m. ET. The live webcast can be accessed under “Events & Presentations" in the investors section of Schrödinger’s website, https://ir.schrodinger.com/news-and-events/event-calendar. To participate in the live call, please register for the call here. It is recommended that participants register at least 15 minutes in advance of the call. Once registered, participants will receive the dial-in information. The archived webcast will be available on Schrödinger’s website for approximately 90 days following the event.

Non-GAAP Information

Included in this press release is certain financial information that has not been prepared in accordance with generally accepted accounting principles in the United States (GAAP). The company presents adjusted EBITDA, which is a non-GAAP financial measure. Adjusted EBITDA is defined as net income (loss) before interest, taxes, depreciation, amortization, and stock-based compensation expense, and further adjusted to exclude gains and losses on equity investments, changes in fair value of equity investments, restructuring costs, litigation and settlement expenses, and, when applicable, other non-recurring items that management does not consider indicative of ongoing operating performance.

Management believes adjusted EBITDA is a useful measure for investors, taken in conjunction with the company’s GAAP financial statements because they provide greater period-over-period comparability with respect to the company’s operating performance, by excluding the effects of capital structure, tax impacts, non-cash depreciation and amortization, non-cash equity compensation expense, non-cash mark-to-market and other valuation adjustments for the company’s equity investments, non-recurring cash distributions from the company’s equity investments, and other non-recurring items that are not reflective of the ongoing performance of the business. However, adjusted EBITDA as a non-GAAP financial measure should be considered only in addition to, not as a substitute for or as superior to, net income (loss) or other financial measures prepared in accordance with GAAP.

Other companies in Schrödinger’s industry may calculate adjusted EBITDA differently than Schrödinger does, limiting their usefulness as comparative measures. For a reconciliation of adjusted EBITDA to GAAP net income (loss), please refer to the tables at the end of this press release.

About Schrödinger

Schrödinger is transforming molecular discovery with its computational platform, which enables the discovery of novel, highly optimized molecules for drug development and materials design. Schrödinger’s software platform is built on more than 30 years of R&D investment and is licensed by biotechnology, pharmaceutical and industrial companies, and academic institutions around the world. Schrödinger also leverages the platform to advance a portfolio of collaborative and proprietary programs. To learn more, visit www.schrodinger.com, follow us on LinkedIn, or visit our blog, Extrapolations.com.

Operating Metrics

To supplement the financial measures presented in this press release and related conference call or webcast in accordance with generally accepted accounting principles in the United States (GAAP), Schrödinger also presents certain other performance metrics, such as annual contract value, or ACV, and ACV by certain industries and customer cohorts.

Annual Contract Value (ACV). Schrödinger tracks the ACV for each customer. With respect to contracts that have a duration of one year or less, or contracts of more than one year in duration that are billed annually, ACV is defined as the contract value billed during the applicable period. For contracts with a duration of more than one year that are billed upfront, ACV in each period represents the total billed contract value divided by the term. ACV should be viewed independently of revenue and does not represent revenue calculated in accordance with GAAP on an annualized basis, as it is an operating metric that can be impacted by contract execution start and end dates and renewal rates. ACV is not intended to be a replacement for, or forecast of, revenue.

ACV by Cohorts. Schrödinger tracks ACV by certain industries and customer cohorts. These cohorts include contribution, which consists of customers from which we derive contribution revenue. We present this ACV separately because it relates to grant agreements accounted for as non-exchange contributions, rather than commercial software contracts. The operating metrics for the cohorts are not prepared in accordance with GAAP and do not correspond to the company’s reportable segments or the allocation of costs for GAAP purposes. These metrics allow management to better understand differences in sales cycles, contract duration, deployment models, renewal behavior, and expansion opportunities among customer and industry groups, supplementing but not replacing Schrödinger’s GAAP results.

Cautionary Note Regarding Forward-Looking Statements

This press release contains forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995 including, but not limited to those statements regarding Schrödinger’s expectations about the speed and capacity of its computational platform, its financial outlook for the fiscal year ending December 31, 2026, and second quarter ending June 30, 2026, its plans to continue to invest in research and its strategic plans to accelerate the growth of its software licensing business and advance its collaborative and proprietary drug discovery programs, the long-term potential of its business, its ability to improve and advance the science underlying its platform, the initiation, timing, progress, and results of its proprietary drug discovery programs and product candidates and the drug discovery programs and product candidates of its collaborators, the clinical potential and favorable properties of SGR-1505 and SGR-3515, its MALT1 and Wee1/Myt1 inhibitors, its plans to explore strategic opportunities for the continued clinical development of SGR-1505 and SGR-3515, potential partnering and other business development activities for its programs, the clinical potential and favorable properties of its collaborators’ product candidates, expectations relating to the potential of, and the timing of release of, Bunsen, its agentic AI co-scientist, the ability for the company to realize potential benefits from its collaborative programs, including the amount and timing of additional milestones, if any, as well as expectations related to the use of its cash, cash equivalents and marketable securities. Statements including words such as “aim,” “anticipate,” “believe,” “contemplate,” “continue,” “could,” “estimate,” “expect,” “goal,” “intend,” “may,” “might,” “plan,” “potential,” “predict,” “project,” “should,” “target,” “will,” “would” and statements in the future tense are forward-looking statements. These forward-looking statements reflect Schrödinger’s current views about its plans, intentions, expectations, strategies and prospects, which are based on the information currently available to the company and on assumptions the company has made. Actual results may differ materially from those described in these forward-looking statements and are subject to a variety of assumptions, uncertainties, risks and important factors that are beyond Schrödinger’s control, including the demand for its software platform, its ability to further develop its computational platform, its reliance upon third-party providers of cloud-based infrastructure to host its software solutions, its ability to transition customers to hosted software deployments, factors adversely affecting the life sciences industry, fluctuations in the value of the U.S. dollar and foreign currencies, its reliance upon its third-party drug discovery collaborators, the uncertainties inherent in drug development and commercialization, such as the conduct of research activities and the timing of and its ability to initiate and complete preclinical studies and clinical trials, whether results from preclinical studies will be predictive of the results of later preclinical studies and clinical trials, uncertainties associated with the regulatory review of investigational new drug application submissions, clinical trials and applications for marketing approvals, the ability to retain and hire key personnel and other risks detailed under the caption “Risk Factors” and elsewhere in the company’s Securities and Exchange Commission filings and reports, including its Quarterly Report on Form 10-Q for the quarter ended March 31, 2026, filed with the Securities and Exchange Commission on May 5, 2026, as well as future filings and reports by the company. Any forward-looking statements contained in this press release speak only as of the date hereof. Except as required by law, Schrödinger undertakes no duty or obligation to update any forward-looking statements contained in this press release as a result of new information, future events, changes in expectations or otherwise.

  Condensed Consolidated Statements of Operations (Unaudited)

(in thousands, except for share and per share amounts)

  Three Months Ended
March 31,

2026

2025

Revenues:

Software products and services

$

35,560

$

44,972

Drug discovery

22,879

10,236

Contribution

148

4,343

Total revenues

58,587

59,551

Cost of revenues:

Software products and services

10,863

9,112

Drug discovery

16,310

14,452

Contribution

1,867

4,863

Total cost of revenues

29,040

28,427

Gross profit

29,547

31,124

Operating expenses:

Research and development

43,824

45,844

Sales and marketing

11,603

10,367

General and administrative

22,914

25,802

Total operating expenses

78,341

82,013

Loss from operations

(48,794

)

(50,889

)

Other (expense) income:

Change in fair value of equity investments

(13,487

)

(13,095

)

Other income

2,663

4,204

Total other expense

(10,824

)

(8,891

)

Loss before income taxes

(59,618

)

(59,780

)

Income tax expense

408

28

Net loss

$

(60,026

)

$

(59,808

)

Net loss per share of common and limited common stockholders, basic and diluted:

$

(0.81

)

$

(0.82

)

Weighted average shares used to compute net loss per share of common and limited common stockholders, basic and diluted:

73,989,137

73,057,916

  Condensed Consolidated Balance Sheets (Unaudited)

(in thousands, except for share and per share amounts)

  Assets

March 31, 2026

December 31, 2025

Current assets:

Cash and cash equivalents

$

260,255

$

230,517

Restricted cash

7,464

6,868

Marketable securities

138,704

164,947

Accounts receivable, net of allowance for doubtful accounts of $440 and $440

27,253

83,041

Unbilled and other receivables, net of allowance for unbilled receivables of $140 and $140

20,930

21,352

Prepaid expenses

9,353

12,540

Total current assets

463,959

519,265

Property and equipment, net

20,447

19,456

Equity investments

39,826

73,647

Goodwill

4,791

4,791

Right of use assets - operating leases

100,198

102,736

Other assets

4,966

6,265

Total assets

$

634,187

$

726,160

Liabilities and Stockholders' Equity:

Current liabilities:

Accounts payable

$

11,945

$

11,452

Accrued payroll, taxes, and benefits

24,776

39,264

Deferred revenue

103,111

112,853

Lease liabilities - operating leases

16,013

16,412

Other accrued liabilities

13,697

9,155

Total current liabilities

169,542

189,136

Deferred revenue, long-term

59,019

78,877

Lease liabilities - operating leases, long-term

90,943

92,816

Other liabilities, long-term

1,135

1,278

Total liabilities

320,639

362,107

Stockholders' equity:

Preferred stock, $0.01 par value. Authorized 10,000,000 shares; zero shares issued and outstanding at March 31, 2026 and December 31, 2025, respectively

—

—

Common stock, $0.01 par value. Authorized 500,000,000 shares; 65,383,310 and 64,515,380 shares issued and outstanding at March 31, 2026 and December 31, 2025, respectively

654

645

Limited common stock, $0.01 par value. Authorized 100,000,000 shares; 9,164,193 shares issued and outstanding at March 31, 2026 and December 31, 2025, respectively

92

92

Additional paid-in capital

1,001,662

992,015

Accumulated deficit

(688,832

)

(628,806

)

Accumulated other comprehensive (loss) income

(28

)

107

Total stockholders' equity

313,548

364,053

Total liabilities and stockholders' equity

$

634,187

$

726,160

  Condensed Consolidated Statements of Cash Flows (Unaudited)

(in thousands)

  Three Months Ended March 31,

2026

2025

Cash flows from operating activities:

Net loss

$

(60,026

)

$

(59,808

)

Adjustments to reconcile net loss to net cash (used in) provided by operating activities:

Change in fair value of equity investments

13,487

13,095

Depreciation and amortization

1,476

1,589

Stock-based compensation

9,073

11,574

Noncash investment accretion

(664

)

(861

)

Loss on disposal of property and equipment

11

—

Decrease (increase) in assets:

Accounts receivable, net

55,788

215,345

Unbilled and other receivables

422

(6,332

)

Reduction in the carrying amount of right of use assets - operating leases

2,538

2,222

Prepaid expenses and other assets

4,486

(788

)

Increase (decrease) in liabilities:

Accounts payable

455

1,344

Accrued payroll, taxes, and benefits

(14,488

)

(20,616

)

Deferred revenue

(29,600

)

(10,804

)

Lease liabilities - operating leases

(2,272

)

(1,669

)

Other accrued liabilities

4,480

(228

)

Net cash (used in) provided by operating activities

(14,834

)

144,063

Cash flows from investing activities:

Purchases of property and equipment

(2,507

)

(596

)

Proceeds from disposition and sale of equity investments, net

20,334

—

Purchases of marketable securities

(34,055

)

(27,556

)

Proceeds from maturity of marketable securities

60,827

58,784

Net cash provided by investing activities

44,599

30,632

Cash flows from financing activities:

Proceeds from issuances of common stock upon stock option exercises

583

423

Principal payments on finance leases

(14

)

(14

)

Net cash provided by financing activities

569

409

Net increase in cash and cash equivalents and restricted cash

30,334

175,104

Cash and cash equivalents and restricted cash, beginning of period

237,385

162,657

Cash and cash equivalents and restricted cash, end of period

$

267,719

$

337,761

Supplemental disclosure of cash flow and noncash information

Cash paid for income taxes

$

266

$

139

Supplemental disclosure of non-cash investing and financing activities

Purchases of property and equipment in accounts payable

78

13

Purchases of property and equipment in accrued liabilities

—

25

  Reconciliation of GAAP Net Loss to Adjusted EBITDA (Unaudited)

(in thousands)

  Three Months Ended

March 31,

2026

2025

Net loss (GAAP)

$

(60,026

)

$

(59,808

)

Change in fair value of equity investments

13,487

13,095

Other income

(2,663

)

(4,204

)

Income tax expense

408

28

Depreciation and amortization

1,476

1,589

Stock-based compensation

9,073

11,574

Reorganization expense (a)

589

—

Litigation and settlement expense (b)

—

390

Adjusted EBITDA

$

(37,656

)

$

(37,336

)

Schrödinger, Inc. (SDGR) Q1 2026 Earnings Call Transcript

-

NEW YORK--(BUSINESS WIRE)--Schrödinger, Inc. (Nasdaq: SDGR) today reported that on May 18, 2026, the company granted (i) a non-statutory stock option to purchase 1,875 shares of the company’s common stock to one newly hired employee and (ii) restricted stock units (RSUs) with respect to 18,766 shares of the company’s common stock to seven newly hired employees. These grants were made pursuant to the company’s 2021 Inducement Equity Incentive Plan, were approved by the compensation committee of the board of directors pursuant to a delegation by the company’s board of directors, and were made as a material inducement to such employees’ acceptance of employment with the company in accordance with Nasdaq Listing Rule 5635(c)(4) as a component of his or her employment compensation.

The stock option has an exercise price of $12.05 per share, equal to the closing price of the company’s common stock on May 18, 2026. The stock option has a ten-year term and vests over four years, with 25 percent of the shares underlying the option vesting when such employee completes 12 months of continuous service measured from the employment start date and the balance of the shares vesting in a series of successive equal monthly installments of 1/48 of the original number of shares upon the employee’s completion of each additional month of service over the 36-month period following the first anniversary of the employment start date.

The RSUs vest over four years, with 25 percent of such RSUs vesting when such employee completes 12 months of continuous service measured from the vesting commencement date, and the balance of the RSUs vesting in a series of successive equal yearly installments of 1/4 of the original number of RSUs upon each such employee’s completion of each additional year of service over the three-year period following the first anniversary of the vesting commencement date.

The inducement grants are subject to the terms and conditions of award agreements covering the grants and the company’s 2021 Inducement Equity Incentive Plan.

About Schrödinger

Schrödinger is transforming molecular discovery with its computational platform, which enables the discovery of novel, highly optimized molecules for drug development and materials design. Schrödinger’s software platform is built on more than 30 years of R&D investment and is licensed by biotechnology, pharmaceutical and industrial companies, and academic institutions around the world. Schrödinger also leverages the platform to advance a portfolio of collaborative and proprietary programs. Founded in 1990, Schrödinger has approximately 800 employees operating from 15 locations globally. To learn more, visit www.schrodinger.com, follow us on LinkedIn, or visit our blog, Extrapolations.com.

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