> ## Content Index
> Fetch the complete content index at: https://www.bullished.co/llms.txt
> Use this file to discover other available public pages before exploring further.

# Schrödinger Burned $96.5 Million In Nine Months While Its Contracted Backlog Shrank
- URL: https://www.bullished.co/schrodinger-burned-96-5-million-in-nine-months-while-its-contracted-backlog-shrank-7c00f0c5/
- Published: 2026-11-04T22:18:36.000Z
- Updated: 2026-11-04T22:18:36.000Z
- Description: The drug-software maker raised its 2026 outlook even as operating cash swung from $30.0 million generated to $96.5 million used.
- Author: Matteo Parrino
- Tags: SEC Filings, SDGR, Industry: Healthcare

Schrödinger, which makes physics-based molecular modeling software and runs drug discovery programs with partners, [used $96.5 million of operating cash](https://www.sec.gov/Archives/edgar/data/0001490978/000149097826000076/sdgr-20260930.htm?ref=bullished.co) in the first nine months of 2026, against $30.0 million generated a year earlier. Its 10-Q, filed Wednesday, also shows remaining contracted work falling, even as management raised full-year guidance.

## A cash swing from Novartis timing

The nine-month swing is largely a collections story. Collections of accounts receivable contributed $34.7 million to operating cash, down from $206.3 million a year earlier. The company ties the 2025 figure to cash collected from its Novartis collaboration, which paid a $150.0 million upfront fee in January 2025.

The net loss for the nine months was $91.8 million, versus $135.8 million a year earlier. It includes a $17.6 million non-cash gain on equity investments, partly offset by $25.8 million of stock-based compensation.

The third quarter alone was a net loss of $37.7 million, against $32.8 million a year earlier, on [revenue of $64.5 million](https://www.sec.gov/Archives/edgar/data/0001490978/000149097826000075/sdgr-20260930x8kxexx991.htm?ref=bullished.co), up 19%. A $14.8 million loss from the change in fair value of equity investments, driven by a roughly $15.3 million unrealized loss on Structure Therapeutics, compares with a $9.7 million gain a year earlier.

## Backlog down, guidance up

Remaining performance obligations, the contracted work still to be recognized as revenue, stood at $186.7 million at September 30, versus $239.9 million at year-end. The drug discovery portion fell to $103.7 million from $134.7 million.

Management nonetheless raised its outlook, according to the company's earnings release. Annual contract value is now expected at [$222 million to $232 million](https://www.businesswire.com/news/home/20261104302582/en/Schrdinger-Reports-Third-Quarter-2026-Financial-Results?ref=bullished.co), from $218 million to $228 million. Drug discovery revenue is now expected at $75 million to $85 million, from $65 million to $75 million.

The company also says it expects revenue to decline in the near term as it moves customers from on-premise licenses to hosted subscriptions, which recognize revenue over the contract term rather than upfront.

## Receivables lean on two customers

Two customers made up 31% and 24% of accounts receivable at September 30, up from 27% and 23% at June 30\. They accounted for 20% and 15% of third-quarter revenue.

The company says its $373.4 million of cash and securities will fund operations for at least 24 months, the same wording as in its [prior quarterly filing](https://www.sec.gov/Archives/edgar/data/0001490978/000149097826000068/sdgr-20260630.htm?ref=bullished.co). The pool stood at $418.8 million at June 30.

The cushion has been built partly by partner payouts, including a roughly $57.2 million cash payment in June when Eli Lilly acquired Ajax Therapeutics. In August, Schrödinger also co-founded Tectora Therapeutics and received 7,154,439 Tectora shares for licensing two early-stage programs.

The company's market value was $2.0 billion at the time of the report, and it will host a call on its third-quarter results Wednesday at 4:30 p.m. ET.

### Sources

- [10-Q Filing — Schrodinger (SDGR)](https://www.sec.gov/Archives/edgar/data/0001490978/000149097826000076/sdgr-20260930.htm?ref=bullished.co) — SEC EDGAR
- [10-Q Filing — Schrodinger (SDGR), Q2 FY2026 filed 2026-08-05 (comparison basis)](https://www.sec.gov/Archives/edgar/data/0001490978/000149097826000068/sdgr-20260630.htm?ref=bullished.co) — SEC EDGAR
- [Earnings release (8-K Item 2.02, sdgr-20260930x8kxexx991.htm) — Schrodinger, filed 2026-11-04](https://www.sec.gov/Archives/edgar/data/0001490978/000149097826000075/sdgr-20260930x8kxexx991.htm?ref=bullished.co) — SEC EDGAR
- [Schrödinger GAAP EPS of -$0.50 beats by $0.17, revenue of $64.49M beats by $16.86M (SDGR:NASDAQ) | Seeking Alpha](https://seekingalpha.com/news/4665608-schrodinger-gaap-eps-of-0%5F50-beats-by-0%5F17-revenue-of-64%5F49m-beats-by-16%5F86m?ref=bullished.co) — seekingalpha.com
- [SOPHiA GENETICS SA (SOPH) Reports Q3 Loss, Beats Revenue Estimates](https://finance.yahoo.com/markets/stocks/articles/sophia-genetics-sa-soph-reports-120003768.html?.tsrc=rss&ref=bullished.co) — Yahoo Finance
- [Schrödinger Reports Third Quarter 2026 Financial Results](https://www.businesswire.com/news/home/20261104302582/en/Schrdinger-Reports-Third-Quarter-2026-Financial-Results?ref=bullished.co) — businesswire.com