Schrödinger Lifts 2026 Software And Drug Discovery Outlook After A Structure Therapeutics Milestone
Third-quarter revenue rose 19% to $64.5 million, but the net loss widened to $37.7 million from $32.8 million.
Schrödinger, which sells physics-based molecular modeling software and runs drug discovery collaborations, raised its 2026 outlook for software contract value and drug discovery revenue, according to an 8-K filed Wednesday. A milestone payment from Structure Therapeutics helped third-quarter revenue climb 19% to $64.5 million, while the net loss widened.
Guidance moves up on both lines
Annual contract value, the company's measure of yearly software billings, is now expected at $222 million to $232 million for 2026, up from $218 million to $228 million. Schrödinger said that range represents 12-17% growth over 2025, against 10-15% previously.
Drug discovery revenue guidance rose to $75 million to $85 million from $65 million to $75 million. The company also expects 2026 operating expenses to come in below 2025's level.
A milestone carries the quarter
Drug discovery revenue was $24.2 million, against $13.0 million a year earlier, primarily because of the milestone payment from Structure Therapeutics, a company Schrödinger co-founded. The payment arrived in September and is tied to Structure's study of an oral obesity candidate.
Third-quarter annual contract value was $44.7 million, up 17%, and rose 24% excluding contribution revenue. Software revenue was $38.2 million, up 6%, with hosted software up 49% to $17.2 million, or 45% of software revenue. Software gross margin was 75%, down 2%, which the company tied to its shift toward hosted licenses.
CEO Ramy Farid said the software and drug discovery businesses "reinforce each other."
Losses widen on equity markdowns
The net loss grew to $37.7 million from $32.8 million. Other expense of $11.4 million, primarily from changes in the market value of the company's equity positions, outweighed a 13% fall in operating expenses to $64.4 million.
Schrödinger held $373 million in cash, equivalents, restricted cash and marketable securities at the end of September.
A corrected cancer-drug abstract
The 8-K also corrects an abstract the American Society of Hematology published Wednesday on SGR-1505, Schrödinger's MALT1 inhibitor. The abstract said a combination study in relapsed or refractory B cell malignancies was ongoing. The company said it has not initiated a combination study under its FDA-cleared protocol and, as previously disclosed, is exploring strategic opportunities to continue developing the drug.
Updated Phase 1 data for SGR-1505 will still be presented in an oral session at the ASH annual meeting in New Orleans.
The ASH meeting runs December 12-15, 2026, in New Orleans.
Sources
- 8-K Filing — Schrodinger, Inc. (SDGR) — SEC EDGAR
- Exhibit sdgr-20260930x8kxexx991.htm — Schrodinger, Inc. 8-K exhibit — SEC EDGAR
- Schrodinger Q3 2026 Earnings Call Transcript — benzinga.com
- Schrödinger Reports Third Quarter 2026 Financial Results — businesswire.com
