SDGR · Schrödinger, Inc.

Schrödinger's first quarter 2026 results demonstrated continued momentum in Annual Contract Value (ACV), which grew 12% year-over-year to $28.4 million, driven by usage scale-ups and new deployments. This growth occurred alongside a strategic transition to hosted software licensing, which management noted is progressing well but temporarily impacted software revenue. Software revenue declined 21% to $35.6 million, reflecting this planned acceleration to hosted licensing models. Conversely, drug discovery revenue surged to $22.9 million from $10.2 million in the prior year period. This increase was primarily attributed to the accelerated recognition of deferred revenue due to progress in the collaboration portfolio and the discontinuation of one collaboration program. Total revenue saw a slight decline of 2% to $58.6 million. Operating expenses decreased 4% to $78.3 million, contributing to a net loss of $60.0 million, slightly wider than the $59.8 million loss recorded in the same quarter last year. The company ended the quarter with a robust liquidity position of $406 million in cash, cash equivalents, restricted cash, and marketable securities. Management maintained its previously issued financial guidance for the full fiscal year 2026, projecting ACV between $218 million and $228 million, representing 10-15% growth over 2025. Drug discovery revenue is expected to range from $55 million to $65 million. A significant strategic highlight included the announced acquisition of Ajax Therapeutics, a Schrödinger co-founded company, by Lilly for up to $2.3 billion. Schrödinger holds an approximately six percent equity stake in Ajax. Additionally, the company announced plans to launch Bunsen, an agentic AI co-scientist, in the summer of 2026 to expand its user base and enhance productivity.