Schrodinger(US:SDGR)2025-11-05 21:13Financial Performance - The company reported revenue of $54.3 million for the three months ended September 30, 2025, representing a year-over-year increase of 54% from $35.3 million in the same period of 2024[187]. - The net loss for the three months ended September 30, 2025, was $32.8 million, compared to a net loss of $38.1 million for the same period in 2024[187]. - Total revenues rose by 54% to $54,324,000 for the three months ended September 30, 2025, compared to $35,290,000 in 2024[217]. - The company reported a net loss of $135.8 million for the nine months ended September 30, 2025, compared to a net loss of $146.9 million in the same period of 2024[268][269]. Revenue Breakdown - Software products and services revenue increased by 28% to $40,858,000 for the three months ended September 30, 2025, compared to $31,884,000 in 2024[217]. - Drug discovery revenue surged by 295% to $13,466,000 for the three months ended September 30, 2025, compared to $3,406,000 in 2024[217]. - Drug discovery revenue for the nine months ended September 30, 2025, increased by 107% to $38,416,000 compared to $18,519,000 in 2024[217]. - Software revenue from on-premise software grew by 30% to $15,928,000 for the three months ended September 30, 2025, compared to $12,250,000 in 2024[219]. - Hosted software revenue increased by 31% to $11,585,000 for the three months ended September 30, 2025, compared to $8,814,000 in 2024[221]. - Drug discovery services revenue surged by 362% to $13,008,000 for the three months ended September 30, 2025, compared to $2,813,000 in 2024[225]. Expenses and Cost Management - Research and development expenses decreased by 16% to $42,757,000 for the three months ended September 30, 2025, compared to $50,977,000 in 2024[217]. - Total operating expenses decreased by 14% to $73,986,000 for the three months ended September 30, 2025, compared to $86,150,000 in 2024[217]. - Sales and marketing expenses decreased by $825,000 (8%) for the three months ended September 30, 2025, primarily due to a $400,000 reduction in personnel-related expenses[240]. - General and administrative expenses decreased by $3.1 million (13%) for the three months ended September 30, 2025, mainly due to a $2.3 million decrease in personnel-related expenses[242]. - The restructuring implemented in May 2025 is expected to reduce operating expenses by approximately $30 million on an annualized basis[190]. Cash Flow and Financing - As of September 30, 2025, the company had cash, cash equivalents, restricted cash, and marketable securities totaling $401.0 million[258]. - The accumulated deficit as of September 30, 2025, was $661.3 million, reflecting a history of significant operating losses[254]. - The company plans to utilize existing cash and marketable securities primarily to fund software and drug discovery activities[260]. - The company may seek additional equity or debt financing if required, but there is uncertainty regarding the ability to raise such financing on acceptable terms[261]. - For the nine months ended September 30, 2025, the company generated approximately $30.0 million in cash from operating activities, a significant improvement compared to a cash usage of $126.3 million in the same period of 2024[268][269]. Collaborations and Milestones - The company received $147.2 million in cash distributions from Nimbus Therapeutics in connection with Takeda's acquisition of Nimbus Lakshmi, Inc.[178]. - The company is eligible to receive up to $482.0 million in total milestone payments from its collaboration with Bristol-Myers Squibb, with $32.0 million recognized as of September 30, 2025[183]. - The collaboration with Novartis includes an initial upfront fee of $150.0 million and potential total milestone payments of up to $2.272 billion[185]. Clinical Development - The company plans to present additional clinical data from the ongoing Phase 1 clinical trial of SGR-1505 at the American Society of Hematology Annual Meeting in December 2025[171]. - The FDA granted orphan drug designation to SGR-1505 for the potential treatment of mantle cell lymphoma and Waldenström macroglobulinemia[173]. - The company anticipates reporting initial data from the Phase 1 clinical trial of SGR-3515 in the first half of 2026[174]. Market Risks and Obligations - The change in fair value of equity investments showed a decrease of $15.8 million for the three months ended September 30, 2025, compared to a gain of $25.5 million in the same period in 2024[246]. - Other income decreased by $1.1 million (23%) for the three months ended September 30, 2025, attributed to unfavorable currency fluctuations and decreased interest income[248]. - The company has no material non-cancelable obligations under agreements with CRO vendors and other service providers[266]. - There have been no material changes in reported market risks or risk management policies since the last annual report[274].