Schrodinger(SDGR) - 2025 Q3 - Quarterly Results

Financial Performance - Total revenue for Q3 2025 increased 54% to $54.3 million, compared to $35.3 million in Q3 2024[4] - Software revenue for Q3 2025 grew 28% to $40.9 million, up from $31.9 million in Q3 2024[4] - Drug discovery revenue surged 295% to $13.5 million in Q3 2025, compared to $3.4 million in Q3 2024[4] - Net loss for Q3 2025 was $32.8 million, an improvement from a net loss of $38.1 million in Q3 2024[4] - Gross profit for Q3 2025 was $28,039 million, compared to $17,728 million in Q3 2024, reflecting a gross margin improvement[22] - Net loss narrowed to $32,795 million in Q3 2025 from $38,136 million in Q3 2024, indicating improved financial performance[22] - Non-GAAP net loss for Q3 2025 was $42,324 million, compared to $63,685 million in Q3 2024, showing a significant reduction in losses[28] Operating Expenses - Operating expenses decreased by 14% to $74.0 million in Q3 2025, down from $86.2 million in Q3 2024[4] - Operating expenses decreased to $73,986 million in Q3 2025 from $86,150 million in Q3 2024, a reduction of 14%[22] Cash and Assets - Cash, cash equivalents, restricted cash, and marketable securities totaled $401.0 million at the end of Q3 2025, compared to $367.5 million at the end of 2024[4] - Cash and cash equivalents increased to $172,120 million as of September 30, 2025, up from $147,326 million at the end of 2024[24] - Total assets decreased to $653,660 million from $823,226 million at the end of 2024, primarily due to changes in current assets[24] - Total liabilities reduced to $332,308 million from $401,781 million at the end of 2024, reflecting improved financial health[24] Revenue Guidance - Updated software revenue growth guidance for 2025 is now expected to be between 8% and 13%, down from the previous range of 10% to 15%[7] - Drug discovery revenue guidance for 2025 is now projected to be between $49 million and $52 million, up from the prior expectation of $45 million to $50 million[7] Clinical Developments - The FDA granted SGR-1505 Orphan Drug Designation for the treatment of Waldenström macroglobulinemia in October 2025[6] - Schrödinger is progressing the Phase 1 clinical study of SGR-3515, with initial clinical data expected in the first half of 2026[7]