Schrödinger Revises 2025 Software Growth Forecast to 8%-13% Due to Pharma Scale-Up Delays and Emphasis on Operational Efficiency
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Nov 05 2025
0mins
Should l Buy SDGR?
Source: SeekingAlpha
Management Overview: CEO Ramy Farid reported a 54% increase in total revenue to $54 million for Q3 2025, driven by strong demand for software and drug discovery solutions, while adjusting software revenue growth guidance to 8%-13% due to delays in pharma scale-up opportunities.
Financial Performance: The company achieved software revenue of $40.9 million and drug discovery revenue of $13.5 million, with a net loss of $33 million. Operating expenses decreased, and cash reserves stood at $401 million as of September 30.
Strategic Focus: Schrödinger is shifting its strategy away from advancing internal discovery programs independently, emphasizing early-stage discovery partnerships and operational efficiency to navigate current market challenges.
Analyst Sentiment: Analysts expressed concerns about customer acquisition and growth visibility, noting a cautious tone from management regarding near-term uncertainties, while maintaining optimism about long-term growth potential.
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Analyst Views on SDGR
Wall Street analysts forecast SDGR stock price to rise
7 Analyst Rating
4 Buy
3 Hold
0 Sell
Moderate Buy
Current: 11.310
Low
18.00
Averages
21.83
High
25.00
Current: 11.310
Low
18.00
Averages
21.83
High
25.00
About SDGR
Schrodinger, Inc. operates a physics-based computational platform that enables the discovery of molecules for drug development and materials applications. The software platform is used by biopharmaceutical and industrial companies, academic institutions, and government laboratories around the world. Its segments include Software and Drug Discovery. The Software segment is focused on selling its software to transform drug discovery across the life sciences industry, as well as to customers in the material science industries. The Drug Discovery segment is focused on building a diverse portfolio of preclinical and clinical programs, internally and through collaborations, that have advanced to various stages of discovery and development. The Company's pipeline of drug discovery programs includes SGR-1505 (MALT1 Inhibitor), SGR-2921 (CDC7 Inhibitor), SGR-3515 (WEE1 Inhibitor), and others. Its software has been used by researchers around the world at more than 1,818 academic institutions.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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