Schrödinger, Inc. 8-K

Summary

Q3 2026 results with raised FY2026 guidance. Annual contract value (ACV), a supplemental measure of software contract performance, grew 17%, while a milestone payment lifted drug discovery revenue; total revenue increased 19% as the software and drug discovery businesses continued to reinforce each other.

For FY2026, Schrödinger raised its ACV outlook to $222M-$232M from $218M-$228M and its drug discovery revenue outlook to $75M-$85M from $65M-$75M. It expects operating expenses to be below 2025.

Developments

• Schrödinger contributed two early-stage small-molecule programs, SDGR-4594 and SDGR-8139, to Tectora Therapeutics, a co-founded biotechnology company focused on immunology and inflammation. In exchange, Schrödinger received an equity stake and eligibility for future milestones and royalties; Tectora raised $55M in Series A financing and will use Schrödinger’s drug discovery expertise and computational platform to advance the programs.
• Takeda’s new drug application for zasocitinib, an oral tyrosine kinase 2 inhibitor co-invented by Schrödinger and Nimbus, was accepted by the FDA for Priority Review for moderate-to-severe plaque psoriasis.
• Schrödinger corrected an American Society of Hematology abstract: it has not initiated a combination study of SGR-1505, its MALT1 inhibitor, under its FDA-cleared protocol and is exploring strategic opportunities to continue the program. Updated Phase 1 data are scheduled for an oral presentation at the ASH meeting on 12/12/2026–12/15/2026.
• Research publications demonstrated platform applications in battery electrolyte design, predicting small-molecule interactions with integrin proteins, and screening organic electronic materials for glass transition temperature.

Key Figures

• Drug discovery revenue was $24.2M vs $13.0M, primarily reflecting a milestone payment from Structure Therapeutics. Software revenue was $38.2M, up 6% Y/Y; hosted software revenue grew 49% Y/Y to $17.2M and represented 45% of software revenue. ACV excluding contribution grew 24%; trailing four-quarter ACV was $214M.
• Net loss widened while operating loss narrowed, principally reflecting a $14.8M loss from changes in the fair value of equity investments, versus a $9.7M gain a year earlier. Adjusted EBITDA excludes $7.9M of stock-based compensation in Q3.
• Operating expenses declined 13% Y/Y to $64.4M; software gross margin was 75%, down 2% as the company continued shifting to hosted licenses.
• Cash, cash equivalents, restricted cash and marketable securities totaled $373M at 9/30/2026.

Guidance

Guidance changes, derived from earlier filings

Metric	Period	Earlier guidance	Guidance now	Change
ACV; growth over 2025	FY2026	$218M-$228M; 10%-15% growth over 2025	$222M-$232M; 12%-17%	raised
Drug discovery revenue	FY2026	$65M-$75M	$75M-$85M	raised