Highlights

  • Second quarter 2026 total revenues were $58,889 thousand, and net income was $5,975 thousand, compared with a net loss.
  • Schrodinger received approximately $57.2 million in cash when Eli Lilly and Company completed its acquisition of Ajax Therapeutics.
  • Cash, cash equivalents, restricted cash and marketable securities were $418.8 million, and the accumulated deficit was $682.9 million.
  • Management expects 2026 drug discovery revenue of $65 million to $75 million and ACV of $218 million to $228 million.

Schrodinger, Inc. (NASDAQ:SDGR) shares were trading at USD 30.16 on October 28, 2026, up 12.87%, with a relative volume at time of 3.07. The computational drug discovery company filed its Form 10-Q for the quarter ended June 30, 2026 on August 5, which reported Eli Lilly's June acquisition of Ajax Therapeutics and the July launch of its Bunsen AI co-scientist.

Schrodinger, Inc. is incorporated in Delaware and has its principal executive offices at 1540 Broadway in New York, New York. The company describes a physics-based computational platform for discovering molecules for drug development and materials applications, licensed by biopharmaceutical and industrial companies, academic institutions and government laboratories. It operates through two reportable segments, software and drug discovery. Its proprietary programs include SGR-1505, a MALT1 inhibitor, and SGR-3515, a Wee1/Myt1 inhibitor, both in Phase 1 trials.

Second Quarter 2026 Results

For the three months ended June 30, 2026, total revenues were $58,889 thousand, compared with $54,759 thousand a year earlier. Software products and services revenue was $32,544 thousand, drug discovery revenue was $22,986 thousand and contribution revenue was $3,359 thousand. Hosted software revenue was $15,150 thousand, and on-premise software revenue was $9,297 thousand.

Gross profit was $32,432 thousand. Total operating expenses were $73,979 thousand, and the loss from operations was $(41,547) thousand. Change in fair value of equity investments was $45,868 thousand, which included an unrealized gain of approximately $42.1 million on the Ajax investment. Net income was $5,975 thousand, compared with a net loss of $(43,173) thousand. The company attributed the net income primarily to the $57.2 million cash payment from the Ajax acquisition.

For the six months, total revenues were $117,476 thousand and the net loss was $(54,051) thousand. Annual contract value (ACV), an operating metric, was $29.6 million for the quarter, compared with $23.3 million.

Balance Sheet, Cash Flow and Capital

At June 30, 2026, cash, cash equivalents, restricted cash and marketable securities were $418.8 million, and the accumulated deficit was $682.9 million. The company said it believes its existing cash, cash equivalents and marketable securities will be sufficient to fund operating expenses and capital expenditure requirements through at least the next 24 months, and that it may be required to seek additional financing.

Net cash used in operating activities was $48,904 thousand for the six months, compared with net cash provided of $91,865 thousand. Investing activities provided $103,216 thousand. No shares were sold under the at-the-market program, and $241.1 million remained available.

Developments

In June 2026, Eli Lilly and Company acquired Ajax Therapeutics, a company co-founded by Schrodinger. Ajax shareholders could receive up to $2.3 billion in cash. Schrodinger received approximately $57.2 million, comprising $47.2 million for its equity stake and $10.0 million from a collaboration milestone, and is eligible for further payments.

In July 2026, the company launched the early access version of Bunsen, an agentic AI co-scientist, and expects to release the full commercial version by the end of 2026. It also launched its predictive toxicology solution commercially.

Beyond completing the Phase 1 trials of SGR-1505 and SGR-3515, the company does not intend to initiate additional clinical trials independently and plans to explore strategic partnerships for both programs. It said Lilly terminated an added collaboration target in March 2026.

Outlook

The 10-Q does not provide numerical guidance. On the call, management said it continues to expect full-year 2026 annual contract value of $218 million to $228 million. It now expects drug discovery revenue of $65 million to $75 million, compared with a prior range of $55 million to $65 million, and expects operating expenses to be less than in 2025. For the third quarter, management expects annual contract value excluding contribution of $41 million to $45 million.