Schrödinger, Inc. (SDGR) Stock

Schrödinger, Inc. (SDGR) is a Healthcare stock trading at $19.70 (as of 2026-08-21), with a market capitalization of $1.46B. Figures are sourced from first-party U.S. SEC EDGAR filings and market data.

Please provide the company’s SEC 10-K “Business” (Item 1) text so I can produce a 1–2 sentence, ~45-word description based only on that primary source (per requirements).

Understand Schrödinger, Inc.: how it makes money

Schrödinger provides physics-based software for drug discovery and materials applications, selling software to life sciences and materials science customers (including on-premise and hosted options) and pursuing drug discovery programs through internal efforts and collaborations.

The company’s profit engine is a mix of software revenue, which is tied to customer contracts and delivery of its platform, and drug discovery program economics, which depend on how internal and collaborative preclinical and clinical programs progress and monetize over time.

Revenue by segment (latest quarter)
Software$0.1B
Drug Discovery$0.0B

Business quality (Weak): Strength appears in selling platform software to high value customers and maintaining collaborative activity, but current profitability is pressured (operating margin is deeply negative).

Bull case

  • High value customer base for the software platform: 27 customers have an Annual Contract Value of at least 1 million.
  • Ongoing traction in collaborative drug development: 9 collaborative programs are in the clinic, and 15 ongoing programs are eligible for royalties.

Bear case

  • Profitability is currently weak: Operating margin is -83.3% for the quarter ended 2026-03-31.
  • Drug discovery revenue is relatively small versus software in the provided breakdown: Software-related revenue items are larger in the candidate figures (for example, on-premise 0.03 and hosted 0.01), while drug discovery revenue items shown are 0.02 and 0.02.
Valuation — source: SEC EDGAR (first-party)
Price$19.70
Market Cap$1.46B
Price / Book4.65
Price / Sales6.42
FCF Yield16.9%
Profitability & Growth — source: SEC EDGAR
Revenue (TTM)$255.87M
Net Margin-40.4%
Revenue Growth (YoY)-1.6%
EPS Growth (YoY)-1.2%
FCF Growth (YoY)-112.1%
Financial Health — source: SEC EDGAR
Altman Z-Score1.33 (distress)
Valuation vs Sector & Industry
Sector P/E (Healthcare)21.7
Industry P/E (Pharmaceutical Products)17.2
Smart-Money Activity — SEC Form 4 / 13F / Congressional disclosures
Insider Sells (12mo)5
Top Institutional HolderVANGUARD GROUP INC ($115.58M)
Institutional Holders Tracked10
Company
SectorHealthcare
IndustryPharmaceutical Products
CEORamy Farid
Employees891
CountryUS
IPO Date2020-02-06

Related Companies (Pharmaceutical Products; 8 comparable drugmakers)

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SDGR earnings history · SDGR institutional & insider holders · SDGR KPIs & operating metrics · SDGR financials · SDGR investor presentations & press releases · SDGR SEC filings · SDGR peers · Congress trades · Insider trades · Short interest · Stock screener

Data as of 2026-08-21.

Figures sourced from U.S. Securities and Exchange Commission (SEC EDGAR) filings and market data. Not personalized investment advice.