SCHRODINGER, INC., 10-Q filed on 5/5/2026
Quarterly Report
v3.26.1
Cover - shares
 3 Months Ended
Mar. 31, 2026
Apr. 23, 2026
Document And Entity Information [Line Items]    
Document Type 10-Q  
Document Quarterly Report true  
Document Period End Date Mar. 31, 2026  
Document Transition Report false  
Entity File Number 001-39206  
Entity Registrant Name Schrodinger, Inc.  
Entity Incorporation, State or Country Code DE  
Entity Tax Identification Number 95-4284541  
Entity Address, Address Line One 1540 Broadway  
Entity Address, Address Line Two 24th Floor  
Entity Address, City or Town New York  
Entity Address, State or Province NY  
Entity Address, Postal Zip Code 10036  
City Area Code 212  
Local Phone Number 295-5800  
Title of 12(b) Security Common stock, par value $0.01 per share  
Trading Symbol SDGR  
Security Exchange Name NASDAQ  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Large Accelerated Filer  
Entity Small Business false  
Entity Emerging Growth Company false  
Entity Shell Company false  
Entity Central Index Key 0001490978  
Current Fiscal Year End Date --12-31  
Document Fiscal Year Focus 2026  
Document Fiscal Period Focus Q1  
Amendment Flag false  
Common stock    
Document And Entity Information [Line Items]    
Entity Common Stock, Shares Outstanding   65,556,531
Limited common stock    
Document And Entity Information [Line Items]    
Entity Common Stock, Shares Outstanding   9,164,193
v3.26.1
Condensed Consolidated Balance Sheets (Unaudited) - USD ($)
$ in Thousands
Mar. 31, 2026
Dec. 31, 2025
Current assets:    
Cash and cash equivalents $ 260,255 $ 230,517
Restricted cash (includes related party amounts of $0 and $72, respectively) 7,464 6,868
Marketable securities 138,704 164,947
Accounts receivable, net of allowance for doubtful accounts of $440 and $440 (includes related party amounts of $0 and $100, respectively) 27,253 83,041
Unbilled and other receivables, net of allowance for unbilled receivables of $140 and $140 20,930 21,352
Prepaid expenses 9,353 12,540
Total current assets 463,959 519,265
Property and equipment, net 20,447 19,456
Equity investments 39,826 73,647
Goodwill 4,791 4,791
Right of use assets - operating leases 100,198 102,736
Other assets 4,966 6,265
Total assets 634,187 726,160
Current liabilities:    
Accounts payable 11,945 11,452
Accrued payroll, taxes, and benefits 24,776 39,264
Deferred revenue 103,111 112,853
Lease liabilities - operating leases 16,013 16,412
Other accrued liabilities 13,697 9,155
Total current liabilities 169,542 189,136
Deferred revenue, long-term 59,019 78,877
Lease liabilities - operating leases, long-term 90,943 92,816
Other liabilities, long-term 1,135 1,278
Total liabilities 320,639 362,107
Commitments and contingencies (Note 5)
Stockholders' equity:    
Preferred stock, $0.01 par value. Authorized 10,000,000 shares; zero shares issued and outstanding at March 31, 2026 and December 31, 2025, respectively 0 0
Additional paid-in capital 1,001,662 992,015
Accumulated deficit (688,832) (628,806)
Accumulated other comprehensive (loss) income (28) 107
Total stockholders' equity 313,548 364,053
Total liabilities and stockholders' equity 634,187 726,160
Common Stock    
Stockholders' equity:    
Common stock 654 645
Limited common stock    
Stockholders' equity:    
Common stock $ 92 $ 92
v3.26.1
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($)
$ in Thousands
Mar. 31, 2026
Dec. 31, 2025
Restricted cash $ 7,464 $ 6,868
Allowance for doubtful accounts receivable 440 440
Allowance for unbilled receivable $ 140 $ 140
Preferred stock, par value (in USD per share) $ 0.01 $ 0.01
Preferred stock, shares authorized (in shares) 10,000,000 10,000,000
Preferred stock, shares issued (in shares) 0 0
Preferred stock, shares outstanding (in shares) 0 0
Related Party    
Restricted cash $ 0 $ 72
Allowance for doubtful accounts receivable $ 0 $ 100
Common Stock    
Common stock, par value (in USD per share) $ 0.01 $ 0.01
Common stock, shares authorized (in shares) 500,000,000 500,000,000
Common stock, shares issued (in shares) 65,383,310 64,515,380
Common stock, shares outstanding (in shares) 65,383,310 64,515,380
Limited common stock    
Common stock, par value (in USD per share) $ 0.01 $ 0.01
Common stock, shares authorized (in shares) 100,000,000 100,000,000
Common stock, shares issued (in shares) 9,164,193 9,164,193
Common stock, shares outstanding (in shares) 9,164,193 9,164,193
v3.26.1
Condensed Consolidated Statements of Operations (Unaudited) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2026
Mar. 31, 2025
Revenues:    
Total revenues $ 58,587 $ 59,551
Cost of revenues:    
Total cost of revenues 29,040 28,427
Gross profit 29,547 31,124
Operating expenses:    
Research and development 43,824 45,844
Sales and marketing 11,603 10,367
General and administrative (includes related party expense of $165 and $109, respectively) 22,914 25,802
Total operating expenses 78,341 82,013
Loss from operations (48,794) (50,889)
Other (expense) income:    
Change in fair value of equity investments (13,487) (13,095)
Other income 2,663 4,204
Total other expense (10,824) (8,891)
Loss before income taxes (59,618) (59,780)
Income tax expense 408 28
Net loss $ (60,026) $ (59,808)
Net loss per share of common and limited common stockholders, basic (in USD per share) $ (0.81) $ (0.82)
Net loss per share of common and limited common stockholders, diluted (in USD per share) $ (0.81) $ (0.82)
Weighted average shares used to compute net loss per share of common and limited common stockholders, basic (in shares) 73,989,137 73,057,916
Weighted average shares used to compute net loss per share of common and limited common stockholders, diluted (in shares) 73,989,137 73,057,916
Software products and services    
Revenues:    
Total revenues $ 35,560 $ 44,972
Cost of revenues:    
Total cost of revenues 10,863 9,112
Drug discovery    
Revenues:    
Total revenues 22,879 10,236
Cost of revenues:    
Total cost of revenues 16,310 14,452
Contribution    
Revenues:    
Total revenues 148 4,343
Cost of revenues:    
Total cost of revenues $ 1,867 $ 4,863
v3.26.1
Condensed Consolidated Statements of Operations (Unaudited) (Parenthetical) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2026
Mar. 31, 2025
Total revenues $ 58,587 $ 59,551
General and administrative 22,914 25,802
Related Party    
General and administrative 165 109
Director    
Related party transactions amount 165 109
Software products and services    
Total revenues 35,560 44,972
Software products and services | Related Party    
Total revenues 3 9
Contribution    
Total revenues 148 4,343
Contribution | Related Party    
Total revenues $ 72 $ 4,343
v3.26.1
Condensed Consolidated Statements of Comprehensive Loss (Unaudited) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2026
Mar. 31, 2025
Statement of Comprehensive Income [Abstract]    
Net loss $ (60,026) $ (59,808)
Changes in market value of investments, net of tax:    
Unrealized loss on marketable securities (135) (130)
Comprehensive loss $ (60,161) $ (59,938)
v3.26.1
Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($)
$ in Thousands
Total
Common stock
Limited common stock
Additional paid-in capital
Accumulated deficit
Accumulated other comprehensive income (loss)
Beginning balance (in shares) at Dec. 31, 2024   63,710,409 9,164,193      
Beginning balance at Dec. 31, 2024 $ 421,445 $ 637 $ 92 $ 946,037 $ (525,541) $ 220
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Unrealized loss on marketable securities $ (130)         (130)
Issuances of common stock upon stock option exercises (in shares) 48,198 48,198        
Issuances of common stock upon stock option exercises $ 423 $ 1   422    
Issuance of common stock upon vesting of RSUs and PRSUs (in shares)   420,395        
Issuance of common stock upon vesting of RSUs and PRSUs 0 $ 4   (4)    
Stock-based compensation 11,574     11,574    
Net loss (59,808)       (59,808)  
Ending balance (in shares) at Mar. 31, 2025   64,179,002 9,164,193      
Ending balance at Mar. 31, 2025 373,504 $ 642 $ 92 958,029 (585,349) 90
Beginning balance (in shares) at Dec. 31, 2025   64,515,380 9,164,193      
Beginning balance at Dec. 31, 2025 364,053 $ 645 $ 92 992,015 (628,806) 107
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Unrealized loss on marketable securities $ (135)         (135)
Issuances of common stock upon stock option exercises (in shares) 185,915 185,915        
Issuances of common stock upon stock option exercises $ 583     581    
Issuance of common stock upon vesting of RSUs and PRSUs (in shares)   682,015        
Issuance of common stock upon vesting of RSUs and PRSUs 0 $ 7   (7)    
Stock-based compensation 9,073     9,073    
Net loss (60,026)       (60,026)  
Ending balance (in shares) at Mar. 31, 2026   65,383,310 9,164,193      
Ending balance at Mar. 31, 2026 $ 313,548 $ 654 $ 92 $ 1,001,662 $ (688,832) $ (28)
v3.26.1
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2026
Mar. 31, 2025
Cash flows from operating activities:    
Net loss $ (60,026) $ (59,808)
Adjustments to reconcile net loss to net cash (used in) provided by operating activities:    
Change in fair value of equity investments 13,487 13,095
Depreciation and amortization 1,476 1,589
Stock-based compensation 9,073 11,574
Noncash investment accretion (664) (861)
Loss on disposal of property and equipment 11 0
Decrease (increase) in assets:    
Accounts receivable, net (includes related party amounts of $100 and $0, respectively) 55,788 215,345
Unbilled and other receivables 422 (6,332)
Reduction in the carrying amount of right of use assets - operating leases 2,538 2,222
Prepaid expenses and other assets 4,486 (788)
Increase (decrease) in liabilities:    
Accounts payable 455 1,344
Accrued payroll, taxes, and benefits (14,488) (20,616)
Deferred revenue (29,600) (10,804)
Lease liabilities - operating leases (2,272) (1,669)
Other accrued liabilities 4,480 (228)
Net cash (used in) provided by operating activities (14,834) 144,063
Cash flows from investing activities:    
Purchases of property and equipment (2,507) (596)
Proceeds from disposition and sale of equity investments, net 20,334 0
Purchases of marketable securities (34,055) (27,556)
Proceeds from maturity of marketable securities 60,827 58,784
Net cash provided by investing activities 44,599 30,632
Cash flows from financing activities:    
Proceeds from issuances of common stock upon stock option exercises 583 423
Principal payments on finance leases (14) (14)
Net cash provided by financing activities 569 409
Net increase in cash and cash equivalents and restricted cash 30,334 175,104
Cash and cash equivalents and restricted cash, beginning of period 237,385 162,657
Cash and cash equivalents and restricted cash, end of period 267,719 337,761
Supplemental disclosure of cash flow and noncash information    
Cash paid for income taxes 266 139
Supplemental disclosure of non-cash investing and financing activities    
Purchases of property and equipment in accounts payable 78 13
Purchases of property and equipment in accrued liabilities $ 0 $ 25
v3.26.1
Condensed Consolidated Statements of Cash Flows (Unaudited) (Parenthetical) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2026
Mar. 31, 2025
Accounts receivable, net $ 55,788 $ 215,345
Related Party    
Accounts receivable, net $ 100 $ 0
v3.26.1
Description of Business
 3 Months Ended
Mar. 31, 2026
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Description of Business Description of Business
Schrödinger, Inc. (the "Company") has developed a differentiated, physics-based computational platform that enables discovery of high-quality, novel molecules for drug development and materials applications more rapidly and at a lower cost, compared to traditional methods. The Company's software platform is licensed by biopharmaceutical and industrial companies, academic institutions, and government laboratories around the world. The Company is also applying its computational platform to advance a broad pipeline of drug discovery programs in collaboration with leading biopharmaceutical companies. In addition, the Company uses its computational platform to discover novel molecules for its pipeline of proprietary drug discovery programs, which the Company is advancing through preclinical and clinical development.
Liquidity, Capital Resources and Funding Requirements
The Company has funded its operations to date from the sale of equity securities, from sales of software solutions and from upfront payments, research funding and milestone payments from drug discovery collaborations, and from distributions on account of, or proceeds from the sale of, the Company's equity stakes in its collaborators. The Company's operating cash flows are impacted by the magnitude and timing of its software sales and by the magnitude and timing of its drug discovery milestone achievements and research funding fees.
On February 28, 2024, the Company filed a universal shelf registration statement on Form S-3 which allows for the offering and selling of an indeterminate number of shares of common stock, preferred stock, depositary shares or warrants, or an indeterminate principal amount of debt securities, from time to time pursuant to one or more offerings at prices and terms to be determined at the time of the sale.
As of March 31, 2026, the Company had cash, cash equivalents, restricted cash, and marketable securities of $406.4 million.
v3.26.1
Significant Accounting Policies
 3 Months Ended
Mar. 31, 2026
Accounting Policies [Abstract]  
Significant Accounting Policies Significant Accounting Policies
(a)Recently Issued Accounting Pronouncements
In November 2024, the Financial Accounting Standards Board (the "FASB") issued Accounting Standards Update ("ASU") No. 2024-03, Income Statement — Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40) — Disaggregation of Income Statement Expenses, which requires disclosure in the notes to the financial statements of specified information about certain costs and expenses. This standard is effective for annual periods beginning after December 15, 2026, and interim periods within annual periods beginning after December 15, 2027, on a prospective basis, with early adoption and retrospective application permitted. The Company has not yet adopted ASU 2024-03 and is still evaluating the impact of the adoption on its consolidated financial statements.
Recently Adopted Accounting Pronouncements
In July 2025, the FASB issued ASU No. 2025-05, Financial Instruments—Credit Losses (Topic 326) — Measurement of Credit Losses for Accounts Receivable and Contract Assets, which provides a practical expedient for estimating expected credit losses. The amendments are effective for annual reporting periods beginning after December 15, 2025, including interim periods within those annual periods, on a prospective basis, with early adoption permitted. The Company adopted this new standard effective January 1, 2026, with no material impact on its consolidated financial statements.
In September 2025, the FASB issued ASU No. 2025-07, Derivatives and Hedging (Topic 815) and Revenue from Contracts with Customers (Topic 606) — Derivatives Scope Refinements and Scope Clarification for Share-Based Noncash Consideration from a Customer in a Revenue Contract, which refines the scope of the guidance on derivatives by adding a new scope exception for certain non-exchange-traded contracts that have an underlying based on operations or activities specific to one of the parties to the contract, and clarifies the interaction between the guidance on revenue from contracts with customers and the guidance on derivatives and equity investments for share-based noncash consideration
from a customer for the transfer of goods or services. The amendments are effective for annual reporting periods beginning after December 15, 2026, including interim periods within those annual periods, with early adoption permitted. The Company adopted this new standard effective January 1, 2026, with no material impact on its consolidated financial statements.
(b)Basis of Presentation and Use of Estimates
The accompanying unaudited condensed consolidated financial statements and the related interim disclosures have been prepared in accordance with U.S. generally accepted accounting principles ("U.S. GAAP") and pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC") for the interim financial information. These unaudited condensed consolidated financial statements include all adjustments necessary, consisting of only normal recurring adjustments, to fairly state the financial position and the results of the Company’s operations and cash flows for interim periods in accordance with U.S. GAAP. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted as permitted by the SEC’s rules and regulations for interim reporting. Interim period results are not necessarily indicative of results of operations or cash flows for a full year or any subsequent interim period. The accompanying unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025, which was filed with the SEC on February 25, 2026.
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. Significant estimates include the assumptions used in the allocation of revenue and estimates regarding the progress of completing performance obligations under collaboration agreements. Actual results could differ from those estimates, and such differences may be material to the unaudited condensed consolidated financial statements.
(c)Reclassifications of Prior Year Presentation
Certain prior period amounts have been reclassified to conform to the current period presentation. In connection with the preparation of the Company's unaudited condensed consolidated financial statements, the Company combined software contribution revenue with drug discovery contribution revenue and now presents these revenues collectively as contribution revenue. In addition, the Company combined software contribution cost of revenues with drug discovery contribution cost of revenues and now presents contribution cost of revenues separately from software cost of revenues and drug discovery cost of revenues.
These changes were made to better reflect the varying nature of revenue recognition. The reclassifications had no impact on total revenue, gross profit, operating loss, net loss, or cash flows for any period presented in this Quarterly Report.
(d)Principles of Consolidation
The Company’s unaudited condensed consolidated financial statements include the accounts of Schrödinger, Inc. and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. The functional currency for foreign entities is the U.S. dollar. The Company accounts for investments over which it has significant influence, but not a controlling financial interest, using the equity method.
(e)Restricted Cash
Restricted cash consists of letters of credit held with the Company’s financial institution related to facility leases, certificates of deposit held as collateral for its credit card facility, and funds received from certain grants which are restricted to their use. These items are classified as current in the Company’s balance sheets based on their maturity or the term of the grant.
(f)Concentrations
Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of trade receivables and contract assets, which represent contracted unbilled receivables.
The Company does not require customers to provide collateral to support accounts receivable. If deemed necessary, credit reviews of significant new customers may be performed prior to extending credit. The determination of a customer’s ability to pay requires judgment, and failure to collect from a customer can adversely affect revenue, cash flows, and results of operations.
As of March 31, 2026, three customers accounted for 21%, 18%, and 11% of total accounts receivable, respectively. As of December 31, 2025, one customer accounted for 10% of total accounts receivable. As of March 31, 2026, two customers accounted for 24% and 13% of total contract assets, respectively. As of December 31, 2025, three customers accounted for 21%, 12%, and 10% of total contract assets, respectively.
For the three months ended March 31, 2026, two customers accounted for 22% and 18% of total revenue, respectively. For the three months ended March 31, 2025, one customer accounted for 21% of total revenue.
(g)Income Taxes
The Company records deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the financial statement carrying amounts and the tax basis of the assets and liabilities. Deferred tax assets are reduced by a valuation allowance when it is estimated to become more likely than not that a portion of the deferred tax assets will not be realized. Accordingly, the Company currently maintains a full valuation allowance against U.S. federal and state net deferred tax assets.
The Company recognizes the benefit of a tax position in the consolidated financial statements in the period during which, based on all available evidence, management believes it is more likely than not that the position will be sustained upon examination, including the resolution of appeals or litigation processes, if any. Interest and penalties accrued on unrecognized tax benefits are included within income tax expense in the consolidated financial statements.
(h)Equity Investments
In the normal course of business, the Company has entered, and may continue to enter, into collaboration agreements with companies to perform drug and materials design services for such companies in exchange for equity ownership stakes in such companies. If it is determined that the Company has control over the investee, the investee is consolidated in the financial statements. If the investee is consolidated with the Company and less than 100% of the equity is owned by the Company, the Company will present non-controlling interest to represent the portion of the investee owned by other investors. If it is determined that the Company does not have control over the investee, the Company evaluates the investment for the ability to exercise significant influence.
Equity investments over which the Company has significant influence may be accounted for under equity method accounting in accordance with Accounting Standards Codification ("ASC") Topic 323, Equity Method and Joint Ventures. If it is determined that the Company does not have significant influence over the investee, and there is no readily determinable fair value for the investment, the equity investment may be accounted for at cost less impairment, in accordance with ASC Topic 321, Investments - Equity Securities.
For further information regarding the Company’s equity investments, see Note 4, Fair Value Measurements and Note 10, Equity Investments.
(i)Net Loss per Share Attributable to Common and Limited Common Stockholders
The outstanding equity of the Company consists of common stock and limited common stock. The Company considers all limited common stock to be participating securities as the holders are entitled to the same dividend rights as holders of common stock and therefore net income (loss) attributable to common and limited common stockholders is identical for both classes.
Undistributed earnings allocated to the participating securities are subtracted from net income in determining net income (loss) attributable to common and limited common stockholders. Basic net income (loss) per share is computed by dividing net income (loss) attributable to common and limited common stockholders by the weighted-average number of shares of common and limited common stock outstanding during the period.
For the calculation of diluted net income, net income attributable to common and limited common stockholders for basic net income is adjusted by the effect of dilutive securities, including awards under the Company’s equity compensation plans. Diluted net income per share attributable to common and limited common stockholders is computed by dividing the resulting net income attributable to common and limited common stockholders by the weighted-average number of fully diluted shares of common and limited common stock outstanding.
v3.26.1
Revenue Recognition
 3 Months Ended
Mar. 31, 2026
Revenue from Contract with Customer [Abstract]  
Revenue Recognition Revenue Recognition
Revenue is recognized upon transfer of control of promised products or services to customers in an amount that reflects the consideration to which the Company expects to be entitled in exchange for promised goods or services. The Company’s performance obligations are satisfied either over time or at a point in time, which can result in different revenue recognition patterns.
The following table illustrates the timing of the Company’s revenue recognition patterns:
Three Months Ended March 31,
20262025
Software products and services – point in time24.2 %43.0 %
Software products and services – over time36.5 32.5 
Drug Discovery – point in time— 2.1 
Drug Discovery – over time39.1 15.1 
Contribution – point in time— — 
Contribution – over time0.2 7.3 
(a)Software Products and Services
The Company enters into contracts that can include various combinations of licenses, products and services, most of which are distinct and are accounted for as separate performance obligations. For contracts with multiple performance obligations, the Company allocates the transaction price of the contract to each performance obligation on a relative standalone selling price ("SSP") basis. Revenue is recognized net of any sales and value-added taxes collected from customers and subsequently remitted to governmental authorities.
The Company's software business derives revenue from four sources: (i) on-premise software license fees, (ii) hosted software subscription fees, (iii) software maintenance fees, and (iv) professional services fees.
On-premise software. The Company's on-premise software license arrangements grant customers the right to use its software on their own in-house servers or their own cloud instances for a specified term, typically for one year, though in recent years, the Company has entered into a small number of large multi-year on-premise software license agreements. The Company recognizes revenue for on-premise software license fees upfront, either upon transfer of control of the license or the effective date of the agreement, whichever is later. In instances where the timing of the transfer of control differs from the timing of invoicing, the Company considers whether a significant financing component exists. The Company has elected the practical expedient to not assess for significant financing where the term is less than one year. The Company's updates and upgrades are not integral to maintaining the utility of the software licenses. Payments typically are received upfront or annually.
Hosted software. Hosted software revenue consists primarily of fees to provide the Company's customers with hosted licenses, which allows these customers to access the Company's cloud-based software solution on their own hardware without taking control of the licenses, and is recognized ratably over the term of the arrangement, which is typically one year, though in recent years, the Company has entered into a small number of large multi-year hosted software license agreements. When a customer enters into a hosted arrangement for which revenue is recognized over time, the amount paid upfront that is not recognized in the current period is included in deferred revenue in the Company's statement of financial position until the period in which it is recognized.
Software maintenance. Software maintenance includes technical support, updates, and upgrades related to the Company's on-premise software licenses. Software maintenance revenue is recognized ratably over the term of the
arrangement. Software maintenance activities are performed in connection with the use of the Company's on-premise software.
Professional services. Professional services include training, technical setup, installation or assisting customers with modeling services, where the Company uses its software to perform tasks such as virtual screening on behalf of the Company’s customers. These services are generally not related to the core functionality of the Company's software and are recognized as revenue when resources are consumed.
The following table presents the revenue recognized from the sources of software products and services revenue:
Three Months Ended March 31,
20262025
On-premise software$14,180 $25,423 
Hosted software12,080 10,872 
Software maintenance6,662 6,796 
Professional services2,638 1,881 
Total software revenue$35,560 $44,972 
(b)Drug Discovery
Revenue from drug discovery and collaboration services contracts includes revenue from research services and the achievement of milestones.
Research services revenue is generally recognized over time, typically by measuring the progress toward complete satisfaction of the relevant performance obligation using an appropriate input method based on the services promised to the customer, such as costs incurred and hours expended. This method of recognizing revenue requires the Company to make estimates of the work required to complete the performance obligation in order to determine the progress towards completion. Payments for research services are generally due upfront at the start of a contract or periodically through the contract term.
In addition, the Company is generally entitled to receive variable consideration as certain milestones are achieved. The Company estimates the amount of variable consideration using the most likely amount method at contract inception and at the end of each reporting period. The Company evaluates milestones on a case-by-case basis, including whether there are factors outside the Company’s control that could result in a significant reversal of revenue, and the likelihood and magnitude of a potential reversal. If achievement of a milestone is not considered probable or the event is outside of the Company's control, the Company constrains variable consideration to exclude the milestone payment until it is deemed probable of achievement and that a significant reversal in revenue would not occur. Upon removal of the constraint on variable consideration, revenue may be recognized at a point in time or over time by applying the allocation guidance of ASC Topic 606, Revenue from Contracts with Customers ("Topic 606").
As of March 31, 2026, there were no milestones not yet achieved that were determined to be probable of achievement, and no corresponding drug discovery milestone revenue was recognized for the three months ended March 31, 2026. As of March 31, 2025, milestones not yet achieved that were determined to be probable of achievement totaled $2,000, of which $487 was recognized as drug discovery milestone revenue for the three months ended March 31, 2025.
(c)Contribution
Software contribution revenue. Software contribution revenue consists of funds received under non-reciprocal agreements, as amended, with Gates Ventures, LLC and the Bill & Melinda Gates Foundation. The agreements are an unconditional non-exchange contribution without restrictions. Revenue is recognized annually, when invoiced or as costs are incurred and conditions are met, in accordance with ASC Topic 958, Not-for-Profit Entities ("Topic 958"), as the agreements are not an exchange transaction.
The agreement, as amended, with Gates Ventures, LLC was originally entered into in June 2020, and further extended through August 13, 2026, and provides for total additional consideration of up to $9,000. Revenue is recognized
annually, when invoiced, in accordance with Topic 958. No revenue was recognized on this agreement during the three months ended March 31, 2026 and 2025. As of both March 31, 2026 and December 31, 2025, the Company had no deferred revenue balance related to this agreement. As of both March 31, 2026 and December 31, 2025, the Company had no accounts receivable related to this agreement.
The agreement, as amended, with the Bill & Melinda Gates Foundation was originally entered into in July 2024, and subsequently extended through April 2026, to fund the initiative to accelerate the expansion of the Company's computational platform to predict toxicity associated with binding to off-target proteins. Revenue is recognized as costs are incurred and conditions are met in accordance with Topic 958. The Company recognized revenue of zero and $3,844 related to these agreements during the three months ended March 31, 2026 and 2025, respectively. As of both March 31, 2026 and December 31, 2025, the Company had no deferred revenue balances related to these agreements. As of March 31, 2026 and December 31, 2025, the Company had no accounts receivable related to these agreements.
Drug discovery contribution revenue. Drug discovery contribution revenue primarily consists of funds received under agreements with the Bill & Melinda Gates Foundation on a cost reimbursement basis to perform services aimed at accelerating drug discovery in women's health. The agreement began in November 2021 and the Company currently performs services aimed at accelerating drug discovery in women's health under an agreement with the Bill & Melinda Gates Foundation that extends through July 2026. Revenue is recognized as costs are incurred and conditions are met in accordance with Topic 958. The Company recognized revenue of $72 and $499 related to these agreements during the three months ended March 31, 2026 and 2025, respectively. As of March 31, 2026 and December 31, 2025, the Company had deferred revenue balances related to these agreements of zero and $72, respectively.
The following table presents the revenue recognized from the sources of contribution revenue:
Three Months Ended March 31,
20262025
Software contribution$— $3,844 
Drug discovery contribution148 499 
Total contribution revenue$148 $4,343 
(d)Collaboration and License Agreements
Bristol Myers-Squibb. On November 22, 2020, the Company entered into an exclusive, worldwide collaboration and license agreement with Bristol-Myers Squibb Company ("BMS"), pursuant to which the Company and BMS agreed to collaborate in the discovery, research and preclinical development of new small molecule compounds for disease indications in oncology, neurology, and immunology therapeutics areas. Under the agreement, the Company was initially responsible, at its own cost and expense, for the discovery of small molecule compounds directed to five specified biological targets pursuant to a mutually agreed research plan for each such target. In December 2022, the Company and BMS entered into an amendment to the agreement to include an additional target in neurology on terms similar to the original agreement. As a result of BMS electing not to proceed with further development of certain targets, there is one remaining neurology target under the agreement, as amended, as of March 31, 2026.
Once a development candidate meeting specified criteria for a target under the agreement has been identified by the Company, BMS will be solely responsible for the further development, manufacturing and commercialization of such development candidate at its own cost and expense. The Company, at its discretion, can further advance the development of any programs that have been returned by BMS.
Under the terms of the agreement, as amended, BMS paid the Company an initial upfront payment of $55.0 million in November 2020, an additional upfront payment in December 2022, and a program fee in December 2024. As of March 31, 2026, the Company is eligible to receive up to $482.0 million in total milestone payments related to the one remaining neurology target currently subject to the collaboration, consisting of up to $257.0 million in the aggregate for the achievement of certain specified research, development, and regulatory milestones and $225.0 million in the aggregate for the achievement of certain specified commercial milestones. As of March 31, 2026, the Company has recognized $32.0 million in revenue related to milestones under this agreement.
The Company is also entitled to a tiered percentage royalty on annual net sales ranging from mid-single digits to low-double digits, subject to certain specified reductions. Royalties are payable by BMS on a licensed product-by-licensed product and country-by-country basis until the later of the expiration of the last valid claim covering the licensed product in such country, expiration of all applicable regulatory exclusivities in such country for such licensed product and the tenth anniversary of the first commercial sale of such licensed product in such country.
The Company assessed the collaboration and license agreement in accordance with Topic 606 and concluded that BMS is a customer based on the agreement structure. At inception, the Company identified one performance obligation for each of the five programs initially covered under the agreement, which includes research activities for each program and a license grant for the underlying intellectual property. The Company determined that the license grant for intellectual property is not separable from the research activities, as the research activities are expected to significantly modify or enhance the license grant over the period of service, and therefore are not distinct in the context of the contract.
The Company determined that the transaction price at the onset of the agreement was $55.0 million. Additional consideration to be paid to the Company upon the achievement of future milestone payments was excluded from the transaction price as it represents milestone payments that were not considered probable as of the inception date such that there is not a significant risk of revenue reversal.
The Company has allocated the transaction price of $55.0 million to each performance obligation based on the relative SSP of each performance obligation at inception. The Company determined the estimated SSP at contract inception of the research activities based on internal estimates of the costs to perform the services, inclusive of a reasonable profit margin. Significant inputs used to determine the total costs to perform the research activities included the length of time required, the internal hours expected to be incurred on the services and the number and costs of various studies that will be performed to complete the research plan.
During the three months ended March 31, 2026 and 2025, the Company recognized $0.7 million and $0.6 million, respectively, of revenue associated with the agreement based on the research activities performed and milestones achieved. As of March 31, 2026 and December 31, 2025, there was $2.5 million and $3.2 million, respectively, of deferred revenue related to the agreement, which was classified as either current or non-current in the condensed consolidated balance sheet based on the period the services are expected to be performed. As of both March 31, 2026 and December 31, 2025, the Company had no outstanding receivables for this collaboration.
Novartis. On November 11, 2024, the Company entered into a research collaboration and license agreement with Novartis Pharma AG ("Novartis"), pursuant to which the Company and Novartis agreed to collaborate on the discovery, research and preclinical development of small molecule compounds for targets in certain specified therapeutic areas. The agreement is intended to advance multiple development candidates for development and commercialization by Novartis. The Company also entered into an expanded three-year software agreement with Novartis that substantially increases Novartis' access to the Company’s computational predictive modeling technology and enterprise informatics platform. Under Topic 606, the research collaboration and license agreement as well as the three-year software agreement ("the agreements") are collectively accounted for as a single contract.
Under the terms of the research collaboration and license agreement, once a development candidate has been identified, Novartis will be solely responsible for the further development, manufacturing and commercialization of such development candidate.
Novartis agreed to pay the Company an initial upfront payment of $150.0 million under the terms of the research collaboration and license agreement, and the Company is eligible to receive up to $2.272 billion in total milestone payments across the initial programs. Such milestones consist of up to $892.0 million in discovery and development milestones and up to $1.38 billion in commercial milestones. The Company is also entitled to a tiered percentage royalty ranging from mid-single-digits to low double-digits on products commercialized by Novartis under the agreement, subject to certain specified reductions. For the three months ended March 31, 2026 and 2025, no revenue was recognized related to milestones under this agreement.
The Company assessed the research collaboration and license agreement in accordance with Topic 606 and concluded that Novartis is a customer based on the agreement structure. The promises identified by the Company include research activities for each program under the agreement, a license grant for the underlying intellectual property, and software licenses and services. The Company determined that the license grant for intellectual property is not separable from the research activities, as the research activities are expected to significantly modify or enhance the license grant over
the period of service, and therefore are not distinct in the context of the contract. Software licenses and services provided under the agreement are considered distinct and are accounted for as separate performance obligations in accordance with Topic 606.
The Company has allocated the transaction price for the agreements to each performance obligation based on the relative SSP of each performance obligation at inception. The Company determined the estimated SSP of the research activities at contract inception based on internal estimates of the costs to perform the services, inclusive of a reasonable profit margin. Significant inputs used to determine the total costs to perform the research activities included the length of time required, the internal hours expected to be incurred on the services and the number and costs of various studies that will be performed to complete the research plan.
During the three months ended March 31, 2026 and 2025, the Company recognized $11.7 million and $5.7 million of revenue, respectively, associated with the research collaboration and license agreement. As of March 31, 2026 and December 31, 2025, there was $88.8 million and $100.5 million of deferred revenue, net of contract assets, respectively, related to the agreements, which was classified as either current or non-current in the condensed consolidated balance sheets based on the period the services are expected to be performed. As of both March 31, 2026 and December 31, 2025, the Company had no outstanding receivables for this collaboration.
(e)Significant Judgments
Significant judgments and estimates are required under Topic 606. Due to the complexity of certain contracts, the actual revenue recognition treatment required under Topic 606 for the Company’s arrangements may be dependent on contract-specific terms and may vary in some instances.
The Company's contracts with customers often include but are not limited to promises to transfer multiple software products and services, including training, professional services, technical support services, and rights to unspecified updates, as well as collaborative research services, licenses to intellectual properties, and customer options. Determining whether licenses and services are distinct performance obligations that should be accounted for separately, or are not distinct and therefore should be accounted for together, requires significant judgment. Some arrangements, such as most of the Company's term-based software license arrangements, may include multiple software licenses, a right to updates or upgrades to the licensed software products, and technical support. The Company has concluded that such promised licenses and services are separate distinct performance obligations. In other arrangements, including collaboration services arrangements, the licenses and certain services may not be distinct from each other.
The Company is required to estimate the total consideration expected to be received from contracts with customers, including any variable consideration. For collaborative arrangements, under which the Company is eligible to receive variable consideration in the form of milestones payments, judgment is required to evaluate whether the milestones are considered probable of being achieved. If it is probable that a significant revenue reversal would not occur, the constraint is removed and value of the associated milestone is included in the estimated transaction price using the most likely amount method based on contractual requirements and historical experience. Once the estimated transaction price is established, amounts are allocated to the performance obligations that have been identified. The transaction price is allocated to each separate performance obligation on a relative SSP basis consistent with the allocation objectives of Topic 606.
Judgment is required to determine the SSP for each distinct performance obligation. The Company rarely licenses or sells products on a standalone basis, so the Company is required to estimate the SSP for each performance obligation. In instances where the SSP is not directly observable because the Company does not sell the license, product, or service separately, the Company determines the SSP using information that includes historical discounting practices, market conditions, cost-plus analysis, and other observable inputs. The Company typically has more than one SSP for individual software license performance obligations due to the stratification of those items by volume of sales, classes of customers and other relevant circumstances. In these instances, the Company may use information such as the size and geographic region of the customer in determining the SSP. Professional service revenue is recognized as costs and hours are incurred, and judgment is required in estimating both the project status and the costs incurred or hours expended.
If a group of agreements are so closely related to each other that they are, in effect, part of a single arrangement, such agreements are deemed to be one arrangement for revenue recognition purposes. The Company exercises significant judgment to evaluate the relevant facts and circumstances in determining whether the separate agreements should be accounted for separately or as, in substance, a single arrangement. The Company's judgments about whether a group of
contracts comprises a single arrangement can affect the allocation of consideration to the distinct performance obligations, which could have an effect on results of operations for the periods involved.
Judgment is required to determine the total costs to perform research activities, which include the length of time required, the internal hours expected to be incurred on the services, and the number and costs of various studies that may be performed by third parties to complete the research plan.
Generally, the Company has not experienced significant returns or refunds to customers.
The Company's estimates related to revenue recognition may require significant judgment and a change in these estimates could have an effect on the Company's results of operations during the periods involved.
(f)Contract Balances
The timing of revenue recognition may differ from the timing of invoicing to customers and these timing differences result in receivables, contract assets, or contract liabilities (deferred revenue) on the condensed consolidated balance sheets. The Company records a contract asset when revenue is recognized prior to invoicing. A deferred revenue liability is recorded when revenue is expected to be recognized subsequent to invoicing. For the Company's time-based software agreements, customers are generally invoiced at the beginning of the arrangement for the entire term, though when the term spans multiple years the customers may be invoiced on an annual basis. For certain drug discovery agreements where the milestones are deemed probable in a period prior to when the milestone is achieved, the Company records a contract asset for the full value of the milestone.
For the three months ended March 31, 2026 and 2025, the Company recognized $24,804 and $29,493, of revenue, respectively, that was included in software deferred revenue at the end of the respective preceding periods. For the three months ended March 31, 2026 and 2025, the Company recognized $22,397 and $7,755, of revenue, respectively, that was included in drug discovery deferred revenue at the end of the respective preceding periods. For the three months ended March 31, 2026 and 2025, the Company recognized $131 and $4,471, of revenue, respectively, that was included in contribution deferred revenue at the end of the respective preceding periods. All other deferred revenue activity is due to the timing of invoices in relation to the timing of revenue, as described above.
Contract assets are included in unbilled and other receivables within the condensed consolidated balance sheets and are transferred to receivables when the Company invoices the customer.
Contract balances were as follows:
As of March 31, 2026As of December 31, 2025
Contract assets$19,196 $19,698 
Deferred revenue, short-term:
Software products and services60,755 66,695 
Drug discovery42,356 46,027 
Contribution— 131 
Deferred revenue, long-term:
Software products and services6,202 7,333 
Drug discovery52,817 71,544 
Contribution— — 
Backlog represents contracted but unsatisfied performance obligations that had not yet been billed to the customer or included in deferred revenue. Remaining performance obligations represent total backlog and deferred revenue.
Remaining performance obligations were as follows:
As of March 31, 2026As of December 31, 2025
Deferred revenueTotalTotal
Software products and services$66,957 $74,028 
Drug discovery95,173 117,571 
Contribution— 131 
Total deferred revenue162,130 191,730 
Backlog
Software products and services31,630 31,036 
Drug discovery17,206 17,100 
Contribution— — 
Total backlog48,836 48,136 
Remaining performance obligations
Software products and services98,587 105,064 
Drug discovery112,379 134,671 
Contribution— 131 
Total remaining performance obligations$210,966 $239,866 
The Company expects to recognize as revenue approximately 55% of its March 31, 2026 remaining performance obligations in the next 12 months and the remainder thereafter. The Company expects to recognize as revenue approximately 74% of its March 31, 2026 remaining software performance obligation in the next 12 months and the remainder thereafter. The Company expects to recognize as revenue approximately 39% of its March 31, 2026 remaining drug discovery performance obligation in the next 12 months and the remainder thereafter.
Payment terms and conditions vary by contract type, although terms typically require payment within 30 to 60 days. In instances where the timing of revenue recognition differs from that of invoicing, the Company has determined that its contracts generally do not include a significant financing component. The primary purpose of invoicing terms is to provide customers with simplified and predictable ways of purchasing the Company's products and services, not to facilitate financing arrangements.
(g)Deferred Sales Commissions
The Company has applied the practical expedient for sales commission expense, as any material compensation paid to sales representatives to obtain a contract relates to a period of one year or less. The Company has not capitalized any costs related to sales commissions.
v3.26.1
Fair Value Measurements
 3 Months Ended
Mar. 31, 2026
Fair Value Disclosures [Abstract]  
Fair Value Measurements Fair Value Measurements
Various inputs are used in determining the fair value of the Company’s financial assets and liabilities. These inputs are summarized into the following three broad categories:
Level 1 – quoted prices in active markets for identical securities
Level 2 – other significant observable inputs, including quoted prices for similar securities, interest rates, credit risk, etc.
Level 3 – significant unobservable inputs, including the Company’s own assumptions in determining fair value
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. Marketable securities, which consist primarily of corporate and U.S. government agency bonds, are classified as available for sale and fair value did not differ significantly from carrying value as of March 31, 2026 and December 31, 2025.
The following table presents information about the Company’s assets measured at fair value as of March 31, 2026:
Level 1Level 2Level 3Total
Assets:
Cash and cash equivalents and restricted cash$267,719 $— $— $267,719 
Marketable securities— 138,704 — 138,704 
Equity investments32,820 — — 32,820 
Total$300,539 $138,704 $— $439,243 
The following table presents information about the Company’s assets measured at fair value as of December 31, 2025:
Level 1Level 2Level 3Total
Assets:
Cash and cash equivalents and restricted cash$237,385 $— $— $237,385 
Marketable securities— 164,947 — 164,947 
Equity investments66,641 — — 66,641 
Total$304,026 $164,947 $— $468,973 
Unrealized gains and losses arising from changes in fair value of the Company’s equity investments are classified within change in fair value of equity investments in the condensed consolidated statements of operations.
For further information regarding the Company’s equity investments, see Note 10, Equity Investments.
v3.26.1
Commitments and Contingencies
 3 Months Ended
Mar. 31, 2026
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies Commitments and Contingencies
(a)    Leases
The Company has multiple operating leases for office space and a finance lease for equipment that expire at various dates through 2037. The Company has elected the package of practical expedients under the transition guidance of ASC Topic 842, Leases, to exclude short-term leases from the balance sheet and to combine lease and non-lease components. The Company classifies finance lease right of use assets under property and equipment, net and finance short-term and long-term lease liabilities under other accrued liabilities and other liabilities, long-term, respectively.
Upon inception of a lease, the Company determines if an arrangement is a lease, if it is classified as an operating or finance lease, if it includes options to extend or terminate the lease, and if it is reasonably certain that the Company will exercise the options. Lease cost, representing lease payments over the term of the lease and any capitalizable direct costs less any incentives received, is recognized on a straight-line basis over the lease term as lease expense.
In determining the present value of lease payments, the Company uses its incremental borrowing rate based on the information available at the lease commencement date if the rate implicit in the lease is not readily determinable. Upon execution of a new lease, the Company performs an analysis to determine its incremental borrowing rate using its current borrowing rate, adjusted for various factors including level of collateralization and lease term. As of March 31, 2026, the remaining weighted average lease term for operating and finance leases was 10 years.
Variable and short-term lease costs for the Company's operating and finance leases were immaterial for the three months ended March 31, 2026 and 2025. Additional details of the Company's operating and finance leases are presented in the following table:
Three Months Ended March 31,
20262025
Lease costs$4,497 $4,508 
Cash paid for leases4,212 4,186 
Maturities of operating and finance lease liabilities as of March 31, 2026 under noncancelable leases were as follows:
Year ending December 31:
Remainder of 2026$12,899 
202715,928 
202814,931 
202914,520 
203014,624 
Thereafter82,884 
Total future minimum lease payments155,786 
Less: imputed interest(48,778)
Present value of future minimum lease payments107,008 
Less: current portion of lease payments(16,065)
Lease liabilities, long-term$90,943 
(b)    Legal Matters
From time to time, the Company may become involved in routine litigation arising in the ordinary course of business. While the results of such litigation cannot be predicted with certainty, management believes that the final outcome of such matters is not likely to have a material adverse effect on the Company’s financial position or results of operations or cash flows.
v3.26.1
Income Taxes
 3 Months Ended
Mar. 31, 2026
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
The Company estimates an annual effective income tax rate based on projected results for the year and applies this rate to income before taxes to calculate income tax expense. Any refinements made due to subsequent information that affects the estimated annual effective income tax rate are reflected as adjustments in the current period.
For the three months ended March 31, 2026 and 2025, the Company’s income tax expense was $408 and $28, respectively. For the three months ended March 31, 2026 and 2025, the difference between the effective rate and the statutory rate was primarily attributed to the application of research and development credits and the change in the valuation allowance against net deferred tax assets.
The Company recognizes the effect of income tax positions only if those positions are "more likely than not" of being sustained. As of March 31, 2026, the Company had $9,750 of unrecognized tax benefits. Interest and penalties accrued on unrecognized tax benefits are recorded as tax expense within the unaudited condensed consolidated financial statements.
The Company and its subsidiaries file U.S. federal income tax returns and various state, local and foreign income tax returns. As of March 31, 2026, the Company’s statutes of limitations are open for all federal and state tax returns filed after the years ended December 31, 2022 and 2021, respectively. Net operating loss ("NOL") and credit carryforwards for all years are subject to examination and adjustments for the three years following the year in which the carryforwards are utilized. The Company is not currently under Internal Revenue Service or state examination.
Pursuant to Internal Revenue Code Sections 382 and 383, the utilization of NOLs and other tax attributes may be substantially limited due to cumulative changes in ownership greater than 50% that may have occurred or could occur during applicable testing periods. The Company has performed an analysis through December 31, 2025 and determined no such ownership change had occurred. If such an ownership change were to occur subsequent to December 2025, the Company's ability to use its NOLs and research and development tax credit carryforwards may be materially limited.
On July 4, 2025, the One Big Beautiful Bill Act (“OBBBA”) was signed into law enacting significant changes to U.S. tax and related laws. Some of the provisions of the new tax law affecting corporations include but are not limited to expensing of domestic research expenses, increasing the limit of the business interest expense deduction to thirty percent of EBITDA, and permitting one hundred percent bonus depreciation on eligible property acquired after January 19, 2025. The
impact of the tax law changes from the OBBBA is included in the Company's financial statements for the fiscal quarter ended March 31, 2026. There has been no material change to the Company's effective income tax rate or its net deferred federal income tax assets as a result of the OBBBA as the Company maintains a full valuation allowance for all U.S. deferred tax assets.
v3.26.1
Stockholders' Equity
 3 Months Ended
Mar. 31, 2026
Equity [Abstract]  
Stockholders' Equity Stockholders’ Equity
(a)    Common Stock
As of March 31, 2026, the Company had authorized 500,000,000 shares of common stock with a par value of $0.01 per share. Holders of common stock are entitled to one vote per share, to receive dividends, if and when declared by the board of directors, and upon liquidation or dissolution, to receive a portion of the assets available for distributions to stockholders, subject to preferential amounts owed to holders of the Company’s preferred stock, if any.
Common stockholders have no preemptive or other subscription rights and there are no redemption or sinking fund provisions with respect to such shares. The rights, preferences and privileges of holders of the common stock are subject to and may be adversely affected by the right of the holders of shares of any series of preferred stock that the Company may designate and issue in the future.
In February 2024, the Company entered into an amended and restated sales agreement with Leerink Partners LLC ("Leerink Partners"), as sales agent, with respect to an at-the-market offering program (the "ATM") under which the Company could offer and sell, from time to time pursuant to its Registration Statement on Form S-3, shares of common stock, having an aggregate offering price of up to $250,000, through Leerink Partners. The amended and restated sales agreement amends and restates the original sales agreement that the Company entered into with Leerink Partners with respect to the ATM in May 2023. No shares of common stock were sold under the ATM during the three months ended March 31, 2026 and 2025. As of March 31, 2026, the Company had $241,132 of common stock remaining available for sale under the ATM.
(b)    Limited Common Stock
As of March 31, 2026, the Company had authorized 100,000,000 shares of limited common stock with a par value of $0.01 per share. Holders of limited common stock are entitled to one vote per share, however, the holders of limited common stock shall not be entitled to vote such shares in any election of directors or on the removal of directors. Holders of limited common stock are entitled to the same dividend rights as holders of common stock, if and when declared by the board of directors, and upon liquidation or dissolution, to receive a portion of the assets available for distributions to stockholders, subject to preferential amounts owed to holders of the Company's preferred stock, if any. Holders of the Company's limited common stock have the right to convert each share of limited common stock into one share of the Company's common stock.
Limited common stockholders have no preemptive or other subscription rights and there are no redemption or sinking fund provisions with respect to such shares. The rights, preferences and privileges of holders of the limited common stock are subject to and may be adversely affected by the right of the holders of shares of any series of preferred stock that the Company may designate and issue in the future.
(c)    Preferred Stock
As of March 31, 2026, the Company had authorized 10,000,000 shares of undesignated preferred stock with a par value of $0.01 per share. The Company's board of directors has the discretion to determine the rights, preferences, privileges, and restrictions, including voting rights, dividend rights, conversion rights, redemption privileges, and liquidation preferences, of each series of preferred stock.
v3.26.1
Stock-Based Compensation
 3 Months Ended
Mar. 31, 2026
Share-Based Payment Arrangement [Abstract]  
Stock-Based Compensation Stock-Based Compensation
Stock Incentive Plans
As of March 31, 2026, the Company's stock incentive plans included the 2010 Stock Plan (the "2010 Plan"), the 2020 Equity Incentive Plan (the "2020 Plan"), the 2021 Inducement Equity Incentive Plan, as amended (the "2021 Plan"), and the 2022 Equity Incentive Plan, as amended (the "2022 Plan") (together, the "Plans").
The 2022 Plan provides for the award of incentive stock options, nonstatutory stock options, stock appreciation rights, restricted stock awards, restricted stock units, other stock-based awards, and cash-based awards to employees, directors, consultants or advisors. Shares of common stock subject to outstanding awards granted under the 2020 Plan and the 2010 Plan that expire, terminate, or are otherwise surrendered, cancelled, forfeited, or repurchased by the Company are available for issuance under the 2022 Plan.
The 2021 Plan provides for the award of incentive stock options, nonstatutory stock options, stock appreciation rights, restricted stock awards, restricted stock units, and other stock-based awards to persons who were not previously an employee or director of the Company or who are commencing employment with the Company following a bona fide period of non-employment, in either case, as an inducement material to such person’s entry into employment with the Company and in accordance with the requirements of the Nasdaq Stock Market Rule 5635(c)(4). Neither consultants nor advisors are eligible to participate in the 2021 Plan.
The 2020 Plan provided for the award of incentive stock options, nonstatutory stock options, stock appreciation rights, restricted stock awards, restricted stock units, and other stock-based awards to employees, directors, consultants or advisors. As of June 15, 2022, the effective date of the 2022 Plan, no further awards will be made under the 2020 Plan. Any options or awards outstanding under the 2020 Plan are governed by the terms of the 2020 Plan.
The 2010 Plan provided for the granting of incentive stock options and nonstatutory stock options to employees, directors, consultants or advisors. As of the effective date of the 2020 Plan, no further awards will be made under the 2010 Plan. Any options or awards outstanding under the 2010 Plan are governed by the terms of the 2010 Plan.
As of March 31, 2026 and December 31, 2025, there were 2,364,521 and 4,841,655 shares available for grant under the Plans, respectively. The following table presents classification of stock-based compensation expense within the unaudited condensed consolidated statements of operations:
Three Months Ended March 31,
20262025
Cost of sales$1,210 $1,403 
Research and development2,740 3,507 
Sales and marketing764 920 
General and administrative4,359 5,744 
Total stock-based compensation$9,073 $11,574 
Restricted Stock Units
Each restricted stock unit ("RSU") represents the right to receive one share of the Company's common stock upon vesting. The fair value of RSUs granted by the Company was calculated based upon the Company's closing stock price on the date of the grant, and the stock-based compensation expense is recognized over the vesting period. RSUs generally vest over four years with 25% of the grants vesting at the end of the first year and the remaining vesting annually over the following three years.
There were 1,494,482 and 1,294,694 RSUs granted during the three months ended March 31, 2026 and 2025, respectively. The weighted average grant date fair value for each RSU granted during the three months ended March 31, 2026 and 2025 was $12.14 and $21.25, respectively.
As of March 31, 2026, there was $52,413 of unrecognized compensation cost related to RSUs granted under the Plans, which is expected to be recognized over a weighted average period of 2.92 years. During the three months ended March 31, 2026 and 2025, 662,334 and 405,545 RSUs vested, respectively. The fair value of RSUs vested during the three months ended March 31, 2026 and 2025 was $8,604 and $9,212, respectively.
Performance-Based Restricted Stock Units
In March 2026, March 2025, March 2024, and February 2023, the Company awarded performance-based restricted stock units ("PRSUs") under the 2022 Plan. Each PRSU represents a contingent right to receive one share of common stock upon the achievement of specified performance goals. The fair value of PRSUs granted by the Company
was calculated based upon the Company's closing stock price on the date of the grant, and the stock-based compensation expense is recognized when the grant date is determined and performance conditions are probable of achievement. At the point when performance conditions are considered probable of achievement, the Company records stock-based compensation expense with a cumulative catch-up expense in the period first recognized and on a straight-line basis over the remaining period for which the performance criteria are expected to be completed.
In March 2026, the Company awarded to all executive officers PRSUs for a maximum of 498,375 shares (based on 150% achievement of the applicable performance conditions outlined in the awards), with a target award of 332,250 PRSUs (based on 100% achievement of the applicable performance conditions), and a threshold award of 166,125 PRSUs (based on 50% achievement of the applicable performance conditions) (the "2026 PRSUs"). The 2026 PRSUs were considered granted under ASC 718, Compensation—Stock Compensation ("Topic 718") in March 2026. The 2026 PRSUs are scheduled to vest, if at all, upon the certification by the Company's compensation committee of the achievement of the applicable performance conditions following the filing of the Company's Annual Report on Form 10-K for the fiscal year ending December 31, 2028.
In March 2025, the Company awarded to all executive officers PRSUs for a maximum of 173,438 shares (based on 150% achievement of the applicable performance conditions outlined in the awards), with a target award of 115,625 PRSUs (based on 100% achievement of the applicable performance conditions), and a threshold award of 57,813 PRSUs (based on 50% achievement of the applicable performance conditions) (the "2025 PRSUs"). The 2025 PRSUs were considered granted under Topic 718 in March 2025. 18,750 2025 PRSUs were forfeited in June 2025, representing the number of shares that would have vested at the maximum level for the applicable milestones. The remaining 2025 PRSUs are scheduled to vest, if at all, upon the certification by the Company's compensation committee of the achievement of the applicable performance conditions following the filing of the Company's Annual Report on Form 10-K for the fiscal year ending December 31, 2027.
In March 2024, the Company awarded to all executive officers PRSUs for a maximum of 180,000 shares (based on 150% achievement of the applicable performance conditions outlined in the awards), with a target award of 120,000 PRSUs (based on 100% achievement of the applicable performance conditions), and a threshold award of 60,000 PRSUs (based on 50% achievement of the applicable performance conditions) (the "2024 PRSUs"). The 2024 PRSUs were considered granted under Topic 718 in March 2024. 22,500 2024 PRSUs were forfeited in June 2025, representing the number of shares that would have vested at the maximum level for the applicable milestones. In March 2026, the Company's compensation committee determined the achievement of the PRSUs set to vest upon the certification by the Company's compensation committee following the filing of the Company's Annual Report on Form 10-K for the fiscal year ending December 31, 2026, subject to the continued provision of services by the holder to the Company through such vesting date. The Company's compensation committee determined that the applicable performance conditions had been met between target and maximum level for 50,275 of the PRSUs and at the maximum level for 94,500 of the PRSUs.
In February 2023, the Company awarded to certain executive officers PRSUs for a maximum of 62,693 shares (based on 150% achievement of the applicable performance conditions outlined in the awards), with a target award of 41,795 PRSUs (based on 100% achievement of the applicable performance conditions), and a threshold award of 20,898 PRSUs (based on 50% achievement of the applicable performance conditions) (the "2023 PRSUs"). The 2023 PRSUs were considered granted under Topic 718 in February 2023. 13,215 2023 PRSUs were forfeited in June 2025, representing the number of shares that would have vested at the maximum level for the applicable milestones. In March 2026, the Company's compensation committee determined the achievement of the PRSUs set to vest upon the certification by the Company's compensation committee following the filing of the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2025. Of the PRSUs that were eligible to vest, the Company's compensation committee determined that the applicable performance conditions had been met at the target level for 10,994 of the PRSUs and between the threshold and target level for 8,687 of the PRSUs, all of which vested in March 2026, and that the applicable performance conditions had not been met for 16,496 PRSUs, representing the number of shares that would have vested at the maximum level for the applicable milestones, which were forfeited in March 2026.
In August 2022, the Company awarded 90,000 PRSUs to an executive officer, all of which are considered granted under Topic 718. In March 2025, the Company's compensation committee determined the achievement of the awards set to vest upon the certification by the Company's compensation committee following the filing of the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2024. Of the 27,000 PRSUs that were eligible to vest following the filing of the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2024, the Company's compensation committee determined that the applicable performance conditions had been met for 14,850 of the PRSUs, which vested in March 2025, and that the applicable performance conditions had not been met for 12,150 PRSUs,
which were forfeited in March 2025. The Company's compensation committee also determined that the applicable performance conditions for 27,000 PRSUs that were eligible to vest following the filing of the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2025 could not be met and these awards were forfeited in March 2025.
The weighted average grant date fair value for each PRSU granted during the three months ended March 31, 2026 and 2025 was $12.15 and $21.24, respectively. During the three months ended March 31, 2026 and 2025, 19,681 and 14,850 PRSUs vested, respectively.
Stock Options
Stock options must be granted at an exercise price not less than 100% of the fair market value per share at the grant date. The board of directors or compensation committee determines the exercise price of the Company’s stock options based on the closing price of the common stock as reported on the Nasdaq Global Select Market on the date of the grant. The maximum contractual term of options granted under the Plans is typically 10 years, options generally vest over four years with 25% of the shares underlying the option vesting at the end of the first year and the remaining vesting monthly over the following three years. In March 2025, March 2024, and February 2023, the Company granted the chief executive officer premium priced options to purchase 90,000, 87,271 and 65,525 shares of common stock, respectively, with exercise prices equal to 110% of the closing price of the Company's common stock on the date of grant.
During the three months ended March 31, 2026 and 2025, 185,915 and 48,198 options under the Plans were exercised for total proceeds of $583 and $423, respectively.
The fair value of each option award is determined on the date of grant using the Black Scholes Merton option-pricing model. The calculation of fair value included several assumptions that require management’s judgment. The expected terms of options granted to employees during 2026 and 2025 were calculated using an average of historical exercises. The estimated volatility for the three months ended March 31, 2026 and 2025 incorporated a calculated volatility derived from a 50/50 blended approach using the Company's own historical closing prices of its shares of common stock for the expected term of the option with the historical closing prices of shares of common stock of similar entities whose share prices were publicly available for the expected term of the option. The risk-free interest rate was based on the U.S. Treasury constant maturities in effect at the time of grant for the expected term of the option. The Company accounts for forfeitures as they occur; as such, the Company does not estimate forfeitures at the time of grant.
Following are the weighted average valuation assumptions used for option awards during the periods presented:
Three Months Ended March 31,
20262025
Valuation assumptions
Expected dividend yield— %— %
Expected volatility65 %69 %
Expected term (years)5.715.55
Risk-free interest rate3.68 %3.99 %
The weighted average grant date fair value per share of options granted during the three months ended March 31, 2026 and 2025 was $7.38 and $13.32, respectively. The intrinsic value of options exercised during the three months ended March 31, 2026 and 2025 was $1,683 and $637, respectively.
As of March 31, 2026, there was $24,531 of unrecognized compensation cost related to unvested stock options granted under the Plans, which is expected to be recognized over a weighted average period of 2.53 years. The fair value of shares vested during the three months ended March 31, 2026 and 2025 was $6,454 and $11,080, respectively.
v3.26.1
Net Loss per Share Attributable to Common and Limited Common Stockholders
 3 Months Ended
Mar. 31, 2026
Earnings Per Share [Abstract]  
Net Loss per Share Attributable to Common and Limited Common Stockholders Net Loss per Share Attributable to Common and Limited Common Stockholders
The following table presents the calculation of basic and diluted net loss per share attributable to common and limited common stockholders for the periods presented (in thousands, except for share and per share data):
Three Months Ended March 31,
20262025
Numerator:
Net loss attributable to Schrödinger common and limited common stockholders$(60,026)$(59,808)
Denominator:
Weighted average shares used to compute net loss per share of common and limited common stockholders, basic and diluted:73,989,13773,057,916
Net loss per share of common and limited common stockholders, basic and diluted:$(0.81)$(0.82)
For periods in which the Company reports net losses, basic net loss per share is the same as diluted net loss per share as the inclusion of all potential common shares and limited common shares outstanding would have been anti-dilutive. Potentially dilutive securities that were not included in the diluted per share calculations because they would be anti-dilutive were as follows:
Three Months Ended March 31,
20262025
Shares subject to outstanding common stock options12,395,56612,696,887
Shares subject to outstanding unvested RSUs and PRSUs3,262,2212,554,539
Total shares subject to outstanding common stock options and unvested RSUs and PRSUs15,657,78715,251,426
v3.26.1
Equity Investments
 3 Months Ended
Mar. 31, 2026
Investments, Debt and Equity Securities [Abstract]  
Equity Investments Equity Investments
(a)    Nimbus
The Company has no significant influence over Nimbus and accounts for its investment in Nimbus Therapeutics, LLC ("Nimbus") as a non-marketable security. As of both March 31, 2026 and December 31, 2025, the carrying value of the Nimbus investment was $2,436. The Company has no obligation to fund Nimbus' losses in excess of its initial investment.
(b)    Ajax
In May 2021, the Company purchased 631,377 shares of Series B preferred stock of Ajax Therapeutics, Inc. ("Ajax") for $1,700 in cash. In April 2024, the Company purchased 1,416,450 shares of Series C preferred stock of Ajax for $3,000 in cash. The Company has concluded that its equity investment in Ajax should be valued as a non-marketable equity security as the Company does not exercise significant influence over Ajax.
As of both March 31, 2026 and December 31, 2025, the carrying value of the Company’s investment in Ajax was $4,498.
(c)    Structure Therapeutics
In July 2021, the Company purchased 494,035 shares of Series B preferred stock of Structure Therapeutics Inc. ("Structure Therapeutics") for $2,000 in cash. In April 2022, the Company purchased an additional 148,210 shares of Series B preferred stock for $600 in cash. On February 7, 2023, Structure Therapeutics completed its initial public offering ("IPO"). Immediately upon the closing of Structure Therapeutics' IPO, all of the outstanding Series B preferred stock automatically converted into ordinary shares on a one-for-one basis. The Company purchased 275,000 American Depository Shares ("ADSs") at $15.00 per ADS in the IPO. Each ADS represents three ordinary shares. The Company accounts for its investment in Structure Therapeutics at fair value based on the closing price of Structure Therapeutics' ADSs as of the reporting date.
During the three months ended March 31, 2026, the Company sold a portion of its equity stake in Structure Therapeutics for net proceeds of $20,334. The Company recorded a mark-to-market gain of $1,050 on the portion of the investment sold during the three months ended March 31, 2026. The Company recorded a mark-to-market loss of $14,537
on the portion of the investment held during the three months ended March 31, 2026. During the three months ended March 31, 2025, the Company reported a mark-to-market loss of $13,095 on the Structure Therapeutics investment.
As of March 31, 2026 and December 31, 2025, the carrying value of the Company's investment in Structure Therapeutics was $32,820 and $66,641, respectively.
v3.26.1
Related Party Transactions
 3 Months Ended
Mar. 31, 2026
Related Party Transactions [Abstract]  
Related Party Transactions Related Party Transactions
(a)    Board Member
For the three months ended March 31, 2026 and 2025, the Company paid consulting fees of $165 and $109, respectively, to a member of its board of directors.
(b)    Bill & Melinda Gates Foundation
The Bill & Melinda Gates Foundation, an entity under common control with Bill & Melinda Gates Foundation Trust, a stockholder of the Company, issued a grant under which it agreed to pay the Company directly for certain licenses and services provided to a specified group of third-party organizations. Revenue recognized for services provided by the Company under this grant was zero and $9 for the three months ended March 31, 2026 and 2025, respectively.
For the three months ended March 31, 2026 and 2025, the Company recognized $72 and $499, respectively, in contribution revenue related to funds received under an agreement with the Bill & Melinda Gates Foundation, aimed at accelerating drug discovery in women's health. As of March 31, 2026 and December 31, 2025, restricted cash on hand related to the arrangement was zero and $72, respectively.
For the three months ended March 31, 2026 and 2025, the Company recognized zero and $3,844 in contribution revenue related to funds received under agreements with the Bill & Melinda Gates Foundation to fund the initiative to accelerate the expansion of the Company's computational platform to predict toxicity associated with binding to off-target proteins. There was no restricted cash on hand related to the arrangement as of March 31, 2026 and December 31, 2025.
As of March 31, 2026 and December 31, 2025, the Company had no receivables due from the Bill & Melinda Gates Foundation related to any of these agreements.
Gates Ventures, LLC is an entity under the control of William H. Gates III, who may be deemed to be the beneficial owner of more than 5% of the Company’s voting securities. The agreement with Gates Ventures, LLC currently extends through August 13, 2026 and provides for total additional consideration of up to $9,000. No revenue was recognized on this agreement for the three months ended March 31, 2026 and 2025. As of March 31, 2026 and December 31, 2025, the Company had no net receivables due from Gates Ventures, LLC.
(c)    Columbia University and Richard Friesner
During the year ended December 31, 2025, the Company entered into certain license agreements with the Trustees of Columbia University ("Columbia University"), separate from the licenses discussed in "Item 1. Business—License Agreements with Columbia University" in our Annual Report on Form 10-K for the fiscal year ended December 31, 2025. Dr. Richard Friesner, the William P. Schweitzer Professor of Chemistry at Columbia University and the principal investigator of the Friesner Research Group, a research laboratory within the Department of Chemistry at Columbia University, was the inventor of certain of the technologies licensed to the Company pursuant to certain of the Company's license agreements with Columbia University and is one of the Company's co-founders and a member of the Company's board of directors.
Revenue recognized for these additional licenses for the three months ended March 31, 2026 and 2025 was $3 and zero, respectively. As of March 31, 2026 and December 31, 2025, the Company had zero and $100 in outstanding receivables due from Columbia University related to these licenses.
v3.26.1
Segment Reporting
 3 Months Ended
Mar. 31, 2026
Segment Reporting [Abstract]  
Segment Reporting Segment Reporting
The Company has determined that its chief executive officer ("CEO") is its chief operating decision maker ("CODM"). The Company’s CEO evaluates the financial performance of the Company based on two reportable segments: Software and Drug Discovery. The Software segment is focused on licensing the Company’s software to transform
molecular discovery. The Drug Discovery segment is focused on building a portfolio of preclinical and clinical drug programs, internally and through collaborations.
The CODM reviews segment performance and allocates resources based upon segment revenue and segment gross profit of the Software and Drug Discovery reportable segments. Segment gross profit is derived by deducting cost of sales from U.S. GAAP revenue. Cost of sales are expenditures made that are directly attributable to the reportable segment. These expenditures are allocated to the segments based on headcount or by expenses directly incurred to support the Software or Drug Discovery segments. The reportable segment expenditures include compensation, supplies, and services from contract research organizations.
Certain cost items are not allocated to the Company’s reportable segments. These cost items primarily consist of non-drug discovery program related compensation and general operational expenses associated with the Company’s research and development, sales and marketing, and general and administrative activities. These costs are incurred by both segments and due to the integrated nature of the Company’s Software and Drug Discovery segments, any allocation methodology would be subjective and may not provide meaningful analysis.
Segment revenue is primarily earned in the United States and there are no intersegment revenues. Additionally, the Company reports assets on a consolidated basis and does not allocate assets to its reportable segments for purposes of assessing segment performance or allocating resources.
Presented below is financial information with respect to the Company’s reportable segments for the periods presented:
Three Months Ended March 31,
20262025
Segment revenues(1):
Software$35,560 $48,816 
Drug discovery23,027 10,735 
Total segment revenues58,587 59,551 
Segment cost of revenues(1):
Software12,300 13,522 
Drug discovery16,740 14,905 
Total segment cost of revenues29,040 28,427 
Segment gross profit:  
Software23,260 35,294 
Drug discovery6,287 (4,170)
Total segment gross profit29,547 31,124 
Unallocated (expense) income:  
Research and development(43,824)(45,844)
Sales and marketing(11,603)(10,367)
General and administrative(22,914)(25,802)
Change in fair value of equity investments(13,487)(13,095)
Other income2,663 4,204 
Income tax expense(408)(28)
Consolidated net loss$(60,026)$(59,808)
(1)    Contribution activity is included within the segments to which the contribution activity relates as software contribution activity and drug discovery contribution activity share similar economic characteristics, respectively, with the software and drug discovery segments.
Revenues by geographic area are determined based on the address provided by the Company's customers and partners. The following table sets forth revenues by geographic area for the three months ended March 31, 2026 and 2025:
Three Months Ended March 31,
20262025
United States$31,408 $29,663 
EMEA20,173 23,083 
APAC6,673 6,074 
Rest of World333 731 
$58,587 $59,551 
v3.26.1
Subsequent Events
 3 Months Ended
Mar. 31, 2026
Subsequent Events [Abstract]  
Subsequent Events Subsequent Events
v3.26.1
Insider Trading Arrangements
 3 Months Ended
Mar. 31, 2026
Trading Arrangements, by Individual  
Rule 10b5-1 Arrangement Adopted false
Non-Rule 10b5-1 Arrangement Adopted false
Rule 10b5-1 Arrangement Terminated false
Non-Rule 10b5-1 Arrangement Terminated false
v3.26.1
Significant Accounting Policies (Policies)
 3 Months Ended
Mar. 31, 2026
Accounting Policies [Abstract]  
Recently Issued Accounting Pronouncements and Recently Adopted Accounting Pronouncements Recently Issued Accounting Pronouncements
In November 2024, the Financial Accounting Standards Board (the "FASB") issued Accounting Standards Update ("ASU") No. 2024-03, Income Statement — Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40) — Disaggregation of Income Statement Expenses, which requires disclosure in the notes to the financial statements of specified information about certain costs and expenses. This standard is effective for annual periods beginning after December 15, 2026, and interim periods within annual periods beginning after December 15, 2027, on a prospective basis, with early adoption and retrospective application permitted. The Company has not yet adopted ASU 2024-03 and is still evaluating the impact of the adoption on its consolidated financial statements.
Recently Adopted Accounting Pronouncements
In July 2025, the FASB issued ASU No. 2025-05, Financial Instruments—Credit Losses (Topic 326) — Measurement of Credit Losses for Accounts Receivable and Contract Assets, which provides a practical expedient for estimating expected credit losses. The amendments are effective for annual reporting periods beginning after December 15, 2025, including interim periods within those annual periods, on a prospective basis, with early adoption permitted. The Company adopted this new standard effective January 1, 2026, with no material impact on its consolidated financial statements.
In September 2025, the FASB issued ASU No. 2025-07, Derivatives and Hedging (Topic 815) and Revenue from Contracts with Customers (Topic 606) — Derivatives Scope Refinements and Scope Clarification for Share-Based Noncash Consideration from a Customer in a Revenue Contract, which refines the scope of the guidance on derivatives by adding a new scope exception for certain non-exchange-traded contracts that have an underlying based on operations or activities specific to one of the parties to the contract, and clarifies the interaction between the guidance on revenue from contracts with customers and the guidance on derivatives and equity investments for share-based noncash consideration
from a customer for the transfer of goods or services. The amendments are effective for annual reporting periods beginning after December 15, 2026, including interim periods within those annual periods, with early adoption permitted. The Company adopted this new standard effective January 1, 2026, with no material impact on its consolidated financial statements.
Basis of Presentation and Use of Estimates Basis of Presentation and Use of Estimates
The accompanying unaudited condensed consolidated financial statements and the related interim disclosures have been prepared in accordance with U.S. generally accepted accounting principles ("U.S. GAAP") and pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC") for the interim financial information. These unaudited condensed consolidated financial statements include all adjustments necessary, consisting of only normal recurring adjustments, to fairly state the financial position and the results of the Company’s operations and cash flows for interim periods in accordance with U.S. GAAP. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted as permitted by the SEC’s rules and regulations for interim reporting. Interim period results are not necessarily indicative of results of operations or cash flows for a full year or any subsequent interim period. The accompanying unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025, which was filed with the SEC on February 25, 2026.
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. Significant estimates include the assumptions used in the allocation of revenue and estimates regarding the progress of completing performance obligations under collaboration agreements. Actual results could differ from those estimates, and such differences may be material to the unaudited condensed consolidated financial statements.
Reclassifications of Prior Year Presentation Reclassifications of Prior Year Presentation
Certain prior period amounts have been reclassified to conform to the current period presentation. In connection with the preparation of the Company's unaudited condensed consolidated financial statements, the Company combined software contribution revenue with drug discovery contribution revenue and now presents these revenues collectively as contribution revenue. In addition, the Company combined software contribution cost of revenues with drug discovery contribution cost of revenues and now presents contribution cost of revenues separately from software cost of revenues and drug discovery cost of revenues.
These changes were made to better reflect the varying nature of revenue recognition. The reclassifications had no impact on total revenue, gross profit, operating loss, net loss, or cash flows for any period presented in this Quarterly Report.
Principles of Consolidation Principles of Consolidation
The Company’s unaudited condensed consolidated financial statements include the accounts of Schrödinger, Inc. and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. The functional currency for foreign entities is the U.S. dollar. The Company accounts for investments over which it has significant influence, but not a controlling financial interest, using the equity method.
Restricted Cash Restricted Cash
Restricted cash consists of letters of credit held with the Company’s financial institution related to facility leases, certificates of deposit held as collateral for its credit card facility, and funds received from certain grants which are restricted to their use. These items are classified as current in the Company’s balance sheets based on their maturity or the term of the grant.
Concentrations Concentrations
Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of trade receivables and contract assets, which represent contracted unbilled receivables.
The Company does not require customers to provide collateral to support accounts receivable. If deemed necessary, credit reviews of significant new customers may be performed prior to extending credit. The determination of a customer’s ability to pay requires judgment, and failure to collect from a customer can adversely affect revenue, cash flows, and results of operations.
Income Taxes Income Taxes
The Company records deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the financial statement carrying amounts and the tax basis of the assets and liabilities. Deferred tax assets are reduced by a valuation allowance when it is estimated to become more likely than not that a portion of the deferred tax assets will not be realized. Accordingly, the Company currently maintains a full valuation allowance against U.S. federal and state net deferred tax assets.
The Company recognizes the benefit of a tax position in the consolidated financial statements in the period during which, based on all available evidence, management believes it is more likely than not that the position will be sustained upon examination, including the resolution of appeals or litigation processes, if any. Interest and penalties accrued on unrecognized tax benefits are included within income tax expense in the consolidated financial statements.
Equity Investments Equity Investments
In the normal course of business, the Company has entered, and may continue to enter, into collaboration agreements with companies to perform drug and materials design services for such companies in exchange for equity ownership stakes in such companies. If it is determined that the Company has control over the investee, the investee is consolidated in the financial statements. If the investee is consolidated with the Company and less than 100% of the equity is owned by the Company, the Company will present non-controlling interest to represent the portion of the investee owned by other investors. If it is determined that the Company does not have control over the investee, the Company evaluates the investment for the ability to exercise significant influence.
Equity investments over which the Company has significant influence may be accounted for under equity method accounting in accordance with Accounting Standards Codification ("ASC") Topic 323, Equity Method and Joint Ventures. If it is determined that the Company does not have significant influence over the investee, and there is no readily determinable fair value for the investment, the equity investment may be accounted for at cost less impairment, in accordance with ASC Topic 321, Investments - Equity Securities.
For further information regarding the Company’s equity investments, see Note 4, Fair Value Measurements and Note 10, Equity Investments.
Net Loss per Share Attributable to Common and Limited Common Stockholders Net Loss per Share Attributable to Common and Limited Common Stockholders
The outstanding equity of the Company consists of common stock and limited common stock. The Company considers all limited common stock to be participating securities as the holders are entitled to the same dividend rights as holders of common stock and therefore net income (loss) attributable to common and limited common stockholders is identical for both classes.
Undistributed earnings allocated to the participating securities are subtracted from net income in determining net income (loss) attributable to common and limited common stockholders. Basic net income (loss) per share is computed by dividing net income (loss) attributable to common and limited common stockholders by the weighted-average number of shares of common and limited common stock outstanding during the period.
For the calculation of diluted net income, net income attributable to common and limited common stockholders for basic net income is adjusted by the effect of dilutive securities, including awards under the Company’s equity compensation plans. Diluted net income per share attributable to common and limited common stockholders is computed by dividing the resulting net income attributable to common and limited common stockholders by the weighted-average number of fully diluted shares of common and limited common stock outstanding.
v3.26.1
Revenue Recognition (Tables)
 3 Months Ended
Mar. 31, 2026
Revenue from Contract with Customer [Abstract]  
Schedule of Timing of Revenue Recognition
The following table illustrates the timing of the Company’s revenue recognition patterns:
Three Months Ended March 31,
20262025
Software products and services – point in time24.2 %43.0 %
Software products and services – over time36.5 32.5 
Drug Discovery – point in time— 2.1 
Drug Discovery – over time39.1 15.1 
Contribution – point in time— — 
Contribution – over time0.2 7.3 
Schedule of Revenue Recognized from the Sources of Software Products and Services Revenue
The following table presents the revenue recognized from the sources of software products and services revenue:
Three Months Ended March 31,
20262025
On-premise software$14,180 $25,423 
Hosted software12,080 10,872 
Software maintenance6,662 6,796 
Professional services2,638 1,881 
Total software revenue$35,560 $44,972 
The following table presents the revenue recognized from the sources of contribution revenue:
Three Months Ended March 31,
20262025
Software contribution$— $3,844 
Drug discovery contribution148 499 
Total contribution revenue$148 $4,343 
Schedule of Contract Balances
Contract balances were as follows:
As of March 31, 2026As of December 31, 2025
Contract assets$19,196 $19,698 
Deferred revenue, short-term:
Software products and services60,755 66,695 
Drug discovery42,356 46,027 
Contribution— 131 
Deferred revenue, long-term:
Software products and services6,202 7,333 
Drug discovery52,817 71,544 
Contribution— — 
Remaining performance obligations were as follows:
As of March 31, 2026As of December 31, 2025
Deferred revenueTotalTotal
Software products and services$66,957 $74,028 
Drug discovery95,173 117,571 
Contribution— 131 
Total deferred revenue162,130 191,730 
Backlog
Software products and services31,630 31,036 
Drug discovery17,206 17,100 
Contribution— — 
Total backlog48,836 48,136 
Remaining performance obligations
Software products and services98,587 105,064 
Drug discovery112,379 134,671 
Contribution— 131 
Total remaining performance obligations$210,966 $239,866 
v3.26.1
Fair Value Measurements (Tables)
 3 Months Ended
Mar. 31, 2026
Fair Value Disclosures [Abstract]  
Schedule of Assets and Liabilities Measured at Fair Value
The following table presents information about the Company’s assets measured at fair value as of March 31, 2026:
Level 1Level 2Level 3Total
Assets:
Cash and cash equivalents and restricted cash$267,719 $— $— $267,719 
Marketable securities— 138,704 — 138,704 
Equity investments32,820 — — 32,820 
Total$300,539 $138,704 $— $439,243 
The following table presents information about the Company’s assets measured at fair value as of December 31, 2025:
Level 1Level 2Level 3Total
Assets:
Cash and cash equivalents and restricted cash$237,385 $— $— $237,385 
Marketable securities— 164,947 — 164,947 
Equity investments66,641 — — 66,641 
Total$304,026 $164,947 $— $468,973 
v3.26.1
Commitments and Contingencies (Tables)
 3 Months Ended
Mar. 31, 2026
Commitments and Contingencies Disclosure [Abstract]  
Summary of Operating Leases Additional details of the Company's operating and finance leases are presented in the following table:
Three Months Ended March 31,
20262025
Lease costs$4,497 $4,508 
Cash paid for leases4,212 4,186 
Summary of Maturities of Operating Lease Liabilities Under Noncancelable Operating Leases
Maturities of operating and finance lease liabilities as of March 31, 2026 under noncancelable leases were as follows:
Year ending December 31:
Remainder of 2026$12,899 
202715,928 
202814,931 
202914,520 
203014,624 
Thereafter82,884 
Total future minimum lease payments155,786 
Less: imputed interest(48,778)
Present value of future minimum lease payments107,008 
Less: current portion of lease payments(16,065)
Lease liabilities, long-term$90,943 
v3.26.1
Stock-Based Compensation (Tables)
 3 Months Ended
Mar. 31, 2026
Share-Based Payment Arrangement [Abstract]  
Summary of Classification of Stock Based Compensation Expense The following table presents classification of stock-based compensation expense within the unaudited condensed consolidated statements of operations:
Three Months Ended March 31,
20262025
Cost of sales$1,210 $1,403 
Research and development2,740 3,507 
Sales and marketing764 920 
General and administrative4,359 5,744 
Total stock-based compensation$9,073 $11,574 
Summary of Weighted Average Valuation Assumptions Used for Options
Following are the weighted average valuation assumptions used for option awards during the periods presented:
Three Months Ended March 31,
20262025
Valuation assumptions
Expected dividend yield— %— %
Expected volatility65 %69 %
Expected term (years)5.715.55
Risk-free interest rate3.68 %3.99 %
v3.26.1
Net Loss per Share Attributable to Common and Limited Common Stockholders (Tables)
 3 Months Ended
Mar. 31, 2026
Earnings Per Share [Abstract]  
Schedule of Basic and Diluted Net (Loss) Income Per Share Attributable to Common and Limited Stockholders
The following table presents the calculation of basic and diluted net loss per share attributable to common and limited common stockholders for the periods presented (in thousands, except for share and per share data):
Three Months Ended March 31,
20262025
Numerator:
Net loss attributable to Schrödinger common and limited common stockholders$(60,026)$(59,808)
Denominator:
Weighted average shares used to compute net loss per share of common and limited common stockholders, basic and diluted:73,989,13773,057,916
Net loss per share of common and limited common stockholders, basic and diluted:$(0.81)$(0.82)
Schedule of Potentially Dilutive Securities not Included in Diluted Per Share Calculations Anti-dilutive Potentially dilutive securities that were not included in the diluted per share calculations because they would be anti-dilutive were as follows:
Three Months Ended March 31,
20262025
Shares subject to outstanding common stock options12,395,56612,696,887
Shares subject to outstanding unvested RSUs and PRSUs3,262,2212,554,539
Total shares subject to outstanding common stock options and unvested RSUs and PRSUs15,657,78715,251,426
v3.26.1
Segment Reporting (Tables)
 3 Months Ended
Mar. 31, 2026
Segment Reporting [Abstract]  
Summary of Financial Information with Respect to Reportable Segments
Presented below is financial information with respect to the Company’s reportable segments for the periods presented:
Three Months Ended March 31,
20262025
Segment revenues(1):
Software$35,560 $48,816 
Drug discovery23,027 10,735 
Total segment revenues58,587 59,551 
Segment cost of revenues(1):
Software12,300 13,522 
Drug discovery16,740 14,905 
Total segment cost of revenues29,040 28,427 
Segment gross profit:  
Software23,260 35,294 
Drug discovery6,287 (4,170)
Total segment gross profit29,547 31,124 
Unallocated (expense) income:  
Research and development(43,824)(45,844)
Sales and marketing(11,603)(10,367)
General and administrative(22,914)(25,802)
Change in fair value of equity investments(13,487)(13,095)
Other income2,663 4,204 
Income tax expense(408)(28)
Consolidated net loss$(60,026)$(59,808)
(1)    Contribution activity is included within the segments to which the contribution activity relates as software contribution activity and drug discovery contribution activity share similar economic characteristics, respectively, with the software and drug discovery segments.
Schedule of Revenues by Geographic Area
Revenues by geographic area are determined based on the address provided by the Company's customers and partners. The following table sets forth revenues by geographic area for the three months ended March 31, 2026 and 2025:
Three Months Ended March 31,
20262025
United States$31,408 $29,663 
EMEA20,173 23,083 
APAC6,673 6,074 
Rest of World333 731 
$58,587 $59,551 
v3.26.1
Description of Business (Details)
$ in Millions
Mar. 31, 2026
USD ($)
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Cash, cash equivalents, restricted cash, and marketable securities $ 406.4
v3.26.1
Significant Accounting Policies (Details) - Customer Concentration Risk
 3 Months Ended 12 Months Ended
Mar. 31, 2026
Mar. 31, 2025
Dec. 31, 2025
Accounts Receivable | Customer A      
Significant Accounting Policies [Line Items]      
Concentration risk, percentage 21.00%   10.00%
Accounts Receivable | Customer B      
Significant Accounting Policies [Line Items]      
Concentration risk, percentage 18.00%    
Accounts Receivable | Customer C      
Significant Accounting Policies [Line Items]      
Concentration risk, percentage 11.00%    
Contract Assets | Customer A      
Significant Accounting Policies [Line Items]      
Concentration risk, percentage 24.00%   21.00%
Contract Assets | Customer B      
Significant Accounting Policies [Line Items]      
Concentration risk, percentage 13.00%   12.00%
Contract Assets | Customer C      
Significant Accounting Policies [Line Items]      
Concentration risk, percentage     10.00%
Revenue Benchmark | Customer A      
Significant Accounting Policies [Line Items]      
Concentration risk, percentage 22.00% 21.00%  
Revenue Benchmark | Customer B      
Significant Accounting Policies [Line Items]      
Concentration risk, percentage 18.00%    
v3.26.1
Revenue Recognition - Schedule of Timing of Revenue Recognition (Details)
 3 Months Ended
Mar. 31, 2026
Mar. 31, 2025
Software products and services | Point in Time    
Disaggregation Of Revenue [Line Items]    
Timing of revenue recognition 24.20% 43.00%
Software products and services | Over Time    
Disaggregation Of Revenue [Line Items]    
Timing of revenue recognition 36.50% 32.50%
Drug discovery | Point in Time    
Disaggregation Of Revenue [Line Items]    
Timing of revenue recognition 0.00% 2.10%
Drug discovery | Over Time    
Disaggregation Of Revenue [Line Items]    
Timing of revenue recognition 39.10% 15.10%
Contribution | Point in Time    
Disaggregation Of Revenue [Line Items]    
Timing of revenue recognition 0.00% 0.00%
Contribution | Over Time    
Disaggregation Of Revenue [Line Items]    
Timing of revenue recognition 0.20% 7.30%
v3.26.1
Revenue Recognition - Software Products and Services (Details)
Mar. 31, 2026
On-premise software  
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items]  
Revenue arrangements, contract term 1 year
Hosted software  
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items]  
Revenue arrangements, contract term 1 year
v3.26.1
Revenue Recognition - Schedule of Revenue Recognized from the Sources of Software Products and Services Revenue (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2026
Mar. 31, 2025
Disaggregation Of Revenue [Line Items]    
Total software revenue $ 58,587 $ 59,551
On-premise software    
Disaggregation Of Revenue [Line Items]    
Total software revenue 14,180 25,423
Hosted software    
Disaggregation Of Revenue [Line Items]    
Total software revenue 12,080 10,872
Software maintenance    
Disaggregation Of Revenue [Line Items]    
Total software revenue 6,662 6,796
Professional services    
Disaggregation Of Revenue [Line Items]    
Total software revenue 2,638 1,881
Total software revenue    
Disaggregation Of Revenue [Line Items]    
Total software revenue $ 35,560 $ 44,972
v3.26.1
Revenue Recognition - Drug Discovery (Details) - USD ($)
 3 Months Ended
Mar. 31, 2026
Mar. 31, 2025
Dec. 31, 2025
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items]      
Net receivables $ 27,253,000   $ 83,041,000
Deferred revenue 0   72,000
BMGFT | Related Party      
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items]      
Software contribution revenue recognition 0 $ 3,844,000  
Net receivables 0   0
Software contribution 72,000 499,000  
Agreement with Gates Ventures, LLC      
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items]      
Software contribution revenue recognition amount 9,000,000    
Software contribution revenue recognition 0 0  
Deferred income 0   0
Net receivables 0   0
July 2024 Agreement with Bill & Melinda Gates Foundation      
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items]      
Software contribution revenue recognition 0 3,844,000  
Deferred income 0   0
Net receivables 0   $ 0
Drug discovery      
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items]      
Milestone payment yet to be achieved 0 2,000,000  
Revenue recognized with milestones $ 0 $ 487,000  
v3.26.1
Revenue Recognition - Schedule of Contribution Revenue (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2026
Mar. 31, 2025
Disaggregation Of Revenue [Line Items]    
Total contribution revenue $ 58,587 $ 59,551
Software contribution    
Disaggregation Of Revenue [Line Items]    
Total contribution revenue 0 3,844
Drug discovery contribution    
Disaggregation Of Revenue [Line Items]    
Total contribution revenue 148 499
Contribution    
Disaggregation Of Revenue [Line Items]    
Total contribution revenue $ 148 $ 4,343
v3.26.1
Revenue Recognition - Collaboration and License Agreement (Details)
 3 Months Ended 64 Months Ended
Nov. 22, 2020
USD ($)
target
obligation
program
Mar. 31, 2026
USD ($)
target
Mar. 31, 2025
USD ($)
Mar. 31, 2026
USD ($)
target
Dec. 31, 2025
USD ($)
Nov. 11, 2024
USD ($)
Nov. 30, 2020
USD ($)
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items]              
Unsatisfied performance obligation   $ 210,966,000   $ 210,966,000 $ 239,866,000    
Total revenues   $ 58,587,000 $ 59,551,000        
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2026-04-01              
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items]              
Revenue, remaining performance obligation, expected timing of satisfaction, period   12 months   12 months      
BMS | Oncology, Neurology, and Immunology Product              
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items]              
Number of specified biological targets | target 5            
Number of neurology target remaining | target   1   1      
Deferred revenue   $ 2,500,000   $ 2,500,000 3,200,000   $ 55,000,000.0
Total milestones to be received from initial programs   482,000,000.0   482,000,000.0      
Discovery and development milestones to be received $ 257,000,000.0            
Commercial milestones to be received $ 225,000,000.0            
Deferred revenue, revenue recognized       32,000,000.0      
Number of performance obligations | obligation 1            
Number of programs under agreement | program 5            
Unsatisfied performance obligation $ 55,000,000.0            
Total revenues   700,000 600,000        
Receivable, after allowance for credit loss, current   0   0 0    
Novartis Pharma AG | Software contribution | Research, Collaboration and License Agreement              
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items]              
Deferred revenue           $ 150,000,000.0  
Total milestones to be received from initial programs           2,272,000,000  
Discovery and development milestones to be received           892,000,000.0  
Commercial milestones to be received           $ 1,380,000,000  
Deferred revenue, revenue recognized   0 0        
Novartis Pharma AG | Software contribution | Collaboration and License Agreement              
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items]              
Deferred revenue   88,800,000   88,800,000 100,500,000    
Total revenues   11,700,000 $ 5,700,000        
Receivable, after allowance for credit loss, current   $ 0   $ 0 $ 0    
Novartis Pharma AG | Software contribution | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2024-11-12 | Software Agreement              
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items]              
Revenue, remaining performance obligation, expected timing of satisfaction, period           3 years  
v3.26.1
Revenue Recognition- Contract Balances (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2026
Mar. 31, 2025
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items]    
Percentage of revenue expected to be recognized 55.00%  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2026-04-01    
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items]    
Revenue, remaining performance obligation, expected timing of satisfaction, period 12 months  
Software products and services    
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items]    
Deferred revenue, revenue recognized $ 24,804 $ 29,493
Percentage of revenue expected to be recognized 74.00%  
Software products and services | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2026-04-01    
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items]    
Revenue, remaining performance obligation, expected timing of satisfaction, period 12 months  
Drug discovery    
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items]    
Deferred revenue, revenue recognized $ 22,397 7,755
Percentage of revenue expected to be recognized 39.00%  
Drug discovery | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2026-04-01    
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items]    
Revenue, remaining performance obligation, expected timing of satisfaction, period 12 months  
Contribution    
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items]    
Deferred revenue, revenue recognized $ 131 $ 4,471
Minimum    
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items]    
Contract with customers, payment terms 30 days  
Maximum    
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items]    
Contract with customers, payment terms 60 days  
v3.26.1
Revenue Recognition - Schedule of Contract Balances (Details) - USD ($)
$ in Thousands
Mar. 31, 2026
Dec. 31, 2025
Disaggregation Of Revenue [Line Items]    
Contract assets $ 19,196 $ 19,698
Deferred revenue, short-term:    
Deferred revenue 103,111 112,853
Deferred revenue, long-term:    
Deferred revenue, long-term 59,019 78,877
Software products and services    
Deferred revenue, short-term:    
Deferred revenue 60,755 66,695
Deferred revenue, long-term:    
Deferred revenue, long-term 6,202 7,333
Drug discovery    
Deferred revenue, short-term:    
Deferred revenue 42,356 46,027
Deferred revenue, long-term:    
Deferred revenue, long-term 52,817 71,544
Contribution    
Deferred revenue, short-term:    
Deferred revenue 0 131
Deferred revenue, long-term:    
Deferred revenue, long-term $ 0 $ 0
v3.26.1
Revenue Recognition - Schedule of Remaining Performance Obligations (Details) - USD ($)
$ in Thousands
Mar. 31, 2026
Dec. 31, 2025
Disaggregation Of Revenue [Line Items]    
Total deferred revenue $ 162,130 $ 191,730
Total backlog 48,836 48,136
Total remaining performance obligations 210,966 239,866
Software products and services    
Disaggregation Of Revenue [Line Items]    
Total deferred revenue 66,957 74,028
Total backlog 31,630 31,036
Total remaining performance obligations 98,587 105,064
Drug discovery    
Disaggregation Of Revenue [Line Items]    
Total deferred revenue 95,173 117,571
Total backlog 17,206 17,100
Total remaining performance obligations 112,379 134,671
Contribution    
Disaggregation Of Revenue [Line Items]    
Total deferred revenue 0 131
Total backlog 0 0
Total remaining performance obligations $ 0 $ 131
v3.26.1
Fair Value Measurements (Details) - USD ($)
$ in Thousands
Mar. 31, 2026
Dec. 31, 2025
Assets:    
Cash and cash equivalents and restricted cash $ 267,719 $ 237,385
Marketable securities 138,704 164,947
Equity investments 32,820 66,641
Total 439,243 468,973
Level 1    
Assets:    
Cash and cash equivalents and restricted cash 267,719 237,385
Marketable securities 0 0
Equity investments 32,820 66,641
Total 300,539 304,026
Level 2    
Assets:    
Cash and cash equivalents and restricted cash 0 0
Marketable securities 138,704 164,947
Equity investments 0 0
Total 138,704 164,947
Level 3    
Assets:    
Cash and cash equivalents and restricted cash 0 0
Marketable securities 0 0
Equity investments 0 0
Total $ 0 $ 0
v3.26.1
Commitments And Contingencies - Additional Information (Details)
Mar. 31, 2026
Commitments and Contingencies Disclosure [Abstract]  
Lease term 10 years
v3.26.1
Commitments And Contingencies - Summary of Operating and Finance Leases (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2026
Mar. 31, 2025
Commitments and Contingencies Disclosure [Abstract]    
Lease costs $ 4,497 $ 4,508
Cash paid for leases $ 4,212 $ 4,186
v3.26.1
Commitments And Contingencies - Summary of Maturities of Operating and Finance Lease Liabilities Under Noncancelable Operating Leases (Details)
$ in Thousands
Mar. 31, 2026
USD ($)
Lessee, Operating Lease, Liability, to be Paid, Fiscal Year Maturity [Abstract]  
Remainder of 2026 $ 12,899
2027 15,928
2028 14,931
2029 14,520
2030 14,624
Thereafter 82,884
Total future minimum lease payments 155,786
Less: imputed interest (48,778)
Present value of future minimum lease payments 107,008
Less: current portion of lease payments (16,065)
Lease liabilities, long-term $ 90,943
v3.26.1
Income Taxes (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2026
Mar. 31, 2025
Income Tax Disclosure [Abstract]    
Income tax expense $ 408 $ 28
Unrecognized tax benefits $ 9,750  
v3.26.1
Stockholders' Equity (Details)
$ / shares in Units, $ in Thousands
 1 Months Ended 3 Months Ended
Feb. 29, 2024
USD ($)
Mar. 31, 2026
USD ($)
vote
$ / shares
shares
Mar. 31, 2025
shares
Dec. 31, 2025
$ / shares
shares
Class Of Stock [Line Items]        
Consideration received on transaction | $ $ 250,000      
Preferred stock, shares authorized (in shares)   10,000,000   10,000,000
Preferred stock, par value (in USD per share) | $ / shares   $ 0.01   $ 0.01
The ATM        
Class Of Stock [Line Items]        
Shares issued (in shares)   0 0  
Number of shares available to issue in transaction | $   $ 241,132    
Voting Common Stock        
Class Of Stock [Line Items]        
Common stock, shares authorized (in shares)   500,000,000    
Common stock, par value (in USD per share) | $ / shares   $ 0.01    
Number of votes for common share | vote   1    
Limited common stock        
Class Of Stock [Line Items]        
Common stock, shares authorized (in shares)   100,000,000   100,000,000
Common stock, par value (in USD per share) | $ / shares   $ 0.01   $ 0.01
Number of votes for common share | vote   1    
Right to exchange limited common stock to common stock, share   1    
v3.26.1
Stock-Based Compensation - Additional Information (Details)
$ / shares in Units, $ in Thousands
 1 Months Ended 3 Months Ended
Mar. 31, 2026
USD ($)
shares
Jun. 30, 2025
shares
Mar. 31, 2025
shares
Mar. 31, 2024
shares
Feb. 28, 2023
shares
Aug. 31, 2022
shares
Mar. 31, 2026
USD ($)
$ / shares
shares
Mar. 31, 2025
USD ($)
$ / shares
shares
Dec. 31, 2025
shares
Dec. 31, 2024
shares
Jun. 15, 2022
shares
Employee Service Share Based Compensation Allocation of Recognized Period Costs [Line Items]                      
Number of shares available for grant (in shares) 2,364,521           2,364,521   4,841,655    
Grant of common stock (in shares)     90,000 87,271 65,525            
Options, exercises in period (in shares)             185,915 48,198      
Proceeds from issuances of common stock upon stock option exercises | $             $ 583 $ 423      
Weighted average fair value of options granted (in USD per share) | $ / shares             $ 7.38 $ 13.32      
Intrinsic value of options exercised | $             $ 1,683 $ 637      
Unrecognized compensation cost related to unvested stock options granted | $ $ 24,531           $ 24,531        
Expected to be recognized over a weighted average period             2 years 6 months 10 days        
Fair value of shares vested | $             $ 6,454 $ 11,080      
Restricted Stock Units                      
Employee Service Share Based Compensation Allocation of Recognized Period Costs [Line Items]                      
Number of shares per award 1           1        
Award vesting period (in years)             4 years        
Stock granted (in shares)             1,494,482 1,294,694      
Weighted average fair value of restricted stock units granted (in USD per share) | $ / shares             $ 12.14 $ 21.25      
Unrecognized compensation cost related to vested stock options granted | $ $ 52,413           $ 52,413        
Unrecognized compensation cost expected to be recognized over a weighted average period (in years)             2 years 11 months 1 day        
Number of units vested during period (in shares)             662,334 405,545      
Fair value of RSUs vested during the period | $             $ 8,604 $ 9,212      
Restricted Stock Units | Tranche Two                      
Employee Service Share Based Compensation Allocation of Recognized Period Costs [Line Items]                      
Award vesting rights (in percent)             25.00%        
Restricted Stock Units | Tranche One                      
Employee Service Share Based Compensation Allocation of Recognized Period Costs [Line Items]                      
Award vesting rights (in percent)             25.00%        
Restricted Stock Units | Tranche Three                      
Employee Service Share Based Compensation Allocation of Recognized Period Costs [Line Items]                      
Award vesting rights (in percent)             25.00%        
Restricted Stock Units | Tranche Four                      
Employee Service Share Based Compensation Allocation of Recognized Period Costs [Line Items]                      
Award vesting rights (in percent)             25.00%        
Performance Based Restricted Stock Units                      
Employee Service Share Based Compensation Allocation of Recognized Period Costs [Line Items]                      
Number of shares per award 1           1        
Weighted average fair value of restricted stock units granted (in USD per share) | $ / shares             $ 12.15 $ 21.24      
Number of units vested during period (in shares)     14,850       19,681 14,850      
Eligible to vest (in shares)                   27,000  
Performance Based Restricted Stock Units | Tranche Two                      
Employee Service Share Based Compensation Allocation of Recognized Period Costs [Line Items]                      
Number of units forfeited during period (in shares)     27,000                
Performance Based Restricted Stock Units | Tranche One                      
Employee Service Share Based Compensation Allocation of Recognized Period Costs [Line Items]                      
Number of units forfeited during period (in shares)     12,150                
Eligible Performance Based Restricted Stock Units                      
Employee Service Share Based Compensation Allocation of Recognized Period Costs [Line Items]                      
Stock granted (in shares)           90,000          
Number of units vested during period (in shares) 8,687                    
Number of units forfeited during period (in shares) 16,496                    
Eligible to vest (in shares)                 10,994    
Eligible Performance Based Restricted Stock Units | March 2025 Award                      
Employee Service Share Based Compensation Allocation of Recognized Period Costs [Line Items]                      
Number of units forfeited during period (in shares)   18,750                  
Eligible Performance Based Restricted Stock Units | March 2024 Award                      
Employee Service Share Based Compensation Allocation of Recognized Period Costs [Line Items]                      
Number of units forfeited during period (in shares)   22,500                  
Eligible Performance Based Restricted Stock Units | February 2023 Award                      
Employee Service Share Based Compensation Allocation of Recognized Period Costs [Line Items]                      
Number of units forfeited during period (in shares)   13,215                  
Eligible Performance Based Restricted Stock Units | Tranche Two                      
Employee Service Share Based Compensation Allocation of Recognized Period Costs [Line Items]                      
Stock granted (in shares) 332,250   115,625 120,000 41,795            
Achievement percent 1   1 1 1            
Number of units forfeited during period (in shares)             94,500        
Eligible Performance Based Restricted Stock Units | Tranche One                      
Employee Service Share Based Compensation Allocation of Recognized Period Costs [Line Items]                      
Stock granted (in shares) 498,375   173,438 180,000 62,693            
Achievement percent 1.50   1.50 1.50 1.50            
Number of units forfeited during period (in shares)             50,275        
Eligible Performance Based Restricted Stock Units | Tranche Three                      
Employee Service Share Based Compensation Allocation of Recognized Period Costs [Line Items]                      
Stock granted (in shares) 166,125   57,813 60,000 20,898            
Achievement percent 0.50   0.50 0.50 0.50            
Employee Stock Option                      
Employee Service Share Based Compensation Allocation of Recognized Period Costs [Line Items]                      
Award vesting period (in years)             4 years        
Maximum percentage of stock options must be granted at exercise price of fair market value (less than) (in percent)             100.00%        
Closing price of common stock     110.00% 110.00% 110.00%            
Employee Stock Option | Maximum                      
Employee Service Share Based Compensation Allocation of Recognized Period Costs [Line Items]                      
Options granted, contractual term (in years)             10 years        
Employee Stock Option | Tranche Two                      
Employee Service Share Based Compensation Allocation of Recognized Period Costs [Line Items]                      
Award vesting rights (in percent)             25.00%        
Employee Stock Option | Tranche One                      
Employee Service Share Based Compensation Allocation of Recognized Period Costs [Line Items]                      
Award vesting rights (in percent)             25.00%        
Employee Stock Option | Tranche Three                      
Employee Service Share Based Compensation Allocation of Recognized Period Costs [Line Items]                      
Award vesting rights (in percent)             25.00%        
Employee Stock Option | Tranche Four                      
Employee Service Share Based Compensation Allocation of Recognized Period Costs [Line Items]                      
Award vesting rights (in percent)             25.00%        
2020 Plan                      
Employee Service Share Based Compensation Allocation of Recognized Period Costs [Line Items]                      
Number of shares available for grant (in shares)                     0
2010 Plan                      
Employee Service Share Based Compensation Allocation of Recognized Period Costs [Line Items]                      
Number of shares available for grant (in shares) 0           0        
v3.26.1
Stock-Based Compensation - Summary of Classification of Stock Based Compensation Expense (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2026
Mar. 31, 2025
Employee Service Share Based Compensation Allocation of Recognized Period Costs [Line Items]    
Total stock-based compensation $ 9,073 $ 11,574
Cost of sales    
Employee Service Share Based Compensation Allocation of Recognized Period Costs [Line Items]    
Total stock-based compensation 1,210 1,403
Research and development    
Employee Service Share Based Compensation Allocation of Recognized Period Costs [Line Items]    
Total stock-based compensation 2,740 3,507
Sales and marketing    
Employee Service Share Based Compensation Allocation of Recognized Period Costs [Line Items]    
Total stock-based compensation 764 920
General and administrative    
Employee Service Share Based Compensation Allocation of Recognized Period Costs [Line Items]    
Total stock-based compensation $ 4,359 $ 5,744
v3.26.1
Stock-Based Compensation - Summary of Weighted Average Valuation Assumptions Used for Options (Details)
 3 Months Ended
Mar. 31, 2026
Mar. 31, 2025
Valuation assumptions    
Expected dividend yield (in percent) 0.00% 0.00%
Expected volatility (in percent) 65.00% 69.00%
Expected term (years) 5 years 8 months 15 days 5 years 6 months 18 days
Risk-free interest rate (in percent) 3.68% 3.99%
v3.26.1
Net Loss per Share Attributable to Common and Limited Common Stockholders - Schedule of Basic and Diluted Net (Loss) Income Per Share Attributable to Common and Limited Stockholders (Details) - USD ($)
$ / shares in Units, $ in Thousands
 3 Months Ended
Mar. 31, 2026
Mar. 31, 2025
Numerator:    
Net loss attributable to Schrödinger common and limited common stockholders $ (60,026) $ (59,808)
Denominator:    
Weighted average shares used to compute net loss per share of common and limited common stockholders, basic (in shares) 73,989,137 73,057,916
Weighted average shares used to compute net loss per share of common and limited common stockholders, diluted (in shares) 73,989,137 73,057,916
Net loss per share of common and limited common stockholders, basic (in USD per share) $ (0.81) $ (0.82)
Net loss per share of common and limited common stockholders, diluted (in USD per share) $ (0.81) $ (0.82)
v3.26.1
Net Loss per Share Attributable to Common and Limited Common Stockholders - Schedule of Potentially Dilutive Securities not Included in Diluted Per Share Calculations Anti-dilutive (Details) - shares
 3 Months Ended
Mar. 31, 2026
Mar. 31, 2025
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]    
Total shares subject to outstanding common stock options and unvested RSUs and PRSUs (in shares) 15,657,787 15,251,426
Employee Stock Option    
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]    
Total shares subject to outstanding common stock options and unvested RSUs and PRSUs (in shares) 12,395,566 12,696,887
RSUs and PRSUs    
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]    
Total shares subject to outstanding common stock options and unvested RSUs and PRSUs (in shares) 3,262,221 2,554,539
v3.26.1
Equity Investments (Details)
$ / shares in Units, $ in Thousands
 1 Months Ended 3 Months Ended
Feb. 07, 2023
$ / shares
shares
Apr. 30, 2024
USD ($)
shares
Apr. 30, 2022
USD ($)
shares
Jul. 31, 2021
USD ($)
shares
May 31, 2021
USD ($)
shares
Mar. 31, 2026
USD ($)
Mar. 31, 2025
USD ($)
Dec. 31, 2025
USD ($)
Schedule of Equity Method Investments [Line Items]                
Mark-to-market gain (loss) on equity investments           $ (13,487) $ (13,095)  
Structure Therapeutics                
Schedule of Equity Method Investments [Line Items]                
Proceeds from disposal of shares           20,334    
Mark-to-market gain (loss) on equity investments           1,050    
Series B Preferred Stock | Structure Therapeutics                
Schedule of Equity Method Investments [Line Items]                
Conversion ratio 1              
Nimbus Therapeutics, LLC                
Schedule of Equity Method Investments [Line Items]                
Non-marketable equity security           2,436   $ 2,436
Ajax Therapeutics, Inc                
Schedule of Equity Method Investments [Line Items]                
Non-marketable equity security           4,498   4,498
Ajax Therapeutics, Inc | Series B Preferred Stock                
Schedule of Equity Method Investments [Line Items]                
Number of preferred shares purchased (in shares) | shares         631,377      
Cash payments to purchase of shares         $ 1,700      
Ajax Therapeutics, Inc | Series C Preferred Stock                
Schedule of Equity Method Investments [Line Items]                
Number of preferred shares purchased (in shares) | shares   1,416,450            
Cash payments to purchase of shares   $ 3,000            
Structure Therapeutics                
Schedule of Equity Method Investments [Line Items]                
Mark-to-market gain (loss) on equity investments           (14,537) $ (13,095)  
Marketable securities           $ 32,820   $ 66,641
Structure Therapeutics | Series B Preferred Stock                
Schedule of Equity Method Investments [Line Items]                
Number of preferred shares purchased (in shares) | shares     148,210 494,035        
Cash payments to purchase of shares     $ 600 $ 2,000        
Structure Therapeutics | ADR                
Schedule of Equity Method Investments [Line Items]                
Number of shares purchased (in shares) | shares 275,000              
Purchase price (in USD per share) | $ / shares $ 15.00              
Stock split, conversion ratio 3              
v3.26.1
Related Party Transactions (Details) - USD ($)
 3 Months Ended
Mar. 31, 2026
Mar. 31, 2025
Dec. 31, 2025
Related Party Transaction [Line Items]      
Total revenues $ 58,587,000 $ 59,551,000  
Restricted cash 7,464,000   $ 6,868,000
Net receivables 27,253,000   83,041,000
Agreement with Gates Ventures, LLC      
Related Party Transaction [Line Items]      
Software contribution revenue recognition 0 0  
Net receivables 0   0
Software contribution revenue recognition amount 9,000,000    
Director      
Related Party Transaction [Line Items]      
Related party transactions amount 165,000 109,000  
Related Party      
Related Party Transaction [Line Items]      
Restricted cash 0   72,000
Related Party | BMGFT      
Related Party Transaction [Line Items]      
Total revenues 0 9,000  
Software contribution 72,000 499,000  
Software contribution revenue recognition 0 3,844,000  
Net receivables 0   0
Related Party | BMGFT | Contribution      
Related Party Transaction [Line Items]      
Restricted cash 0   72,000
Related Party | BMGFT | Software contribution      
Related Party Transaction [Line Items]      
Restricted cash 0   0
Related Party | Gates Ventures, LLC      
Related Party Transaction [Line Items]      
Software contribution revenue recognition 0 0  
Net receivables $ 0   0
Related Party | Gates Ventures, LLC | Minimum      
Related Party Transaction [Line Items]      
Percentage of voting securities 5.00%    
Related Party | Columbia University and Richard Friesner      
Related Party Transaction [Line Items]      
Total revenues $ 3,000 $ 0  
Net receivables $ 0   $ 100,000
v3.26.1
Segment Reporting - Additional Information (Details)
 3 Months Ended
Mar. 31, 2026
segment
Segment Reporting [Abstract]  
Number of reportable segments 2
v3.26.1
Segment Reporting - Summary of Financial Information with Respect to Reportable Segments (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2026
Mar. 31, 2025
Segment revenues    
Total segment revenues $ 58,587 $ 59,551
Segment cost of revenues    
Total segment cost of revenues 29,040 28,427
Segment gross profit:    
Total segment gross profit 29,547 31,124
Unallocated (expense) income:    
Research and development (43,824) (45,844)
Sales and marketing (11,603) (10,367)
General and administrative (22,914) (25,802)
Change in fair value of equity investments (13,487) (13,095)
Other income 2,663 4,204
Income tax expense (408) (28)
Consolidated net loss (60,026) (59,808)
Software    
Segment revenues    
Total segment revenues 35,560 48,816
Segment cost of revenues    
Total segment cost of revenues 12,300 13,522
Segment gross profit:    
Total segment gross profit 23,260 35,294
Drug Discovery    
Segment revenues    
Total segment revenues 23,027 10,735
Segment cost of revenues    
Total segment cost of revenues 16,740 14,905
Segment gross profit:    
Total segment gross profit $ 6,287 $ (4,170)
v3.26.1
Segment Reporting - Schedule of Revenues by Geographic Area (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2026
Mar. 31, 2025
Revenues From External Customers And Long Lived Assets [Line Items]    
Total revenues $ 58,587 $ 59,551
United States    
Revenues From External Customers And Long Lived Assets [Line Items]    
Total revenues 31,408 29,663
APAC    
Revenues From External Customers And Long Lived Assets [Line Items]    
Total revenues 20,173 23,083
EMEA    
Revenues From External Customers And Long Lived Assets [Line Items]    
Total revenues 6,673 6,074
Rest of World    
Revenues From External Customers And Long Lived Assets [Line Items]    
Total revenues $ 333 $ 731