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SDGR · 10-Q filed May 5, 2026

SDGR earnings analysis

What we found in SDGR's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.

Our reading of the filing · Free to read, no account needed

Schrödinger reported Q1 2026 financial results with revenues of $58.6 million, a slight 2% decline year-over-year, while net loss increased to $60.0 million, compared to $59.8 million in Q1 2025. The company beat initial EPS estimates by posting -$0.81 per share, attributing the decrease in revenue primarily to a decline in software sales. Management reaffirms annual contract value targets between $218 million to $228 million, indicating ongoing expectations of growth despite recent revenue trends.

What stood out

The parts that mattered.

Pulled out of the filing itself, with the figures the company reported.

Revenue Decline Stabilizes
Q1 2026 revenue was $58.6M, a 2% decrease year-over-year from $59.6M.
EPS Beat Estimates
Reported EPS of -$0.81, beating estimates of -$0.57.
Drug Discovery Segment Growth
Drug discovery revenues surged to $22.9M, a 124% increase from $10.2M in Q1 2025.
ACV Growth
Annual contract value grew to $28.4M in Q1 2026 from $25.4M in Q1 2025.
Cost Control Improvements
Operating expenses decreased by 4% year-over-year from Q1 2025.
Strong Cash Position
As of March 31, 2026, cash and equivalents totaled $406.4M.
What to watch

And the other side of it.

The offsets in the same document — the things a summary that only listed the good news would have left out.

High Net Loss Continues
Net loss increased to $60.0M in Q1 2026 from $59.8M in Q1 2025.
Declining Software Revenue
Software revenue dropped to $35.6M, a 21% decrease from $45.0M in Q1 2025.
Contribution Revenue Slump
Contribution revenue decreased by 97%, falling to $148K from $4.3M in Q1 2025.
The numbers

What they reported.

What the company itself reported, taken out of the document.

Earnings per share
$-0.81
Gross margin
50.4%
Segment
Software
Segment
Drug Discovery
Segment
Contribution
Guidance

What they said about what is next.

Management maintained ACV expectations of $218M-228M for fiscal year 2026 with anticipated growth.

How we read the filing overall

The filing reads about the same as the one before it.

One reading of one document. It is not advice, and it is not a forecast.
Earlier filings

What came before.

10-K · February 25, 2026
Schrödinger reports scale and continued software-driven growth with total revenue of $255.9 million in 2025 and software revenue of $199.5 million (up 11% YoY). The company is expanding enterprise adoption (ACV $198.5…
10-Q · August 6, 2025
Schrödinger reported Q2 revenue of $54,759,000, up from $47,334,000 in Q2 2024, and GAAP net loss per share improved to $(0.59) from $(0.74). Gross margin contracted to 47.8% (from 66.2% a year ago) as cost of revenues…
10-Q · May 1, 2024
Schrödinger reported Q1 revenues of $36.6M (three months ended March 31, 2024) versus $64.8M a year ago, driven by a sharp decline in drug discovery revenue while software revenue was modestly higher. The company posted…
10-Q · May 4, 2022
Schrödinger reported Q1 revenues of $48.663M, up 51.5% year-over-year from $32.127M, driven by software ($33.081M) and a sharp increase in drug discovery revenue ($15.582M). Gross profit rose to $27.983M (gross margin…

This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.

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