Schrodinger Inc. Common Stock (SDGR)

FairStock Score: 50/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I approach Schrödinger as a potential turnaround, not a proven compounder. It sells a physics-based computational platform for molecular discovery and also runs its own drug discovery. The software side may have switching costs and intellectual property, but the drug side consumes capital and depends on scientific hits. The filed record is uneven. In FY2023, the year ended 2023-12-31, net income was $40.7M. Then FY2024, the year ended 2024-12-31, produced a net loss of $187.1M, followed by FY2025, the year ended 2025-12-31, with a net loss of $103.3M. In fiscal Q1 2026, the quarter ended 2026-03-31, the net loss was $60.0M, yet in fiscal Q2 2026, the quarter ended 2026-06-30, net income was $6.0M on revenue of $58.9M. One profitable quarter does not prove durable earning power. Trailing free cash flow is negative $130.3M, and the FairStock FCF yield is -6.6% against a $2.0B market cap. At the 2026-10-13 close of $25.89, FairStock reports P/B 5.74, P/E -35.47, ROE -16.17%, ROCE -14.44%, D/E 0.33, Piotroski 4/9, and Altman Z 2.72. Paying over five times book for a loss-making, cash-burning business is not a Graham bargain. The Lynch category is TURNAROUND—loss in the latest year after earlier profits—so the investment case rests on software scaling, drug milestones, and a path to positive free cash flow. Without that, the current price offers no margin of safety.

In plain English: Schrödinger makes computer software that helps scientists discover new drugs and materials, and it also does its own drug research. The business is not steady: it made money in fiscal 2023, lost money in fiscal 2024 and 2025, and had a small profit in the latest quarter while still spending more cash than it brings in. At the latest price, the stock looks expensive compared with its current profits and book value, so it depends on a successful turnaround.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer