Exhibit 99.1
Schrödinger Reports Second Quarter 2026 Financial Results

Second Quarter ACV of $30 Million, Representing 27% Growth

Launched Early Access Version of Bunsen, A New Agentic AI Co-Scientist for Molecular Discovery

New York, August 5, 2026 – Schrödinger, Inc. (Nasdaq: SDGR) today announced financial results for the quarter ended June 30, 2026.

“We are very pleased with our second quarter results, delivering ACV of $29.6 million, which represents 27% growth. Our results reflect growing industry adoption of a predict-first approach to molecular discovery,” said Ramy Farid, Ph.D., chief executive officer of Schrödinger. “As biopharma navigates a rapidly evolving AI landscape and mounting pressure to optimize and accelerate the discovery of new medicines, the need to generate ground-truth data has never been greater. By integrating our highly accurate, physics-based simulations with AI, and launching our agentic co-scientist Bunsen, we are enabling teams to execute complex workflows on a large scale and building the definitive computational infrastructure for the future of drug discovery.”

Second Quarter 2026 Operating and Financial Highlights (comparisons are to second quarter 2025, unless otherwise noted)
•ACV was $29.6 million, a 27% increase, and $208 million on a trailing four-quarter basis.
•ACV excluding contribution ACV was $22.6 million, a 23% increase, and $196 million on a trailing four-quarter basis.
•Software revenue was $32.5 million, a 10% decrease, primarily reflecting continued progress in the company’s accelerated transition to hosted software licensing. Hosted revenue was 47% of total software revenue, and 30% on a trailing four-quarter basis.
•Drug discovery revenue was $23.0 million compared to $13.9 million, primarily due to the achievement of a $10 million collaboration milestone associated with the Ajax Therapeutics acquisition.
•Contribution revenue was $3.4 million, compared to $4.8 million, primarily due to timing of revenue associated with the Gates Foundation predictive toxicology and Gates Ventures battery project grants.
•Total revenue was $58.9 million, an 8% increase.
•Software gross margin was 71%, reflecting the company’s planned accelerated transition to hosted software licensing.
•Operating expenses were $74.0 million, a 6% decrease.
•Other income, which includes changes in fair value of equity investments and interest income/expense, was $48.9 million primarily due to a gain associated with the completion of Eli Lilly and Company’s acquisition of Ajax Therapeutics.
•Net income was $6.0 million, compared to a net loss of $43.2 million.
•Cash, cash equivalents, restricted cash and marketable securities were $418.8 million.

Schrödinger presents contribution revenue and cost of revenue separately from software and drug discovery revenue and cost of revenues. Prior periods have been reclassified to conform to this presentation to facilitate year-over-year comparability.



2026 Financial and Operational Outlook
As of August 5, 2026, Schrödinger provided the following financial guidance for the fiscal year ending December 31, 2026:
•ACV is expected to range from $218 million to $228 million, representing 10-15% growth over 2025.
•Drug discovery revenue is expected to range from $65 million to $75 million, compared to the prior expectation of $55 million to $65 million, due to the achievement of a $10 million collaboration milestone associated with the Ajax acquisition.
•Operating expenses are expected to be less than 2025.

For the third quarter of 2026, ACV is expected to range from $41 million to $45 million, excluding contribution ACV, compared to $38.3 million in the third quarter of 2025, which included $2.2 million of contribution ACV.
Recent Highlights
•Schrödinger launched the early access version of Bunsen, its new agentic AI co-scientist. Unlike general-purpose agents, Bunsen is optimized to execute Schrödinger's validated, physics-based computational platform to plan and execute complex molecular discovery workflows and interpret results. Bunsen helps computational chemists run concurrent research sessions and accomplish more across multiple programs. Bunsen also makes advanced computational methods accessible to drug hunters who are not experienced computational chemists, further expanding the user base for the company’s computational platform. To accommodate the expected increase in throughput enabled by Bunsen and support early adoption, long-time collaborators NVIDIA and Google Cloud will provide a full stack AI platform, infrastructure, and access to the NVIDIA BioNeMo Agent Toolkit for early customers.

•Schrödinger announced a strategic software agreement with Bristol Myers Squibb (BMS) to deploy Bunsen, significantly expanding the scale of Schrödinger’s platform within BMS’s research organization and empowering scientists to explore more scientific possibilities, prioritize the most promising molecules with greater confidence, and accelerate discovery decisions. Schrödinger will collaborate with BMS scientists on developing novel functionality within Bunsen in conjunction with its computational technologies designed to enable large-scale chemical exploration as well as with RetroSynth, its AI-driven synthesis planning platform.

•Schrödinger announced a global drug discovery and development collaboration with Simcere Pharmaceutical Group to advance an innovative program based on unmet clinical needs. Schrödinger is leveraging its physics-based computational platform to lead drug design and optimization during the joint research phase, while Simcere will lead subsequent preclinical and clinical development. Schrödinger is eligible to receive discovery, development, and commercial milestone payments, as well as tiered royalties on net sales.

•Schrödinger scientists published research in the Journal of Chemical Information and Modeling validating the use of the FEP+ framework to accurately predict binding affinity and optimize macrocycles and cyclic peptides. The study evaluated over 230 unique compounds across five diverse and highly challenging therapeutic targets. The publication highlights how Schrödinger’s platform can successfully derisk the drug design process, allowing discovery teams to bypass low-probability chemical synthesis, substantially compress development timelines, and drive cost-effective pipeline advancements for historically "undruggable" targets.

•Schrödinger researchers published research in the Journal of Chemical Information and Modeling introducing a new workflow that combines mixed solvent molecular dynamics simulations with SiteMap, the company’s binding site identification software, to identify hidden, or cryptic, protein binding sites.


Tested across a 65 target site dataset, this approach correctly identified the hidden pocket in the top predictions in nearly 80% of cases, expanding the ability to target previously undruggable proteins.

Webcast and Conference Call Information
Schrödinger will host a conference call to discuss its second quarter 2026 financial results on Wednesday, August 5, 2026, at 4:30 p.m. ET. The live webcast can be accessed under “Events & Presentations" in the investors section of Schrödinger’s website, https://ir.schrodinger.com/news-and-events/event-calendar. To participate in the live call, please register for the call here. It is recommended that participants register at least 15 minutes in advance of the call. Once registered, participants will receive the dial-in information. The archived webcast will be available on Schrödinger’s website for approximately 90 days following the event.

Non-GAAP Information
Included in this press release is certain financial information that has not been prepared in accordance with generally accepted accounting principles in the United States (GAAP). The company presents adjusted EBITDA, which is a non-GAAP financial measure. Adjusted EBITDA is defined as net income (loss) before interest, taxes, depreciation, amortization, and stock-based compensation expense, and further adjusted to exclude gains and losses on equity investments, changes in fair value of equity investments, restructuring costs, litigation and settlement expenses, and, when applicable, other non-recurring items that management does not consider indicative of ongoing operating performance.

Management believes adjusted EBITDA is a useful measure for investors, taken in conjunction with the company’s GAAP financial statements because they provide greater period-over-period comparability with respect to the company’s operating performance, by excluding the effects of capital structure, tax impacts, non-cash depreciation and amortization, non-cash equity compensation expense, non-cash mark-to-market and other valuation adjustments for the company’s equity investments, non-recurring cash distributions from the company’s equity investments, and other non-recurring items that are not reflective of the ongoing performance of the business. However, adjusted EBITDA as a non-GAAP financial measure should be considered only in addition to, not as a substitute for or as superior to, net income (loss) or other financial measures prepared in accordance with GAAP.

Other companies in Schrödinger’s industry may calculate adjusted EBITDA differently than Schrödinger does, limiting their usefulness as comparative measures. For a reconciliation of adjusted EBITDA to GAAP net income (loss), please refer to the tables at the end of this press release.

About Schrödinger
Schrödinger is transforming molecular discovery with its computational platform, which enables the discovery of novel, highly optimized molecules for drug development and materials design. Schrödinger’s software platform is built on more than 30 years of R&D investment and is licensed by biotechnology, pharmaceutical and industrial companies, and academic institutions around the world. Schrödinger also leverages the platform to advance a portfolio of collaborative and proprietary programs. To learn more, visit www.schrodinger.com, follow us on LinkedIn, or visit our blog, Extrapolations.com.

Operating Metrics
To supplement the financial measures presented in this press release and related conference call or webcast in accordance with generally accepted accounting principles in the United States (GAAP), Schrödinger also presents certain other performance metrics, such as annual contract value, or ACV, and ACV by certain industries and customer cohorts.



Annual Contract Value (ACV). Schrödinger tracks the ACV for each customer. With respect to contracts that have a duration of one year or less, or contracts of more than one year in duration that are billed annually, ACV is defined as the contract value billed during the applicable period. For contracts with a duration of more than one year that are billed upfront, ACV in each period represents the total billed contract value divided by the term. We present ACV as a supplemental operating metric because it provides a consistent measure of the underlying performance of our software business that is not affected by differences in revenue recognition timing across contract types, delivery models, or billing structures. ACV should be viewed independently of revenue and does not represent revenue calculated in accordance with GAAP on an annualized basis, as it is an operating metric that can be impacted by contract execution start and end dates and renewal rates. ACV is not intended to be a replacement for, or forecast of, revenue.

ACV by Cohorts. Schrödinger tracks ACV by certain industries and customer cohorts. These cohorts include contribution, which consists of customers from which we derive contribution revenue. We present this ACV separately because it relates to grant agreements accounted for as non-exchange contributions, rather than commercial software contracts. The operating metrics for the cohorts are not prepared in accordance with GAAP and do not correspond to the company’s reportable segments or the allocation of costs for GAAP purposes. These metrics allow management to better understand differences in sales cycles, contract duration, deployment models, renewal behavior, and expansion opportunities among customer and industry groups, supplementing but not replacing Schrödinger’s GAAP results.

Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995 including, but not limited to those statements regarding Schrödinger’s expectations about the speed and capacity of its computational platform, its financial outlook for the fiscal year ending December 31, 2026, and third quarter ending September 30, 2026, its plans to continue to invest in research and its strategic plans to accelerate the growth of its software licensing business and advance its collaborative and proprietary drug discovery programs, the long-term potential of its business, its ability to improve and advance the science underlying its platform, the initiation, timing, progress, and results of the drug discovery programs and product candidates of its collaborators, the clinical potential and favorable properties of its collaborators’ product candidates, expectations relating to the potential of, and the use of, Bunsen, its agentic AI co-scientist, including researchers’ ability to utilize a full stack AI platform provided by NVIDIA and Google Cloud with Bunsen to scale their use of the platform and the successful deployment of Bunsen within BMS’s research organization, the ability for the company to realize potential benefits from its collaborations, including the amount and timing of additional milestones, if any, as well as expectations related to the use of its cash, cash equivalents and marketable securities. Statements including words such as “aim,” “anticipate,” “believe,” “contemplate,” “continue,” “could,” “estimate,” “expect,” “goal,” “intend,” “may,” “might,” “plan,” “potential,” “predict,” “project,” “should,” “target,” “will,” “would” and statements in the future tense are forward-looking statements. These forward-looking statements reflect Schrödinger’s current views about its plans, intentions, expectations, strategies and prospects, which are based on the information currently available to the company and on assumptions the company has made. Actual results may differ materially from those described in these forward-looking statements and are subject to a variety of assumptions, uncertainties, risks and important factors that are beyond Schrödinger’s control, including the demand for its software platform, its ability to further develop its computational platform, its reliance upon third-party providers of cloud-based infrastructure to host its software solutions, its ability to transition customers to hosted software deployments, factors adversely affecting the life sciences industry, fluctuations in the value of the U.S. dollar and foreign currencies, its reliance upon its third-party drug discovery collaborators, the uncertainties inherent in drug development and commercialization, such as the conduct of research activities, the ability to retain and hire key personnel and other risks detailed under the caption “Risk Factors” and elsewhere in the company’s Securities and Exchange Commission filings and reports, including its Quarterly Report on Form 10-Q for the quarter ended June 30, 2026, filed with the Securities and Exchange Commission on August 5, 2026, as well as future filings and reports by the company. Any forward-looking statements contained in this press release speak only as of the date hereof. Except as required by law, Schrödinger undertakes no duty or obligation to update any forward-looking statements contained in this press release as a result of new information, future events, changes in expectations or otherwise.

Contacts:
Jaren Madden (Investors and Media)


Schrödinger, Inc.
jaren.madden@schrodinger.com
617-286-6264

Matthew Luchini (Investors)
Schrödinger, Inc.
matthew.luchini@schrodinger.com
917-719-0636

Rebecca Pocock (Media)
SHIFT Communications
schrodingerpr@shiftcomm.com



Condensed Consolidated Statements of Operations (Unaudited)
(in thousands, except for share and per share amounts)
Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
Revenues:
Software products and services$32,544 $36,031 $68,104 $81,003 
Drug discovery22,986 13,940 45,865 24,176 
Contribution3,359 4,788 3,507 9,131 
Total revenues58,889 54,759 117,476 114,310 
Cost of revenues:
Software products and services9,449 8,787 20,312 17,899 
Drug discovery15,794 15,140 32,104 29,592 
Contribution1,214 4,674 3,081 9,537 
Total cost of revenues26,457 28,601 55,497 57,028 
Gross profit32,432 26,158 61,979 57,282 
Operating expenses:
Research and development40,998 43,138 84,822 88,982 
Sales and marketing10,266 10,734 21,869 21,101 
General and administrative22,715 25,189 45,629 50,991 
Total operating expenses73,979 79,061 152,320 161,074 
Loss from operations(41,547)(52,903)(90,341)(103,792)
Other income (expense):
Change in fair value of equity investments45,868 4,579 32,381 (8,516)
Other income3,026 5,438 5,689 9,642 
Total other income48,894 10,017 38,070 1,126 
Income (loss) before income taxes7,347 (42,886)(52,271)(102,666)
Income tax expense1,372 287 1,780 315 
Net income (loss)$5,975 $(43,173)$(54,051)$(102,981)
Net income (loss) per share of common and limited common stockholders, basic:$0.08 $(0.59)$(0.73)$(1.41)
Weighted average shares used to compute net income (loss) per share of common and limited common stockholders, basic:74,712,58173,427,63574,352,85773,243,797
Net income (loss) per share of common and limited common stockholders, diluted:$0.08 $(0.59)$(0.73)$(1.41)
Weighted average shares used to compute net income (loss) per share of common and limited common stockholders, diluted:75,769,36073,427,63574,352,85773,243,797


Condensed Consolidated Balance Sheets (Unaudited)
(in thousands, except for share and per share amounts)
AssetsJune 30, 2026December 31, 2025
Current assets:
Cash and cash equivalents$287,853 $230,517 
Restricted cash5,063 6,868 
Marketable securities125,886 164,947 
Accounts receivable, net of allowance for doubtful accounts of $265 and $440
21,391 83,041 
Unbilled and other receivables, net of allowance for unbilled receivables of $140 and $140
19,733 21,352 
Prepaid expenses10,549 12,540 
Total current assets470,475 519,265 
Property and equipment, net19,459 19,456 
Equity investments39,052 73,647 
Goodwill4,791 4,791 
Right of use assets - operating leases100,911 102,736 
Other assets5,706 6,265 
Total assets$640,394 $726,160 
Liabilities and Stockholders' Equity:
Current liabilities:
Accounts payable$10,320 $11,452 
Accrued payroll, taxes, and benefits31,607 39,264 
Deferred revenue104,773 112,853 
Lease liabilities - operating leases16,480 16,412 
Other accrued liabilities10,665 9,155 
Total current liabilities173,845 189,136 
Deferred revenue, long-term45,152 78,877 
Lease liabilities - operating leases, long-term91,502 92,816 
Other liabilities, long-term939 1,278 
Total liabilities311,438 362,107 
Stockholders' equity:
Preferred stock, $0.01 par value. Authorized 10,000,000 shares; zero shares issued and outstanding at June 30, 2026 and December 31, 2025, respectively
— — 
Common stock, $0.01 par value. Authorized 500,000,000 shares; 65,615,117 and 64,515,380 shares issued and outstanding at June 30, 2026 and December 31, 2025, respectively
656 645 
Limited common stock, $0.01 par value. Authorized 100,000,000 shares; 9,164,193 shares issued and outstanding at June 30, 2026 and December 31, 2025, respectively
92 92 
Additional paid-in capital1,011,119 992,015 
Accumulated deficit(682,857)(628,806)
Accumulated other comprehensive (loss) income(54)107 
Total stockholders' equity328,956 364,053 
Total liabilities and stockholders' equity$640,394 $726,160 


Condensed Consolidated Statements of Cash Flows (Unaudited)
(in thousands)
Six Months Ended June 30,
20262025
Cash flows from operating activities:
Net loss$(54,051)$(102,981)
Adjustments to reconcile net loss to net cash (used in) provided by operating activities:
Change in fair value of equity investments(32,381)8,516 
Depreciation and amortization2,964 3,120 
Stock-based compensation17,867 22,201 
Noncash investment accretion(209)(1,676)
(Gain) loss on disposal of property and equipment(1)20 
Decrease (increase) in assets:
Accounts receivable, net61,650 225,619 
Unbilled and other receivables1,619 (7,070)
Reduction in the carrying amount of right of use assets - operating leases5,264 4,537 
Prepaid expenses and other assets2,550 (4,299)
(Decrease) increase in liabilities:
Accounts payable(1,119)(1,737)
Accrued payroll, taxes, and benefits(7,657)(16,788)
Deferred revenue(41,805)(34,220)
Lease liabilities - operating leases(4,685)(3,516)
Other accrued liabilities1,090 139 
Net cash (used in) provided by operating activities(48,904)91,865 
Cash flows from investing activities:
Purchases of property and equipment(2,869)(910)
Proceeds from disposition and sale of equity investments, net66,976 — 
Purchases of marketable securities(103,992)(166,062)
Proceeds from maturity of marketable securities143,101 142,003 
Net cash provided by (used in) investing activities103,216 (24,969)
Cash flows from financing activities:
Proceeds from issuances of common stock upon stock option exercises1,248 2,456 
Principal payments on finance leases(29)(29)
Net cash provided by financing activities1,219 2,427 
Net increase in cash and cash equivalents and restricted cash55,531 69,323 
Cash and cash equivalents and restricted cash, beginning of period237,385 162,657 
Cash and cash equivalents and restricted cash, end of period$292,916 $231,980 
​
Supplemental disclosure of cash flow and noncash information
Cash paid for income taxes$765 $365 
Supplemental disclosure of non-cash investing and financing activities
Purchases of property and equipment in accounts payable27 34 
Purchases of property and equipment in accrued liabilities162 — 
Acquisition of right of use assets in exchange for lease liabilities - operating leases3,439 — 




Reconciliation of GAAP Net Income (Loss) to Adjusted EBITDA (Unaudited)
(in thousands)
Three Months EndedSix Months Ended
June 30,June 30,
2026202520262025
Net income (loss) (GAAP)$5,975 $(43,173)$(54,051)$(102,981)
Change in fair value of equity investments(45,868)(4,579)(32,381)8,516 
Other income(3,026)(5,438)(5,689)(9,642)
Income tax expense1,372 287 1,780 315 
Depreciation and amortization1,488 1,531 2,964 3,120 
Stock-based compensation8,794 10,627 17,867 22,201 
Reorganization expense (a)
279 2,060 868 2,060 
Litigation and settlement expense (b)
— — — 390 
Adjusted EBITDA$(30,986)$(38,685)$(68,642)$(76,021)
(a)     Represents costs in connection with restructuring, consisting of severance payments, employee benefits, and related costs.
(b)     Represents costs related to a derivative action settlement which we do not consider to be representative of our underlying operating performance.