Schrödinger, a computational drug discovery and AI company, reported full-year 2025 revenue of $255.9 million with a narrowed net loss of $103.3 million. Despite positive financials, the stock has underperformed, trading at $12.06 per share. The company's share price shows mixed returns: 13.67% over 30 days and 32.93% year-to-date, whilst longer-term investors face losses despite 45.94% one-year and 82.66% five-year returns. Analysts suggest the stock trades at a significant discount to its estimated fair value of $43.20 per share, representing potential 72.1% upside. This valuation assumes strong recurring software revenue, robust margins and successful drug pipeline development. However, risks remain if clinical programmes fail or operating losses persist longer than expected.

Schrödinger reported 2025 revenue of $256 million, up 23% year-over-year, with software revenue of $199.5 million and total annual contract value of approximately $198.5 million. The company narrowed its net loss to $103 million from $187 million in 2024 and ended the year with $402 million in cash. The company is accelerating a shift from on-premise to hosted, cloud contracts, with 23% hosted in 2025 and targeting roughly 75% by 2028. Management noted this transition will materially affect reported revenue timing and margins, with approximately $2–3 million revenue impact per 1% increase in hosted mix. Schrödinger highlighted its therapeutics portfolio with potential milestones up to $5 billion and upcoming clinical readouts, including WEE1/Myt1 Phase I data expected in Q2. The company is also exploring agentic AI integration with Anthropic.