# Schrodinger (SDGR.US)

Canonical: https://gigainvestors.com/s/SDGR

Analysis as of: 2026-10-16T07:31:49.648Z. Financial observations: FY2018–FY2026.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: fail; earnings resilience is evidence only). Published buy qualification: no.

Share price: $25.48 per share; close as of 2026-10-15.

## Checklist

### understandable: fail

- 1 revenue decline in the last 10 years (informational)

- more than 2 net loss years

- negative average operating margin

- Financial history: 9 years

- Years with declining revenue: 1

- Years with a net loss: 8

- Operating margin variation: 0.27×

Chart: Operating margin; fiscal year observations.

- FY2018: -0.42×

- FY2019: -0.45×

- FY2020: -0.56×

- FY2021: -0.81×

- FY2022: -0.81×

- FY2023: -0.82×

- FY2024: -1.01×

- FY2025: -0.65×

- LTM to Jun 2026: -0.59×

### moat: fail

- Years with nonpositive invested capital use equity plus debt and leases; positive earnings with no positive capital are shown above 100%.

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: -90.7%

- ROIC, second-lowest year: -180.5%

- Typical minus recent gross margin: 0.5 pp

- Typical gross margin (annual median): 57.4%

- Recent gross margin (lower of latest and 3-year median): 56.9%

- Years with nonpositive capital: 3

- Capital spending / revenue: 3.5%

- ROIC including acquisitions, ten-year median: -119.0%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2018: 0.0%

- FY2019: 0.0%

- FY2020: -7.6%

- FY2021: -145.6%

- FY2022: -106.9%

- FY2023: -80.7%

- FY2024: -90.7%

- FY2025: -180.5%

- LTM to Jun 2026: -658.5%

### economics: fail

- owner earnings cash conversion below threshold

- incremental invested capital return below threshold

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: -$496M

- Net income, five-year total: -$499M

- Return on incremental invested capital: -125.9%

- Working capital / revenue, annual change: 7.1 pp

Chart: Owner earnings · five years; fiscal year observations.

- FY2021: -$100M

- FY2022: -$149M

- FY2023: $41M

- FY2024: -$188M

- FY2025: -$99M

### management: fail

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: 0.0% vs -90.7%

- Per-share earnings: -0.51 to -1.41 (three-year endpoint medians)

- per-share value declined or ends nonpositive

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 5-year annual growth: 4.1%

- Diluted shares, 5-year annual growth: 4.1%

- Per-share value change: -$0.90

- Per-share value, starting three-year median: -$0.51

- Per-share value, ending three-year median: -$1.41

- Buyback history: 0 years

- Debt-funded buybacks: No

- ROIC, first three-year median: 0.0%

- ROIC, last three-year median: -90.7%

Chart: Earnings per share; fiscal year observations.

- FY2018: -$0.59

- FY2019: -$0.51

- FY2020: -$0.41

- FY2021: -$1.42

- FY2022: -$2.10

- FY2023: $0.54

- FY2024: -$2.57

- FY2025: -$1.41

### accounting: pass

- stock compensation exceeds 15% of operating cash flow

- Sloan accruals: -16.1%

- Receivables to sales index (DSRI): 0.33×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 309.4%

- Earnings backed by cash: Yes

- Accounting red flags: 1

- Goodwill and intangibles / equity: 0.01×

Chart: Sloan accruals; fiscal year observations.

- FY2018: -3.9%

- FY2019: 1.0%

- FY2020: -5.5%

- FY2021: -3.9%

- FY2022: -4.3%

- FY2023: 22.1%

- FY2024: -3.6%

- FY2025: -16.1%

## Holders

- [Bill Gates](https://gigainvestors.com/GFT): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Down 53% since Oct 2021 · "Schrödinger discontinues leukemia drug after patient deaths" (investing.com, Aug 2025) · sales +1.2%

Story as of 2026-10-16T09:59:33.806Z; price observation 2026-10-15.

- 2025-08-14: Schrödinger discontinues leukemia drug after patient deaths ([investing.com](https://www.investing.com/news/company-news/schrodinger-discontinues-leukemia-drug-after-patient-deaths-93CH-4191694))

### Sales · FY2025–2026

sales +1.2%; source https://www.sec.gov/Archives/edgar/data/1490978/000149097826000010/sdgr-20251231.htm; observed 2026-02-25.

- FY2018: $67M 

- FY2019: $86M 

- FY2020: $108M 

- FY2021: $138M 

- FY2022: $181M 

- FY2023: $217M 

- FY2024: $208M 

- FY2025: $256M 

- FY2026: $259M 

### Gross margin · FY2026

gross margin 56.9%; source https://www.sec.gov/Archives/edgar/data/1490978/000149097826000010/sdgr-20251231.htm; observed 2026-02-25.

- FY2018: 64.4% 

- FY2019: 57.4% 

- FY2020: 58.7% 

- FY2021: 47.6% 

- FY2022: 55.8% 

- FY2023: 64.9% 

- FY2024: 63.6% 

- FY2025: 55.7% 

- FY2026: 56.9% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in health information services; annual sales are USD 255.9 million.

- Source: https://www.sec.gov/Archives/edgar/data/1490978/000149097826000010/sdgr-20251231.htm (filed 2026-02-25); FY2025: revenue 255869000; grossProfit 142614000; margin = grossProfit / revenue.

### Why customers stay

Margins ranged from 55.7% to 64.9% during 2023–25; it lost 90.7% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-25); FY2023: grossProfit / revenue = 64.9%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-25); FY2024: grossProfit / revenue = 63.6%.

- Source: https://www.sec.gov/Archives/edgar/data/1490978/000149097826000010/sdgr-20251231.htm (filed 2026-02-25); FY2025: grossProfit / revenue = 55.7%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-25); 9-year return on capital observations [[2018,0],[2019,0],[2020,-0.07569240254868437],[2021,-1.4561447875489986],[2022,-1.068921175592358],[2023,-0.8068990803726304],[2024,-0.9066941582263557],[2025,-1.8054917426669954],[2026,-6.58526455888744]]; median -0.9066941582263557. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid no dividends in 8 years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-25); FY2023: growth capex 7851000; upkeep 5552000; cash acquisitions 0; owner earnings 40720000. Growth capex plus acquisitions / owner earnings = 0.19280451866404716.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-25); Dividend observations: [[2018,0],[2019,0],[2020,0],[2021,0],[2022,0],[2023,0],[2024,0],[2025,0]]. Zero only counted when supported by a complete cash-flow statement.

### Are managers owners

Insiders own 3% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-15); SDGR.US SharesStats.PercentInsiders = 3.004 percentage points; cache date 2026-10-15.

### What the price says

The price is 7.3 times annual sales; cash earnings are negative.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-25); Closing price 25.48 USD; reporting-to-trading FX 1; FY2025 annual sales per share 3.483898558041334; price multiple 7.313645783740899. FY2025 cash earnings/share -1.343689658381082. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2020-02: $46.38 per share

- 2020-03: $43.12 per share

- 2020-04: $46.40 per share

- 2020-05: $68.45 per share

- 2020-06: $91.57 per share

- 2020-07: $72.38 per share

- 2020-08: $60.46 per share

- 2020-09: $47.51 per share

- 2020-10: $48.78 per share

- 2020-11: $69.58 per share

- 2020-12: $79.18 per share

- 2021-01: $90.33 per share

- 2021-02: $102.48 per share

- 2021-03: $76.29 per share

- 2021-04: $76.24 per share

- 2021-05: $70.18 per share

- 2021-06: $75.61 per share

- 2021-07: $67.67 per share

- 2021-08: $59.69 per share

- 2021-09: $54.68 per share

- 2021-10: $54.58 per share

- 2021-11: $39.18 per share

- 2021-12: $34.83 per share

- 2022-01: $28.35 per share

- 2022-02: $34.76 per share

- 2022-03: $34.12 per share

- 2022-04: $24.72 per share

- 2022-05: $25.84 per share

- 2022-06: $26.41 per share

- 2022-07: $31.30 per share

- 2022-08: $27.44 per share

- 2022-09: $24.98 per share

- 2022-10: $23.97 per share

- 2022-11: $18.00 per share

- 2022-12: $18.69 per share

- 2023-01: $24.18 per share

- 2023-02: $21.73 per share

- 2023-03: $26.33 per share

- 2023-04: $29.52 per share

- 2023-05: $33.45 per share

- 2023-06: $49.92 per share

- 2023-07: $52.31 per share

- 2023-08: $36.89 per share

- 2023-09: $28.27 per share

- 2023-10: $21.70 per share

- 2023-11: $31.09 per share

- 2023-12: $35.80 per share

- 2024-01: $26.45 per share

- 2024-02: $25.46 per share

- 2024-03: $27.00 per share

- 2024-04: $24.38 per share

- 2024-05: $21.52 per share

- 2024-06: $19.34 per share

- 2024-07: $22.28 per share

- 2024-08: $21.03 per share

- 2024-09: $18.55 per share

- 2024-10: $17.60 per share

- 2024-11: $22.57 per share

- 2024-12: $19.29 per share

- 2025-01: $25.08 per share

- 2025-02: $22.31 per share

- 2025-03: $19.74 per share

- 2025-04: $25.63 per share

- 2025-05: $21.62 per share

- 2025-06: $20.12 per share

- 2025-07: $20.33 per share

- 2025-08: $19.51 per share

- 2025-09: $20.06 per share

- 2025-10: $21.04 per share

- 2025-11: $17.56 per share

- 2025-12: $17.88 per share

- 2026-01: $13.97 per share

- 2026-02: $12.06 per share

- 2026-03: $11.36 per share

- 2026-04: $11.96 per share

- 2026-05: $15.20 per share

- 2026-06: $16.25 per share

- 2026-07: $15.14 per share

- 2026-08: $19.50 per share

- 2026-09: $31.05 per share

- 2026-10: $25.48 per share

## Annual estimated value (USD per share)

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/1490978/000149097826000010/sdgr-20251231.htm); period 2025-12-31, filed 2026-02-25.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.

## Reported holder observations

- [Bill Gates](https://gigainvestors.com/GFT): 6,981,664 SDGR shares; USD 113,452,000 reported position value; 0.33% of portfolio; hold; quarter 2026 Q2.

# SDGR — SCHRODINGER Inc.

Held by 1 investor · USD 113,452,000 total · 2026 Q2 · reported price USD 16.25 (split-adjusted).
Page: https://gigainvestors.com/s/SDGR

## Holders (2026 Q2)

| Investor | Value | % of their portfolio | This quarter |
|---|---:|---:|---|
| Bill Gates (https://gigainvestors.com/GFT) | USD 113,452,000 | 0.3% | hold |

## Total held by quarter

- 2020 Q1: USD 301,049,395 · 1 holder · USD 43.12
- 2020 Q2: USD 639,310,972 · 1 holder · USD 91.57
- 2020 Q3: USD 236,678,857 · 1 holder · USD 47.51
- 2020 Q4: USD 552,808,156 · 1 holder · USD 79.18
- 2021 Q1: USD 532,631,147 · 1 holder · USD 76.29
- 2021 Q2: USD 527,883,615 · 1 holder · USD 75.61
- 2021 Q3: USD 381,757,388 · 1 holder · USD 54.68
- 2021 Q4: USD 243,171,357 · 1 holder · USD 34.83
- 2022 Q1: USD 238,214,376 · 1 holder · USD 34.12
- 2022 Q2: USD 184,385,746 · 1 holder · USD 26.41
- 2022 Q3: USD 174,401,967 · 1 holder · USD 24.98
- 2022 Q4: USD 130,487,300 · 1 holder · USD 18.69
- 2023 Q1: USD 183,827,213 · 1 holder · USD 26.33
- 2023 Q2: USD 348,524,667 · 1 holder · USD 49.92
- 2023 Q3: USD 197,371,641 · 1 holder · USD 28.27
- 2023 Q4: USD 249,943,571 · 1 holder · USD 35.80
- 2024 Q1: USD 188,504,928 · 1 holder · USD 27.00
- 2024 Q2: USD 135,025,382 · 1 holder · USD 19.34
- 2024 Q3: USD 129,509,867 · 1 holder · USD 18.55
- 2024 Q4: USD 134,676,299 · 1 holder · USD 19.29
- 2025 Q1: USD 137,818,047 · 1 holder · USD 19.74
- 2025 Q2: USD 140,471,080 · 1 holder · USD 20.12
- 2025 Q3: USD 140,052,180 · 1 holder · USD 20.06
- 2025 Q4: USD 124,832,152 · 1 holder · USD 17.88
- 2026 Q1: USD 79,311,703 · 1 holder · USD 11.36
- 2026 Q2: USD 113,452,000 · 1 holder · USD 16.25