Schrödinger : Schrödinger Corporate Presentation

Published: 2026-05-07 05:33:14 ET SDGR

Published on 05/07/2026 at 05:33 am EDT

May 2026

SOFTWARE LICENSING THERAPEUTICS PORTFOLIO

Accelerating molecular design for Life Sciences and Materials Science global customers

R&D efficiency increasing by embracing our predict-first approach

$201M ACV on a trailing four-quarter basis

Full-scale application of predict-first approach producing highly differentiated molecules across proprietary and collaborative portfolio

Extensive track record of delivering development candidates resulting in high value portfolio of milestones and royalties

COMPUTATIONAL PLATFORM

Integrating physics, AI, and scalable data infrastructure to accelerate molecular discovery

If all properties can be calculated with perfect accuracy, designing drugs/materials would have a much

higher success rate, be much faster and cheaper, and would produce much higher-quality molecules.

Physics-powered AI

Select THE best molecule

Life Sciences

All synthesizable molecules

("infinite")

Potency

Selectivity

Solubility

Bioavailability

Clearance / Half-life

Permeability

Drug-Drug Interactions

Synthesizability

Materials Science

Reactivity

Selectivity

Solubility

Sustainability

Redox

Kinetics

Stability

Synthesizability

Simulated data is needed to unlock power of AI

Highly sophisticated AI applications rely on simulated data

Autonomous Vehicles

AI models in molecular discovery require massive training sets

Physics provides ground truth for AI models in molecular discovery

Weather Prediction Chip Design Aircraft Design

Scaling the Impact of the Schrödinger Platform

Advances in AI & Compute Increasing Demand for Schrödinger Platform

Increased knowledge of biology

More protein structures

Faster compute

More capable agentic AI

Schrödinger Platform

Physics-based predictions

to power generative AI

Centralized, high-quality data to train next-generation AI models

Throughput-based licensing captures value from agentic AI scale up

Multi-Billion Dollar Computational Drug Discovery Market

11% CAGR (2025-2034)*

*Source: Precedence Research. 6

What it is: Bunsen, a new agentic AI co-scientist that autonomously executes complex molecular discovery workflows

What it can do: Enhance productivity and accelerate the DPMTA* cycle

What it means: Dramatically increases expert productivity while democratizing platform access

Commercial implication: Throughput-based licensing captures value from expanded platform utilization

Early-access version planned for release this summer

*Design-Predict-Make-Test-Analyze 7

Platform: Leaders in physics-based simulation, delivering ground truth data required

to realize full potential of AI in molecular discovery

Scale: Driving unprecedented efficiencies through expanding adoption of our platform across Life Sciences and Materials Science R&D

Impact: Enabling a new era of molecular discovery - faster design cycles, higher success rates, and better molecules

Three Months Ended March 31

1Q 2026 ($M)

1Q 2025 ($M)

% Change

Software revenue

$35.6

$45.0

(21%)

Drug discovery revenue

$22.9

$10.2

124%

Contribution revenue

$0.1

$4.3

(97%)*

Total revenue

$58.6

$59.6

(1.6%)

Gross profit

$29.5

$31.1

Software gross margin

69%

80%

Operating expenses

$78.3

$82.0

(4.5%)

Other expenses

($10.8)

($8.9)

Net loss

($60.0)

($59.8)

as of 3/31/26 as of 12/31/25

Cash and marketable securities

$406.4

$402.3

Deferred revenue, current and long term

$162.1

$191.7

*Primarily due to the completion of grant funding related to the company's predictive toxicology initiative 9

Software KPI

2025

2024

% Growth

Total annual contract value (ACV)

$198.5M

$190.8M

4.0%

Top 20 Pharma1 ACV

$80.8M

$70.0M

15.3%

Commercial ACV

$177.4M

$165.8M

7.0%

ACV / Commercial Customer (>$1M)

$3.9M

$3.3M

16.3%

Number of Commercial Customers (>$1M ACV)2

Net Dollar Retention (Commercial Customers)

100%

113%

Gross Dollar Retention (Commercial Customers)

96%

Drug Discovery KPI

as of 12/31/25

as of 12/31/24

Ongoing programs eligible for royalties

Number of collaborators since 2018

1Top 20 Pharma represents top 20 pharma companies by 2024 revenues. 2Two >$1M commercial customers were acquired by Top 20 Pharma customers in 2025. See Appendix for additional information regarding KPIs.

Simplified Offering for Customers

Current

Licensing

Accelerated

Transition to Hosted

Predominantly on-premise

resulting in highly variable revenue from mostly upfront recognition

Prioritize hosted

deployments resulting in predictable revenue

Why?

Industry standard with customers that are embracing cloud-based solutions

Faster deployment and enhanced renewals

Licensing and support efficiencies

More predictable revenue

Efficiencies

Deployment, renewals, licensing and support

Track Record

Several large customers deployed hosted

Customer

Expect minimal customer disruptions

Why now?

Hosted revenue is already 23% of software revenue but transition to hosted has been gradual

Have successfully deployed or transitioned to hosted for some of our our largest and most sophisticated customers

Regulatory trends toward hosted

Type of Deployment

Term Length

% Revenue Recognized Upfront

Total Contract Value

Deployment

Deal1

Term Length (Years)

Renewal Quarter

% Revenue Recognized Upfront

ACV ($MM)

TCV ($MM)

Year 1

Year 2

Year 3

On-prem

88%

$1,000

$880

$40

$880

$40

$880

$40

88%

$1,000

$880

$40

$880

$40

$880

88%

$1,000

$2,000

$1,760

$34

$1,760

68%

$1,000

$3,000

$2,040

$87

Hosted

$1,000

$250

$1,000

$250

$1,000

$2,000

$250

$1,000

$3,000

$250

Over the term of the contract each

$1,000 of ACV will turn into $1,000 in revenue

1Illustrative examples of zero-growth renewal contracts. 12

2026 Financial and Operational Outlook

ACV of $218 - $228 million, representing 10-15% growth over 2025

Drug discovery revenue of $55 - $65 million

Operating expenses less than 2025

2Q26 ACV Guidance

2028 Financial Objectives

Durable ACV growth of 10-15% annually

Substantially complete transition to hosted software as revenue converges with ACV

Return gross margin to high 70s

Drug discovery revenue of $50 million

ACV of $19M - $23M, excluding contribution ACV

Q2 2026 ACV

Guidance: $19-23M

Q2 2025 ACV:

$23.3M

annually, with potential variability each year

due to collaboration and milestone-driven nature of business

Positive adjusted EBITDA by the end of 20282

Commercial / Government / Academic

$5.0

$18.3

$19.0 -23.0

Contribution1

1Includes both Gates Ventures, LLC and the Gates Foundation

2See Appendix for Non-GAAP financial measures and reconciliations to the most directly comparable GAAP measures.

Therapeutics Strategy: Close to $700M Cash Realized to Date

Equity Stakes

Multiple M&A events → cash Current equity stakes in:

Nimbus Therapeutics

Ajax Therapeutics

Structure Therapeutics

Drug Discovery Revenue

Proprietary programs licensed to pharma

$56M revenue in 2025

20 collaborators since 2018

Milestones & Royalties

$5B in potential milestones

15 programs eligible for royalties

5 programs targeting >$5B markets

Pharma royalties mid-single digit to low-double digits

Proprietary Programs

Phase I - Oncology

Preclinical - Inflammation

Discovery - Modality Switches

Gilead Acquires

Nimbus ACC Inhibitor

$1.2B

April 2016*

Lilly Acquires

Petra Pharma

Undisclosed

May 2020

Relay Therapeutics

Successful IPO

$400M Raised

July 2020

Takeda Acquires

Nimbus TYK2 Inhibitor

$6.0B

December 2022*

Structure Therapeutics

Successful IPO

$161M Raised

February 2023

Lilly Acquires

Morphic Holding

$3.2B

July 2024*

Lilly Acquires

Ajax Therapeutics

$2.3B

April 2026*

*Announcement date; amounts reflect total announced consideration, inclusive of upfront payments, potential milestones, and earnout components. 15

Partner

Therapeutic Area

Target

Phase

Potential Milestones

Royalties6

Inflammation (Psoriasis)

TYK25

Phase 3

Up to ~$100M7

IBD (UC/Crohn's)

ɑ4β7

Phase 2

Undisclosed

LSDs

Cardiometabolic

GLP-18

Phase 2

Oncology (Myelofibrosis)

JAK22

Phase 1

Undisclosed

IPF

LPA1R

Phase 1

$17M

LSDs

PAH

APJR

Phase 1

Cardiovascular (PAH)

ɑ5β1

Phase 1

Undisclosed

LSDs

Undisclosed

Preclinical

Undisclosed

CNS

Undisclosed

Preclinical

$482M

MSDs to LDDs

Undisclosed

Preclinical

$420M

LSDs to LDDs

Undisclosed

Multiple

Preclinical

$2.3B

MSDs to LDDs

CNS + Undisclosed

Multiple

Preclinical

Undisclosed

Tiered

Cardiometabolic

Amylin4

Preclinical

$89M

LSDs

1Morphic acquired by Lilly, Nimbus TYK2 program (zasocitinib) acquired by Takeda. 2Non-proprietary name (NPP): AJ1-11095. 3NPP: MORF-057. 4NPP: ACCG-2671. 5NPP: zasocitinib (TAK-279).

6MSD = Mid-single digit; LDD = Low-double digit; SD = Single digit. 7Schrödinger is eligible to receive future cash distributions from potential milestone payments made to Nimbus upon achievement of 16

certain specified sales milestones. NPP: aleniglipron (GSBR-1290). Excludes undisclosed collaborations.

May 2026

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. 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:

Industry cohorts:

Top 20 pharma. This cohort consists of the top 20 pharmaceutical companies, as measured by their 2024 revenue, which purchase our computational software solutions for drug discovery.

Rest of life sciences. This cohort includes customers purchasing our computational software solutions for drug discovery, excluding the top 20 pharma cohort.

Materials science. This cohort includes customers purchasing our computational software solutions for materials design.

Contribution. This cohort includes customers from which Schrödinger derives contribution revenue, which for the fiscal years ended December 31, 2025 and 2024, consisted solely of Gates Ventures, LLC and the Bill & Melinda Gates Foundation. Schrödinger presents this ACV separately because it relates to grant agreements accounted for as non-exchange contributions, rather than commercial software contracts.

Customer cohorts:

Commercial. This cohort includes all of Schrödinger's customers purchasing our computational software solutions for commercial use, excluding government and academic institutions and customers from which Schrödinger'derives contribution revenue.

Government and academic. This cohort includes U.S. federal, state, local and international government entities, as well as universities, medical centers, and non-profit research institutions.

Contribution. This cohort includes customers from which Schrödinger'derives contribution revenue, which for the fiscal years ended December 31, 2025 and 2024, consisted solely of Gates Ventures, LLC and the Bill & Melinda Gates Foundation. Schrödinger presents this ACV separately because it relates to grant agreements accounted for as non-exchange contributions, rather than commercial software contracts.

Net Dollar Retention Rate (Commercial customers). Schrödinger calculates Net Dollar Retention Rate for Commercial customers by comparing the ACV from the same cohort of Commercial customers across two periods. This metric excludes ACV attributable to new Commercial customers added during the period. The company calculates this by starting with the prior year's ACV for its Commercial customers. The company then adds the amount of increase in renewals from these customers, which it refers to as upsells, and subtracts the amount of decreases in renewals either as a result of decreased usage of its software or lost business, which it refers to as churn. The company then divides this aggregate number by the prior year ACV for its Commercial customers to arrive at the net dollar retention rate for its Commercial customers.

Gross Dollar Retention Rate (Commercial customers). Schrödinger calculates Gross Dollar Retention Rate for Commercial customers by comparing the ACV from the same cohort of Commercial customers across two periods, excluding the effect of any increases or expansions of ACV from any customers within the cohort. This metric also excludes ACV attributable to new Commercial customers added during the period. The company calculates this by starting with the prior year's ACV for its Commercial customers. The company then subtracts the amount of churn, and divides this resulting number by the prior year ACV for its Commercial customers to arrive at the gross dollar retention rate for its Commercial customers.

For both its net dollar retention rate and its gross dollar retention rate, Schrödinger excludes from the calculation Commercial customers that were acquired by other companies during the applicable period, as these events are outside of the company's control, may not reflect the underlying demand for its software solutions, and enhance comparability between periods. Together, gross and net dollar retention rates provide insight into both customer retention and the company's ability to drive incremental growth from current customers.

Ongoing programs eligible for royalties. Schrödinger tracks the aggregate number of collaborative and partnered programs for which the company is eligible to receive any amount of future royalties on sales, if any.

Numbers of collaborators since 2018. Schrödinger tracks the aggregate number of collaborators that the company has collaborated with, or partnered with, for drug discovery and drug development since 2018. The number of collaborators presented is a cumulative number and the company only includes those collaborations from which the company has derived revenue since January 1, 2018.

Disclaimer

Schrodinger Inc. published this content on May 06, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on May 07, 2026 at 09:32 UTC.