Schrödinger targets 10%-15% ACV growth through accelerated hosted transition and platform innovation

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• Drug discovery revenue for 2026 anticipated between $55 million and $65 million

  80% confidence

• Total ACV increased to $198.5 million with notable 15% growth within top 20 pharma relationships

  80% confidence

• Transition to hosted contracts has no impact to ACV or cash flows

  80% confidence

• Software revenue increased 11% and drug discovery revenue more than doubled compared to the prior year

  80% confidence

• Expects 10% to 15% software ACV growth, operating with expense discipline, and accelerating transition to primarily hosted model

  80% confidence

• We're definitely looking forward to predictive toxicology launch and expecting growth from it as well as new products

  80% confidence

• Targets include annual software ACV growth of 10% to 15%, substantially completing transition to hosted contracts, and returning gross margin percentage to the high 70s

  80% confidence

• Schrödinger had a strong 2025 delivering $256 million of revenue or 23% growth against a challenging backdrop of tight pharma budgets and challenging biotech capital markets

  80% confidence

• Net dollar retention fell to 100% after several years averaging over 110%

  80% confidence

• Schrödinger is the leader in advancing and deploying computational methods for molecular discovery

  80% confidence

• Partnering pipeline assets is an ongoing and active component of business

  80% confidence

• Software gross margin of 74% compared to 80% in 2024 due to hosted deployment transition

  80% confidence

• Total operating expenses were $310 million, a decrease of approximately 9% compared to 2024

  80% confidence

• Customers are increasingly preferring hosted deployments

  80% confidence

• A number of new products fit profile of reaching new end customers and new touch points within existing customers

  80% confidence

• ACV and revenue are actually quite different

  80% confidence

• Drug discovery business generated $56.4 million of revenue from portfolio of collaborative programs

  80% confidence

• The company achieved 23% total revenue growth and has a strong cash position of $402 million for 2025

  80% confidence

• Profitability by 2028 depends on growth across the software business of about 10% to 15% a year and drug discovery revenue of about $50 million a year

  80% confidence

• Operating expenses expected to be less than 2025 as company fully realizes annualized impact of expense reductions

  80% confidence

• Schrödinger is uniquely positioned to lead the next era of molecular discovery by scaling physics plus AI platform across a multi-billion-dollar growing market

  80% confidence

• Schrödinger is working with Anthropic directly to explore ways to integrate agentic AI with computational solutions

  80% confidence

• 2026 ACV guidance is $218 million to $228 million representing 10% to 15% growth

  80% confidence

• We are really confident about our future and the opportunities ahead

  80% confidence

• Q1 2026 ACV expected to be $24 million to $28 million compared to $25 million from Q1 2025

  80% confidence

• Q1 tends to be one of the smaller quarters following the Q4 season

  80% confidence

• New products including predictive tox are reaching new end customers and new touch points within existing customers

  80% confidence

• Software business generated $199.5 million of software revenue and $198.5 million of software ACV with strong growth from commercial customers

  80% confidence