Schrödinger (SDGR) closed out FY 2025 with Q4 revenue of US$87.2 million, Basic EPS of US$0.44 and net income of US$32.5 million, marking a clear contrast with the loss making quarters that opened the year. Over the past few periods, the company has seen quarterly revenue move from US$59.6 million in Q1 2025 to US$54.8 million in Q2, US$54.3 million in Q3 and then US$87.2 million in Q4. EPS shifted from a loss of US$0.82 in Q1 to losses of US$0.59 and US$0.45 in Q2 and Q3, before turning positive in Q4 at US$0.44. For investors, that swing in quarterly earnings against a still loss making trailing twelve month profile puts the spotlight firmly on how durable these margins look.
See our full analysis for Schrödinger.With the headline numbers on the table, the next step is to see how this mix of improving quarterly profitability and loss making trailing results lines up against the prevailing narratives around Schrödinger’s growth potential and risk profile.
See what the community is saying about Schrödinger
Losses Still Heavy At Trailing Level
- On a trailing twelve month basis to Q4 2025, Schrödinger booked US$255.9 million in revenue but a net loss of US$103.3 million, with Basic EPS at a loss of US$1.41, so the business is still meaningfully in the red when you zoom out beyond Q4.
- Bears point to this trailing loss profile as backing their concern that high R&D and software investment keep earnings negative, and the data do line up with that view:
- Over the past five years, losses are reported to have grown at about 21.5% per year, which fits the bearish argument that costs remain heavy even as revenue grows.
- At the same time, trailing revenue growth of 17.4% a year shows solid activity, so the tension in the bearish narrative is that top line progress has not yet translated into positive earnings on a full year basis.
Premium P/S Despite Ongoing Losses
- Schrödinger trades on a P/S of 3.7x while peers sit around 1.4x and the broader industry at 2.2x, even though the company remains loss making on the trailing twelve month view with a US$103.3 million net loss.
- Critics highlight this valuation as a key bearish point, arguing that paying a premium multiple for a business with no trailing profitability adds execution risk for shareholders:
- The current share price of US$12.76 implies the market is already paying more per dollar of sales than many peers, which is harder to justify when Basic EPS on a trailing basis is a loss of US$1.41.
- Because there are no positive trailing earnings to anchor a P/E, the premium P/S multiple is doing the heavy lifting, which is exactly what bearish investors flag as a reason to be cautious until consistent profits show up.
DCF Upside Versus Analyst Target
- The provided DCF fair value of US$52.86 sits well above the current share price of US$12.76, while the allowed analyst price target reference is US$23.67, so there is a sizable gap between what that DCF model suggests and what the simplified target implies.
- Bullish investors lean on this gap, together with high forecast earnings growth, as a key part of their case, but the current numbers also keep that optimism in check:
- Forecast earnings growth of about 42.37% per year and expectations for a move to profitability within three years support the idea that earnings power could look very different from the trailing US$103.3 million loss.
- At the same time, using US$23.67 as a reference analyst target against the US$12.76 share price still leaves upside implied by that target and an even larger distance to the DCF fair value, which bullish investors may see as opportunity while others treat it as a reminder that models and market pricing can differ for extended periods.
Next Steps
To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for Schrödinger on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.
If parts of this story seem bullish while others raise concerns, that is intentional. Take a moment to review the numbers yourself and move quickly to form your own view. To round out the picture, it is worth checking the 2 key rewards that investors are currently optimistic about.
See What Else Is Out There
Schrödinger still carries a trailing twelve month net loss of US$103.3 million and a premium 3.7x P/S, so profitability and valuation remain pressure points.
If that mix of heavy losses and a rich sales multiple feels uncomfortable, you can immediately shift your focus to companies screened as 80 resilient stocks with low risk scores and compare how their profiles stack up.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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