Schrödinger (SDGR) has drawn fresh attention after reporting 2025 results, with total revenue of US$255.87 million, sales of US$56.37 million, and a net loss of US$103.27 million, along with operational changes.
See our latest analysis for Schrödinger.
The earnings update and shift toward hosted, throughput based licensing arrived after a tough stretch for shareholders, with a 90 day share price return decline of 29.23% and a 1 year total shareholder return decline of 45.94%, suggesting momentum has been under pressure despite the business changes.
If this earnings news has you rethinking exposure to drug discovery and computational platforms, it could be a good moment to broaden your search with our 61 profitable AI stocks that aren't just burning cash as potential alternatives to consider.
With revenue at US$255.87 million, a loss of US$103.27 million, and the share price well below analyst targets, you have to ask yourself: is this weakness a chance to buy, or are markets already pricing in future growth?
Most Popular Narrative: 72.1% Undervalued
According to the most followed valuation narrative, Schrödinger’s fair value of $43.20 sits far above the last close at $12.06, framing today’s price as a steep discount.
Schrödinger represents a high-quality, uniquely positioned enterprise whose world-class technological platform and resilient business model are balanced against the inherent risks of clinical-stage drug development and the ongoing journey toward sustained profitability.
Curious how a business with ongoing losses still lands at a much higher fair value? The narrative leans heavily on software economics, drug pipeline potential, and specific assumptions about growth and margins that the market is not pricing the same way.
Result: Fair Value of $43.20 (UNDERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, this depends on clinical success and disciplined cash use. Trial setbacks or renewed heavy spending could quickly undermine that undervalued case.
Find out about the key risks to this Schrödinger narrative.
Another Take On The Valuation
The user narrative leans on a sum of the parts and sales based view to argue Schrödinger looks cheap at $12.06 versus an implied $43.20 fair value. Our DCF model is even more optimistic, with a future cash flow value of $52.92, which also points to an undervalued setup. The question is whether you are comfortable relying on long range forecasts when profits are still negative.
Look into how the SWS DCF model arrives at its fair value.
Next Steps
If this mix of cautious and optimistic signals feels hard to balance, consider moving quickly, reviewing the key numbers yourself, and weighing the 2 key rewards and 1 important warning sign before deciding what it all means for you.
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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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