Free cash flow remains deeply negative, with a quarterly burn rate that reached -$62.4 million in 2025Q3, further complicated by an OCF/NI ratio of -2.41 in 2025Q1.
| Cash from Operations | -145M | 13.9M | -157.37M | -136.73M | -119.68M | -70.67M | 16.76M | -26.06M | -23.71M | -15.31M |
| Operating CF Margin % | - | 5.43% | -75.83% | -63.11% | -66.14% | -51.23% | 15.5% | -30.46% | -35.58% | -27.48% |
| Operating CF Growth % | -145.23% | 108.83% | -15.09% | -14.25% | -69.36% | -521.73% | 164.3% | -9.9% | -54.9% | - |
| Net Income | -103.48M | -103.27M | -187.12M | 40.72M | -149.19M | -101.22M | -26.64M | -25.68M | -28.43M | -17.39M |
| Depreciation & Amortization | 5.91M | 6.02M | 6.16M | 5.55M | 4.34M | 2.85M | 3.66M | 3.64M | 2.89M | 1.69M |
| Stock-Based Compensation | 40.5M | 43M | 49.9M | 47.84M | 39.63M | 26.49M | 10.54M | 2.19M | 1.31M | 888K |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | 0 | -32.12M | 0 | 375K | -2.1M |
| Other Non-Cash Items | -130.88M | -50.02M | -13.27M | -208.29M | 6.91M | -3.46M | 2.14M | -10.51M | -149K | 19K |
| Working Capital Changes | -60.31M | 118.17M | -13.04M | -22.55M | -21.38M | 4.68M | 59.18M | 4.29M | 281K | 1.59M |
| Change in Receivables | -2.29M | 150.94M | -166.22M | -20.03M | -27.95M | -5.51M | -12.75M | -6.59M | -4.27M | -3.1M |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 0 | 7.34M | 0 | -3.86M | 2.65M |
| Change in Payables | 19K | 908K | -6.12M | 7.32M | 1.18M | -411K | 4.88M | -294K | 969K | 45K |
| Cash from Investing | 71.86M | 57.9M | 148.84M | 193.03M | 90.02M | -16.81M | -381.72M | -53.85M | 11.19M | 2.05M |
| Capital Expenditures | -3.35M | -1.44M | -7.31M | -13.4M | -8.01M | -7.17M | -2.54M | -1.84M | -5.26M | -3.7M |
| CapEx % of Revenue | 1.32% | 0.56% | 3.52% | 6.19% | 4.43% | 5.2% | 2.35% | 2.15% | 7.89% | 6.64% |
| Acquisitions | 0 | 0 | 45.73M | -4.13M | -7.03M | 0 | -2.87M | 0 | -3.65M | -600K |
| Investments | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 0 | 0 | 0 | 147.21M | 11.82M | 375K | 4.58M | 943K | -3.65M | 3.24M |
| Cash from Financing | 3.09M | 2.93M | 10.12M | 9.05M | 2.11M | 7.95M | 541.27M | 28.68M | 80.27M | 1.13M |
| Debt Issued (Net) | -44K | -58K | -58K | -19K | 0 | 0 | 0 | 0 | 0 | 0 |
| Equity Issued (Net) | 2.25M | 2.99M | 8.87M | 0 | 0 | 0 | 537.09M | 29.89M | 0 | 1.13M |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 890K | 0 | 1.31M | 9.07M | 2.11M | 7.95M | 4.18M | -1.21M | 80.27M | 0 |
| Net Change in Cash | -70.04M | 74.73M | 1.59M | 65.35M | -27.55M | -79.53M | 176.31M | -51.23M | 67.76M | -12.13M |
| Free Cash Flow | -148.35M | 12.46M | -164.68M | -150.14M | -127.7M | -77.84M | 14.22M | -27.89M | -28.97M | -19.01M |
| FCF Margin % | -58.2% | 4.87% | -79.35% | -69.29% | -70.57% | -56.43% | 13.15% | -32.61% | -43.47% | -34.13% |
| FCF Growth % | -769.48% | 107.56% | -9.69% | -17.57% | -64.06% | -647.41% | 150.97% | 3.71% | -52.42% | - |
| FCF per Share | -2.01 | 0.17 | -2.27 | -2.00 | -1.79 | -1.10 | 0.24 | -0.44 | -0.60 | -3.35 |
| FCF Conversion (FCF/Net Income) | 1.43x | -0.13x | 0.84x | -3.36x | 0.80x | 0.70x | -0.68x | 1.06x | 0.83x | 0.88x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 511K | 0 | 1.08M | 2.83M | 787K | 448K | 381K | 139K | 13K | 348K |
Clinical Pipeline Execution Risk
As reported in financial statements, Schrödinger's operating cash flow frequently diverges from net income, with the OCF/NI ratio reaching an extreme -2.41 in 2025Q1, highlighting the significant impact of non-cash items and working capital fluctuations on the company's ability to generate actual liquidity from its operations.
The persistent gap between net income and operating cash flow suggests that accounting earnings are heavily influenced by non-cash charges and timing differences in milestone recognition. Investors should monitor whether this volatility in cash conversion is a permanent feature of the discovery-heavy business model or a temporary byproduct of shifting revenue recognition patterns.
Based on reported figures, Schrödinger's free cash flow trajectory remains deeply negative, with a quarterly burn rate that peaked at -$62.4 million in 2025Q3, indicating that the company's current operational scale is insufficient to cover its intensive R&D and clinical development expenditures without external capital support.
The consistent negative FCF margins, which reached -115.6% in 2024Q2, underscore the high-cost nature of the company's pivot toward internal drug discovery. This trend suggests that the firm is currently prioritizing long-term asset development over immediate cash generation, which may necessitate future financing if the internal pipeline does not reach commercialization.
According to recent SEC filings, working capital changes have been a major source of cash flow instability, swinging from a $178.5 million inflow in 2025Q1 to a $31.0 million outflow in 2025Q3, reflecting the lumpy nature of milestone payments and the timing of large-scale collaboration receipts.
These significant swings in working capital suggest that the company's cash position is highly sensitive to the timing of contract milestones and partner payments. Such volatility makes it difficult to forecast short-term liquidity needs and implies that the company's core software business may be masked by the unpredictable cash cycles of its discovery segment.
As indicated by the provided data, stock-based compensation consistently exceeds $9 million per quarter, effectively masking the true extent of the company's cash burn by providing a non-cash expense that supports talent retention while simultaneously diluting existing shareholders to fund ongoing R&D and clinical operations.
The reliance on stock-based compensation as a primary tool for managing personnel costs suggests that the company is attempting to preserve cash for its clinical pipeline. However, this practice warrants further investigation, as it may understate the true economic cost of operations and create a persistent overhang of dilution that could impact future per-share value.
Quick answers to the most common questions about buying SDGR stock.
Schrödinger, Inc. (SDGR) generated $13.9M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Schrödinger, Inc. (SDGR) generated $12.5M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Schrödinger, Inc. (SDGR) spent $1.4M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.