Cash flow is volatile, with 2026Q2 operating cash flow of $48.9M and FCF of $46.0M, yet cumulative FCF over the last ten quarters is approximately -$100M, and working capital swings (e.g., +$178.5M in 2025Q1) drive variability.
Schrödinger, Inc. (SDGR) cash flow statement — 9-year operating, investing & financing cash flows
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 |
|---|
| Cash from Operations | -43.9M | 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 % | 45.62% | 108.83% | -15.09% | -14.25% | -69.36% | -521.73% | 164.3% | -9.9% | -54.9% | - |
| Net Income | -54.34M | -103.27M | -187.12M | 40.72M | -149.19M | -101.22M | -26.64M | -25.68M | -28.43M | -17.39M |
| Depreciation & Amortization | 7.34M | 6.02M | 6.16M | 5.55M | 4.34M | 2.85M | 3.66M | 3.64M | 2.89M | 1.69M |
| Stock-Based Compensation | 47.74M | 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 | -82.09M | -50.02M | -13.27M | -208.29M | 6.91M | -3.46M | 2.14M | -10.51M | -149K | 19K |
| Working Capital Changes | -5.78M | 118.17M | -13.04M | -22.55M | -21.38M | 4.68M | 59.18M | 4.29M | 281K | 1.59M |
| Change in Receivables | 50.25M | 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 | 1.98M | 908K | -6.12M | 7.32M | 1.18M | -411K | 4.88M | -294K | 969K | 45K |
| Cash from Investing | 230.68M | 57.9M | 148.84M | 193.03M | 90.02M | -16.81M | -381.72M | -53.85M | 11.19M | 2.05M |
| Capital Expenditures | -5.91M | -1.44M | -7.31M | -13.4M | -8.01M | -7.17M | -2.54M | -1.84M | -5.26M | -3.7M |
| CapEx % of Revenue | 2.28% | 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 | 2.29M | 2.93M | 10.12M | 9.05M | 2.11M | 7.95M | 541.27M | 28.68M | 80.27M | 1.13M |
| Debt Issued (Net) | -72K | -58K | -58K | -19K | 0 | 0 | 0 | 0 | 0 | 0 |
| Equity Issued (Net) | 2.04M | 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 | 321K | 0 | 1.31M | 9.07M | 2.11M | 7.95M | 4.18M | -1.21M | 80.27M | 0 |
| Net Change in Cash | 91.27M | 74.73M | 1.59M | 65.35M | -27.55M | -79.53M | 176.31M | -51.23M | 67.76M | -12.13M |
| Free Cash Flow | -49.8M | 12.46M | -164.68M | -150.14M | -127.7M | -77.84M | 14.22M | -27.89M | -28.97M | -19.01M |
| FCF Margin % | -19.23% | 4.87% | -79.35% | -69.29% | -70.57% | -56.43% | 13.15% | -32.61% | -43.47% | -34.13% |
| FCF Growth % | -304.36% | 107.56% | -9.69% | -17.57% | -64.06% | -647.41% | 150.97% | 3.71% | -52.42% | - |
| FCF per Share | -0.66 | 0.17 | -2.27 | -2.00 | -1.79 | -1.10 | 0.24 | -0.44 | -0.60 | -3.35 |
| FCF Conversion (FCF/Net Income) | 0.92x | -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 | 551K | 0 | 1.08M | 2.83M | 787K | 448K | 381K | 139K | 13K | 348K |
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.
Key Metrics
Top Statement Risk
Persistent operating losses
Metrics are mathematically derived from official filings.
Earnings Quality Masked by Volatile Accruals
In 2026Q2, SDGR reported net income of $6.0M against operating cash flow of $48.9M, an OCF/NI ratio of 8.18, but this ratio swung wildly across quarters, indicating low earnings quality.
The OCF/NI ratio ranged from -2.41 in 2025Q1 to 8.18 in 2026Q2, driven largely by working capital swings (e.g., $178.5M positive in 2025Q1 vs. -$31.0M in 2025Q3). This suggests that reported net income is heavily influenced by non-cash items and timing, not sustainable operational performance. Investors should monitor the sustainability of these accrual adjustments.
Free Cash Flow Remains Deeply Negative
Excluding the anomalous 2025Q1, FCF has been negative for nine of ten quarters, with 2026Q2 FCF of $46.0M a rare positive, but cumulative FCF over the period is approximately -$100M.
The 2026Q2 FCF margin of 78.2% is an outlier, as most quarters show FCF margins between -115% and -18%. This volatility suggests that the company's cash generation is not yet on a stable positive trajectory, and the positive quarter may be due to one-time working capital benefits. The persistent negative FCF indicates that the business is still consuming cash to fund operations.
Minimal Capital Expenditure Signals Asset-Light Model
CapEx averaged under $2M per quarter, with CapEx/Revenue below 5% in most quarters, indicating a software-centric, asset-light model where capital intensity is low.
The low capital expenditure relative to revenue (e.g., 4.9% in 2026Q2) suggests that the company does not require significant fixed asset investment to grow. However, this also means that the negative FCF is driven by operating losses rather than heavy investment, which may indicate that the business model has not yet achieved scale efficiencies.
Working Capital Swings Drive Cash Flow Volatility
Working capital changes ranged from +$178.5M in 2025Q1 to -$31.0M in 2025Q3, with 2026Q2 at +$16.9M, indicating that cash flow is highly sensitive to timing of collections and payables.
The large positive working capital change in 2025Q1 likely reflects a significant inflow from customer prepayments or milestone payments, which reversed in subsequent quarters. This pattern suggests that the company's cash flow is lumpy and dependent on contract timing, not recurring operational efficiency. Investors should assess the predictability of these working capital movements.
No Capital Returns, Focus on Cash Preservation
SDGR paid no dividends and made no buybacks in any of the ten quarters, with all cash retained for operations, reflecting a strategy of preserving liquidity amid ongoing losses.
The absence of capital returns is consistent with a company in a growth phase that is still burning cash. With cumulative operating losses exceeding $400M, the company appears to be prioritizing cash conservation over shareholder distributions. This may indicate that external financing or a path to profitability is needed to sustain operations.
Cumulative Losses Outpace Cash Burn
Over the ten quarters, cumulative net income is approximately -$284M, while cumulative operating cash flow is -$72M, indicating that cash burn is less severe than accounting losses.
The gap between net income and operating cash flow is largely due to non-cash charges like stock-based compensation (averaging ~$11M per quarter) and favorable working capital changes. This suggests that while the company is unprofitable on a GAAP basis, its cash consumption is lower, providing some cushion. However, the persistent negative operating cash flow still indicates a need for external funding or a significant improvement in operations.
What Could Invalidate the Base Case
The cash flow statement obscures the impact of stock-based compensation, which averaged $11M per quarter, and the reliance on working capital timing, potentially masking the true cash burn rate.
While SBC is a non-cash expense, it represents real dilution to shareholders and may indicate that the company is using equity to fund operations. Additionally, the large working capital swings suggest that cash flow is not yet predictable, and the positive 2026Q2 may not be repeatable. Investors should monitor whether the company can achieve positive operating cash flow without relying on one-time items.