Schrodinger, Inc. — Earnings Quality Grade F
SDGR · Healthcare
Major red flags
Screening Summary
Management Signals
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 118 days, change -296 days YoY
AR growth -64.8% vs revenue growth 23.3%
Revenue 23.3%, CFFO 108.8%. Cash follows revenue
Expense Quality
No material inventory
CapEx growth -80.3% vs revenue 23.3%. Normal
SG&A/Gross Profit = 95.6%, exceeds 70%
Gross margin swung -7.9pp (63.6% → 55.7%)
Cash Flow Quality
CFFO < Net Income for 3 consecutive years
Small-cap context: Small-cap CFFO/NI often diverges from working-capital swings, not necessarily manipulation.
FCF $0.0B, FCF/NI = -0.12
Accruals ratio = -16.1%. Low accruals
Cash $0.4B covers debt $0.1B
Balance Sheet Health
Goodwill+Intangibles $0.0B = 1% of equity. Manageable
Debt/EBITDA = -0.7x. Healthy
Other assets grew 50.8% vs revenue 23.3%
No write-off data
Acquisition Risk
FCF after acquisitions negative for 2/3 years
Goodwill+Intangibles change 0% YoY. Normal
Manipulation Score
M-Score = -3.28 (< -2.22). Unlikely manipulator
Portfolio monitoring
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Beneish M-Score
Altman Z-Score
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-25