Schrodinger, Inc.SDGR

Schrodinger, Inc. Fair Value Disclosure

10-KFiled Feb 25, 20262 min read
Fair Value Measurements
Various inputs are used in determining the fair value of the Company’s financial assets and liabilities. These inputs are summarized into the following three broad categories:
Level 1 – quoted prices in active markets for identical securities
Level 2 – other significant observable inputs, including quoted prices for similar securities, interest rates, credit risk, etc.
Level 3 – significant unobservable inputs, including the Company’s own assumptions in determining fair value
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. Marketable securities, which consist primarily of corporate and U.S. government agency bonds, are classified as available for sale and fair value did not differ significantly from carrying value as of December 31, 2025 and 2024. The following table presents information about the Company’s assets measured at fair value as of December 31, 2025:
Level 1Level 2Level 3Total
Assets:
Cash and cash equivalents and restricted cash$237,385 $— $— $237,385 
Marketable securities— 164,947 — 164,947 
Equity investments66,641 — — 66,641 
Total$304,026 $164,947 $— $468,973 
The following table presents information about the Company’s assets measured at fair value as of December 31, 2024:
Level 1Level 2Level 3Total
Assets:
Cash and cash equivalents and restricted cash$162,657 $— $— $162,657 
Marketable securities— 204,798 — 204,798 
Equity investments36,202 — — 36,202 
Total$198,859 $204,798 $— $403,657 
Unrealized gains and losses arising from changes in fair value of the Company’s equity investments are classified within change in fair value of equity investments in the consolidated statements of operations. Realized gains arising from distributions receivable from the Company's equity investments are classified within gain on equity investments in the consolidated statements of operations.
For further information regarding the Company’s equity investments, see Note 11, Equity Investments.
Free Sentinel

Want the next Schrodinger, Inc. fair value disclosure the moment it drops?

Set a Sentinel and we'll alert you the moment Schrodinger, Inc.'s next filing hits EDGAR. No credit card, your email never gets sold.

Track for free

Historical Timeline

Fiscal YearFiled
2025Feb 25, 2026Showing above
2024Feb 26, 2025
2023Feb 28, 2024
2022Feb 28, 2023
2021Feb 24, 2022
2020Mar 4, 2021

About Fair Value Disclosures

Fair value disclosures classify all assets and liabilities measured at fair value into a three-level hierarchy: Level 1 (quoted market prices), Level 2 (observable inputs like yield curves), and Level 3 (unobservable inputs requiring management estimates). The proportion of Level 3 assets directly reflects how much of the balance sheet depends on internal models rather than market evidence.

Key signals: a growing Level 3 balance relative to total fair-value assets increases valuation uncertainty and earnings volatility risk. Watch for transfers between levels — assets moving from Level 2 to Level 3 often signal deteriorating market liquidity. Unrealized gains and losses on Level 3 positions flow through earnings or other comprehensive income, so large swings deserve scrutiny. For financial institutions, examine the sensitivity disclosures that show how Level 3 valuations change under alternative assumptions. Compare the fair value of debt against its carrying amount to gauge hidden leverage.

Other Available Disclosures

Income TaxesRevenuePP&ESegmentsCommitmentsNew StandardsPay vs Performance