# EDGAR Filing Document

**Accession Number:** 0001490978
**File Stem:** 0001490978-25-000116
**Filing Date:** 2025-11
**Character Count:** 35755
**Document Hash:** 8691588c6c5d75110148ff7a1c9ff208
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001490978-25-000116.hdr.sgml**: 20251105

**ACCESSION NUMBER**: 0001490978-25-000116

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 13

**CONFORMED PERIOD OF REPORT**: 20251105

**ITEM INFORMATION**: Results of Operations and Financial Condition

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20251105

**DATE AS OF CHANGE**: 20251105

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Schrodinger, Inc.
- **CENTRAL INDEX KEY:** 0001490978
- **STANDARD INDUSTRIAL CLASSIFICATION:** PHARMACEUTICAL PREPARATIONS [2834]
- **ORGANIZATION NAME:** 03 Life Sciences
- **EIN:** 954284541
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-39206
- **FILM NUMBER:** 251454014

**BUSINESS ADDRESS:**
- **STREET 1:** 1540 BROADWAY
- **STREET 2:** 24TH FLOOR
- **CITY:** NEW YORK
- **STATE:** NY
- **ZIP:** 10036
- **BUSINESS PHONE:** 503-299-1150

**MAIL ADDRESS:**
- **STREET 1:** 1540 BROADWAY
- **STREET 2:** 24TH FLOOR
- **CITY:** NEW YORK
- **STATE:** NY
- **ZIP:** 10036

?xml version='1.0' encoding='ASCII'? sdgr-20251105

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**WASHINGTON, D.C. 20549**

________________________________________

**FORM 8-K**

________________________________________

**CURRENT REPORT**

**Pursuant to Section 13 or 15(d)**

**of the Securities Exchange Act of 1934**

**Date of Report (Date of earliest event reported): November 5, 2025**

________________________________________

**Schrodinger, Inc.**

**(Exact name of Registrant as Specified in Its Charter)**

________________________________________

---

| | | |
|:---|:---|:---|
| **Delaware** | **001-39206** | **95-4284541** |
| **(State or other jurisdiction of**<br>**incorporation or organization)** | **001-39206** | **(I.R.S. Employer**<br>**Identification No.)** |
| **(State or other jurisdiction of**<br>**incorporation or organization)** | **(Commission File Number)** | **(I.R.S. Employer**<br>**Identification No.)** |
| **1540 Broadway, 24th Floor**<br>**New York, NY** | | **10036** |
| **(Address of principal executive offices)** | | **(Zip Code)** |

---

**Registrant's telephone number, including area code: (212) 295-5800**

**Not Applicable** 

**(Former Name or Former Address, if Changed Since Last Report)**

________________________________________

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

□ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

□ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

□ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

□ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

---

| | | |
|:---|:---|:---|
| **Title of each class** | **Trading<br>Symbol(s)** | **Name of each exchange on which registered** |
| Common stock, par value $0.01 per share | SDGR | The Nasdaq Stock Market LLC |

---

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

Emerging growth company □

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. □

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**Item 2.02&nbsp;&nbsp;&nbsp;&nbsp;Results of Operations and Financial Condition.**

On November 5, 2025, Schrödinger, Inc. (the "Company") issued a press release announcing its financial results for the third quarter ended September 30, 2025. A copy of the press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein by reference.

The information in this Form 8-K, including Exhibit 99.1 attached hereto, shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing made by the Company under the Securities Act of 1933, as amended, or the Exchange Act, regardless of any general incorporation language in such filings, unless expressly incorporated by specific reference in such filing.

**Item 9.01&nbsp;&nbsp;&nbsp;&nbsp;Financial Statements and Exhibits.**

(d)Exhibits:

---

| | |
|:---|:---|
| **Exhibit**<br>**Number** | **Description** |
| 99.1 | <u>[Press release dated](sdgr-20250930xexx991.htm)[November 5](sdgr-20250930xexx991.htm)[, 2025](sdgr-20250930xexx991.htm)</u> |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |

---

------

**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

---

| | | |
|:---|:---|:---|
| | **Schrödinger, Inc.** | **Schrödinger, Inc.** |
| Date: November 5, 2025 | By: | /s/ Richie Jain |
|  |  | Richie Jain |
|  |  | Executive Vice President and Chief Financial Officer |

---

## Exhibit 99.1

**Exhibit 99.1**

**Schrödinger Reports Third Quarter 2025 Financial Results**

*Third Quarter Total Revenue of $54.3 Million, Software Revenue of $40.9 Million*

*Updates 2025 Financial Guidance*

**New York, November 5, 2025** – Schrödinger, Inc. (Nasdaq: SDGR) today announced financial results for the quarter ended September 30, 2025.

"Schrödinger delivered a solid third quarter with software revenue growth of 28%, reflecting the industry's increasing demand for our leading computational platform," said Ramy Farid, Ph.D., chief executive officer of Schrödinger. "While we are encouraged by the continued high level of customer engagement as the macroeconomic pressures that have affected the industry stabilize, we have lowered our software revenue growth guidance by two percent to 8% to 13%. This updated guidance reflects current expectations regarding the timing of pharma scale-up opportunities."

"In our therapeutics portfolio, we are continuing to make strong progress advancing our collaborations and have increased our expectations for drug discovery revenue this year. Beyond our planned clinical investments to complete the Phase 1 dose-escalation studies for SGR-1505 and SGR-3515, we do not intend to advance discovery programs into the clinic independently. This shift toward a discovery-focused therapeutics R&D model has the potential to deliver significant long-term value through licensing, new ventures, and discovery collaborations," Dr. Farid continued. "These actions, coupled with expense-reduction measures we undertook earlier this year, are expected to result in savings of approximately $70 million and improve our operational efficiency and long-term profitability profile."

**Third Quarter 2025 Financial Results** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Total revenue for the third quarter increased 54% to $54.3 million, compared to $35.3 million in the third quarter of 2024.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Software revenue for the third quarter increased 28% to $40.9 million, compared to $31.9 million in the third quarter of 2024 reflecting growth in hosted and on-premise contracts.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Drug discovery revenue was $13.5 million for the third quarter, compared to $3.4 million in the third quarter of 2024. The increase was primarily due to the recognition of revenue from upfront payments associated with advancing ongoing collaborations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Software gross margin for both the third quarter of 2025 and the third quarter of 2024 was 73%.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Operating expenses were $74.0 million for the third quarter, compared to $86.2 million for the third quarter of 2024. The decrease was primarily due to lower R&D expenditure and employee-related expenses.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Other income was $13.3 million for the third quarter, which included changes in fair value of equity investments and interest income, compared to other income of $30.2 million for the third quarter of 2024.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Net loss for the third quarter was $32.8 million, compared to $38.1 million in the third quarter of 2024.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Cash, cash equivalents, restricted cash and marketable securities were $401.0 million at the end of the third quarter compared to $367.5 million at December 31, 2024.

------

---

| | | | |
|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** |
| | **September 30,** | **September 30,** | **September 30,** |
| | **2025** | **2024** | **% Change** |
| | (in millions) | (in millions) | |
| Total revenue | $54.3 | $35.3 | 54% |
| Software revenue | 40.9 | 31.9 | 28% |
| Drug discovery revenue | 13.5 | 3.4 | 295% |
| Software gross margin | 73% | 73% |  |
| Operating expenses | $74.0 | $86.2 | (14)% |
| Other income | $13.3 | $30.2 |  |
| Net loss | $(32.8) | $(38.1) |  |

---

For the three and nine months ended September 30, 2025 Schrödinger reported a GAAP net loss of $32.8 million and $135.8 million, respectively, compared to a GAAP net loss of $38.1 million and $146.9 million for the three and nine months ended September 30, 2024, respectively. For the three and nine months ended September 30, 2025, Schrödinger reported a non-GAAP net loss of $42.3 million and $136.5 million, respectively, compared to a non-GAAP net loss of $63.7 million and $174.2 million for the three and nine months ended September 30, 2024, respectively. See "Non-GAAP Information" below and the table at the end of this press release for a reconciliation of non-GAAP net loss to GAAP net loss.

**2025 Financial Outlook** 

Today Schrödinger updated its 2025 full-year guidance for software revenue growth, drug discovery revenue, and software gross margin. The company's financial expectations for the fiscal year ending December 31, 2025 are as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Software revenue growth is now expected to range from 8% to 13% compared to the prior expectation of 10% to 15%.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Drug discovery revenue is now expected to range from $49 million to $52 million compared to the prior expectation of $45 million to $50 million.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Software gross margin is now expected to range from 73% to 75% compared to the prior expectation of 74% to 75%.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Operating expenses in 2025 are expected to be lower than 2024.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Cash used for operating activities in 2025 is expected to be significantly lower than cash used for operating activities in 2024.

**Key Highlights**

*Pipeline*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The company is continuing to progress the Phase 1 clinical study of SGR-3515, the company's Wee1/Myt1 co-inhibitor, in patients with advanced solid tumors. Initial clinical data are now expected in the first half of 2026 as the company works toward completing dose escalation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• In November, Schrödinger announced that new data on SGR-1505, the company's MALT-1 inhibitor, will be presented during a poster session at the American Society of Hematology 67th Annual Meeting taking place December 6-9, 2025. The data characterize the mutational profile and clinical response to SGR-1505 treatment in patients who have relapsed or become refractory to Bruton tyrosine kinase inhibitors (BTKi) treatment or who have been double-exposed to BTKi and B-cell lymphoma 2 inhibitors. These data demonstrate that SGR-1505 represents a promising therapeutic option for patients who become resistant to standard-of-care therapies. The company is completing the Phase 1 package and continues to explore strategic opportunities to advance the development of SGR-1505.

In October, the U.S. Food and Drug Administration granted SGR-1505 Orphan Drug Designation for the treatment of Waldenström macroglobulinemia.

------

Additionally, Schrödinger scientists recently published research in the *Journal of Medicinal Chemistry* highlighting the power of integrating physics-based modeling and machine learning to accelerate the discovery of SGR-1505.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• In October, Schrödinger presented initial preclinical data for SGR-5573, the company's potent, selective, brain-penetrant inhibitor of osimertinib-resistant EGFR variants at the European Society of Medical Oncology Congress. The data demonstrated that SGR-5573 is potent against resistant EGFR variants, has strong wild-type selectivity, and has robust anti-tumor activity in preclinical brain metastases models.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Schrödinger recently selected SGR-6016, a brain-penetrant NLRP3 inhibitor development candidate. SGR-6016, the company's fifth development candidate since 2021, is structurally distinct from known NLRP3 inhibitors, with a favorable preclinical potency, selectivity, and preliminary safety profile.

*Platform*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• In August, Schrödinger scientists published research in *Nature Communications* describing computational approaches to achieve kinome-wide selectivity in drug discovery campaigns, using the discovery of selective Wee1 kinase inhibitors as a case study, and to provide a general roadmap to accelerate drug discovery campaigns.

*Collaborations*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• In October, Copernic Catalysts announced the creation of a new, more efficient, ammonia synthesis catalyst. This new chemistry reduces energy consumption used in ammonia production by up to 47%, representing substantial cost savings and environmental benefits for industrial producers. Copernic and Schrödinger are collaborating on this research, and Schrödinger holds an equity position in Copernic.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Also in October, scientists from Nimbus, a company co-founded by Schrödinger, and Takeda published results from the Phase 2b study of zasocitinib, an investigational TYK2 inhibitor, in patients with active psoriatic arthritis. In the trial, a statistically significant proportion of patients receiving zasocitinib achieved an American College of Rheumatology 20 response at week 12 versus placebo with no new safety signals observed. A Phase 3 study of zasocitinib in patients with psoriasis is ongoing.

**Webcast and Conference Call Information**

Schrödinger will host a conference call to discuss its third quarter 2025 financial results on Wednesday, November 5, 2025, at 4:30 p.m. ET. The live webcast can be accessed under "Events & Presentations" in the investors section of Schrödinger's website, https://ir.schrodinger.com/news-and-events/event-calendar. To participate in the live call, please register for the call here. It is recommended that participants register at least 15 minutes in advance of the call. Once registered, participants will receive the dial-in information. The archived webcast will be available on Schrödinger's website for approximately 90 days following the event.

**Non-GAAP Information** 

Included in this press release is certain financial information that has not been prepared in accordance with generally accepted accounting principles in the United States (GAAP). The company presents non-GAAP net income (loss) and non-GAAP net income (loss) per share, which exclude gains and losses on equity investments, changes in fair value of equity investments, and income tax benefits and expenses. Adjusting net income to exclude the impact of these items results in a financial presentation for the company without the impact of our equity investments and tax benefits and expenses. Management believes non-GAAP net income (loss) and non-GAAP net income (loss) per share are useful measures for investors, taken in conjunction with the company's GAAP financial statements because they provide greater period-over-period comparability with respect to the company's operating performance, by excluding non-cash mark-to-market and other valuation adjustments for the company's equity investments, non-recurring cash distributions from the company's equity investments and the tax impact of these distributions that are not reflective of the ongoing operating performance of the business. However, the non-GAAP measures should be considered only in addition to, not

------

as a substitute for or as superior to, net income (loss) and net income (loss) per share or other financial measures prepared in accordance with GAAP.

Other companies in Schrödinger's industry may calculate non-GAAP net income (loss) and non-GAAP net income (loss) per share, differently than we do, limiting their usefulness as comparative measures. For a reconciliation of non-GAAP net income (loss) and non-GAAP net income (loss) per share to GAAP net income (loss) and GAAP net income (loss) per share, respectively, please refer to the tables at the end of this press release.

**About Schrödinger**

Schrödinger is transforming molecular discovery with its computational platform, which enables the discovery of novel, highly optimized molecules for drug development and materials design. Schrödinger's software platform is built on more than 30 years of R&D investment and is licensed by biotechnology, pharmaceutical and industrial companies, and academic institutions around the world. Schrödinger also leverages the platform to advance a portfolio of collaborative and internal programs. Founded in 1990, Schrödinger has approximately 800 employees operating from 15 locations globally. To learn more, visit www.schrodinger.com, follow us on LinkedIn and Instagram, or visit our blog, Extrapolations.com.

**Cautionary Note Regarding Forward-Looking Statements**

This press release contains forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995 including, but not limited to those statements regarding Schrödinger's expectations about the speed and capacity of its computational platform, its financial outlook for the fiscal year ending December 31, 2025, its plans to continue to invest in research and its strategic plans to accelerate the growth of its software business and advance its collaborative and proprietary drug discovery programs, its ability to realize potential benefits and estimated savings from the restructuring and other cost reductions, including the phasing out of independent clinical development activities,the long-term potential of its business, its ability to improve and advance the science underlying its platform, including its ability to improve drug discovery, the initiation, timing, progress, and results of its proprietary drug discovery programs and product candidates and the drug discovery programs and product candidates of its collaborators, the clinical potential and favorable properties of its product candidates, including SGR-1505 and SGR-3515, its MALT1 and Wee1/Myt1 inhibitors, the clinical potential and favorable properties of its collaborators' product candidates, the potential for SGR-1505 to be used for the treatment of relapsed/refractory B-cell malignancies, including Waldenström macroglobulinemia, its plans to explore strategic opportunities for the continued clinical development of SGR-1505, potential partnering and other business development activities for its programs, including SGR-6016, as well as expectations related to the use of its cash, cash equivalents and marketable securities. Statements including words such as "aim," "anticipate," "believe," "contemplate," "continue," "could," "estimate," "expect," "goal," "intend," "may," "might," "plan," "potential," "predict," "project," "should," "target," "will," "would" and statements in the future tense are forward-looking statements. These forward-looking statements reflect Schrödinger's current views about its plans, intentions, expectations, strategies and prospects, which are based on the information currently available to the company and on assumptions the company has made. Actual results may differ materially from those described in these forward-looking statements and are subject to a variety of assumptions, uncertainties, risks and important factors that are beyond Schrödinger's control, including the demand for its software platform, its ability to further develop its computational platform, its reliance upon third-party providers of cloud-based infrastructure to host its software solutions, factors adversely affecting the life sciences industry, fluctuations in the value of the U.S. dollar and foreign currencies, its reliance upon its third-party drug discovery collaborators, the uncertainties inherent in drug development and commercialization, such as the conduct of research activities and the timing of and its ability to initiate and complete preclinical studies and clinical trials, whether results from preclinical studies will be predictive of the results of later preclinical studies and clinical trials, uncertainties associated with the regulatory review of IND submissions, clinical trials and applications for marketing approvals, the ability to retain and hire key personnel and other risks detailed under the caption "Risk Factors" and elsewhere in the company's Securities and Exchange Commission filings and reports, including its Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2025, filed with the Securities and Exchange Commission on November 5, 2025, as well as future filings and reports by the company. Any forward-looking statements contained in this press release speak only as of the date hereof. Except as required by law, Schrödinger undertakes no duty or obligation to update any forward-looking statements contained in this press release as a result of new information, future events, changes in expectations or otherwise.

**Contacts:**

Jaren Madden (Investors and Media)

------

Schrödinger, Inc.

617-286-6264

Matthew Luchini (Investors)

Schrödinger, Inc.

matthew.luchini@schrodinger.com

917-719-0636

Allie Nicodemo (Media)

Schrödinger, Inc.

allie.nicodemo@schrodinger.com

617-356-2325

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**Condensed Consolidated Statements of Operations (Unaudited)**

(in thousands, except for share and per share amounts)

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended September 30,** | **Three Months Ended September 30,** | **Nine Months Ended September 30,** | **Nine Months Ended September 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| Revenues: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Software products and services | $40858 | $31884 | $130218 | $100703 |
| &nbsp;&nbsp;&nbsp;&nbsp;Drug discovery | 13466 | 3406 | 38416 | 18519 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total revenues | 54324 | 35290 | 168634 | 119222 |
| Cost of revenues: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Software products and services | 11111 | 8479 | 37662 | 23622 |
| &nbsp;&nbsp;&nbsp;&nbsp;Drug discovery | 15174 | 9083 | 45651 | 27647 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total cost of revenues | 26285 | 17562 | 83313 | 51269 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gross profit | 28039 | 17728 | 85321 | 67953 |
| Operating expenses: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Research and development | 42757 | 50977 | 131739 | 152423 |
| &nbsp;&nbsp;&nbsp;&nbsp;Sales and marketing | 9524 | 10349 | 30625 | 30213 |
| &nbsp;&nbsp;&nbsp;&nbsp;General and administrative | 21705 | 24824 | 72696 | 73901 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses | 73986 | 86150 | 235060 | 256537 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loss from operations | (45947) | (68422) | (149739) | (188584) |
| Other income: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Gain (loss) on equity investments |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Change in fair value of equity investments | 9691 | 25459 | 1175 | 27763 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other income | 3623 | 4737 | 13265 | 14363 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total other income | 13314 | 30196 | 14440 | 42126 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loss before income taxes | (32633) | (38226) | (135299) | (146458) |
| Income tax expense (benefit) | 162 | (90) | 477 | 449 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net loss | $(32795) | $(38136) | $(135776) | $(146907) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net loss per share of common and limited common stockholders, basic and diluted: | $(0.45) | $(0.52) | $(1.85) | $(2.02) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Weighted average shares used to compute net loss per share of common and limited common stockholders, basic and diluted: | 73613090 | 72813006 | 73368247 | 72606033 |

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**Condensed Consolidated Balance Sheets (Unaudited)**

(in thousands, except for share and per share amounts)

---

| | | |
|:---|:---|:---|
| **Assets** | **September 30, 2025** | **December 31, 2024** |
| Current assets: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents | $172120 | $147326 |
| &nbsp;&nbsp;&nbsp;&nbsp;Restricted cash | 9753 | 15331 |
| &nbsp;&nbsp;&nbsp;&nbsp;Marketable securities | 219113 | 204798 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable, net of allowance for doubtful accounts of $420 and $210 | 29384 | 235692 |
| &nbsp;&nbsp;&nbsp;&nbsp;Unbilled and other receivables, net of allowance for unbilled receivables of $140 and $100 | 28016 | 19641 |
| &nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses | 13336 | 12205 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current assets | 471722 | 634993 |
| Property and equipment, net | 20738 | 24196 |
| Equity investments | 44382 | 43208 |
| Goodwill | 4791 | 4791 |
| Right of use assets - operating leases | 105107 | 111883 |
| Other assets | 6920 | 4155 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total assets | $653660 | $823226 |
| **Liabilities and Stockholders' Equity:** |  |  |
| Current liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts payable | 9218 | $10666 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accrued payroll, taxes, and benefits | 27986 | 42110 |
| &nbsp;&nbsp;&nbsp;&nbsp;Deferred revenue | 82283 | 111944 |
| &nbsp;&nbsp;&nbsp;&nbsp;Lease liabilities - operating leases | 16740 | 16755 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other accrued liabilities | 8886 | 10272 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current liabilities | 145113 | 191747 |
| Deferred revenue, long-term | 92390 | 108814 |
| Lease liabilities - operating leases, long-term | 94694 | 101074 |
| Other liabilities, long-term | 111 | 146 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities | 332308 | 401781 |
| Stockholders' equity: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Preferred stock, $0.01 par value. Authorized 10,000,000 shares; zero shares issued and outstanding at September 30, 2025 and December 31, 2024, respectively |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Common stock, $0.01 par value. Authorized 500,000,000 shares; 64,470,221 and 63,710,409 shares issued and outstanding at September 30, 2025 and December 31, 2024 , respectively | 645 | 637 |
| &nbsp;&nbsp;&nbsp;&nbsp;Limited common stock, $0.01 par value. Authorized 100,000,000 shares; 9,164,193 shares issued and outstanding at September 30, 2025 and December 31, 2024, respectively | 92 | 92 |
| &nbsp;&nbsp;&nbsp;&nbsp;Additional paid-in capital | 981853 | 946037 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accumulated deficit | (661317) | (525541) |
| &nbsp;&nbsp;&nbsp;&nbsp;Accumulated other comprehensive income | 79 | 220 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total stockholders' equity | 321352 | 421445 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities and stockholders' equity | $653660 | $823226 |

---

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**Condensed Consolidated Statements of Cash Flows (Unaudited)**

(in thousands)

---

| | | |
|:---|:---|:---|
| | **Nine Months Ended September 30,** | **Nine Months Ended September 30,** |
| | **2025** | **2024** |
| Cash flows from operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net loss | $(135776) | $(146907) |
| &nbsp;&nbsp;&nbsp;&nbsp;Adjustments to reconcile net loss to net cash used in operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Gain) loss on equity investments |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Fair value adjustments of equity investments | (1175) | (27763) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 4585 | 4395 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stock-based compensation | 33047 | 37424 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Noncash investment accretion | (2347) | (6260) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loss on disposal of property and equipment | 20 | 8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Decrease (increase) in assets: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable, net | 206308 | 52711 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unbilled and other receivables | (8375) | (8418) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Reduction in the carrying amount of right of use assets - operating leases | 6776 | 7914 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses and other assets | (3896) | (5314) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Decrease) increase in liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable | (1302) | (5442) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued payroll, taxes, and benefits | (14124) | 1848 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred revenue | (46085) | (18301) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Lease liabilities - operating leases | (6395) | (7738) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other accrued liabilities | (1269) | (4412) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by (used in) operating activities | 29992 | (126255) |
| Cash flows from investing activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Purchases of property and equipment | (1401) | (6438) |
| &nbsp;&nbsp;&nbsp;&nbsp;Purchases of equity investments |  | (3000) |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from disposition and sale of equity investments |  | 48798 |
| &nbsp;&nbsp;&nbsp;&nbsp;Purchases of marketable securities | (243707) | (187466) |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from maturity of marketable securities | 231598 | 273467 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash (used in) provided by investing activities | (13510) | 125361 |
| Cash flows from financing activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from issuances of common stock upon stock option exercises | 2777 | 1356 |
| &nbsp;&nbsp;&nbsp;&nbsp;Principal payments on finance leases | (43) | (43) |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from issuance of common stock in ATM offering, net |  | 8691 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by financing activities | 2734 | 10004 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net increase in cash and cash equivalents and restricted cash | 19216 | 9110 |
| Cash and cash equivalents and restricted cash, beginning of period | 162657 | 161066 |
| Cash and cash equivalents and restricted cash, end of period | $181873 | $170176 |
| **Supplemental disclosure of cash flow and noncash information** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash paid for income taxes | $650 | $847 |
| **Supplemental disclosure of non-cash investing and financing activities** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Purchases of property and equipment in accounts payable | 16 | 30 |
| &nbsp;&nbsp;&nbsp;&nbsp;Purchases of property and equipment in accrued liabilities | 6 | 138 |
| &nbsp;&nbsp;&nbsp;&nbsp;Acquisition of right of use assets - operating leases, contingency resolution |  | 2848 |

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**Reconciliation of GAAP to Non-GAAP Financial Measures (Unaudited)**

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Nine Months Ended** | **Nine Months Ended** |
| | **September 30,** | **September 30,** | **September 30,** | **September 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| | (in thousands, except per share data) | (in thousands, except per share data) | (in thousands, except per share data) | (in thousands, except per share data) |
| Net loss (GAAP) | $(32795) | $(38136) | $(135776) | $(146907) |
| &nbsp;&nbsp;Income tax expense (benefit) | 162 | (90) | 477 | 449 |
| &nbsp;&nbsp;(Gain) loss on equity investments |  |  |  |  |
| &nbsp;&nbsp;Change in fair value | (9691) | (25459) | (1175) | (27763) |
| Non-GAAP net loss | $(42324) | $(63685) | $(136474) | $(174221) |
| Non-GAAP net loss per share of common and limited common stockholders, basic and diluted: | $(0.57) | $(0.87) | $(1.86) | $(2.40) |
| Weighted average shares used to compute non-GAAP net loss per share of common and limited common stockholders, basic and diluted: | 73613090 | 72813006 | 73368247 | 72606033 |

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