SDGRMEDIUM SIGNALFINANCIAL10-K

SDGR demonstrated solid revenue growth of 23% while meaningfully reducing losses, though accounts receivable declined sharply alongside reduced capital investment.

The company appears to be maturing operationally, with improved profitability metrics as net losses narrowed substantially and R&D expenses were reduced by 14%. However, the significant decline in accounts receivable could signal collection improvements or potential revenue timing issues that warrant monitoring.

Comparing 2026-02-25 vs 2025-02-26View on EDGAR →
FINANCIAL ANALYSIS

SDGR showed encouraging operational progress with revenue growing 23% to $256M while net losses improved notably from -$187M to -$103M. The company strengthened its cash position substantially to $231M, but accounts receivable fell sharply by 65% and capital expenditures dropped dramatically to just $1.4M. The overall picture suggests a company focused on cash management and loss reduction, though the minimal capital investment and receivables decline raise questions about future growth sustainability.

FINANCIAL STATEMENT CHANGES
Capital Expenditure
Cash Flow
-80.3%
$7.3M→$1.4M

Capex reduced 80.3% — investment cycle winding down or capital discipline; may improve near-term free cash flow.

Accounts Receivable
Balance Sheet
-64.8%
$235.7M→$83.0M

Receivables declined — improved collection efficiency or conservative revenue recognition.

Cash & Equivalents
Balance Sheet
+56.5%
$147.3M→$230.5M

Cash position surged 56.5% — strong cash generation or capital raise providing significant financial cushion.

Net Income
P&L
+44.8%
-$187.1M→-$103.3M

Net income grew 44.8% — bottom-line growth signals improving overall business health.

Revenue
P&L
+23.3%
$207.5M→$255.9M

Revenue growing 23.3% — solid top-line momentum, watch margins for quality of growth.

Operating Income
P&L
+20.3%
-$209.3M→-$166.9M

Operating income improving — cost discipline or growing revenue base absorbing fixed costs.

Current Assets
Balance Sheet
-18.2%
$635.0M→$519.3M

Current assets declined 18.2% — monitor working capital adequacy and short-term liquidity.

R&D Expense
P&L
-14.2%
$201.8M→$173.1M

R&D spending cut 14.2% — could signal cost discipline or concerning reduction in innovation investment.

Stockholders Equity
Balance Sheet
-13.6%
$421.4M→$364.1M

Equity decreased 13.6% — buybacks or losses reducing book value, monitor solvency ratios.

Total Assets
Balance Sheet
-11.8%
$823.2M→$726.2M

Total assets contracted 11.8% — asset sales, write-downs, or balance sheet optimization underway.

LANGUAGE CHANGES
NEW — 2026-02-25
PRIOR — 2025-02-26
ADDED
As of February 18, 2026, the registrant had 64,660,908 shares of common stock and 9,164,193 shares of limited common stock outstanding.
We have included important factors in the cautionary statements included in this Annual Report, particularly in "Risk Factor Summary" and Part I, Item 1A.
In 2025, all of the top 20 pharmaceutical companies, measured by 2024 revenue, which we refer to as our top 20 pharma industry cohort, licensed our solutions, accounting for $73.7 million, or 37%, of our software revenue and $80.8 million, or 41%, of our annual contract value, or ACV, in 2025.
Our ability to expand within our customer base is demonstrated by the increasing average ACV from our commercial customers with an ACV of over $1.0 million.
For the year ended December 31, 2025, we had 27 commercial customers with an ACV of at least $1.0 million compared to 29 such customers for the year ended December 31, 2024.
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REMOVED
As of February 19, 2025, the registrant had 63,874,200 shares of common stock and 9,164,193 shares of limited common stock outstanding.
3 Table of Content s RISK FACTOR SUMMARY Our business is subject to a number of risks of which you should be aware before making an investment decision.
4 Table of Content s Our internal information technology systems, or those of our third-party vendors, contractors, or consultants, may fail or suffer security breaches, loss or leakage of data, and other disruptions, which could result in a material disruption of our services, compromise sensitive information related to our business, or prevent us from accessing critical information, potentially exposing us to liability or otherwise adversely affecting our business.
In 2024, 19 of the top 20 pharmaceutical companies, measured by 2023 revenue, licensed our solutions, accounting for $74.7 million, or 41%, of our software revenue in 2024.
We had 235, 222, and 227 customers with an annual contract value, or ACV, of at least $100,000, which represented 87%, 83%, and 82% of our total ACV, for the years ended December 31, 2024, 2023, and 2022, respectively.
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