SDGRHIGH SIGNALFINANCIAL10-K

SDGR achieved a dramatic turnaround from -$157.4M to +$13.9M operating cash flow while growing revenue 23.3% and significantly reducing losses.

This represents a fundamental operational inflection point, with the company demonstrating it can generate positive cash flow while maintaining strong revenue growth. The simultaneous improvement in profitability metrics and cash generation suggests the business model is reaching sustainable unit economics, which is critical for a growth-stage technology company.

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

SDGR delivered exceptional financial improvements across nearly all key metrics, with operating cash flow swinging positive by $171.3M, revenue growing 23.3% to $255.9M, and net losses improving 44.8%. The company strengthened its balance sheet with cash increasing 56.5% to $230.5M while reducing R&D expenses 14.2%, indicating improved operational efficiency. However, the 64.8% decline in accounts receivable and 18.2% drop in current assets warrant monitoring, though the overall picture signals a company achieving sustainable profitability and cash generation.

FINANCIAL STATEMENT CHANGES
Operating Cash Flow
Cash Flow
+108.8%
-$157.4M→$13.9M

Operating cash flow surged 108.8% — exceptional cash generation, highest quality earnings signal.

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.

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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