What Schrodinger, Inc. told the SEC could break it.

Revenue is concentrated: one customer accounted for 17% of total revenue in 2025 (10% in 2024), and one customer represented 10% of total accounts receivable (68% in 2024); all unnamed.

“For the years ended December 31, 2025 and 2024, one customer accounted for 17 % and 10 % of total F-11 Table of Contents revenues, respectively.”

Operations are primarily conducted at facilities in New York, Portland (OR) and Hyderabad (India), plus a single internal compute-hosting facility in Clifton, NJ; a natural disaster or catastrophic event at these sites — particularly the sole hosting facility — could disrupt the compute-intensive platform.

“Our operations are primarily conducted at our facilities in New York, New York, Portland, Oregon, and Hyderabad, India, and our internal hosting facility located in Clifton, New Jersey.”

U.S. tariffs and trade-policy uncertainty (notably toward China) could raise the cost of manufacturing and affect import/export of raw materials and product candidates used in preclinical and clinical work, particularly materials imported from China, despite some pharmaceutical-product exemptions.

“import or export of raw materials and finished product candidates used in our preclinical studies and clinical trials, particularly with respect to any product candidates and materials that we import from China.”

Schrödinger owns no manufacturing facilities and relies entirely on third-party contract manufacturers for all raw materials, drug substance and finished drug product for its proprietary pipeline, with no long-term supply agreements currently in place.

“We rely and expect to continue to rely on third-party contract manufacturers for all of our required raw materials, drug substance, and finished drug product for the preclinical and clinical development of any product candidates we develop ourselves and for any commercial supply of approved products, if any.”