Schrodinger, Inc.

and I'll be your operator for today's call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you'd like to ask a question during this time, simply press star then the number one on your telephone keypad. Please be advised that this call is being recorded at the company's request. Now I would like to introduce your host for today's conference, Ms. Jaron Madden, Chief Corporate Affairs Officer and Head of Investor Relations. Please go ahead.

Thank you and good afternoon, everyone. Welcome to today's call, during which we will provide an update on the company and review our third quarter 2025 financial results. Earlier today, we issued a press release summarizing our financial results and progress across the company, which is available on our website at schrodinger.com. Here with me on our call today are Rami Fareed, Chief Executive Officer, Richie Jain, Chief Financial Officer, and Karen Akinsanya, President, Head of Therapeutics R&D and Chief Strategy Officer, Partnerships. Following our prepared remarks, we'll open the call for Q&A. During today's call, management will make statements that are forward-looking and made pursuant to the safe harbor provisions of the Private Securities Litigation and Reform Act of 1995, including without limitation, statements related to our financial outlook for the full year 2025, our plans to accelerate the growth of our software business and advance our collaborative and proprietary drug discovery programs, the timing of and initiation of, and readouts from our clinical trials, the clinical potential and properties of our compounds, the use of our cash resources, as well as future expenses. These forward-looking statements reflect our current views about our plans, intentions, expectations, strategies, and prospects, which are based on the information currently available to us and on assumptions we have made. Actual results may differ materially due to a number of important factors, including the considerations described in the risk factors section and elsewhere in the filings we make with the SEC. including our Form 10-Q for the quarter ended September 30, 2025. These forward-looking statements represent our views only as of today, and we caution you that, except as required by law, we may not update them in the future, whether as a result of new information, future events, or otherwise. And with that, I'd like to turn the call over to Rami.

Thank you, Jaron, and thank you, everyone, for joining us today. We made very solid progress during the third quarter. Total revenue was $54 million, a 54% increase from the third quarter of 2024, reflecting strong execution across our business. Software revenue in the third quarter was $40.9 million, representing 28% year-over-year growth, and was just above our expectations. Drug discovery revenue was $13.5 million, highlighting the progress in our collaborative programs. We are seeing continued strong demand for advanced computational solutions across the industry. We are also pleased to see wide recognition that simulated data is required to realize the full potential of AI and drug discovery. To effectively harness AI and machine learning for molecular discovery, vast amounts of high-quality physics-based simulation data are essential for training robust AI models. Experimental data alone is insufficient to generate the required training data. Schrodinger's differentiated and extensively validated platform generates high-quality simulated data at a scale that far exceeds what is possible with experiments alone. With this new computational physics plus AI paradigm becoming the accepted standard, we are very optimistic about the long-term potential and value of our platform. As we execute through the remainder of 2025, we are encouraged by the continued high level of customer engagement as the macroeconomic pressures that have impacted industry stabilize. While we remain confident about our long-term growth opportunity, we are updating our software revenue growth guidance for 2025 to 8% to 13% from 10% to 15% to reflect our current expectations regarding the timing of certain pharma scale-up opportunities. Turning briefly to our pipeline, we continue to work toward completing the Phase 1 package for SGR1505, our MALT1 inhibitor, and the Phase 1 dose escalation study for SGR3515, our WE1-MIT1 co-inhibitor. Beyond these planned investments, we do not intend to advance our internal discovery programs into the clinic independently. This decision and the $30 million expense reduction in May improve our operational efficiency and long-term profitability profile. We are continuing to invest in advancing our platform, including making significant improvements to the accuracy and domain of applicability as well as usability which is driving adoption among scientists throughout the R&D organization, not just dedicated computational chemists. Last week, we released our 2025-4 software update, which includes enhancements for challenging modalities such as bifunctional degraders. Additionally, the beta for our predictive toxicology solution is ongoing. This version encompasses approximately 50 representative kinases in addition to multiple key anti-targets. We are continuing to expand the number of off-targets supported in our platform and are optimistic about the potential long-term contribution of this product. Overall, we have made considerable progress this year and remain focused on executing against our strategic priorities, including increasing customer adoption of our software, delivering major scientific advancements to the platform, and advancing our therapeutics portfolio. I will now turn the call over to Richie to discuss the financials in greater detail. Richie?