Simulations Plus (SLP) SLP Q1 Financial Results Summary
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Simulations Plus (SLP) Q1 2026 Financial Results Summary
Simulations Plus, Inc. (Nasdaq: SLP) released its financial results for the first quarter of fiscal 2026 on January 8, 2026. The report covers the period ending November 30, 2025.
Financial Highlights for Q1 2026 (compared to Q1 2025)
- Total Revenue:
-
$18.4 million, a decrease of 3% from $18.9 million
-
Revenue Breakdown:
- Software Revenue:
- $8.9 million, a 17% decrease from $10.7 million, making up 48% of total revenue.
-
Services Revenue:
- $9.5 million, an increase of 16% from $8.2 million, accounting for 52% of total revenue.
-
Gross Profit:
-
$10.9 million, with a gross margin of 59%, up from $10.2 million and 54%.
-
Net Income:
- $0.7 million, improving from $0.2 million in Q1 2025.
-
Diluted Earnings Per Share (EPS):
- $0.03, an increase from $0.01.
-
Adjusted Financial Metrics:
- Adjusted EBITDA:
- $3.5 million, representing 19% of total revenue, down from $4.5 million (24%).
- Adjusted Net Income:
- $2.6 million, compared to $3.4 million in Q1 2025.
- Adjusted Diluted EPS:
- $0.13, down from $0.17.
Management Commentary
- CEO Shawn O’Connor stated:
- Revenue guidance expectations were met, with strong performance in the services segment, particularly in commercialization offerings and modest gains in development projects.
- An expected decrease in clinical operations and development revenue in the software segment was partially offset by an increase in discovery solutions.
- The company remains optimistic about market conditions, including favorable pricing agreements and a better funding environment for clients.
- Confidence in achieving fiscal year 2026 guidance was reaffirmed.
Fiscal 2026 Guidance
- Total Revenue Guidance:
- $79M – $82M (growth of 0% – 4%).
- Software Revenue Composition:
- 57% – 62% of total revenue.
- Adjusted EBITDA Margin:
- 26% – 30%.
- Adjusted Diluted EPS:
- $1.03 – $1.10.
Dividend and Share Repurchase
- The report does not mention any declaration of quarterly dividends or share repurchase activities.
Summary of Key Metrics
- Total Revenue: $18.4 million (-3%)
- Software Revenue: $8.9 million (-17%)
- Services Revenue: $9.5 million (+16%)
- Gross Profit: $10.9 million (+6.8%)
- Gross Margin: 59% (+5 pp)
- Net Income: $0.7 million (+250%)
- Diluted EPS: $0.03 (+200%)
- Adjusted EBITDA: $3.5 million (-22.4%)
- Adjusted Net Income: $2.6 million (-23.5%)
- Adjusted Diluted EPS: $0.13 (-23.5%)
Simulations Plus is set to hold a Virtual Investor Day on January 21, 2026, to unveil its new product vision and advancements in AI solutions. More detailed financial information can be accessed on the company’s investor relations page.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
(in thousands, except per common share and common share data)
| November 30, 2025 | November 30, 2024 | |
|---|---|---|
| Revenues | ||
| Software | $8,883 | $10,715 |
| Services | $9,538 | $8,209 |
| Total revenues | $18,421 | $18,924 |
| Cost of revenues | ||
| Software | $1,412 | $2,638 |
| Services | $6,118 | $6,068 |
| Total cost of revenues | $7,530 | $8,706 |
| Gross profit | $10,891 | $10,218 |
| Operating expenses | ||
| Research and development | $2,980 | $1,848 |
| Sales and marketing | $3,179 | $2,851 |
| General and administrative | $4,019 | $5,393 |
| Total operating expenses | $10,178 | $10,092 |
| Income from operations | $713 | $126 |
| Other income, net | $257 | $144 |
| Income before income taxes | $970 | $270 |
| Income tax expense | $-294 | $-64 |
| Net income | $676 | $206 |
| Earnings per share | ||
| Basic | $0.03 | $0.01 |
| Diluted | $0.03 | $0.01 |
| Weighted-average common shares | ||
| outstanding | 20,140 | 20,068 |
| Diluted | 20,220 | 20,266 |
| Other comprehensive (loss) income, net | ||
| of tax | ||
| Foreign currency translation adjustments | $-6 | $-42 |
| Unrealized gains (losses) on | ||
| available-for-sale securities | $— | $4 |
| Comprehensive income | $670 | $168 |
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except per common share and common share data)
| November 30, 2025 | August 31, 2025 | |
|---|---|---|
| ASSETS | ||
| Current assets | ||
| Cash and cash equivalents | $30,189 | $30,853 |
| Accounts receivable, net of allowance | $12,154 | $9,717 |
| for credit losses of $93 and $187 | ||
| Prepaid income taxes | $1,745 | $1,777 |
| Prepaid expenses and other current | $8,552 | $7,702 |
| assets | ||
| Short-term investments | $5,500 | $1,500 |
| Total current assets | $58,140 | $51,549 |
| Long-term assets | ||
| Capitalized computer software | ||
| development costs, net of accumulated | $11,290 | $11,117 |
| amortization of $22,604 and $21,863 | ||
| Property and equipment, net | $793 | $880 |
| Operating lease right-of-use assets | $390 | $407 |
| Intellectual property, net of | ||
| accumulated amortization of $9,287 and | ||
| $9,021 | $5,931 | $6,197 |
| Other intangible assets, net of | ||
| accumulated amortization of $4,651 and | ||
| $4,399 | $11,580 | $11,896 |
| Goodwill | $43,717 | $43,717 |
| Deferred tax assets, net | $4,606 | $4,774 |
| Other assets | $1,384 | $1,399 |
| Total assets | $137,831 | $131,936 |
| LIABILITIES AND SHAREHOLDERS’ EQUITY | ||
| Current liabilities | ||
| Accounts payable | $863 | $470 |
| Accrued compensation | $2,657 | $2,010 |
| Accrued expenses | $922 | $1,343 |
| Operating lease liability – current | $179 | $206 |
| portion | ||
| Deferred revenue | $5,719 | $2,696 |
| Total current liabilities | $10,340 | $6,725 |
| Long-term liabilities | ||
| Operating lease liability – net of | $378 | $410 |
| current portion | ||
| Total liabilities | $10,718 | $7,135 |
| Commitments and contingencies – Note 4 | ||
| Shareholders’ equity | ||
| Preferred stock, $0.001 par value — | ||
| 10,000,000 shares authorized; no shares | $— | $— |
| issued and outstanding | ||
| Common stock, $0.001 par value; | ||
| 50,000,000 shares authorized, 20,146,585 | $20 | $20 |
| and 20,137,480 shares issued and | ||
| outstanding as of November 30, 2025 and | ||
| August 31, 2025 | ||
| Additional paid-in capital | $161,058 | $159,416 |
| Accumulated deficit | $-33,688 | $-34,364 |
| Accumulated other comprehensive loss | $-277 | $-271 |
| Total shareholders’ equity | $127,113 | $124,801 |
| Total liabilities and shareholders’ | $137,831 | $131,936 |
| equity |