Simulations Plus (SLP) Reports Q3 2025 Results on Nasdaq

# Simulations Plus (SLP) Reports Q3 2025 Results on Nasdaq

On July 14, 2025, Simulations Plus, Inc. (Nasdaq: SLP) announced its financial results for the third quarter of fiscal 2025, which ended on May 31, 2025. Below is a summary of the key financial highlights from the report, comparing results to the same quarter in the prior year.

## Financial Highlights

### Third Quarter 2025 vs. Third Quarter 2024

– **Total Revenue**
– Increased by **10%** to **$20.4 million**.

– **Software Revenue**
– Increased by **6%** to **$12.6 million**, accounting for **62%** of total revenue.

– **Services Revenue**
– Increased by **17%** to **$7.7 million**, representing **38%** of total revenue.

– **Gross Profit**
– Amounted to **$13.0 million** with a gross margin of **64%**.

– **Net Loss**
– Reported net loss of **$67.3 million** or diluted loss per share of **$3.35**, compared to net income of **$3.1 million** or diluted EPS of **$0.15**, reflecting a non-cash impairment charge of **$77.2 million**.

– **Adjusted EBITDA**
– Increased to **$7.4 million**, representing **37%** of total revenue, compared to **$5.6 million** or **30%** of total revenue in Q3 2024.

– **Adjusted Net Income**
– Amounted to **$9.0 million** with an adjusted diluted EPS of **$0.45**, up from an adjusted net income of **$5.6 million** and adjusted EPS of **$0.27** in the same quarter last year.

### Nine Months 2025 vs. Nine Months 2024

– **Total Revenue**
– Increased by **20%** to **$61.7 million**.

– **Software Revenue**
– Increased by **18%** to **$36.8 million**, representing **60%** of total revenue.

– **Services Revenue**
– Increased by **23%** to **$24.9 million**, representing **40%** of total revenue.

– **Gross Profit**
– Increased to **$36.4 million** with a gross margin of **59%**.

– **Net Loss**
– Reported net loss of **$64.0 million** with diluted loss per share of **$3.19**, compared to net income of **$9.1 million** or diluted EPS of **$0.45** for the nine months ending in May 2024.

– **Adjusted EBITDA**
– Increased to **$18.5 million**, representing **30%** of total revenue, compared to **$16.1 million** or **31%** of revenue in the same period a year ago.

– **Adjusted Net Income**
– Reached **$18.7 million** with adjusted diluted EPS of **$0.93**, compared to **$15.7 million** and adjusted EPS of **$0.77** in the prior year.

### Business Updates

– The company has updated its revenue guidance for fiscal 2025 to between **$76 million to $80 million**, with anticipated revenue growth of **9% to 14%**. The expected adjusted diluted EPS has been set between **$0.93 and $1.06**.

– A significant factor influencing the financial results was a **non-cash impairment charge of $77.2 million**, reflecting a valuation assessment of asset values.

– Management indicated a strategic reorganization transitioning to a functionally-driven operational model to enhance efficiency and focus on growth opportunities.

– The company remains committed to innovation, implementing AI-driven solutions across its product lines to further enhance its market position in biosimulation and drug development.

### Dividend and Share Repurchase

– The report did not mention any declaration of a quarterly dividend or share repurchase during this quarter.

## Conclusion

The financial performance during Q3 2025 highlighted significant growth in revenue, particularly within the services segment, despite the impact of a substantial non-cash impairment charge. The company is repositioning itself strategically in response to current market conditions while enhancing its product offerings through advanced technologies.