Simulations Plus reported a 3% decline in revenue for Q1 FY2026, reflecting anticipated market conditions, although its Services segment showed a strong 16% growth, contributing positively to overall performance.
- Total revenue decreased to $18.4 million, driven by a 17% decline in software revenue but offset by a 16% growth in Services revenue.
- Adjusted EBITDA for the quarter was $3.5 million, with a consistent adjusted EPS of $0.13.
- The company's average revenue per client was $97,000, with a solid 88% renewal rate.
- Ending backlog increased by 18% to $20.4 million, indicating a robust pipeline of services projects.
- Fiscal year 2026 revenue guidance maintained at $79 million to $82 million, projecting minimal growth amid a shifting market landscape.
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