Simulations Plus, Inc. Earnings Recaps
Q1 2026
Jan 9, 2026
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.
Key takeaways
- 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.
Q4 2025
Dec 2, 2025
Simulations Plus delivered strong fiscal 2025 results with a 13% increase in total revenue, while navigating a challenging market landscape. A strategic transition to a unified operating model is set to enhance operational capacity and responsiveness.
Key takeaways
- Revenue for the fourth quarter decreased 6% to $17.5 million, attributed to external market pressures.
- Full-year adjusted EBITDA and EPS both increased by 8%, reflecting operational resilience despite significant industry headwinds.
- The successful transition to a unified operating model positions the company for accelerated growth, capitalizing on the increasing adoption of biosimulation tools in R&D environments.
- Customer engagement is improving, as evidenced by increased proposal activity and a strong 88% renewal rate for the fiscal year.
- Continued investment in AI-driven solutions and cloud capabilities to enhance product offerings and support long-term demand in the biopharma sector.