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- **Revenue Performance**: Q1 FY2026 revenue $18.4M (-3%), with services up 16% driven by MEDCOM. FY2026 guidance: $79-82M (0-4% growth).
- **Margin Improvement**: Total gross margin 59% (up from 54%), services margin 36% (vs. 26% prior year) due to cost restructuring.
- **AI Strategy**: AI tools integrated into core products, enabling price increases and new modules. QSP models show high client interest despite lumpy licensing.
- **Market Momentum**: Post-MFN agreements, clients accelerate spending, with services backlog up 18% to $20.4M. FDA NAM guidelines boost in silico adoption.
- **Risks**: Software revenue decline (17%) due to clinical ops challenges; consolidation risks remain but 2026 outlook stable.

**【CEO Summary Section】**
- Q1 FY2026 revenue decreased 3% to $18.4 million, in line with guidance. Adjusted EBITDA was $3.5 million, and adjusted EPS was $0.13.
- Positive macro trends include MFN pricing agreements, reduced tariff risks, and improved biotech funding. Services segment revenue grew 16%, driven by MEDCOM business and year-end spending acceleration.
- Strategic focus on AI integration into an integrated product ecosystem, combining validated science, cloud performance, and regulatory-grade AI tools. QSP models show high client interest despite lumpy perpetual licensing.

**【CFO Financial Commentary】**
- Software revenue declined 17% to $8.8 million (48% of total), while services revenue increased 16% to $9.6 million (52% of total). Gross margin improved to 59% (54% prior year), with software at 84% and services at 36%.
- Trailing 12-month ARR per client was $147,000 with an 87% renewal rate. Clinical operations software revenue dropped 82% due to proficiency platform challenges.
- FY2026 guidance: Total revenue $79-82 million (0-4% growth), adjusted EBITDA margin 26-30%, and EPS $1.03-1.10. Q2 revenue expected $21-22 million.

**【Q&A Key Highlights】**
- **Market Trends**: Clients are opening budgets post-MFN agreements, leading to accelerated service spending and potential software upselling. FDA NAM guidelines support in silico adoption.
- **Service-Led Software Demand**: Services growth (MEDCOM +42% YoY) precedes software licensing, as clients expand modeling departments. QSP software interest high, but lumpy licensing impacts short-term results.
- **Consolidation Impact**: Large pharma M&A reduces renewals, but 2026 outlook shows limited impact. 2025 back half consolidation effects waned in Q1.
- **AI and Profitability**: AI integration into core products (e.g., GastroPlus) enables price increases and new modules. R&D investment (16% of Q1 revenue) accelerates product innovation, with services gross margin improving to 36%.


Simulations Plus, Inc.(SLP)-20260109-2026 Q1 Earnings call transcript

- **Revenue Resilience**: FY 2025 revenue +13%, driven by unified operating model despite headwinds. Q4 2025 revenue $17.5M (-6% YoY), with services backlog up 28% to $18M.
- **Strategic AI Integration**: GastroPlus 10.2 AI release gains traction; clients prioritize AI-driven efficiency in biosimulation workflows.
- **FY 2026 Outlook**: Guidance for 0%-4% growth reflects cautious optimism, with Q1 2026 revenue expected 3%-5% lower YoY. Adjusted EBITDA margin 26%-30%.
- **Financial Health**: $32.4M cash on hand; no debt. FY 2025 adjusted EBITDA $22M (+8%).

**【CEO Summary Section】**
- **Fiscal 2025 Performance**: Revenue grew 13%, adjusted EBITDA rose 8%, and adjusted EPS increased 8%, driven by a unified operating model and strategic reset. Challenges included pharmaceutical headwinds, but 2026 shows early stabilization with improved biotech funding and large pharma confidence.
- **Strategic Focus**: Accelerating biosimulation adoption with AI, cloud computing, and regulatory-grade models. GastroPlus 10.2 release (Q4 2025) introduced AI capabilities, aligning with client needs for efficient, rigorous workflows. Fiscal 2026 will see portfolio-wide updates to create an integrated ecosystem for end-to-end modeling.

**【CFO Financial Commentary】**
- **Q4 2025 Results**: Total revenue $17.5M (-6% YoY), software $9.6M (-9%), services $7.9M (-3%). Full-year revenue $79.2M (+13%), software $46.3M (+12%), services $32.9M (+15%).
- **Margins**: Total gross margin 58% (vs. 62% prior year), software 79% (down from 84% due to amortization). Adjusted EBITDA $22M (+8%).
- **FY 2026 Guidance**: Revenue $79M-$82M (0%-4% growth), adjusted EBITDA margin 26%-30%, adjusted EPS $1.03-$1.10. Q1 2026 revenue expected 3%-5% lower YoY due to Pro-ficiency comps and seasonality.

**【Q&A Highlights】**
- **Market Trends**: Biotech funding improving, large pharma budgeting with cautious optimism. Proposal activity and conference engagement strengthened, but near-term uncertainty persists.
- **Product Adoption**: GastroPlus 10.2 AI release met early positive feedback; clients digesting new capabilities. Pro-ficiency software revenue declined 63% Q4, but Med Comm services grew 70%.
- **Headcount & Capacity**: Services team well-positioned for FY 2026 guidance; software side more leveraged. Cancellations baked into forecasts, with risk factors discounted.
- **Margins & Acquisitions**: Adjusted EBITDA margin expected stable; cash flow robust. Open to future acquisitions in core markets or clinical ops, pending market conditions.

Simulations Plus, Inc. (SLP) Q4 2025 Earnings Call Transcript

- **Revenue Growth**: 10% total growth ($20.4M), driven by Software (6%) and Services (17%).
- **Challenges**: Services decline 9% YoY due to budget cuts; Software renewals drop to 84%.
- **AI Innovation**: Launching AI tools in GastroPlus, with cross-product integration planned.
- **Financials**: Adjusted EBITDA $7.4M (37% of revenue), FY25 guidance for $76-80M revenue and 23-27% margin.

**【CEO Summary Section】**
- **Revenue Growth**: Total revenue increased 10% to $20.4 million, with Software revenue up 6% and Services revenue up 17%. Pro-ficiency contributed $2.4 million post-acquisition.
- **Challenges**: Services revenue decline (9% YoY) due to client budget cuts and project delays. Software renewals dropped to 84% (from 93%) due to client consolidations.
- **AI Initiatives**: Launching AI-driven features in GastroPlus (e.g., AI copilot, automation tools) and planning cross-product AI integration. FY26 outlook cautious with flat organic growth.

**【CFO Financial Commentary】**
- **Financials**: GAAP net loss of $67.3M ($3.35 EPS) vs. $3.1M ($0.15 EPS) last year. Adjusted EBITDA of $7.4M (37% of revenue) vs. $5.6M (30% of revenue) last year.
- **Impairment Charge**: $77.2M noncash expense to align assets with market value. Operating expenses declined 49% of revenue (vs. 61% last year).
- **Guidance**: FY25 revenue $76-80M (9-14% growth), adjusted EBITDA margin 23-27%, and EPS $0.93-1.06.

**【Q&A Highlights】**
- **Margins**: FY25 EBITDA margin expected mid-20s due to revenue decline and cost savings ($4M from reorg). FY26 outlook cautious with flat growth.
- **Renewal Rates**: Software renewals at 84% (fees) and 71% (accounts), down from prior quarters due to client consolidations.
- **FDA Impact**: Long-term tailwinds from FDA's NAM adoption, but short-term impact unclear. Clients cautious amid funding constraints.
- **AI Rollout**: GastroPlus AI release in late Q3, with plans to expand to ADMET Predictor and Monolix in FY26.

- **Revenue Growth Strong**: 23% YoY total revenue, 8% organic software growth, and $6.6M adjusted EBITDA.
- **Software Resilience**: 90% renewal rates, 10% increase in avg. revenue per customer, and QSP 89% surge from atopic dermatitis model.
- **Services Backlog**: $20.4M (18% QoQ growth), with MC winning a $5M multi-drug project.
- **Margin Focus**: Aiming for 35-40% EBITDA margin, despite near-term gross margin pressure from ALI/MC costs.
- **Macro Mitigation**: No NIH exposure, free academic software, and delayed project starts (H2 push).

**【CEO Opening Remarks】**
- Q2 2025 revenue grew 23% YoY to $22.4M, with 8% organic growth in software (excluding ALI/MC contributions). Adjusted EBITDA was $6.6M (29% of revenue), and adjusted EPS was $0.31.
- Software renewal rates remained strong at 90% (fee-based) and 84% (account-based), with average software revenue per customer increasing 10% YoY.
- Services bookings were robust, with a $20.4M backlog (18% QoQ growth), driven by CPP and MC business units.

**【CFO Financial Breakdown】**
- Software revenue ($13.4M) accounted for 60% of total, growing 16% YoY. Services revenue ($9.0M) grew 34% YoY, but was flat organically due to delayed project starts.
- Gross margin declined to 59% (vs. 72% last year) due to higher software amortization and service costs related to ALI/MC.
- Operating expenses increased to 46% of revenue (vs. 48% last year), driven by R&D and sales/marketing investments.

**【Business Unit Performance】**
- **QSP Software**: 89% growth from a model license for atopic dermatitis, highlighting high-ticket disease model demand.
- **CHEM Software**: 8% growth from ADMET Predictor, with 10 new customers and 7 upsells.
- **MC Services**: $2.3M in Q2, with a $5M multi-drug project signed for 2025H2.
- **GastroPlus**: 1% growth but 7 new customers, with deferred renewals closing in Q3.

**【Outlook & Strategy】**
- Full-year 2025 guidance: $90-93M revenue (28-33% YoY growth), 55-60% software mix, and $1.07-1.20 adjusted EPS.
- Focus on ALI/MC ramp-up, cross-selling opportunities, and returning to 35-40% EBITDA margin target.
- Risk mitigation: minimal exposure to NIH funding, free software for academia, and disciplined cost management.

**【Q&A Highlights】**
- **Service Delay Impact**: Clients pacing project starts to H2, causing revenue push but maintaining strong backlog.
- **Macro Environment**: Biopharma cautious on services, but software infrastructure spending stable.
- **Tariff Concerns**: Potential pharma tariffs could impact global supply chains, but current business unaffected.
- **Cross-Selling Success**: MC/ALI pipeline expanding, with examples like a $5M multi-drug project signed in Q2.


Simulations Plus (SLP)-3 Apr 25-2025 Q2 Earnings call transcript

- **Revenue Surge**: 31% YoY growth ($18.9M) with Software up 41% (18% organic), Services up 19% (9% decline organically). Backlog jumps 22% to $17.3M.
- **Software Stars**: MonolixSuite (+43%), QSP licenses, and ADMET Predictor (+15%) lead gains. Asian market Software growth 30%.
- **Guidance Confidence**: 2025 targets: $90-93M revenue (28-33% growth), 55-60% Software mix, $1.07-1.20 adjusted EPS.
- **Challenges**: Services delays due to client data issues, but strong bookings suggest recovery. Gross margin pressure from amortization.
- **Integration Progress**: ALI and MC on track for $15-18M contribution, with cross-selling opportunities emerging.

**【CEO Summary Section】**
- Total revenue increased 31% year-over-year to $18.9 million, with 18% organic growth in Software and 5% in Services. Adjusted EBITDA was $4.5 million (24% of revenue), and diluted EPS was $0.01.
- Software revenue grew 41% (18% organic), driven by MonolixSuite (+43%), QSP licenses for psoriatic arthritis and Crohn's disease, and ADMET Predictor (+15%). Services revenue rose 19% but declined 9% organically due to client-driven delays.
- Backlog increased 22% to $17.3 million, with strong bookings in CPP and MC. Fiscal 2025 guidance: $90-93 million revenue, 28-33% growth, 55-60% Software mix, and $1.07-1.20 adjusted EPS.

**【CFO Financial Commentary】**
- GAAP net income was $0.2 million (1% of revenue), down from $1.9 million last year. Adjusted EBITDA margin was 24%, in line with prior quarter. Gross margin decreased to 54% (75% Software, 26% Services) due to amortization and cost constraints.
- Operating expenses were 53% of revenue, with R&D at 10%, sales/marketing at 15%, and G&A at 28%. Cash balance remained strong at $18.2 million.

**【Q&A Key Highlights】**
- **Software Growth**: MonolixSuite expansion, QSP licenses, and Asian market (30% growth) drove Software rebound. Pricing remains mid-single digits.
- **Services Delays**: Client data delays pushed projects into Q2, but strong bookings suggest sequential improvement. Seasonality may cause back-half ramp.
- **Market Environment**: Mixed client activity, with pharma focusing on ROI. ALI and MC integration tracking well, targeting $15-18 million contribution.
- **Margins**: Historical 35-40% EBITDA target remains, with focus on cross-selling and cost control.



Simulations Plus (SLP)-7 Jan 25-2025 Q1 Earnings call transcript

Simulations Plus (SLP)-23 Oct 24-2024 Q4 Earnings call transcript

Simulations Plus (SLP)-2 Jul 24-2024 Q3 Earnings call transcript

Simulations Plus (SLP)-3 Apr 24-2024 Q2 Earnings call transcript

Simulations Plus (SLP)-3 Jan 24-2024 Q1 Earnings call transcript

- **Strong Fiscal 2023 Results**: 11% revenue growth to $59.6M, with Q4 up 33% to $15.6M. Software segment drove 12% growth, services 8%.
- **2024 Guidance**: 10-15% revenue growth ($66-69M) and $0.66-0.68 EPS, reflecting cautious optimism amid market challenges.
- **Gross Margin Resilience**: FY23 gross margin 80%, with software at 90% and services at 65%. Q4 gross margin 78%.
- **Immunetrics Integration**: 2024 earn-out targets $8M, with cross-selling opportunities in oncology and immunology.
- **Key Risks**: Biotech funding constraints, pharma budget conservatism, and M&A-related renewals impacting Q4 revenue.

**【CEO Opening Remarks】**
- Fiscal 2023 revenue grew 11% to $59.6 million, driven by 12% software growth and 8% services growth. Fourth quarter revenue rose 33% to $15.6 million, with software up 59% and services up 8%.
- Challenges remain from biotech funding scarcity and pharma budget conservatism, but contract harmonization improved visibility and reduced seasonality.
- Cautiously optimistic for 2024 with 10-15% revenue growth guidance ($66-69M) and $0.66-0.68 EPS (35-39% increase).

**【CFO Financial Highlights】**
- FY23 gross margin 80%, with software at 90% and services at 65%. Q4 gross margin 78% (software 89%, services 62%).
- FY23 adjusted EBITDA $20.6M (35% margin), up from $21.5M (40% margin) in 2022. Q4 adjusted EBITDA $4.9M (31% margin).
- FY23 net income $10M ($0.49 EPS), meeting high end of $0.63-0.67 EPS guidance. FY24 tax rate expected 20-22% vs 15% in 2023.
- Cash balance $115.5M, with $21.7M free cash flow and $20M ASR completed.

**【Q&A Highlights】**
- **Revenue Cadence**: Q1 2024 expected to be lowest quarter due to seasonality, with more even distribution in Q2-Q4. Services backlog up 25% to $20M.
- **Immunetrics Contribution**: 2024 earn-out targets $8M, with cross-selling opportunities in oncology and immunology. FY23 contribution minimal due to Q4 acquisition timing.
- **Price Increases**: 2023 saw aggressive price hikes, 2024 expected to be more moderate due to reduced inflationary pressures.
- **M&A Impact**: Q4 saw $0.5-1M revenue impact from biotech M&A-related nonrenewals, but potential for recovery as deals settle.
- **PBPK Growth**: GastroPlus bookings up 76% Q4, ADMET Predictor up 46%, MonolixSuite up 18%. Services backlog 70-80% convertible within 12 months.


Actual										0.12	0.2	0.11	0.12	0.15	0.18	0.01	0.15	0.21	0.2	0.05	0.06	0.2	0.2	0.03	0.1	0.2	0.19	0.06	0.17	0.31	0.45	0.1	0.13
Forecast										0.14	0.095	0.09	0.1075	0.1367	0.1767	0.0533	0.0975	0.148	0.175	0.07	0.085	0.18	0.2033	0.1833	0.1	0.19	0.1502	0.0492	0.1386	0.2635	0.2067	0.1129	0.1943	0.32
Surprise	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	-14.29%	+110.53%	+22.22%	+11.63%	+9.73%	+1.87%	-81.24%	+53.85%	+41.89%	+14.29%	-28.57%	-29.41%	+11.11%	-1.62%	-83.63%	0.00%	+5.26%	+26.50%	+21.95%	+22.66%	+17.65%	+117.71%	-11.43%	-33.09%	0.00%

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SLP Q2 2026 Earnings Preview

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SLP

SLP fundamentals

SLP Q2 2026 Earnings Preview

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