What guidance did Simulations Plus's management provide for the next earnings period?

What does Simulations Plus do and what are its main business segments?

What factors drove the changes in Simulations Plus's revenue and profit?

What is the market's earnings forecast for Simulations Plus next quarter?

What were the key takeaways from Simulations Plus’s earnings call?

What were the key takeaways from Simulations Plus's earnings call?

What is Simulations Plus's latest dividend and current dividend yield?

What is the revenue and EPS growth rate for Simulations Plus year over year?

- **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.

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