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Did Simulations Plus beat or miss consensus estimates last quarter?

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

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

- **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

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

SLP

SLP fundamentals

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