Simulations Plus, Inc.
- Open
- 18.23
- Day high
- 18.27
- Day low
- 18.23
- Prev close
- 18.23
- Volume
- 251K
- Mkt cap
- $368M
- P/E (TTM)
- 44.5
- EPS (TTM)
- $0.41
- P/B
- 2.6
- P/S
- 4.5
- Yield
- —
- Per share
- —
- ▼Insiders net selling -$783K over the last 3 months (0 open-market buys, 9 sales)
- 🏛Institutions mixed (13F)
Simulations Plus, Inc. (SLP) is a Healthcare company listed on NASDAQ. The stock is up 46% over the past year. Over the trailing 3 months, insiders filed 0 open-market buys and 9 sales (SEC Form 4).
Simulations Plus, Inc. (SLP) financials & analyst ratings
Fundamentals (TTM)
Analyst consensus · 2 analysts
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
SLP earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Jul 9, 2026 | $0.23 | $0.30 | +29.0% | $22M | +4.7% |
| Apr 9, 2026 | $0.27 | $0.35 | +29.6% | $24M | +12.2% |
| Jan 8, 2026 | $0.18 | $0.13 | -27.8% | $18M | -15.9% |
| Dec 1, 2025 | $0.10 | $0.10 | +0.0% | $17M | +0.4% |
| Jul 14, 2025 | $0.26 | $0.45 | +73.1% | $20M | -2.7% |
| Apr 3, 2025 | $0.25 | $0.31 | +24.0% | $22M | +2.3% |
| Jan 7, 2025 | $0.18 | $0.17 | -5.6% | $19M | +0.6% |
| Oct 23, 2024 | $0.07 | $0.06 | -9.1% | $19M | -5.5% |
| Jul 2, 2024 | $0.15 | $0.15 | +0.0% | $19M | -6.4% |
| Apr 3, 2024 | $0.19 | $0.20 | +5.3% | $18M | +5.9% |
| Jan 3, 2024 | $0.10 | $0.10 | +0.0% | $15M | +4.2% |
| Oct 25, 2023 | $0.18 | $0.18 | +0.0% | $16M | -7.0% |
SLP insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| Jul 8, 2026 | DiBella John Anthony IIofficer: Chief Revenue Officer | Sell | 1,000 | $18.36 |
| Jul 6, 2026 | WOLTOSZ WALTER Sdirector, 10 percent owner: | Sell | 4,177 | $18.44 |
| Jun 17, 2026 | Fiedler-Kelly Jillofficer: President, Services Solutions | Sell | 7,350 | $18.20 |
| Jun 17, 2026 | Fiedler-Kelly Jillofficer: President, Services Solutions | Option | 7,350 | $10.05 |
| Jun 16, 2026 | Fiedler-Kelly Jillofficer: President, Services Solutions | Sell | 1,050 | $16.51 |
| Jun 16, 2026 | Fiedler-Kelly Jillofficer: President, Services Solutions | Option | 1,050 | $10.05 |
| Jun 4, 2026 | DiBella John Anthony IIofficer: Chief Revenue Officer | Sell | 1,000 | $16.50 |
| Jun 2, 2026 | WOLTOSZ WALTER Sdirector, 10 percent owner: | Sell | 15,000 | $17.43 |
| May 13, 2026 | Fiedler-Kelly Jillofficer: President, Services Solutions | Sell | 1,000 | $16.53 |
| May 13, 2026 | Fiedler-Kelly Jillofficer: President, Services Solutions | Option | 1,000 | $10.05 |
| May 5, 2026 | DiBella John Anthony IIofficer: Chief Revenue Officer | Sell | 1,000 | $14.98 |
| May 5, 2026 | WOLTOSZ WALTER Sdirector, 10 percent owner: | Sell | 15,000 | $15.13 |
| May 1, 2026 | WOLTOSZ WALTER Sdirector, 10 percent owner: | Grant | 2,117 | — |
| May 1, 2026 | Paglia John Kennethdirector | Grant | 2,117 | — |
| May 1, 2026 | Evans Sharlenedirector | Grant | 2,117 | — |
Source: SLP SEC Form 4 filings, latest Jul 8, 2026. For informational purposes only — not investment advice.
See the full SLP insider & 13F page →Simulations Plus, Inc. company profile
Overview
Simulations Plus, Inc. (NASDAQ:SLP) is a specialized software and services company founded in 1996 and headquartered in Lancaster, California. The company went public in 1997 and has evolved into a leading provider of drug discovery and development software that utilizes artificial intelligence and machine learning technologies. Through strategic acquisitions over the years, including Cognigen, DILIsym, Lixoft, Immunetrics, and most recently Pro-ficiency, Simulations Plus has expanded its capabilities across the entire drug development continuum, serving pharmaceutical, biotechnology, agrochemical, cosmetics, and food companies worldwide, as well as academic institutions and regulatory agencies.
Business
Simulations Plus operates in the pharmaceutical modeling and simulation industry, providing specialized software tools and consulting services that help drug developers predict how medicines will behave in the human body before expensive clinical trials begin. The company's core offering centers around biosimulation - a scientific approach that uses mathematical models and computer simulations to predict drug absorption, distribution, metabolism, excretion, and toxicity (ADMET properties). The company operates through four main business segments: 1. **Software Products (approximately 60% of revenue)**: The flagship product is GastroPlus, which simulates how drugs are absorbed in the gastrointestinal tract and predicts drug interactions when compounds are administered to humans and animals. Other key software products include MonolixSuite for population pharmacokinetics modeling, ADMET Predictor for chemistry-based property prediction, and various specialized tools like DILIsym for liver toxicity prediction and MedChem Designer for drug design. These software tools essentially allow pharmaceutical companies to conduct virtual experiments on computers rather than immediately testing on animals or humans. 2. **Services Revenue (approximately 40% of revenue)**: This segment provides consulting and contract research services including Clinical Pharmacology & Pharmacometrics (CPP), Quantitative Systems Pharmacology (QSP), Physiologically Based Pharmacokinetics (PBPK), and Medical Communications. These services involve expert scientists using the company's software tools to solve specific drug development problems for clients. 3. **Quantitative Systems Pharmacology**: Specialized modeling that simulates entire biological systems to predict drug effects and toxicity at the organ level. 4. **Training and Education**: Through platforms like ALLIE (Adaptive Learning & Insights), the company provides educational services to train pharmaceutical professionals in modeling and simulation techniques. The recent acquisition of Pro-ficiency has doubled the company's total addressable market to $8 billion by expanding into clinical operations, medical affairs, and commercialization services beyond traditional drug discovery and development.
Revenue model
Simulations Plus generates revenue through two primary business models. The software segment operates on a licensing and subscription model, where pharmaceutical and biotechnology companies pay annual licensing fees to use the company's specialized modeling software. These licenses typically range from individual researcher licenses to enterprise-wide deployments, with strong renewal rates averaging 90-95% based on fees. The software business benefits from high gross margins (approaching 90%) due to the scalable nature of software distribution. The services segment operates on a project-based consulting model, where the company's expert scientists provide specialized modeling and simulation services to clients who either lack internal expertise or need additional capacity. These engagements can range from short-term consulting projects to multi-year contracts, with services revenue showing more variability based on project timing and client budget cycles. Several factors influence the company's margins and growth prospects. **Positive factors** include the increasing regulatory acceptance of modeling and simulation by agencies like the FDA, which drives adoption across the pharmaceutical industry. The growing complexity of drug development and the need to reduce costly late-stage clinical trial failures also support demand. Additionally, the consolidation of smaller biotech companies into larger pharmaceutical firms can lead to broader software deployments. **Negative factors** include the cyclical nature of biotech funding, which particularly affects smaller clients' ability to renew software licenses or initiate service projects. Economic downturns can lead to reduced R&D spending across the pharmaceutical industry. The services business faces margin pressure from the need to maintain highly skilled scientific talent in a competitive market, and project delays or cancellations can impact quarterly results. Competition from larger consulting firms or in-house development of similar capabilities by large pharmaceutical companies also poses ongoing challenges.
Competitive moat
Simulations Plus possesses a moderate but defensible competitive moat built primarily on specialized scientific expertise, regulatory relationships, and switching costs. The company's strongest defensive position comes from its deep domain expertise in physiologically-based pharmacokinetic (PBPK) modeling and quantitative systems pharmacology, areas requiring highly specialized knowledge that takes years to develop. The software tools incorporate decades of scientific research and validation studies, creating significant barriers for new entrants to replicate. The company benefits from regulatory moats through its established relationships with agencies like the FDA and EMA, where its modeling approaches have been validated and accepted for regulatory submissions. This regulatory acceptance creates switching costs for pharmaceutical companies, as changing modeling platforms could require revalidation of methodologies with regulators. However, the moat faces several vulnerabilities. Large pharmaceutical companies increasingly develop internal modeling capabilities, potentially reducing dependence on external software and services. Technology giants like Google, Microsoft, or specialized AI companies could potentially disrupt the space by applying advanced machine learning techniques to drug discovery and development. The relatively small size of Simulations Plus (compared to larger consulting firms like Accenture or specialized life sciences consultancies) limits its ability to compete for the largest enterprise engagements. The company's acquisition strategy helps strengthen its moat by expanding capabilities and market reach, but integration challenges and the need to maintain specialized talent across multiple domains creates execution risks. While the switching costs and specialized expertise provide some protection, the moat is not insurmountable and requires continuous innovation and strategic positioning to maintain competitive advantages.
Risks & safety
The company demonstrates a **strong margin of safety** from a financial stability perspective, though valuation metrics suggest limited downside protection at current prices. **Financial Strength:** - Minimal debt with debt-to-equity ratio of 0.004, indicating virtually no solvency risk - Strong current ratio of 4.37, providing ample liquidity coverage - Positive free cash flow of $5.6 million in recent quarter, though variable across periods - Cash and short-term investments of $11 million, though down from higher levels in prior periods - No significant cash burn concerns given profitable operations **Valuation Metrics:** - Price-to-earnings ratio of 47.4x appears elevated for current growth rates - EV/EBITDA of 28.7x suggests premium valuation - Price-to-book ratio of 3.07x indicates modest premium to tangible assets - Graham number analysis suggests potential overvaluation at current levels **Other Considerations:** - Revenue growth has been strong but faces headwinds from biotech funding challenges - Services revenue shows more volatility than software revenue, creating quarterly earnings variability - Recent acquisitions add integration risk and dilute near-term margins - Dependence on pharmaceutical industry R&D spending creates cyclical exposure
Recent development
Over the past few years, Simulations Plus has pursued an aggressive acquisition strategy to expand its capabilities and market reach. The company completed the acquisition of Immunetrics in fiscal 2023, adding oncology and immunology modeling capabilities. Most significantly, the Pro-ficiency acquisition in fiscal 2024 doubled the company's total addressable market to $8 billion by expanding beyond traditional drug discovery into clinical operations, medical affairs, and commercialization services. The company has made substantial investments in next-generation software development, launching GPX (the next-generation GastroPlus platform) and major upgrades to MonolixSuite and ADMET Predictor. These technology investments incorporate advanced artificial intelligence and machine learning capabilities to improve prediction accuracy and user experience. Strategically, the company has focused on cross-selling and integration of its expanded service offerings, particularly combining the traditional modeling and simulation services with the newer medical communications and clinical operations capabilities from Pro-ficiency. This integration allows the company to serve clients across the entire drug development lifecycle rather than just the early discovery phases. The company has also emphasized international expansion, particularly in Asian markets, though this region has faced some challenges post-COVID. Management has implemented contract renewal harmonization strategies to improve predictability and has been investing in talent acquisition to support growth across all business segments. Recent quarters have shown the company navigating a challenging biotech funding environment while maintaining strong software renewal rates and building service backlogs, positioning for growth as market conditions improve.
SLP company profile · for informational purposes only — not investment advice.
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