Simulations Plus, Inc. (SLP) Earnings

Simulations Plus, Inc. is expected to report next earnings on July 13, 2026 (in NaN days), with a consensus EPS estimate of $0.23. SLP has beaten EPS estimates in 4 of its last 12 reported quarters (average surprise +18.7% over the last four).

Next earnings
Jul 13, 2026in NaN days
EPS est $0.23 · Revenue est $21M
Track record
Beat EPS in 4 of 12 quarters
Avg surprise +18.7% (last 4 quarters)
Earnings history
Report dateEPS estEPS actualSurpriseRevenueRev. surprise
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%
Jul 6, 2023$0.20$0.20+0.0%$16M-3.4%

Source: company filings + earnings calendar. For informational purposes only — not investment advice.

Earnings call summary

Q2 FY2026 · April 9, 2026

AI summary of management’s prepared remarks and analyst Q&A. For informational purposes only — not investment advice.

Management highlights

- Exceeded top line guidance, with revenue of $24.3 million in Q2, adjusted EBITDA of $8.7 million (36% margin), and adjusted diluted EPS of 35 cents. - Encouraging macro environment with ongoing most favored nation pricing agreements, easing tariff concerns, and supportive funding for customers. Regulatory NAMs guidance was clarified. - AI-related competitive concerns weighed on valuations, but AI is seen as net positive for biosimulation, with the company being an early adopter and embedding AI across product roadmap. - Announced strategic collaboration programs with three large pharmaceutical companies to advance AI workflows. - Assessing software renewal rates and reorganizing sales team to regional account-based model. - Services backlog increased 18% to $24 million. - Effective tax rate for fiscal 2026 expected to be between 23% - 25% vs previous 12% - 14%.

Guidance

- Total revenue for fiscal 2026 between $79 - $82 million, year-over-year growth 0 - 4%. - Software mix 57 - 62%. - Adjusted EBITDA margin 26 - 30%. - Adjusted diluted EPS expected to range 75 cents - 85 cents. - Third quarter 2026 revenue anticipated $20 - $22 million, adjusted EBITDA margin 27% - 33%, adjusted diluted EPS $0.20 - $0.27.

Segment performance

Second quarter revenue was $24.3 million. Software revenue increased 9% to represent 60% of total revenue, with discovery revenue (e.g., AdMet Predictor) up 19% for the quarter and 6% for trailing 12 months (19% of total software revenue in the quarter), development revenue (e.g., GastroPlus and Monolix Suite) up 12% for the quarter and 3% for trailing 12 months (78% of total software revenue for both quarter and trailing 12 months), and clinical operations revenue (primarily from proficiency) down 54% for the quarter and 58% for trailing 12 months (3% of total software revenue for both). Services revenue increased 8% to represent 40% of total revenue, with development services (biosimulation) up 12% for the quarter and down 3% for trailing 12 months (77% of total services revenue), and commercialization services (MedCom services) down 1% for the quarter and up 66% for trailing 12 months (23% of total services revenue). Total gross margin was 66%, with software gross margin 89% and services gross margin 33%.

Risks & headwinds

- Macro environment and pharma-related scenarios could be fragile, affecting business. - AI-related competitive concerns initially weighed on valuations. - Software renewal rates have seen churn, particularly with certain commercial pharma and pre-commercial biotech, related to episodic vs recurring demand and challenging early stage biopharma market. - Effective tax rate change and related items could impact financials. - External announcements and macro issues can affect the business.

Analyst Q&A

  • Q: Dive into the three large pharma collaborations, how they work, contract details, cross-selling.

    A: Collaborations have been underway, focus on matching AI development to pharma needs, financial components in discussion.

  • Q: New logos, are they new customers or competitive conversions?

    A: New logos are non-existing customers taking down solutions for the first time, some may be moving from competitive scenarios.

  • Q: Sequential uptick in commercial services backlog, proficiency pipeline, seasonality.

    A: Backlog driven by service revenue, proficiency performance has stabilized, reasonable growth expected.

  • Q: Upsell opportunities, where is the biggest opportunity?

    A: Opportunity exists at all levels, from single to multiple product customers, driven by organizational and product roadmap changes.

  • Q: Mid-year relative to initial guide, conservatism.

    A: Operating in fragile environment, cautious approach, momentum building but not taking up guide yet.

  • Q: Momentum from macro vs NAMs.

    A: Broad-based momentum, support from regulatory and client AI investment shifts.

  • Q: Cross-sell beyond modeling department.

    A: Proficiency acquisition opened reach into clinical trial budgets, AI budgets in clients offer new opportunities.

  • Q: AI monetization timing.

    A: Discussions ongoing, recognition of value there, mechanics of monetization in discussion, not significant in fiscal 2026, likely contributor in fiscal 2027.

  • Q: Large AI companies as clients.

    A: Historical revenue from some AI companies, discovery platform AdMet Predictor and scientific engines like GastroPlus and Monolix are of value.

  • Q: Services metrics, projects vs backlog.

    A: Projects can ebb and flow, backlog growth is good measure of pipeline.

  • Q: Software segment breakdown shifts.

    A: Development solutions like Monolix and GastroPlus are key, Monolix could grow faster in percentage growth.