Simulations Plus (NASDAQ:SLP) Releases Quarterly Earnings Results, Misses Estimates By $0.05 EPS

Simulations Plus (NASDAQ:SLP) released its quarterly earnings results on Thursday. The technology company reported $0.13 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.18 by ($0.05), Zacks reports. The firm had revenue of $18.42 million for the quarter, compared to the consensus estimate of $18.05 million. Simulations Plus had a positive return on equity of 13.27% and a negative net margin of 81.74%.During the same quarter in the previous year, the business posted $0.17 EPS.

Here are the key takeaways from Simulations Plus’ conference call:

• Q1 results were in line with expectations — revenue fell 3% to $18.4M, adjusted EBITDA was $3.5M and adjusted EPS was $0.13; management left FY26 guidance unchanged at $79–82M revenue and adj. EPS of $1.03–1.10, with Q2 revenue expected around $21–22M.
• Services showed strong momentum, with services revenue up 16% (now 52% of total), 186 projects in the quarter, and backlog up 18% to $20.4M, led by a robust recovery in medical-communications (Pro‑ficiency) work.
• Software weakness drove a 17% decline in software revenue (48% of total); clinical-ops (Pro‑ficiency) and lumpy QSP perpetual-license sales pressured comps, and renewal rates were 88% (below historical 90%+ level).
• Profitability improved with total gross margin rising to 59% (software GM 84%, services GM 36%), helped by the prior reorganization and higher utilization, and the company ended the quarter with $35.7M in cash and no debt.
• Management is investing in an integrated product ecosystem (cloud, regulatory‑grade modeling, and AI) and has reallocated services personnel into R&D; an investor day on Jan 21 will provide further roadmap detail, pointing to potential long‑term revenue and pricing upside.

Simulations Plus Stock Down 4.9%

Simulations Plus stock opened at $18.05 on Friday. Simulations Plus has a twelve month low of $12.39 and a twelve month high of $37.67. The business has a fifty day moving average of $18.21 and a two-hundred day moving average of $16.23. The firm has a market cap of $363.71 million, a P/E ratio of -5.61 and a beta of 1.09.

Institutional Trading of Simulations Plus

Institutional investors have recently modified their holdings of the stock. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its position in Simulations Plus by 4.3% in the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 9,493 shares of the technology company’s stock valued at $233,000 after acquiring an additional 390 shares in the last quarter. Prudential Financial Inc. boosted its stake in shares of Simulations Plus by 5.7% in the second quarter. Prudential Financial Inc. now owns 17,213 shares of the technology company’s stock valued at $300,000 after purchasing an additional 930 shares during the period. Invesco Ltd. grew its holdings in shares of Simulations Plus by 3.8% in the second quarter. Invesco Ltd. now owns 36,452 shares of the technology company’s stock valued at $636,000 after purchasing an additional 1,323 shares in the last quarter. Raymond James Financial Inc. acquired a new stake in Simulations Plus during the 2nd quarter worth approximately $25,000. Finally, US Bancorp DE boosted its position in Simulations Plus by 32.5% in the 3rd quarter. US Bancorp DE now owns 6,167 shares of the technology company’s stock valued at $93,000 after buying an additional 1,513 shares during the period. Institutional investors and hedge funds own 78.08% of the company’s stock.

Wall Street Analyst Weigh In

SLP has been the subject of several recent analyst reports. Cowen reaffirmed a “hold” rating on shares of Simulations Plus in a research note on Thursday. BTIG Research lowered shares of Simulations Plus from a “buy” rating to a “neutral” rating in a research report on Thursday, December 18th. Zacks Research raised shares of Simulations Plus from a “hold” rating to a “strong-buy” rating in a research note on Tuesday, October 28th. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Simulations Plus in a research report on Wednesday, October 8th. Finally, TD Cowen lifted their target price on shares of Simulations Plus from $16.00 to $19.00 and gave the company a “hold” rating in a research note on Thursday. One equities research analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating, six have issued a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Hold” and an average target price of $25.00.

About Simulations Plus

Simulations Plus, Inc (NASDAQ: SLP) specializes in advanced modeling and simulation software tailored to the pharmaceutical, biotechnology and chemical industries. The company’s flagship products include ADMET Predictor, a quantitative structure-activity relationship (QSAR) tool for predicting absorption, distribution, metabolism, excretion and toxicity properties, and GastroPlus, a physiologically based pharmacokinetic (PBPK) modeling platform for simulating drug absorption and pharmacokinetics.