Simulations Plus, Inc.
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Range $18.5 – $18.5
Price Chart
About the company
Simulations Plus, Inc. (SLP) is a worldwide developer of sophisticated software and services aimed at enhancing drug discovery and development processes. The company employs artificial intelligence and machine learning technologies to create tools for modeling, simulation, and predicting molecular characteristics.
- CEO
- Shawn O'Connor
- IPO
- 1997
- Employees
- 213
- HQ
- Research Triangle Park, NC, US
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Similar companies
Peers in the same neighborhood.
- Market Cap
- $371.73M
- P/E
- 44.85
- Fwd P/E
- 21.50
- PEG
- 0.39
- P/S
- 4.53
- P/B
- 2.67
- EV/EBITDA
- 25.75
- Div Yield
- 0.00%
- Gross Margin
- 63.38%
- Op Margin
- 14.02%
- Net Margin
- 9.88%
- ROE
- 6.18%
- ROIC
- 5.32%
Latest fiscal year · YoY change
- Revenue
- $79.18M+13.1%
- Gross Profit
- $46.22M+7.1%
- Op Income
- $-70,729,000
- Net Income
- $-64,718,000-750.2%
- EPS
- $-3.22-744.0%
- OCF Growth
- +36.1%
- FCF Growth
- +36.5%
- 52W High
- $21.01
- 52W Low
- $11.09
- 50D MA
- $18.13
- 200D MA
- $16.28
- Beta
- 1.33
- RSI (14)
- 63
- Avg Volume
- 426.86K
Earnings call summaries
Pick a quarter — each call distilled into takeaways, results, and a bull vs bear read.
Simulations Plus beat its top-line guide in Q2 FY2026, with stronger software/service growth, improved margins, and a more upbeat AI-driven growth story, though management stayed cautious on full-year guidance.· April 9, 2026
- Q2 revenue was $24.3 million, up 8% year over year, and management said it exceeded the top-line guidance given last quarter.
- Adjusted EBITDA was $8.7 million with a 36% margin; adjusted diluted EPS was $0.35, in line with internal expectations.
- Gross margin improved to 66% from 59% a year ago, helped by software gross margin rising to 89% from 81%.
- Software revenue grew 9% and services revenue grew 8%; backlog in services rose 18% to $24 million.
- Management emphasized stronger software renewals, new-logo activity, and three large-pharma AI collaborations, but kept full-year guidance relatively unchanged.
- Full-year FY2026 revenue guidance remained $79 million to $82 million, with adjusted EBITDA margin of 26% to 30% and adjusted diluted EPS now $0.75 to $0.85 due to a higher tax rate.
Second-quarter fiscal 2026 revenue was $24.3 million, up 8% year over year. Adjusted EBITDA was $8.7 million, representing a 36% margin, and adjusted diluted EPS was $0.35. Total gross margin was 66% versus 59% in the prior period; software gross margin was 89% versus 81%, and services gross margin was 33% versus 25%. Software revenue increased 9% and services revenue increased 8%. Discovery revenue rose 19%, development revenue rose 12%, and clinical operations revenue declined 54% in the quarter. The company ended the quarter with 297 commercial clients, average revenue per client of $124,000, and a 91% renewal rate for the quarter. Services backlog increased 18% to $24 million from $20.4 million last year. Cash and short-term investments were $41.8 million, with no debt. For fiscal 2026, management maintained revenue guidance of $79 million to $82 million, reiterated adjusted EBITDA margin guidance of 26% to 30%, and lowered adjusted diluted EPS guidance to $0.75 to $0.85 because the effective tax rate is now expected to be 23% to 25% instead of 12% to 14%. Third-quarter guidance was revenue of $20 million to $22 million, adjusted EBITDA margin of 27% to 33%, and adjusted diluted EPS of $0.20 to $0.27.
Shawn O'Connor framed the quarter as evidence that the business is gaining momentum, citing better client spending, solid renewals, stronger new-logo activity, and improved service bookings. He spent much of the call arguing that AI is a net positive for biosimulation rather than a threat, saying customers want to enhance trusted scientific engines rather than replace them. He also highlighted the three large-pharma collaboration programs as an important step from experimentation toward practical AI implementation across the drug development lifecycle.
Will Frederick walked through the quarter’s financial performance and the mix shift by segment and product line, noting software revenue up 9% and services up 8%, with software making up 60% of revenue and services 40%. He highlighted gross margin expansion to 66%, including software gross margin of 89% and services gross margin of 33%, and explained the increase in software margin was helped by lower software-related costs, including reduced amortization after the fiscal 2025 impairment charge. He also pointed to $41.8 million in cash and short-term investments, no debt, and revised the fiscal 2026 effective tax rate expectation to 23% to 25%, which reduced full-year adjusted EPS guidance to $0.75 to $0.85.
Analysts focused on the three large-pharma AI collaborations, asking how the contracts would work and whether they represented cross-sell within existing accounts or new business; management said the collaborations have been underway for some time, are meant to align product development with customer workflows, and that at least one already has some financial component, while broader monetization terms are still being discussed. Questions also centered on renewal rates, backlog, and the software mix; management said churn has been concentrated in smaller or more episodic customers, while top customers remain very stable, and that Monolix could take a larger share over time. On AI monetization timing, management said meaningful P&L contribution is not expected in fiscal 2026 and that fiscal 2027 is the more likely contribution window.
The call showed improving execution, with revenue above guidance, expanding margins, and a healthy cash position with no debt. Management sounded increasingly confident that AI, NAMs, and broader pharma spending can expand the company’s opportunity, especially through cross-sell, new logos, and large-pharma collaborations.
Management repeatedly described the operating environment as fragile and kept full-year guidance cautious despite the strong quarter. Renewal rates have declined on a trailing basis, AI monetization is not expected to matter materially in fiscal 2026, and the higher tax rate lowered EPS guidance even as revenue guidance stayed unchanged.
AI summary of the company's earnings call · Paraphrased · Not investment advice
- Free Float
- 83.1%
- Shares Outstanding
- 20.22M
- Float Shares
- 16.81M
of shares held by institutions
161 13F filers
Buy/sell ratio 0.00. Sells can include pre-scheduled 10b5-1 plan sales, not just discretionary selling.
Top institutional holders
Largest 13F positions, with quarter-over-quarter change.
| Holder | Shares | Δ Quarter |
|---|---|---|
| First Light Asset Management, LLC | 2.79M | ▲ 159.85K |
| Blackrock, Inc. | 1.50M | ▲ 249.72K |
| First Eagle Investment Management, LLC | 1.07M | ▲ 328.51K |
| Vanguard Group Inc | 1.01M | ▲ 37.22K |
| Vanguard Capital Management LLC | 741.47K | ▲ 1.75K |
| Kennedy Capital Management LLC | 539.07K | ▲ 149.76K |
| Tributary Capital Management, LLC | 538.25K | ▼ 10.17K |
| Geode Capital Management, LLC | 440.37K | ▲ 65.39K |
| Marshall Wace, Llp | 410.54K | ▼ 222.15K |
| State Street Corp | 382.54K | ▲ 22.09K |
| Jpmorgan Chase & Co | 326.08K | ▲ 217.04K |
| Morgan Stanley | 315.90K | ▼ 571.61K |
Held by 137 ETFs
Biggest fund positions in SLP by dollar value.
Recent insider transactions
Who's buying, who's selling, and how much.
| Date | Insider | Type | Shares |
|---|---|---|---|
| Aug 3, 26 | DiBella John Anthony II | sell | 1,000 |
| Jul 6, 26 | DiBella John Anthony II | sell | 1,000 |
| Jul 1, 26 | WOLTOSZ WALTER S | sell | 4,177 |
| Jun 16, 26 | Fiedler-Kelly Jill | other | 7,350 |
| Jun 16, 26 | Fiedler-Kelly Jill | sell | 7,350 |
| Jun 16, 26 | Fiedler-Kelly Jill | other | 7,350 |
| Jun 15, 26 | Fiedler-Kelly Jill | other | 1,050 |
| Jun 15, 26 | Fiedler-Kelly Jill | sell | 1,050 |
| Jun 15, 26 | Fiedler-Kelly Jill | other | 1,050 |
| Jun 3, 26 | DiBella John Anthony II | sell | 1,000 |
A “Sell” may be a pre-scheduled 10b5-1 plan sale rather than a discretionary decision — read insider selling with that in mind.
Our SLP coverage
Recent articles, reports, and earnings notes.
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Generate SLP report →Johnson Fistel Investigates Simulations Plus Following Revenue Guidance Cut and Accounting Disclosures
globenewswire.com · Aug 20
Johnson Fistel Investigates Simulations Plus Following Revenue Guidance Cut and Accounting Disclosures
globenewswire.com · Aug 20
Simulations Plus Announces Expiration of Hart-Scott-Rodino Waiting Period for Pending Acquisition by Altaris
businesswire.com · Aug 13
Dimensional Fund Advisors LP Lowers Stock Holdings in Simulations Plus, Inc. $SLP
defenseworld.net · Aug 13
Johnson Fistel Investigates Simulations Plus Following Revenue Guidance Cut and Accounting Disclosures
globenewswire.com · Aug 6
Are DSGR, AVB, SLP, APGE Obtaining Fair Deals for their Shareholders?
gurufocus.com · Jul 31
Are DSGR, AVB, SLP, APGE Obtaining Fair Deals for their Shareholders?
prnewswire.com · Jul 31
Simulations Plus Investor Alert: Kahn Swick & Foti, LLC Investigates Adequacy of Price and Process in Proposed Sale of Simulations Plus, Inc. - SLP
gurufocus.com · Jul 30
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