EX-99.1 2 slp-2026228xexx991x262.htm EX-99.1 Document

Exhibit 99.1
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Simulations Plus Reports Second Quarter Fiscal 2026 Financial Results

Revenue grew 8% with increases in both software and services


RESEARCH TRIANGLE PARK, NC, April 9, 2026 – Simulations Plus, Inc. (Nasdaq: SLP) (“Simulations Plus” or the “Company”), a global leader in model-informed and AI-accelerated drug development that advances biopharma innovation, today reported financial results for its second quarter fiscal 2026, ended February 28, 2026.

Second Quarter 2026 Financial Highlights (as compared to second quarter 2025)

•Total revenue increased 8% to $24.3 million
•Software revenue increased 9% to $14.6 million, representing 60% of total revenue
•Services revenue increased 8% to $9.7 million, representing 40% of total revenue
•Gross profit was $16.1 million and gross margin was 66%, compared to $13.1 million and 59%
•Net income of $4.5 million and diluted earnings per share of $0.22, compared to net income of $3.1 million and diluted EPS of $0.15
•Adjusted EBITDA of $8.7 million, representing 36% of total revenue, compared to $6.6 million, representing 29% of total revenue
•Adjusted net income of $7.0 million and adjusted diluted EPS of $0.35 compared to adjusted net income of $6.2 million and adjusted diluted EPS of $0.31

Six Months 2026 Financial Highlights (as compared to six months 2025)

•Total revenue increased 3% to $42.7 million
•Software revenue decreased 3% to $23.5 million, representing 55% of total revenue
•Services revenue increased 12% to $19.2 million, representing 45% of total revenue
•Gross profit was $27.0 million and gross margin was 63%, compared to $23.3 million and 56%
•Net income of $5.2 million and diluted earnings per share of $0.26, compared to net income of $3.3 million and diluted EPS of $0.16
•Adjusted EBITDA of $12.3 million, representing 29% of total revenue, compared to $11.1 million, representing 27% of total revenue
•Adjusted net income of $9.6 million and adjusted diluted EPS of $0.48, approximately equivalent to the same period last year

Management Commentary

“We delivered solid second quarter results, with revenue increasing by 8%,” said Shawn O’Connor, CEO of Simulations Plus. “Software growth was driven by strong performance in discovery and development solutions, partially offset by an anticipated decline in clinical operations software. We also saw continued success with new logo additions and client upsells. Services revenue growth was primarily driven by development solutions and bookings were strong during the quarter, resulting in an approximately 18% increase in backlog.”

“Market conditions remain favorable. Globally, ongoing most-favored-nation pricing agreements, reduced tariff threats, and an improving funding environment are benefiting our clients. In addition, we believe recent supplemental guidance on new approach methodologies is supporting increased client activity. We are seeing this reflected in strong software renewals, logo activity, and services bookings. Overall, we are pleased with our
first‑half fiscal 2026 performance and encouraged by the momentum we see across the business,” concluded O’Connor.

Fiscal 2026 Guidance

The Company is adjusting its guidance range for adjusted diluted EPS from a range of $1.03 - $1.10 to $0.75 - $0.85 to reflect an increase in the expected effective tax rate for fiscal 2026 from 12-14% to 23-25%. All other previously issued guidance metrics remain unchanged.


Fiscal 2026 Guidance
Revenue$79M - $82M
Revenue growth0 - 4%
Software mix57 - 62%
Adjusted EBITDA margin26 - 30%
Adjusted diluted EPS$0.75 - $0.85

Webcast and Conference Call Details
Shawn O’Connor, Chief Executive Officer, and Will Frederick, Executive Vice President and Chief Financial Officer, will host a conference call and webcast today, April 9 at 5:00 p.m. Eastern Time to discuss the results and certain forward-looking information. The call may be accessed by registering here or by calling 1-877-451-6152 (domestic) or 1-201-389-0879 (international). The webcast can be accessed on the investor relations page of the Simulations Plus website https://www.simulations-plus.com/investorscorporate-profile/corporate-profile/ where it will also be available for replay approximately one hour following the call.

Non-GAAP Financial Measures
This press release contains “non-GAAP financial measures,” which are measures that either exclude or include amounts that are not excluded or included in the most directly comparable measures calculated and presented in accordance with U.S. generally accepted accounting principles (“GAAP”).

A further explanation and reconciliation of these non-GAAP financial measures is included below and in the financial tables in this release.

The Company believes that the non-GAAP financial measures presented facilitate an understanding of operating performance and provide a meaningful comparison of its results between periods. The Company’s management uses non-GAAP financial measures to, among other things, evaluate its ongoing operations in relation to historical results, for internal planning and forecasting purposes, and in the calculation of performance-based compensation. Adjusted EBITDA and Adjusted Diluted EPS represent measures that we believe are customarily used by investors and analysts to evaluate the financial performance of companies in addition to the GAAP measures that we present. Our management also believes that these measures are useful in evaluating our core operating results. However, Adjusted EBITDA and Adjusted Diluted EPS are not measures of financial performance under accounting principles generally accepted in the United States of America and should not be considered an alternative to net income, operating income, or diluted EPS as indicators of our operating performance or to net cash provided by operating activities as a measure of our liquidity. We believe the Company’s Adjusted EBITDA and Adjusted Diluted EPS measures provide information that is directly comparable to that provided by other peer companies in our industry, but other companies may calculate non-GAAP financial results differently, particularly related to nonrecurring, unusual items.

Please note that the Company has not reconciled the adjusted EBITDA or adjusted diluted earnings per share forward-looking guidance included in this press release to the most directly comparable GAAP measures because this cannot be done without unreasonable effort due to the variability and low visibility with respect to costs related to acquisitions, financings, and employee stock compensation programs, which are potential
adjustments to future earnings. We expect the variability of these items to have a potentially unpredictable, and a potentially significant, impact on our future GAAP financial results.

Adjusted EBITDA

Adjusted EBITDA represents net income excluding the effect of interest expense (income), provision (benefit) for income taxes, depreciation and amortization, equity-based compensation expense, loss (gain) on currency exchange, impairment charges, change in fair value of contingent consideration, reorganization expense, acquisition and integration expense, and other items not indicative of our ongoing operating performance.

Adjusted Net Income and Adjusted Diluted EPS

Adjusted net income and adjusted diluted earnings per share exclude the effect of amortization, equity-based compensation expense, loss (gain) on currency exchange, impairment charges, change in fair value of contingent consideration, reorganization expense, acquisition and integration expense, and other items not indicative of our ongoing operating performance as well as the income tax provision adjustment for such charges.

The Company excludes the above items because they are outside of the Company’s normal operations and/or, in certain cases, are difficult to forecast accurately.

About Simulations Plus, Inc.
Simulations Plus is a global leader in model-informed and AI-accelerated drug development. We create value for our clients by accelerating the discovery, development, and commercialization of pharmaceuticals and other products through innovative science-based software and consulting solutions. For more information, visit www.simulations-plus.com.

Forward-Looking Statements
Except for historical information, the matters discussed in this press release are forward-looking statements that involve risks and uncertainties. Words like “believe,” “will”, “can”, “believe”, “expect,” “anticipate,” and similar expressions (or the negative of such terms, as well as other words or expressions referencing future events, conditions, or circumstances) mean that these are our best estimates as of this writing, but there can be no assurances that expected or anticipated results or events will actually take place, so our actual future results could differ significantly from those statements. Forward-looking statements include but are not limited to statements regarding our fiscal year 2026 guidance, revenue growth, anticipated margins and profitability, demand to software and services, the impact of pricing actions, client spending levels, market conditions, the development, capabilities, regulatory acceptance and commercialization of AI-enabled and could-based solutions, the timing and content of product initiatives discussed at Investor Day, and our ability to execute our long-term strategic vision. These forward-looking statements are based on current assumptions and expectations that involve risks and uncertainties that could cause the actual results to differ materially from those expressed or implied. Factors that could cause or contribute to such differences include, but are not limited to: effectiveness of our internal operational structure, our ability to maintain our competitive advantages and commercialize AI and cloud-enabled solutions, evolving regulatory and data privacy standards governing AI technologies, acceptance of new software and improved versions of our existing software by our customers, the general economics of the pharmaceutical industry, our ability to finance growth, our ability to continue to attract and retain highly qualified technical staff, market conditions, macroeconomic factors, and a sustainable market. Further information on our risk factors is contained in our quarterly, annual, and current reports and filed with the U.S. Securities and Exchange Commission.

Investor Relations Contact:
Lisa Fortuna
Financial Profiles
310-622-8251
slp@finprofiles.com
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SIMULATIONS PLUS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
(Unaudited)
Three Months EndedSix Months Ended
(in thousands, except per common share and common share data)February 28, 2026February 28, 2025February 28, 2026February 28, 2025
Revenues
Software$14,635 $13,484 $23,518 $24,199 
Services9,656 8,948 19,194 17,157 
Total revenues24,291 22,432 42,712 41,356 
Cost of revenues
Software1,648 2,587 3,060 5,225 
Services6,500 6,718 12,618 12,786 
Total cost of revenues8,148 9,305 15,678 18,011 
Gross profit16,143 13,127 27,034 23,345 
Operating expenses
Research and development3,470 2,143 6,450 3,991 
Sales and marketing2,930 3,717 6,109 6,568 
General and administrative4,113 4,555 8,132 9,948 
Total operating expenses10,513 10,415 20,691 20,507 
Income from operations5,630 2,712 6,343 2,838 
Other income, net256 796 513 940 
Income before income taxes5,886 3,508 6,856 3,778 
Income tax expense(1,351)(434)(1,645)(498)
Net income$4,535 $3,074 $5,211 $3,280 
Earnings per share
Basic$0.22 $0.15 $0.26 $0.16 
Diluted$0.22 $0.15 $0.26 $0.16 
Weighted-average common shares outstanding
Basic20,160 20,097 20,150 20,082 
Diluted20,243 20,277 20,232 20,262 
Other comprehensive income (loss), net of tax
Foreign currency translation adjustments11 (26)5 (68)
Unrealized gains (losses) on available-for-sale securities(6)— (6)4 
Comprehensive income$4,540 $3,048 $5,210 $3,216 
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SIMULATIONS PLUS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(in thousands, except per common share and common share data)February 28, 2026August 31, 2025
ASSETS
Current assets
Cash and cash equivalents$25,727 $30,853 
Accounts receivable, net of allowance for credit losses of $73 and $187
18,170 9,717 
Prepaid income taxes669 1,777 
Prepaid expenses and other current assets6,885 7,702 
Short-term investments16,109 1,500 
Total current assets67,560 51,549 
Long-term assets
Capitalized computer software development costs, net of accumulated amortization of $23,543 and $21,86311,158 11,117 
Property and equipment, net752 880 
Operating lease right-of-use assets373 407 
Intellectual property, net of accumulated amortization of $9,555 and $9,021
5,663 6,197 
Other intangible assets, net of accumulated amortization of $4,904 and $4,399
11,327 11,896 
Goodwill43,717 43,717 
Deferred tax assets, net4,589 4,774 
Other assets1,345 1,399 
Total assets$146,484 $131,936 
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Accounts payable$803 $470 
Accrued compensation4,398 2,010 
Accrued expenses1,474 1,343 
Operating lease liability - current portion138 206 
Deferred revenue5,530 2,696 
Total current liabilities12,343 6,725 
Long-term liabilities
Operating lease liability - net of current portion370 410 
Total liabilities12,713 7,135 
Commitments and contingencies
Shareholders' equity
Preferred stock, $0.001 par value — 10,000,000 shares authorized; no shares issued and outstanding$— $— 
Common stock, $0.001 par value; 50,000,000 shares authorized, 20,205,482 and 20,137,480 shares issued and outstanding as of February 28, 2026, and August 31, 202520 20 
Additional paid-in capital163,176 159,416 
Accumulated deficit(29,153)(34,364)
Accumulated other comprehensive loss(272)(271)
Total shareholders' equity133,771 124,801 
Total liabilities and shareholders' equity$146,484 131,936 
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SIMULATIONS PLUS, INC.
Reconciliation of Adjusted EBITDA to Net Income (1)
(Unaudited)


Three months endedSix months ended
(in thousands)February 28, 2026February 28, 2025February 28, 2026February 28, 2025
Net income$4,535 $3,074 $5,211 $3,280 
Excluding:
Interest income and expense, net(288)(154)(555)(313)
Provision for income taxes1,3514341,645498
Depreciation and amortization1,5472,2742,8934,539
Stock-based compensation1,5031,5572,9683,146
Loss on currency exchange32(2)4213
Change in value of contingent consideration—(640)—(640)
Reorganization expense—157—415
Mergers & Acquisitions expense55(122)65133
Adjusted EBITDA$8,735 $6,578 $12,269 $11,071 
(1) Numbers may not foot due to rounding
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SIMULATIONS PLUS, INC.
Reconciliation of Adjusted Diluted EPS to Diluted EPS (1)
(Unaudited)


Three months ended Six months ended
(in thousands, except Diluted EPS and Adjusted Diluted EPS)
February 28, 2026February 28, 2025February 28, 2026February 28, 2025
Net income$4,535 $3,074 $5,211 $3,280 
Excluding:
Amortization1,4602,1302,7194,260
Stock-based compensation1,5031,5572,9683,146
(Gain) loss on currency exchange32(2)4213
Mergers & Acquisitions expense55(122)65133
Change in value of contingent consideration—(640)—(640)
Reorganization expense—157—415
Tax effect on above adjustments(558)41 (1,390)(966)
Adjusted Net income$7,027 $6,195 $9,615 $9,641 
Weighted-avg. common shares outstanding:
Diluted weighted-avg. common shares outstanding20,243 20,277 20,232 20,262 
Diluted EPS$0.22 $0.15 $0.26 $0.16 
Adjusted Diluted EPS $0.35 $0.31 $0.48 $0.48 
(1) Numbers may not foot due to rounding
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