Simulations Plus, Inc. (“Simulations Plus” or the “Company”), a global leader in cheminformatics, biosimulation, clinical operations solutions and medical communications that accelerate biopharma innovation, reported financial results for its fourth quarter and fiscal 2025, ended August 31, 2025.
Fourth Quarter 2025 Financial Highlights (as compared to fourth quarter 2024)
- Total revenue decreased 6% to $17.5 million
- Software revenue decreased 9% to $9.0 million, representing 52% of total revenue
- Services revenue decreased 3% to $8.4 million, representing 48% of total revenue
- Gross profit was $9.8 million; gross margin was 56%
- Net loss of $0.7 million and diluted loss per share of $0.03, compared to net income of $0.8 million and diluted EPS of $0.04
- Adjusted EBITDA of $3.5 million, representing 20% of total revenue, compared to $4.1 million, representing 22% of total revenue
- Adjusted net income of $2.0 million and adjusted diluted EPS of $0.10 compared to adjusted net income of $3.6 million and adjusted diluted EPS of $0.18
Full Year 2025 Financial Highlights (as compared to full year 2024)
- Total revenue increased 13% to $79.2 million
- Software revenue increased 12% to $45.8 million, representing 58% of total revenue
- Services revenue increased 15% to $33.4 million, representing 42% of total revenue
- Gross profit was $46.2 million; gross margin was 58%
- Net loss of $64.7 million and diluted loss per share of $3.22, including a non-cash impairment charge of $77.2 million compared to net income of $10.0 million and diluted EPS of $0.49
- Adjusted EBITDA of $22.0 million, representing 28% of total revenue, compared to $20.3 million, representing 29% of total revenue
- Adjusted net income of $20.7 million and adjusted diluted EPS of $1.03, compared to adjusted net income of $19.4 million and adjusted diluted EPS of $0.95
Management Commentary
"By successfully meeting our revised fiscal 2025 guidance, we have demonstrated Simulations Plus’ resilience and agility in navigating evolving market dynamics,” said Shawn O’Connor, CEO of Simulations Plus. “We delivered 13% revenue growth and achieved 8% growth in both adjusted EBITDA and adjusted EPS. Looking ahead to fiscal 2026, we anticipate low single-digit revenue growth at the mid-point of the guidance range, assuming current market conditions remain. Importantly, we believe we are well-positioned to capture upside should the spending environment improve for our pharmaceutical and biotech clients.”
“The demand environment remains cautious, but we believe adoption of cloud deployment, interoperability, and AI-driven workflows is accelerating across our customer base. Following our successful transition to a functionally optimized structure, our product and technology team is launching an ambitious product vision that links our validated modeling engines with cloud-scale compute, AI-assisted workflows, and a stronger compliance and identity framework. Cloud-scale performance for intensive modeling, AI copilots that simplify complex workflows, and federated data capabilities aligned with enterprise and regulatory expectations will cut cycle times, increase cross-product adoption, and open new enterprise opportunities — all while preserving the accuracy and scientific depth our customers depend on. With validated science at the core of every product, we believe Simulations Plus is well positioned to lead the next chapter of AI-enabled drug development. We look forward to sharing more of our integrated product vision at Investor Day in January,” concluded O’Connor.
Fiscal 2026 Guidance
Simulations Plus is reaffirming its previously provided fiscal year 2026 guidance as follows:
|
Fiscal 2026 Guidance |
|
|
Total Revenue |
$79M - $82M |
|
Total Revenue Growth |
0 - 4% |
|
Software Revenue Mix |
57 - 62% |
|
Adjusted EBITDA Margin |
26 - 30% |
|
Adjusted Diluted EPS |
$1.03 - $1.10 |
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, December 1 st 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.
2026 Investor Day
Simulations Plus will hold a Virtual Investor Day on Wednesday, January 21, 2026, to present its new product vision and AI solutions. More details will be provided closer to the event.
