Simulations Plus (NASDAQ: SLP) grows Q3 2026 revenue 7% to $21.9M
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
Simulations Plus reported third quarter fiscal 2026 revenue of $21.9 million, up 7% from a year ago, driven by strong growth in services. Software revenue was flat at $12.6 million, while services revenue rose 20% to $9.3 million. Gross profit was $15.1 million with a 69% margin, up from 64%. Net income reached $3.6 million, or $0.18 diluted EPS, versus a prior-period net loss of $67.3 million driven by a large impairment. Adjusted EBITDA was $7.9 million, a 36% margin.
For the first nine months of fiscal 2026, revenue was $64.6 million, up 5%, with net income of $8.8 million and adjusted diluted EPS of $0.78. The company reiterated fiscal 2026 guidance for total revenue of $79–$82 million, adjusted EBITDA margin of 26–30%, and adjusted diluted EPS of $0.75–$0.85. Management also highlighted a definitive merger agreement signed on June 15, 2026 to be acquired by affiliates of Altaris, with closing expected in the fourth quarter of calendar 2026.
Positive
- None.
Negative
- None.
Insights
Services growth and margins improved, while guidance and merger frame near‑term outlook.
Simulations Plus delivered modest top-line growth with improved profitability. Q3 fiscal 2026 revenue rose 7% to $21.9 million, as services revenue increased 20% to $9.3 million and software revenue remained flat at $12.6 million. Gross margin expanded to 69% from 64%, supporting net income of $3.6 million versus a large impairment-driven loss a year ago.
On a nine‑month basis, revenue grew 5% to $64.6 million, with adjusted EBITDA of $20.2 million and a 31% margin. Adjusted diluted EPS declined to $0.78 from $0.93, reflecting higher R&D and other operating investments despite better gross margins. The shift toward higher-growth services continues, with services contributing 44% of year‑to‑date revenue.
Fiscal 2026 guidance calls for total revenue of $79–$82 million, implying low single‑digit growth, adjusted EBITDA margin of 26–30%, and adjusted diluted EPS of $0.75–$0.85. Management also referenced a definitive merger agreement with Altaris signed on June 15, 2026, with closing expected in the fourth quarter of calendar 2026. Subsequent filings may provide further details on integration and post‑transaction strategy once the deal progresses.
8-K Event Classification
3 items: 2.02, 7.01, 9.01
3 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 7.01
Regulation FD Disclosure
Disclosure
Material non-public information disclosed under Regulation Fair Disclosure, often investor presentations or guidance.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Key Figures
Q3 2026 revenue: $21.9M
Q3 2026 services revenue: $9.3M
Q3 2026 software revenue: $12.6M
+5 more
8 metrics
Q3 2026 revenue
$21.9M
Total revenue, up 7% year over year
Q3 2026 services revenue
$9.3M
Services revenue, up 20% year over year
Q3 2026 software revenue
$12.6M
Software revenue, flat year over year
Q3 2026 gross margin
69%
Gross profit margin vs 64% in Q3 2025
Q3 2026 net income
$3.6M
Net income vs prior-year net loss of $67.3M
Q3 2026 diluted EPS
$0.18
Diluted earnings per share vs -$3.35 a year ago
Q3 2026 Adjusted EBITDA
$7.9M
Adjusted EBITDA, 36% of total revenue
FY 2026 revenue guidance
$79–$82M
Full-year revenue outlook, 0–4% growth range
Key Terms
Adjusted EBITDA, Adjusted Diluted EPS, non-GAAP financial measures, definitive merger agreement, +2 more
6 terms
Adjusted EBITDA financial
"Adjusted EBITDA of $7.9 million, representing 36% of total revenue"
Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.
Adjusted Diluted EPS financial
"Adjusted net income of $6.1 million and adjusted diluted EPS of $0.30"
Adjusted diluted EPS is a company’s profit per share after adding back or removing one-time items (like restructuring costs or gains) and dividing by the number of shares including potential shares from options and convertible securities. Investors use it as a cleaner view of ongoing earnings—like looking at a car’s regular fuel efficiency rather than a trip boosted by downhill coasting—to judge underlying performance and compare companies without temporary distortions.
non-GAAP financial measures financial
"This press release contains “non-GAAP financial measures,” which are measures that either exclude or include amounts"
Non-GAAP financial measures are numbers companies use to show their financial performance that exclude certain expenses or income. They help investors see how the company might perform without one-time costs or other unusual items, giving a different perspective from official reports. However, since they can be adjusted, they don’t always tell the full story and should be looked at alongside standard financial figures.
definitive merger agreement financial
"on June 15, 2026, we entered into a definitive merger agreement to be acquired by affiliates of Altaris"
A definitive merger agreement is the final, signed contract that sets the exact terms for two companies to combine, including the price, payment method, conditions to closing, and what happens if the deal falls apart. For investors it matters because it turns a tentative plan into a legally binding arrangement—like signing a mortgage rather than agreeing to look at a house—so it often has an immediate effect on share prices and clarifies the risks from regulatory approval, financing or breakup fees.
backlog financial
"Overall services revenue growth of 20% for 3Q26 and 10% for TTM – Total backlog $23"
A backlog is the amount of work or orders that a company has received but hasn't completed yet. It’s like a restaurant with many dishes to serve; the backlog shows how many orders are still waiting to be finished. It matters because a large backlog can indicate strong demand or potential delays in delivering products or services.
Adjusted Net income financial
"Adjusted Net income $6,098 $9,028 $15,713 $18,669"
Adjusted net income is a company's reported profit after removing unusual, one-time, or non-operational items so the number reflects the business’s regular earning power. Investors use it like a cleaned-up scorecard — similar to judging a player’s season performance without a few fluke games — to compare companies or assess trends without being misled by rare gains or losses that won’t affect future cash flow.
Earnings Snapshot
Revenue: $21.9M · Guidance included
Q3 2026
Revenue
$21.9M
+7% YoY
Net income
$3.6M
vs -$67.3M prior-year loss
Diluted EPS
$0.18
vs -$3.35 prior-year diluted loss per share
Adjusted EBITDA
$7.9M
+$0.5M YoY
Gross margin
69%
vs 64% in Q3 2025
Guidance
Fiscal 2026 guidance: total revenue $79–$82M, total revenue growth 0–4%, software revenue mix 57–62%, adjusted EBITDA margin 26–30%, adjusted diluted EPS $0.75–$0.85.
FAQ
How did Simulations Plus (SLP) perform in Q3 fiscal 2026?
Simulations Plus reported Q3 fiscal 2026 revenue of $21.9 million, up 7% year over year. Net income was $3.6 million, or $0.18 diluted EPS, compared with a large impairment-driven loss in the prior-year quarter.
What were Simulations Plus (SLP) software and services revenues in Q3 2026?
In Q3 fiscal 2026, software revenue was essentially flat at $12.6 million, representing 58% of total revenue. Services revenue rose 20% to $9.3 million, accounting for 42% of revenue and driving overall growth and mix shift toward services.
How did Simulations Plus (SLP) perform over the first nine months of fiscal 2026?
For the first nine months of fiscal 2026, Simulations Plus generated $64.6 million in revenue, up 5% year over year. Net income was $8.8 million, and adjusted diluted EPS was $0.78, compared with $0.93 in the prior-year period.
What fiscal 2026 guidance did Simulations Plus (SLP) provide?
Simulations Plus guided to fiscal 2026 total revenue of $79–$82 million, implying 0–4% growth. The company expects an adjusted EBITDA margin of 26–30% and adjusted diluted EPS between $0.75 and $0.85, reflecting continued profitability.
What is the status of Simulations Plus (SLP) merger with Altaris?
Management noted a definitive merger agreement signed on June 15, 2026, for Simulations Plus to be acquired by affiliates of Altaris. The company expects the transaction to close in the fourth quarter of calendar 2026, subject to customary conditions.
How strong were Simulations Plus (SLP) margins in Q3 fiscal 2026?
In Q3 fiscal 2026, Simulations Plus achieved a 69% gross margin, up from 64% a year earlier. Adjusted EBITDA was $7.9 million, representing a 36% margin, indicating solid operating profitability alongside modest revenue growth.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
(Date of the earliest event reported)
(Exact name of registrant as specified in its charter)
| (State or other jurisdiction of incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) | ||||||
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
Soliciting material pursuant to Rule 14a-12 under Exchange Act (17 CFR 240.14a-12) | |||||
Pre-commencement communications pursuant to Rule 14d-2(b) under Exchange Act (17 CFR 240.14d-2(b)) | |||||
Pre-commencement communications pursuant to Rule 13e-4(c) under Exchange Act (17 CFR 240.13e-4(c)) | |||||
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging Growth Company | ||||||||
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨
Item 2.02 Results of Operations and Financial Condition
On July 9, 2026, Simulations Plus, Inc., a California corporation (the “Company”), issued a press release announcing financial results for its third quarter ended May 31, 2026. The press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K (this “Report”).
Item 7.01 Regulation FD Disclosure
On July 9, 2026, the Company made available an investor presentation containing supplemental information regarding its financial results for the fiscal quarter ended May 31, 2026. A copy of the presentation is furnished as Exhibit 99.2 to this Report.
In accordance with General Instructions B.2 of Form 8-K, the information in this Report, including Exhibit 99.1 and 99.2 (together, the “Exhibits”), is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liability of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, whether made before or after the date hereof, except as expressly set forth by specific reference in such filing to this Report.
CAUTION REGARDING FORWARD-LOOKING STATEMENTS
This Report, including the disclosures set forth herein and in the Exhibits attached hereto, contains certain forward-looking statements that involve substantial risks and uncertainties. When used herein, the terms “anticipates,” “expects,” “estimates,” “believes” and similar expressions, as they relate to us or our management, are intended to identify such forward-looking statements.
Forward-looking statements in this Report or reports hereafter furnished, including in other publicly available documents filed with the Securities and Exchange Commission (the “Commission”), to the Company’s stockholders and other publicly available statements issued or released by us involve known and unknown risks, uncertainties and other factors which could cause our actual results, performance (financial or operating) or achievements to differ from the future results, performance (financial or operating) or achievements expressed or implied by such forward-looking statements. Such future results are based upon management’s best estimates based upon current conditions and the most recent results of operations. These risks include, but are not limited to, the risks set forth herein and in such other documents filed with the Commission, each of which could adversely affect our business and the accuracy of the forward-looking statements contained herein. Our actual results, performance or achievements may differ materially from those expressed or implied by such forward-looking statements.
Item 9.01 Financial Statements and Exhibits
(d) Exhibits
| 99.1 | Press release issued on July 9, 2026. | ||||
| 99.2 | PowerPoint presentation | ||||
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) | ||||
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
| SIMULATIONS PLUS, INC. | |||||
Dated: July 9, 2026 | By: /s/ Will Frederick | ||||
| Will Frederick | |||||
| Executive Vice President and Chief Financial Officer | |||||
2
Exhibit 99.1
Simulations Plus Reports Third Quarter Fiscal 2026 Financial Results
RESEARCH TRIANGLE PARK, NC, July 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 third quarter fiscal 2026, ended May 31, 2026.
Third Quarter 2026 Financial Highlights (as compared to third quarter 2025)
•Total revenue increased 7% to $21.9 million
•Software revenue was flat at $12.6 million, representing 58% of total revenue
•Services revenue increased 20% to $9.3 million, representing 42% of total revenue
•Gross profit was $15.1 million and gross margin was 69%, compared to $13.0 million and 64%
•Net income of $3.6 million and diluted earnings per share of $0.18, compared to net loss of $67.3 million and diluted losses per share of $3.35
•Adjusted EBITDA of $7.9 million, representing 36% of total revenue, compared to $7.4 million, representing 37% of total revenue
•Adjusted net income of $6.1 million and adjusted diluted EPS of $0.30 compared to adjusted net income of $9.0 million and adjusted diluted EPS of $0.45
Nine Months 2026 Financial Highlights (as compared to nine months 2025)
•Total revenue increased 5% to $64.6 million
•Software revenue decreased 2% to $36.1 million, representing 56% of total revenue
•Services revenue increased 14% to $28.5 million, representing 44% of total revenue
•Gross profit was $42.2 million and gross margin was 65%, compared to $36.4 million and 59%
•Net income of $8.8 million and diluted earnings per share of $0.43, compared to net loss of $64.0 million and diluted losses per share of $3.19
•Adjusted EBITDA of $20.2 million, representing 31% of total revenue, compared to $18.5 million, representing 30% of total revenue
•Adjusted net income of $15.7 million and adjusted diluted EPS of $0.78, compared to $18.7 million and adjusted diluted EPS of $0.93
Management Commentary
“We delivered solid third quarter results, with revenue increasing 7%, highlighted by strength in our services revenue, which grew 20%, while software revenue was flat year over year,” said Shawn O'Connor, Chief Executive Officer of Simulations Plus. “Our performance reflects the resilience of our business model and the value our solutions provide to clients across the drug development lifecycle.”
“Subsequent to quarter end, on June 15, 2026, we entered into a definitive merger agreement to be acquired by affiliates of Altaris, LLC (“Altaris”). We believe the transaction better positions Simulations Plus to further advance its scientific leadership and expand the impact of our model-informed and AI-enabled solutions. As we move toward the expected closing in the fourth quarter of calendar 2026, we remain focused on delivering for our clients and executing at a high level throughout this transition.”
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”, “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 the effects of the definitive merger agreement, the anticipated closing date, and our fiscal year 2026 guidance. 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
1
SIMULATIONS PLUS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
(Unaudited)
| Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||
| (in thousands, except per common share and common share data) | May 31, 2026 | May 31, 2025 | May 31, 2026 | May 31, 2025 | ||||||||||||||||||||||
| Revenues | ||||||||||||||||||||||||||
| Software | $ | 12,608 | $ | 12,615 | $ | 36,126 | $ | 36,814 | ||||||||||||||||||
| Services | 9,278 | 7,748 | 28,472 | 24,905 | ||||||||||||||||||||||
| Total revenues | 21,886 | 20,363 | 64,598 | 61,719 | ||||||||||||||||||||||
| Cost of revenues | ||||||||||||||||||||||||||
| Software | 1,513 | 2,540 | 4,573 | 7,765 | ||||||||||||||||||||||
| Services | 5,246 | 4,791 | 17,864 | 17,577 | ||||||||||||||||||||||
| Total cost of revenues | 6,759 | 7,331 | 22,437 | 25,342 | ||||||||||||||||||||||
| Gross profit | 15,127 | 13,032 | 42,161 | 36,377 | ||||||||||||||||||||||
| Operating expenses | ||||||||||||||||||||||||||
| Research and development | 3,406 | 1,216 | 9,856 | 5,207 | ||||||||||||||||||||||
| Sales and marketing | 2,538 | 2,680 | 8,647 | 9,248 | ||||||||||||||||||||||
| General and administrative | 4,684 | 6,141 | 12,816 | 16,089 | ||||||||||||||||||||||
| Impairments | — | 77,221 | — | 77,221 | ||||||||||||||||||||||
| Total operating expenses | 10,628 | 87,258 | 31,319 | 107,765 | ||||||||||||||||||||||
| Income (loss) from operations | 4,499 | (74,226) | 10,842 | (71,388) | ||||||||||||||||||||||
| Other income, net | 307 | 182 | 820 | 1,122 | ||||||||||||||||||||||
| Income (loss) before income taxes | 4,806 | (74,044) | 11,662 | (70,266) | ||||||||||||||||||||||
| Income tax (expense) benefit | (1,231) | 6,727 | (2,876) | 6,229 | ||||||||||||||||||||||
| Net income (loss) | $ | 3,575 | $ | (67,317) | $ | 8,786 | $ | (64,037) | ||||||||||||||||||
| Earnings per share | ||||||||||||||||||||||||||
| Basic | $ | 0.18 | $ | (3.35) | $ | 0.44 | $ | (3.19) | ||||||||||||||||||
| Diluted | $ | 0.18 | $ | (3.35) | $ | 0.43 | $ | (3.19) | ||||||||||||||||||
| Weighted-average common shares outstanding | ||||||||||||||||||||||||||
| Basic | 20,209 | 20,113 | 20,170 | 20,092 | ||||||||||||||||||||||
| Diluted | 20,239 | 20,113 | 20,233 | 20,092 | ||||||||||||||||||||||
| Other comprehensive income (loss), net of tax | ||||||||||||||||||||||||||
| Foreign currency translation adjustments | 10 | 41 | 15 | (27) | ||||||||||||||||||||||
| Unrealized (losses) gains on available-for-sale securities | (8) | — | (14) | 4 | ||||||||||||||||||||||
| Comprehensive income (loss) | $ | 3,577 | $ | (67,276) | $ | 8,787 | $ | (64,060) | ||||||||||||||||||
2
SIMULATIONS PLUS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
| (in thousands, except per common share and common share data) | May 31, 2026 | August 31, 2025 | ||||||||||||
| ASSETS | ||||||||||||||
| Current assets | ||||||||||||||
| Cash and cash equivalents | $ | 35,324 | $ | 30,853 | ||||||||||
Accounts receivable, net of allowance for credit losses of $59 and $187 | 17,202 | 9,717 | ||||||||||||
| Prepaid income taxes | 263 | 1,777 | ||||||||||||
| Prepaid expenses and other current assets | 7,670 | 7,702 | ||||||||||||
| Short-term investments | 14,666 | 1,500 | ||||||||||||
| Total current assets | 75,125 | 51,549 | ||||||||||||
| Long-term assets | ||||||||||||||
| Capitalized computer software development costs, net of accumulated amortization of $24,187 and $21,863 | 11,203 | 11,117 | ||||||||||||
| Property and equipment, net | 513 | 880 | ||||||||||||
| Operating lease right-of-use assets | 395 | 407 | ||||||||||||
Intellectual property, net of accumulated amortization of $9,822 and $9,021 | 5,396 | 6,197 | ||||||||||||
Other intangible assets, net of accumulated amortization of $5,127 and $4,399 | 11,074 | 11,896 | ||||||||||||
| Goodwill | 43,717 | 43,717 | ||||||||||||
| Deferred tax assets, net | 4,168 | 4,774 | ||||||||||||
| Other assets | 1,385 | 1,399 | ||||||||||||
| Total assets | $ | 152,976 | $ | 131,936 | ||||||||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||||
| Current liabilities | ||||||||||||||
| Accounts payable | $ | 2,234 | $ | 470 | ||||||||||
| Accrued compensation | 4,888 | 2,010 | ||||||||||||
| Accrued expenses | 1,054 | 1,343 | ||||||||||||
| Operating lease liability - current portion | 112 | 206 | ||||||||||||
| Deferred revenue | 5,278 | 2,696 | ||||||||||||
| Total current liabilities | 13,566 | 6,725 | ||||||||||||
| Long-term liabilities | ||||||||||||||
| Operating lease liability - net of current portion | 375 | 410 | ||||||||||||
| Total liabilities | 13,941 | 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, 20,216,438 and 20,137,480 shares issued and outstanding as of May 31, 2026, and August 31, 2025 | 20 | 20 | ||||||||||||
| Additional paid-in capital | 164,863 | 159,416 | ||||||||||||
| Accumulated deficit | (25,578) | (34,364) | ||||||||||||
| Accumulated other comprehensive loss | (270) | (271) | ||||||||||||
| Total shareholders' equity | 139,035 | 124,801 | ||||||||||||
| Total liabilities and shareholders' equity | $ | 152,976 | 131,936 | |||||||||||
3
SIMULATIONS PLUS, INC.
Reconciliation of Adjusted EBITDA to Net Income (loss) (1)
(Unaudited)
| Three months ended | Nine months ended | ||||||||||||||||||||||
| (in thousands) | May 31, 2026 | May 31, 2025 | May 31, 2026 | May 31, 2025 | |||||||||||||||||||
| Net income (loss) | $ | 3,575 | $ | (67,317) | $ | 8,786 | $ | (64,037) | |||||||||||||||
| Excluding: | |||||||||||||||||||||||
| Interest income and expense, net | (344) | (170) | (899) | (483) | |||||||||||||||||||
| Provision for income taxes | 1,231 | (6,727) | 2,876 | (6,229) | |||||||||||||||||||
| Depreciation and amortization | 1,368 | 2,318 | 4,261 | 6,857 | |||||||||||||||||||
| Stock-based compensation | 1,557 | 1,279 | 4,525 | 4,425 | |||||||||||||||||||
| Loss on currency exchange | 43 | (35) | 85 | (22) | |||||||||||||||||||
| Impairments | — | 77,221 | — | 77,221 | |||||||||||||||||||
| (Income) loss from disposal of fixed assets | (6) | 23 | (6) | 23 | |||||||||||||||||||
| Change in value of contingent consideration | — | — | — | (640) | |||||||||||||||||||
| Reorganization expense | 4 | 845 | 4 | 1,260 | |||||||||||||||||||
| Mergers & Acquisitions expense | 462 | — | 527 | 133 | |||||||||||||||||||
| Adjusted EBITDA | $ | 7,890 | $ | 7,437 | $ | 20,159 | $ | 18,508 | |||||||||||||||
(1) Numbers may not add due to rounding
4
SIMULATIONS PLUS, INC.
Reconciliation of Adjusted Diluted EPS to Diluted EPS (1)
(Unaudited)
| Three months ended | Nine months ended | ||||||||||||||||||||||
(in thousands, except Diluted EPS and Adjusted Diluted EPS) | May 31, 2026 | May 31, 2025 | May 31, 2026 | May 31, 2025 | |||||||||||||||||||
| Net income (loss) | $ | 3,575 | $ | (67,317) | $ | 8,786 | $ | (64,037) | |||||||||||||||
| Excluding: | |||||||||||||||||||||||
| Amortization | 1,340 | 2,165 | 4,059 | 6,425 | |||||||||||||||||||
| Stock-based compensation | 1,557 | 1,279 | 4,525 | 4,425 | |||||||||||||||||||
| (Gain) loss on currency exchange | 43 | (35) | 85 | (22) | |||||||||||||||||||
| Mergers & Acquisitions expense | 462 | — | 527 | 133 | |||||||||||||||||||
| Change in value of contingent consideration | — | — | — | (640) | |||||||||||||||||||
| Reorganization expense | 4 | 845 | 4 | 1,260 | |||||||||||||||||||
| Impairments | — | 77,221 | — | 77,221 | |||||||||||||||||||
| (Income) loss from disposal of fixed assets | (6) | 23 | (6) | 23 | |||||||||||||||||||
| Tax effect on above adjustments | (877) | (5,153) | (2,267) | (6,119) | |||||||||||||||||||
| Adjusted Net income | $ | 6,098 | $ | 9,028 | $ | 15,713 | $ | 18,669 | |||||||||||||||
| Weighted-avg. common shares outstanding: | |||||||||||||||||||||||
| Diluted weighted-avg. common shares outstanding | 20,239 | 20,113 | 20,233 | 20,092 | |||||||||||||||||||
| Diluted EPS | $ | 0.18 | $ | (3.35) | $ | 0.43 | $ | (3.19) | |||||||||||||||
| Adjusted Diluted EPS | $ | 0.30 | $ | 0.45 | $ | 0.78 | $ | 0.93 | |||||||||||||||
(1) Numbers may not add due to rounding
5
Q3 - FY26 July 9, 2026 Nasdaq: SLP
Safe Harbor Statement Except for historical information, the matters discussed in this presentation are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, that involve risks and uncertainties. Words like “believe,” “will”, “can”, “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. Statements include but are not limited to those relating to fiscal year 2026 guidance, expected revenue growth and mix, margins and profitability, demand for our services and software, pricing actions, client spending levels and long-term business strategies. Factors that could cause or contribute to such differences include, but are not limited to: effectiveness of our 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. Non-GAAP Financial Measures This presentation includes certain financial measures not presented in accordance with generally accepted accounting principles (“GAAP”) such as Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Net Income, and Adjusted Diluted EPS and certain ratios and other metrics derived there from. These non-GAAP financial measures are not measures of financial performance in accordance with GAAP and may exclude items that are significant in understanding and assessing financial results. Therefore, these measures should not be considered in isolation or as an alternative to net income, cash flows from operations or other measures of profitability, liquidity or performance under GAAP. You should be aware that the presentation of these measures may not be comparable to similarly-titled measures used by other companies. We believe (i) these non-GAAP measures of financial results provide useful information to management and investors regarding certain financial and business trends; and (ii) that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends in and in comparing financial measures with other similar companies, many of which present similar non- GAAP financial measures to investors. These non-GAAP financial measures are subject to inherent limitations as they reflect the exercise of judgments by management about which expense and income are excluded or included in determining these non-GAAP financial measures. Reconciliations of these non-GAAP measures to the most directly comparable GAAP measures are set forth in the appendix to this presentation. 1
Third Quarter 2026 Highlights $0.18 Diluted EPS $21.9M Revenue 36% Adj. EBITDA Margin +7% Revenue Growth Current period Prior Year Comparison (3Q25) $0.30 Adj. Diluted EPS $20.4M Revenue $(3.35) Diluted EPS (1) 37% Adj. EBITDA Margin +10% $0.45 Revenue Growth Adj. Diluted EPS 2 (1) Diluted EPS includes a non-cash impairment charge of $77.2 million
Trailing Twelve Months (TTM) Highlights $0.40 Diluted EPS $82.1M Revenue 29% Adj. EBITDA Margin +2% Revenue Growth Current period Prior Year Comparison (3Q25) $0.88 Adj. Diluted EPS $80.4M Revenue $(3.14) Diluted EPS (1) 28% Adj. EBITDA Margin +20% Revenue Growth $1.10 (1) Diluted EPS includes a non-cash impairment charge of $77.2 million Adj. Diluted EPS 3
Software Highlights $18.7M Revenue $0.04 Diluted EPS 22% Adj. EBITDA Margin -1% Q3 Revenue Decline +2% Q3 Revenue Growth -33% Q3 Revenue Decline +3% TTM Revenue Growth +3% TTM Revenue Growth -66% TTM Revenue Decline – Overall software revenue was flat for 3Q26 and -3% for TTM – Renewal rates impacted by client consolidations and site closures Pro-ficiency® CLINICAL OPS 4
Services Highlights $18.7M Revenue $0.04 Diluted EPS 22% Adj. EBITDA Margin +19% Revenue Growth $0.18 Adj. Diluted EPS +26% Q3 Revenue Growth +2% Q3 Revenue Growth TTM Revenue Growth TTM Revenue Growth +6% +22% – Overall services revenue growth of 20% for 3Q26 and 10% for TTM – Total backlog $23.3M Med Comm Services COMMERCIALIZATION 5
Revenue - Q3 FY26 58% 42% Software Services 62% 38% Software Services (in millions) Software Revenue Growth Total Revenue Growth Services Revenue Growth +7% 0% +20% 3Q26 Mix 3Q25 Mix $11.9 $12.6 $12.6 $6.6 $7.7 $9.3 $18.5 $20.4 $21.9 Software Services 3Q24 3Q25 3Q26 6
Revenue - YTD FY26 56% 44% Software Services 60% 40% Software Services (in millions) Software Revenue Decline Total Revenue Growth Services Revenue Growth +5% -2% +14% FY26 Mix FY25 Mix $31.1 $36.8 $36.1 $20.2 $24.9 $28.5 $51.3 $61.7 $64.6 Software Services FY24 FY25 FY26 7
Revenue - Trailing Twelve Months (TTM) 55% 45% Software Services 58% 42% Software Services (in millions) Software Revenue Growth Total Revenue Growth Services Revenue Growth +2% -3% +10% 3Q26 Mix 3Q25 Mix $40.4 $46.7 $45.1 $26.5 $33.7 $36.9 $67.0 $80.4 $82.1 Software Services 3Q24 3Q25 3Q26 8
Software Solutions as % of Software Revenue 20% 78% 2% 3Q26 18% 79% 3% TTM GastroPlus® • 12 new clients • 6 upsells to existing clients ADMET Predictor® • 9 new clients • 9 upsells to existing clients MonolixSuite™ • 11 new clients • 7 upsells to existing clients Third Quarter Highlights Discovery Development Discovery Development Clinical Ops Discovery Development Clinical Ops 9
Software Performance Metrics - Q3 FY26 $97 $96 $105 3Q24 3Q25 3Q26 Avg. Revenue per Client (in thousands) Commercial Clients Renewal Rate* (fee based) 93% 84% 90% 3Q24 3Q25 3Q26 10 *Excludes perpetual licenses for all periods
Software Performance Metrics - TTM Avg. Revenue per Client (in thousands) Renewal Rate* (fee based) $131 $140 $152 3Q24 3Q25 3Q26 93% 89% 89% 3Q24 3Q25 3Q26 303 316 289 3Q24 3Q25 3Q26 Commercial Clients Clients (end of period) 11 *Excludes perpetual licenses for all periods
Services Solutions as % of Services Revenue 22% 78% Q3 FY26 24% 76% TTM Development Commercialization Development Commercialization 12
Services Performance Metrics Q3 FY26 $0.3 $0.1 $19.6 $15.4 $17.9 $5.0 $5.3$19.6 $20.7 $23.3 Discovery Development Commercialization 3Q24 3Q25 3Q26 181 145 165 56 34 181 202 199 Discovery Development Commercialization 3Q24 3Q25 3Q26 Total Projects Backlog (in millions) 13
Income Statement Summary - Q3 FY26 (1) (in millions, except Diluted EPS and Adjusted Diluted EPS) 3Q26 % of Rev 3Q25 % of Rev Revenue $21.9 100% $20.4 100% Cost of revenue 6.8 31% 7.3 36% Gross profit 15.1 69% 13.0 64% R&D 3.4 16% 1.2 6% S&M 2.5 12% 2.7 13% G&A excluding nonrecurring 4.2 19% 5.3 26% Nonrecurring 0.5 2% 78.1 383% Total operating expense 10.6 49% 87.3 429% Income (loss) from operations 4.5 21% (74.2) -365% Income (loss) before income taxes 4.8 22% (74.0) -364% Income tax (expense) benefit (1.2) -6% 6.7 33% Net income (loss) $3.6 16% $(67.3) -331% Diluted EPS $0.18 $(3.35) Adjusted EBITDA $7.9 36% $7.4 37% Adjusted Diluted EPS $0.30 $0.45 (1) Numbers may not add due to rounding 14
Income Statement Summary - YTD FY26 (1) (in millions, except Diluted EPS and Adjusted Diluted EPS) FY26 % of Rev FY25 % of Rev Revenue $64.6 100% $61.7 100% Cost of revenue 22.4 35% 25.3 41% Gross profit 42.2 65% 36.4 59% R&D 9.9 15% 5.2 8% S&M 8.6 13% 9.2 15% G&A excluding nonrecurring 12.3 19% 14.7 24% Nonrecurring 0.5 1% 78.6 127% Total operating expense 31.3 48% 107.8 175% Income (loss) from operations 10.8 17% (71.4) -116% Income (loss) before income taxes 11.7 18% (70.3) -114% Income tax (expense) benefit (2.9) -4% 6.2 10% Net income (loss) $8.8 14% $(64.0) -104% Diluted EPS $0.43 $(3.19) Adjusted EBITDA $20.2 31% $18.5 30% Adjusted Diluted EPS $0.78 $0.93 (1) Numbers may not add due to rounding 15
Balance Sheet Summary (1) (in millions) (1) Numbers may not add due to rounding May 31, 2026 August 31, 2025 Cash and short-term investments $50.0 $32.4 Other current assets 25.1 19.2 Long term assets 77.9 80.4 Total assets $153.0 $131.9 Current liabilities 13.6 6.7 Long-term liabilities 0.4 0.4 Total liabilities 13.9 7.1 Shareholders’ equity 139.0 124.8 Total liabilities and shareholders’ equity $153.0 $131.9 16
Fiscal 2026 Guidance Guidance Total Revenue $79M - $82M Total Revenue Growth 0% - 4% Software Revenue Mix 57% - 62% Adjusted EBITDA Margin (1) 26% - 30% Adjusted Diluted EPS (2) $0.75 - $0.85 (1) 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. (2) 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. 17
Adjusted EBITDA Non-GAAP Reconciliation (1) 3Q26 3Q25 FY26 YTD FY25 YTD Net income (loss) $3,575 ($67,317) $8,786 ($64,037) Excluding: Interest income and expense, net (344) (170) (899) (483) Income tax expense (benefit) 1,231 (6,727) 2,876 (6,229) Depreciation and amortization 1,368 2,318 4,261 6,857 Stock-based compensation 1,557 1,279 4,525 4,425 Loss on currency exchange 43 (35) 85 (22) Impairments — 77,221 — 77,221 (Gain) loss from disposal of fixed assets (6) 23 (6) 23 Change in value of contingent consideration — — — (640) Reorganization expense 4 845 4 1,260 Mergers & Acquisitions expense 462 — 527 133 Adjusted EBITDA $7,890 $7,437 $20,159 $18,508 (in thousands) (1) Numbers may not add due to rounding 18
Adjusted Diluted EPS Non-GAAP Reconciliation (1) 3Q26 3Q25 FY26 YTD FY25 YTD Net income (loss) $3,575 ($67,317) $8,786 ($64,037) Excluding: Amortization 1,340 2,165 4,059 6,425 Stock-based compensation 1,557 1,279 4,525 4,425 Loss on currency exchange 43 (35) 85 (22) Mergers & Acquisitions expense 462 — 527 133 Change in value of contingent consideration — — — (640) Reorganization expense 4 845 4 1,260 Impairments — 77,221 — 77,221 (Gain) loss from disposal of fixed assets (6) 23 (6) 23 Tax effect on above adjustments (877) (5,153) (2,267) (6,119) Adjusted Net income $6,098 $9,028 $15,713 $18,669 Diluted EPS $0.18 ($3.35) $0.43 ($3.19) Adjusted Diluted EPS $0.30 $0.45 $0.78 $0.93 (in thousands, except Diluted EPS and Adjusted Diluted EPS) (1) Numbers may not add due to rounding 19
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