Simulations Plus ( (SLP) ) has released its Q3 earnings. Here is a breakdown of the information Simulations Plus presented to its investors.
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Simulations Plus, Inc. is a prominent provider of cheminformatics, biosimulation, and medical communication solutions, primarily serving the biopharma industry with advanced software and consulting services aimed at enhancing drug discovery and development processes.
In its third quarter fiscal 2025 earnings report, Simulations Plus announced a 10% increase in total revenue compared to the same period in 2024, reaching $20.4 million. The company also updated its full-year revenue guidance to between $76 million and $80 million, with adjusted diluted EPS expected to range from $0.93 to $1.06.
Key financial highlights for the quarter included a 6% rise in software revenue to $12.6 million and a 17% increase in services revenue to $7.7 million. Despite these gains, the company reported a net loss of $67.3 million due to a significant non-cash impairment charge of $77.2 million. Adjusted EBITDA improved to $7.4 million, representing 37% of total revenue, while adjusted net income rose to $9.0 million with an adjusted diluted EPS of $0.45.
The company has undergone a strategic reorganization, transitioning to a functionally-driven operating model to streamline operations and focus on growth opportunities. This included a one-time impairment charge to align asset values with market conditions and efforts to enhance efficiency through AI-driven initiatives.
Looking ahead, Simulations Plus remains committed to innovation and growth, leveraging advanced technologies like AI to expand its product offerings and maintain a competitive edge in the biosimulation market. The management’s outlook suggests a focus on sustaining growth and solidifying its leadership in model-informed drug development solutions.