Simulations Plus ( (SLP) ) has released its Q2 earnings. Here is a breakdown of the information Simulations Plus presented to its investors.
Simulations Plus, Inc. is a leading provider of cheminformatics and biosimulation solutions for the biopharma industry, offering advanced software and consulting services that enhance drug discovery and development processes.
In its second quarter fiscal 2025 earnings report, Simulations Plus announced a 23% year-over-year increase in total revenue, driven by robust growth in both its software and services segments. The company maintains its full-year revenue guidance of $90 to $93 million, with adjusted diluted EPS projected between $1.07 and $1.20.
Key financial highlights include a 16% increase in software revenue to $13.5 million and a 34% rise in services revenue to $8.9 million. Despite a decrease in net income to $3.1 million from $4.0 million in the previous year, the company achieved an adjusted EBITDA of $6.6 million, representing 29% of total revenue. The Quantitative Systems Pharmacology business unit notably expanded by 89%, contributing significantly to the company’s performance.
The company’s services revenue also saw substantial growth, particularly in the Medical Communications business unit, which helped increase the backlog by 13% year-over-year. While the company faces a challenging funding environment for its biopharma clients, it remains optimistic about maintaining its momentum in the second half of 2025.
Looking forward, Simulations Plus is confident in its ability to achieve its fiscal 2025 guidance, supported by its strong performance in the first half of the year and strategic growth in key business units.