Simulations Plus (SLP)
NASDAQ:SLP
Earnings Data
Report Date
Jul 08, 2026After Close (Confirmed)
Period Ending
2026 (Q3)Consensus EPS Forecast
0.24Last Year’s EPS
0.45Same Quarter Last Year
Moderate Buy
Based on 4 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Positive
The call presented a generally positive operational and financial picture: revenue growth (+8% YoY), strong adjusted EBITDA and margin expansion, increased services backlog, high software gross margins, and a solid balance sheet with $41.8M in cash and no debt. Strategic partnerships with three large pharma customers and continued AI integration represent meaningful long-term upside. Offsetting these positives were a pronounced decline in clinical operations revenue (–54%), lower trailing renewal rates (87% TTM), a materially higher effective tax rate (now 23–25%) reducing EPS, reduced other income, and management's deliberately conservative guidance due to macro fragility and limited near-term AI monetization. Overall, the encouraging growth, margins, cash position and strategic progress materially outweigh the notable but contained operational and tax headwinds.Company Guidance
Revenue Growth and Top-Line Beat
Total revenue of $24.3 million in Q2 (up 8% year-over-year). Management noted they exceeded the top-line guidance communicated last quarter.
Strong Profitability and Margins
Adjusted EBITDA of $8.7 million, representing a 36% adjusted EBITDA margin. Total gross margin improved to 66% from 59% year-over-year; Software gross margin increased to 89% (from 81%).
Software and Services Growth
Software revenue grew 9% and comprised 60% of total revenue; Services revenue grew 8% and comprised 40% of total revenue.
Product Line Performance
Discovery (ADMET Predictor) revenue rose 19% for the quarter (6% trailing 12 months) and represented ~19% of software revenue. Development (GastroPlus, MonolixSuite) revenue rose 12% for the quarter (3% trailing 12 months) and represented ~78% of software revenue.
Healthy Commercial Metrics and Cross-Sell Opportunity
Ended quarter with 297 commercial clients, average revenue per client of $124,000, quarterly renewal rate of 91% (87% trailing 12 months). In fiscal 2025, among clients >$100k software revenue, 50% purchased 2 products, 23% purchased 3, and 15% purchased 4+ — indicating meaningful cross-sell upside.
Services Backlog and Project Activity
Total services projects during the quarter were 199; ending services backlog increased 18% to $24.0 million from $20.4 million a year ago, signaling a healthy services pipeline.
Strong Balance Sheet
Ended the quarter with $41.8 million in cash and short-term investments, no debt, and continued strong free cash flow to support growth and innovation.
Strategic AI Collaborations with Large Pharma
Announced strategic collaboration programs with three large pharmaceutical companies to advance AI workflows across the drug development lifecycle using core platforms (GastroPlus, MonolixSuite, ADMET Predictor, Thales). Company expects AI to enhance product value and long-term growth.
Improved Software Mix and Lower Amortization
Software contributed a larger share of revenue and benefited from lower software-related costs due to reduced amortization following a prior impairment, helping boost software gross margin.
SLP Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
SLP Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
Apr 09, 2026 | $12.99 | $13.04 | +0.38% |
Jan 08, 2026 | $18.05 | $19.60 | +8.59% |
Oct 22, 2025 | $17.62 | $17.23 | -2.21% |
Jul 14, 2025 | $17.47 | $12.97 | -25.76% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
FAQ
When does Simulations Plus (SLP) report earnings?
Simulations Plus (SLP) is schdueled to report earning on Jul 08, 2026, After Close (Confirmed).
What is Simulations Plus (SLP) earnings time?
Simulations Plus (SLP) earnings time is at Jul 08, 2026, After Close (Confirmed).
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.
What companies are reporting earnings today?
You can see a list of the companies which are reporting today on TipRanks earnings calendar.
What is SLP EPS forecast?
SLP EPS forecast for the fiscal quarter 2026 (Q3) is 0.24.