Simulations Plus (SLP)
NASDAQ:SLP
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Simulations Plus
(NASDAQ:SLP)
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Rating:63Neutral
Price Target:
$14.00
▲(22.48% Upside)
Action:ReiteratedDate:04/10/26
Overall score reflects a tug-of-war between very weak trailing income-statement performance (major revenue decline and losses) and supportive fundamentals from a low-debt balance sheet and strong free cash flow. The earnings call adds a positive tilt due to strong margins, backlog growth, and unchanged guidance, while technicals remain mixed with longer-term downtrend signals.
Positive Factors
Balance sheet & liquidity
A debt-free capital structure with $41.8M of cash provides durable financial flexibility. This liquidity underpins R&D and commercial investments, funds conversion of backlog into revenue, and offers a multi-quarter runway to absorb revenue volatility or pursue opportunistic M&A without immediate refinancing risk.
Negative Factors
Severe trailing income deterioration
A ~64% TTM revenue decline and swing to large operating losses represent a material structural reset versus prior growth years. This scale-back erodes operating leverage, threatens long-term margin recovery if customer demand remains uneven, and increases reliance on cash reserves to sustain operations absent durable top‑line stabilization.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance sheet & liquidity
A debt-free capital structure with $41.8M of cash provides durable financial flexibility. This liquidity underpins R&D and commercial investments, funds conversion of backlog into revenue, and offers a multi-quarter runway to absorb revenue volatility or pursue opportunistic M&A without immediate refinancing risk.
Read all positive factors
Simulations Plus (SLP) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$262.71M
Dividend YieldN/A
Average Volume (3M)204.69K
Price to Earnings (P/E)13.6
Beta (1Y)1.22
Revenue Growth13.09%
EPS Growth-745.95%
CountryUS
Employees243
SectorHealthcare
Sector Strength45
IndustryMedical - Healthcare Information Services
Share Statistics
EPS (TTM)0.35
Shares Outstanding20,146,585
10 Day Avg. Volume220,411
30 Day Avg. Volume204,691
Financial Highlights & Ratios
PEG Ratio<0.01
Price to Book (P/B)2.28
Price to Sales (P/S)3.60
P/FCF Ratio16.36
Enterprise Value/Market Cap0.90
Enterprise Value/Revenue3.02
Enterprise Value/Gross Profit5.06
Enterprise Value/Ebitda16.24
Forecast
1Y Price Target
$16.00Price Target Upside39.98% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering4
EPS Forecast (FY)1.04
Revenue Forecast (FY)$80.42M
Simulations Plus Business Overview & Revenue Model
Company Description
Simulations Plus, Inc. develops drug discovery and development software for modeling and simulation, and prediction of molecular properties utilizing artificial intelligence and machine learning based technology worldwide. It operates through four...
How the Company Makes Money
Simulations Plus primarily makes money through (1) software revenue and (2) services revenue. Software revenue is generated by licensing and supporting its scientific modeling and simulation products (for example, GastroPlus and related modules), ...
Simulations Plus Key Performance Indicators (KPIs)
Any
Revenue by Geography
Breaks down revenue across different regions, revealing where the company is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Breaks down revenue across different regions, revealing where the company is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Data provided by:
The Fly
The FlySimulations Plus Earnings Call Summary
Earnings Call Date:Apr 09, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Jul 08, 2026
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.Positive Updates
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.
Negative Updates
Sharp Decline in Clinical Operations Revenue
Clinical operations revenue (primarily from Proficiency) declined 54% in the quarter and 58% on a trailing 12-month basis, representing only ~3% of software revenue — a material weakness in that subsegment.
Read all updates
Q2-2026 Updates
Positive
Negative
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.
Read all positive updates
Company Guidance
Management left fiscal 2026 guidance largely unchanged, forecasting total revenue of $79–82 million (0%–4% year‑over‑year growth), a software mix of 57%–62%, adjusted EBITDA margin of 26%–30% and adjusted diluted EPS of $0.75–0.85 (driven by a revised effective tax rate of 23%–25% versus the prior 12%–14% expectation); for Q3 they expect revenue of $20–22 million, adjusted EBITDA margin of 27%–33% and adjusted diluted EPS of $0.20–0.27 — the company also ended the quarter with $41.8 million in cash and short‑term investments, no debt, and a services backlog of $24.0 million (up 18% year‑over‑year).Simulations Plus Financial Statement Overview
Summary
Income Statement
28
Negative
Balance Sheet
82
Very Positive
Cash Flow
74
Positive
| Breakdown | Nov 2025 | Aug 2024 | Aug 2023 | Aug 2022 | Aug 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 79.18M | 70.01M | 59.58M | 53.91M | 46.47M |
| Gross Profit | 46.22M | 43.15M | 47.95M | 43.08M | 35.87M |
| EBITDA | 14.70M | 11.80M | 13.06M | 18.69M | 14.70M |
| Net Income | -64.72M | 9.95M | 9.96M | 12.48M | 9.78M |
Balance Sheet | |||||
| Total Assets | 131.94M | 207.64M | 192.64M | 190.50M | 181.61M |
| Cash, Cash Equivalents and Short-Term Investments | 32.35M | 20.25M | 115.46M | 128.24M | 123.60M |
| Total Debt | 616.00K | 1.01M | 1.20M | 1.40M | 1.28M |
| Total Liabilities | 7.13M | 25.21M | 22.61M | 12.26M | 15.83M |
| Stockholders Equity | 124.80M | 182.43M | 170.03M | 178.25M | 165.78M |
Cash Flow | |||||
| Free Cash Flow | 17.41M | 12.75M | 17.58M | 13.93M | 14.63M |
| Operating Cash Flow | 18.13M | 13.32M | 21.86M | 17.90M | 19.20M |
| Investing Cash Flow | 3.56M | -53.97M | 7.37M | 4.30M | -26.74M |
| Financing Cash Flow | -1.15M | -6.57M | -23.27M | -7.62M | -4.68M |
Simulations Plus Technical Analysis
Neutral
11.43
Price Trends
12.80
Positive
15.81
Negative
15.57
Negative
Market Momentum
-0.07
Negative
60.09
Neutral
89.56
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SLP, the sentiment is Neutral. The current price of 11.43 is below the 20-day moving average (MA) of 12.01, below the 50-day MA of 12.80, and below the 200-day MA of 15.57, indicating a neutral trend. The MACD of -0.07 indicates Negative momentum. The RSI at 60.09 is Neutral, neither overbought nor oversold. The STOCH value of 89.56 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SLP.
Simulations Plus Risk Analysis
Simulations Plus disclosed 47 risk factors in its most recent earnings report. Simulations Plus reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Simulations Plus Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | $583.60M | 37.76 | 5.18% | 0.52% | 3.68% | 5.62% | |
67 Neutral | $672.34M | -72.16 | -7.10% | ― | 50.51% | 50.92% | |
63 Neutral | $262.71M | 13.59 | -49.30% | ― | 13.09% | -745.95% | |
61 Neutral | $860.94M | -885.94 | -0.15% | ― | 11.47% | ― | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
48 Neutral | $336.84M | -3.99 | -116.98% | ― | 13.66% | -2.65% | |
45 Neutral | $272.40M | ― | -69.22% | ― | -16.65% | -71.92% |
* Healthcare Sector Average
SLP
Simulations Plus
13.04
-19.61
-60.06%
HSTM
HealthStream
19.88
-12.10
-37.83%
EVH
Evolent Health
2.33
-7.70
-76.77%
CERT
Certara
5.55
-7.36
-57.01%
SOPH
SOPHiA GENETICS
4.70
1.82
63.19%
OMDA
Omada Health, Inc.
11.41
-11.19
-49.51%
Simulations Plus Corporate Events
Business Operations and StrategyFinancial Disclosures
Simulations Plus Reports Q2 2026 Results, Trims EPS Outlook
Neutral
Apr 9, 2026
On April 9, 2026, Simulations Plus reported second‑quarter fiscal 2026 results for the period ended February 28, 2026, with total revenue up 8% year on year to $24.3 million and broad-based growth in both software and services. Software sale...
Executive/Board ChangesShareholder Meetings
Simulations Plus Shareholders Approve Directors and Equity Plan
Positive
Feb 18, 2026
On February 12, 2026, Simulations Plus, Inc. held its 2026 Annual Meeting of Shareholders in a virtual format, with about 66% of eligible shares represented. Shareholders elected four directors – Daniel Weiner, Walter S. Woltosz, John K. Pag...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.