Simulations Plus reported financial results for the first quarter of fiscal 2026, ended November 30, 2025.
Total revenue decreased by 3% to $18.4 million, with software revenue down by 17% and services revenue up by 16%.
Gross profit was $10.9 million with a gross margin of 59%, and net income was $0.7 million with diluted earnings per share of $0.03.
Financial Performance
Total revenue decreased by 3%, but services revenue showed a positive trend with a 16% increase.
Profit Margin
The gross margin improved to 59%, reflecting operational efficiency despite the decrease in total revenue.
Outlook and Confidence
Management reaffirmed guidance for fiscal year 2026, indicating confidence in achieving the set targets and capitalizing on market dynamics.
- Simulations Plus CEO, Shawn O'Connor, highlighted the strong performance in the services segment driven by commercialization offerings and growth in development projects.
- The company remains optimistic about market dynamics, such as pricing agreements and improved funding for clients, which are expected to support revenue growth.
- With a strategic outlook for the future, Simulations Plus aims to lead in model-informed and AI-enabled drug development, as highlighted by the upcoming Investor Day on January 21, 2026.
Simulations Plus demonstrated resilience in challenging market conditions, emphasizing a balanced revenue mix and operational efficiency. The company's strategic vision and confidence in achieving fiscal year goals position it as a key player in the evolving drug development landscape.