olivLaw · US equity research
Simulations Plus, Inc. SLP
Services-Computer Integrated Systems Design · SIC 7373 · Vertical: Services-Computer Integrated Systems Design (SIC 7373)
Simulations Plus develops modeling and simulation software and consulting services for drug development, with software making up 58% of revenue in fiscal 2025. The company is now being acquired by affiliates of Altaris, LLC, a transaction announced after its third quarter of fiscal 2026.
At the close of 07 Oct 2026, Simulations Plus, Inc. (SLP) stock was 18.50 USD, with P/E 46.7 on diluted EPS of 0.40 USD over the last 12 months, 52-week range 18.50–18.50 USD. Latest reported quarter (Q3 2026): revenue of 21.9 m USD (+7.5% YoY), net income of 3.6 m USD, diluted EPS 0.18 USD.
Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.
Price history
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Technical reading
- RSI (14)
- unavailable
- Bollinger (20, 2)
- unavailable – unavailable
- SMA 50 / 200
- unavailable / unavailable
- MACD (12, 26, 9)
- unavailable / unavailable
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | S&P 500 | vs S&P 500 | Vertical median | |
|---|---|---|---|---|
| 1 month | unavailable | −2.0% | unavailable | — |
| 3 months | unavailable | −2.2% | unavailable | — |
| 6 months | unavailable | +4.3% | unavailable | — |
| Year to date | unavailable | +10.6% | unavailable | — |
| 1 year | unavailable | +10.5% | unavailable | −34.7% |
| 3 years | unavailable | +73.7% | unavailable | −17.1% |
| 5 years | unavailable | +61.7% | unavailable | — |
Price returns, dividends excluded.
Quarterly results
Latest quarter: Q3 2026 · 31 May 2026
Quarterly margins
Quarterly statements · USD
| Fiscal year | Q4 '24 | Q1 '25 | Q2 '25 | Q3 '25 | Q4 '25 | Q1 '26 | Q2 '26 | Q3 '26 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 18.7 m | 18.9 m | 22.4 m | 20.4 m | 17.5 m | 18.4 m | 24.3 m | 21.9 m |
| Cost of revenue | 11.8 m | 8.7 m | 9.3 m | 7.3 m | 7.6 m | 7.5 m | 8.1 m | 6.8 m |
| Gross profit | 6.8 m | 10.2 m | 13.1 m | 13.0 m | 9.8 m | 10.9 m | 16.1 m | 15.1 m |
| Research & development | 1.9 m | 1.8 m | 2.1 m | 1.2 m | 1.7 m | 3.0 m | 3.5 m | 3.4 m |
| SG&A | 3.5 m | 5.4 m | 4.6 m | 6.1 m | 4.9 m | 4.0 m | 4.1 m | 4.7 m |
| Operating income | -1.2 m | 126.0 k | 2.7 m | -74.2 m | 659.0 k | 713.0 k | 5.6 m | 4.5 m |
| Depreciation & amortisation | 2.2 m | 2.3 m | 2.3 m ≈ | 2.3 m ≈ | 1.4 m | 1.3 m | 1.5 m ≈ | 1.4 m ≈ |
| Pre-tax income | 863.0 k | 270.0 k | 3.5 m | -74.0 m | 889.0 k | 970.0 k | 5.9 m | 4.8 m |
| Income tax | 20.0 k | 64.0 k | 434.0 k | -6.7 m | 1.6 m | 294.0 k | 1.4 m | 1.2 m |
| Net income | 843.0 k | 206.0 k | 3.1 m | -67.3 m | -681.0 k | 676.0 k | 4.5 m | 3.6 m |
| Diluted EPS | 0.04 ≈ | 0.01 | 0.15 | -3.35 | -0.03 ≈ | 0.03 | 0.22 | 0.18 |
| Operating cash flow | 1.7 m | -1.3 m | 5.7 m ≈ | 8.1 m ≈ | 5.6 m | 4.2 m | 6.4 m ≈ | 8.7 m ≈ |
| Capex | 16.0 k | 86.0 k | 66.0 k ≈ | 297.0 k ≈ | 264.0 k | 0 | 46.0 k ≈ | 93.0 k ≈ |
| Dividends paid | 1.2 m | 0 | 0 ≈ | 0 ≈ | 0 | — | — | — |
| Share repurchases | 0 | — | — | — | — | — | — | — |
≈ derived quarter (cumulative difference / share-days average)
E/P over time
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Fiscal years
| Fiscal year | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 29.7 m | 34.0 m | 41.6 m | 46.5 m | 53.9 m | 59.6 m | 70.0 m | 79.2 m |
| Revenue YoY | +22.9% | +14.5% | +22.4% | +11.7% | +16.0% | +10.5% | +17.5% | +13.1% |
| Net income | 8.9 m | 8.6 m | 9.3 m | 9.8 m | 12.5 m | 10.0 m | 10.0 m | -64.7 m |
| Net income YoY | +54.4% | −3.9% | +8.7% | +4.8% | +27.6% | −20.2% | −0.1% | −750.2% |
| Diluted EPS | 0.50 | 0.48 | 0.50 | 0.47 | 0.60 | 0.49 | 0.49 | -3.22 |
| Diluted EPS YoY | +51.5% | −4.0% | +4.2% | −6.0% | +27.7% | −18.3% | 0.0% | −757.1% |
| net % | 30.1% | 25.3% | 22.4% | 21.1% | 23.2% | 16.7% | 14.2% | -81.7% |
| Free cash flow | 9.1 m | 11.5 m | 10.7 m | 17.6 m | 17.1 m | 21.4 m | 12.8 m | 17.4 m |
Reported results vs expectations
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Balance sheet & financial health
Fiscal year 2025 · 31 Aug 2025
- Cash
- 30.9 m USD
- Financial debt
- unavailable USD
- Net debt
- unavailable USD
- Equity
- 124.8 m USD
- Total assets
- 131.9 m USD
- Debt / equity
- unavailable
- Current ratio
- 7.67x
- ROE
- -42.1%
- ROA
- -39.4%
- FCF margin
- 22.0%
Financial statements (source on every figure)
Revenue and net income (USD)
Margins
Income statement · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Revenue | 41.6 m | 46.5 m | 53.9 m | 59.6 m | 70.0 m | 79.2 m | SEC (XBRL)· 01 Dec 2025verified |
| Cost of revenue | 10.6 m | 10.6 m | 10.8 m | 11.6 m | 26.9 m | 33.0 m | SEC (XBRL)· 01 Dec 2025verified |
| Gross profit | 30.9 m | 35.9 m | 43.1 m | 47.9 m | 43.2 m | 46.2 m | SEC (XBRL)· 01 Dec 2025verified |
| Research & development | 3.0 m | 4.0 m | 3.2 m | 4.5 m | 5.8 m | 6.9 m | SEC (XBRL)· 01 Dec 2025verified |
| SG&A | 16.4 m | 20.6 m | 20.1 m | 27.7 m | 22.4 m | 20.9 m | SEC (XBRL)· 01 Dec 2025verified |
| Operating income | 11.6 m | 11.3 m | 14.9 m | 8.7 m | 6.1 m | -70.7 m | SEC (XBRL)· 01 Dec 2025verified |
| Depreciation & amortisation | 3.0 m | 3.6 m | 3.6 m | 3.8 m | 5.7 m | 8.2 m | SEC (XBRL)· 01 Dec 2025verified |
| EBITDA | 14.6 m ≈ | 14.8 m ≈ | 18.5 m ≈ | 12.6 m ≈ | 11.8 m ≈ | -62.5 m ≈ | SEC (XBRL)· 01 Dec 2025derived |
| Interest expense | 0 | 22.0 k | — | — | — | — | SEC (XBRL)· 27 Oct 2021verified |
| Pre-tax income | 11.4 m | 11.1 m | 15.1 m | 11.7 m | 12.4 m | -69.4 m | SEC (XBRL)· 01 Dec 2025verified |
| Income tax | 2.1 m | 1.3 m | 2.6 m | 1.7 m | 2.5 m | -4.7 m | SEC (XBRL)· 01 Dec 2025verified |
| Net income | 9.3 m | 9.8 m | 12.5 m | 10.0 m | 10.0 m | -64.7 m | SEC (XBRL)· 01 Dec 2025verified |
| Diluted EPS | 0.50 | 0.47 | 0.60 | 0.49 | 0.49 | -3.22 | SEC (XBRL)· 01 Dec 2025verified |
| Weighted average diluted shares | 18.5 m | 20.7 m | 20.7 m | 20.5 m | 20.3 m | 20.1 m | SEC (XBRL)· 01 Dec 2025verified |
| Dividend per share | 0.24 | 0.24 | 0.24 | 0.24 | 0.24 | — | SEC (XBRL)· 30 Oct 2024verified |
≈ computed by olivLaw from the reported lines of the same year: Operating income + Depreciation & amortisation.
Balance sheet · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Cash | 49.2 m | 37.0 m | 51.6 m | 57.5 m | 10.3 m | 30.9 m | SEC (XBRL)· 01 Dec 2025verified |
| Receivables | 7.4 m | 9.9 m | 13.8 m | 10.2 m | 9.1 m | 9.7 m | SEC (XBRL)· 01 Dec 2025verified |
| Current assets | 129.1 m | 139.3 m | 146.8 m | 130.4 m | 39.3 m | 51.5 m | SEC (XBRL)· 01 Dec 2025verified |
| Property, plant & equipment, net | 438.0 k | 1.8 m | 632.0 k | 671.0 k | 812.0 k | 880.0 k | SEC (XBRL)· 01 Dec 2025verified |
| Goodwill | 12.9 m | 12.9 m | 12.9 m | 19.1 m | 96.1 m | 43.7 m | SEC (XBRL)· 01 Dec 2025verified |
| Intangibles (excl. goodwill) | 11.9 m | 10.5 m | — | — | — | — | SEC (XBRL)· 27 Oct 2021verified |
| Total assets | 168.4 m | 180.0 m | 188.4 m | 186.1 m | 196.6 m | 131.9 m | SEC (XBRL)· 01 Dec 2025verified |
| Accounts payable | 351.0 k | 387.0 k | 225.0 k | 144.0 k | 602.0 k | 470.0 k | SEC (XBRL)· 01 Dec 2025verified |
| Current liabilities | 5.5 m | 11.6 m | 7.7 m | 12.0 m | 12.1 m | 6.7 m | SEC (XBRL)· 01 Dec 2025verified |
| Total liabilities | 12.4 m | 14.2 m | 10.1 m | 16.1 m | 14.2 m | 7.1 m | SEC (XBRL)· 01 Dec 2025verified |
| Equity | 156.0 m † | 165.8 m † | 178.2 m † | 170.0 m † | 182.4 m † | 124.8 m † | SEC (XBRL)· 01 Dec 2025verified |
† equity attributable to the parent's shareholders: in these years the issuer no longer reports the total including non-controlling interests.
Cash flow · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Operating cash flow | 10.9 m | 19.2 m | 17.9 m | 21.9 m | 13.3 m | 18.1 m | SEC (XBRL)· 01 Dec 2025verified |
| Capex | 231.0 k | 1.6 m | 819.0 k | 453.0 k | 566.0 k | 713.0 k | SEC (XBRL)· 01 Dec 2025verified |
| Free cash flow | 10.7 m ≈ | 17.6 m ≈ | 17.1 m ≈ | 21.4 m ≈ | 12.8 m ≈ | 17.4 m ≈ | SEC (XBRL)· 01 Dec 2025derived |
| Investing cash flow | -75.5 m | -26.7 m | 4.3 m | 7.4 m | -54.0 m | 3.6 m | SEC (XBRL)· 01 Dec 2025verified |
| Financing cash flow | 102.4 m | -4.7 m | -7.6 m | -23.3 m | -6.6 m | -1.1 m | SEC (XBRL)· 01 Dec 2025verified |
| Dividends paid | 4.3 m | 4.8 m | 4.8 m | 4.8 m | 4.8 m | 0 | SEC (XBRL)· 01 Dec 2025verified |
| Share repurchases | — | 0 | 0 | 20.0 m | 0 | 0 | SEC (XBRL)· 01 Dec 2025verified |
≈ computed by olivLaw from the reported lines of the same year: Operating cash flow − Capex.
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
4 indicators that do not apply to the sector.
Valuation
olivLaw classification
- score weight coverage: 59.6% of at least 60%
- valuation methods computed: 0 of at least 1
A scoring methodology on indicators and valuation, not investment advice.
Closing price
07 Oct 2026Source: olivLaw, closing series
Market cap: unavailable
The price is older than the freshness threshold; market indicators are unavailable.
Key indicators
Coverage and freshness
Score by group
60% · Insufficient data
Estimated value range
unavailable — no valuation method could be computed
Valuation assumptions are editorial choices, not measured; beta is not measured.
Valuation methods
- DCF (discounted cash flow)unavailable · the reported interest expense is far older than the latest period (the filer changed its XBRL tag): a stale figure is not used
- Peers: EV/Salesunavailable · net debt missing: EV cannot be bridged to equity (missing debt is not zero)
- Peers: EV/EBITDAunavailable · net debt missing: EV cannot be bridged to equity (missing debt is not zero)
no valuation method could be computed
Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.
Assumptions (illustrative, editorial)
- Risk-free rate
- 4.3%
- Equity risk premium
- 5.0%
- Beta (default)
- 1.00
- Cost of equity
- 9.3%
- Terminal growth
- 2.5%
Factor scorecard
Insufficient data
Minimum-evidence gate: score weight coverage: 59.6% of at least 60%; valuation methods computed: 0 of at least 1
| Factor | Value | Score | Weight used |
|---|---|---|---|
| Gross margin · Quality | 63.4% | 58 (on a fixed band) | 18% |
| EBIT margin · Quality | 14.0% | 76 (vs peers) | 14% |
| FCF margin · Quality | 29.9% | 100 (on a fixed band) | 14% |
| Revenue CAGR 3Y · Growth | 13.7% | 55 (on a fixed band) | 29% |
| Revenue growth (YoY) · Growth | 13.1% | 65 (vs peers) | 14% |
| Net debt / EBITDA · Balance sheet | unavailable | unavailable | — |
| Current ratio · Balance sheet | 5.5x | 100 (on a fixed band) | 11% |
| EV/Sales · Valuation | unavailable | unavailable | — |
| FCF yield · Valuation | unavailable | unavailable | — |
| Shareholder yield (distributions) · Returns | unavailable | unavailable | — |
Factors without a value were dropped; the remaining weights were renormalised.
Score groups
- Balance sheet· partial100/100 · 1/2 factors with a value
- Growth58/100 · 2/2 factors with a value
- Quality77/100 · 3/3 factors with a value
- Returns· partialunavailable · 0/1 factors with a value
- Valuation· partialunavailable · 0/2 factors with a value
A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.
Memo
Simulations Plus, Inc. (SLP). Latest full fiscal year: 2025; data up to 2026-05-31.
Figures computed from the financial statements: revenue 79.2 m USD in 2025; YoY growth 13.1%; net margin 9.9%; ROE 6.2%.
Valuation cannot be computed from the available data.
Insufficient data for a verdict (score weight coverage: 59.6% of at least 60%; valuation methods computed: 0 of at least 1).
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
- EBIT margin: 14.0%
- FCF margin: 29.9%
- Current ratio: 5.5x
What contradicts it
No signal among the computed factors. That is not an absence of risk: factors without data were not assessed, and business risks (margins, inventory, demand) are in the source-based analysis.
Not assessed (insufficient data or a ratio without meaning): Net debt / EBITDA, EV/Sales, FCF yield, Shareholder yield (distributions).
Versus the vertical median
Services-Computer Integrated Systems Design (SIC 7373) · same industry (4-digit SIC) · compared with 39 companies
Multiples and returns vs the median
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| LDOSLeidos Holdings, Inc. | 16.4 bn | 12.1 | 28.2% | 8.0% | +3.1% | −30% / +26% |
| GDDYGoDaddy Inc. | 14.3 bn | 16.2 | — | 18.6% | +8.3% | −7% / +18% |
| CACICACI International Inc | 14.0 bn | 25.9 | 12.5% | 5.5% | +10.9% | +2% / +97% |
| JKHYJack Henry & Associates, Inc. | 12.6 bn | 25.7 | 24.0% | 19.8% | +7.1% | +3% / +13% |
| IONQIonQ, Inc. | 11.3 bn | — | -60.8% | -553.3% | +201.9% | −40% / +142% |
| OTEXOpen Text Corp | 6.4 bn | 10.3 | 16.2% | 12.3% | +1.5% | −21% / −34% |
| SAICScience Applications International Corporation | 6.3 bn | 17.6 | 25.7% | 5.1% | −2.9% | +75% / +28% |
| WAYWaystar Holding Corp. | 5.7 bn | 42.9 | 3.7% | 10.7% | +16.5% | −20% / unavailable |
| KDKyndryl Holdings, Inc. | 3.7 bn | 46.2 | 7.6% | 0.6% | +0.2% | −35% / −7% |
| AGYSAgilysys, Inc. | 3.5 bn | 78.5 | 13.6% | 12.9% | +15.9% | −0% / +42% |
| NTCTNetscout Systems Inc | 2.8 bn | 23.3 | 7.5% | 13.7% | +4.5% | +42% / +90% |
| AURAurora Innovation, Inc. | 2.6 bn | — | -45.7% | -13,328.6% | unavailable | −3% / +86% |
| PONYPony AI Inc. | 2.1 bn | — | -10.3% | -148.9% | +20.0% | −65% / unavailable |
| OSPNOneSpan Inc. | 872.9 m | 13.2 | 26.8% | 27.5% | +0.0% | +94% / +136% |
| TLSTelos Corporation | 378.2 m | — | -14.9% | -8.1% | +52.2% | −12% / +23% |
| SLPSimulations Plus, Inc. | 374.2 m | 46.7 | 6.2% | 9.9% | +13.1% | unavailable / unavailable |
| SMRTSmartrent, Inc. | 310.4 m | — | -8.4% | -13.0% | −12.9% | −6% / −48% |
| ASURAsure Software, Inc. | 293.6 m | — | -1.9% | — | +24.3% | +22% / +22% |
| VEEAVeea Inc. | 281.2 m | — | — | -2,491.9% | +56.6% | −55% / −98% |
| RBBNRibbon Communications Inc. | 275.9 m | 22.5 | 5.0% | 2.3% | +1.3% | −46% / −28% |
| KDKKodiak AI, Inc. | 220.7 m | — | — | -4,259.6% | −74.6% | −82% / unavailable |
| AIOSAIOS Tech Inc. | 138.9 m | — | -208.9% | -4,359.1% | −98.5% | −87% / −86% |
| MRLNMerlin, Inc. | 91.5 m | — | — | — | unavailable | −92% / unavailable |
| CSPICSP Inc | 75.4 m | — | -1.5% | -1.2% | +6.4% | −35% / −40% |
| HCTIHealthcare Triangle, Inc. | 69.2 m | — | -57.4% | -66.3% | +18.8% | −97% / −100% |
1- and 3-year price returns: for SLP from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
The engine has no published run for this company yet.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Scenarios are not available. input data missing
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
In brief
Simulations Plus develops modeling and simulation software and consulting services for drug development, with software making up 58% of revenue in fiscal 2025 1. The company is now being acquired by affiliates of Altaris, LLC, a transaction announced after its third quarter of fiscal 2026 3.
SWOT
Strengths
- The company claims a leading position in modeling for biopharma, with software used by regulators and industry 1.
- Combining software with consulting services gives clients an integrated offering across the development lifecycle 1.
- The third quarter of fiscal 2026 showed a higher gross margin and a net profit, and software margin improved markedly 32.
Weaknesses
- Fiscal 2025 ended with a large net loss, driven mainly by asset impairments 1.
- Software revenue stalled in the third quarter of fiscal 2026, showing dependence on contracts that can be delayed 31.
- The Pro-ficiency acquisition fell short of expectations, and the company reduced headcount costs in the third quarter of fiscal 2025 12.
Opportunities
- Expanding AI modeling and generative design tools could open new client categories in molecule discovery 1.
- Growth in development services, which rose in the third quarter of fiscal 2026, could support revenue 3.
- If regulators extend guidance on mechanistic modeling, demand for the company's solutions could rise 1.
Risks
- Asset impairmentshigh
The company recorded large goodwill and other asset impairments in fiscal 2025, and new triggers could lead to further charges 1.
- Dependence on client research spendinghigh
Revenue depends on research budgets of the pharma industry, which could fall if pricing or regulation changes 12.
- Intense competitionmedium
Competitors with greater resources, or clients building their own tools, could reduce demand 1.
- Fixed-price contractsmedium
Many contracts are fixed price, so underpricing or cost overruns, or cancellations, could cause losses 1.
- Pending mergermedium
Closing depends on shareholder approval and regulatory clearances, and delays could disrupt the company's plans 3.
Investment thesis
What would need to be true (bull case)
- Services grew at a healthy pace in the third quarter of fiscal 2026, and gross margin improved 32.
- Regulatory guidance encouraging modeling could continue to support demand for the company's software and consulting 1.
- If the acquisition closes, the new owner could accelerate investment in AI and cloud platforms 3.
What would break the thesis
- Software revenue stalled in the third quarter of fiscal 2026, so total growth depended on services 3.
- The large net loss in fiscal 2025 and repeated impairments could point to returns below expectations on acquisitions 1.
- Drug-price pressure and AI advances at competitors could reduce demand or margins over the longer term 21.
What to watch
- Completion of the Altaris merger and closing conditionsQ4 2026
- Trajectory of software revenue after the stall in the third quarterQ4 2026
- Any further goodwill or asset impairments tied to Pro-ficiencynext 10-K
- Client research and development spending amid drug-pricing pressure2027
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
The business
Simulations Plus, Inc. was incorporated in California in 1996 and describes itself as a global leader in the biopharma sector, offering advanced software and consulting services that support drug discovery, development and commercialization 1. Its U.S. headquarters is in Research Triangle Park, North Carolina, with a European office in Paris, and its shares trade on Nasdaq as SLP 1. The company organizes its offerings into model-informed drug development (MIDD), clinical operations and commercialization solutions 1.
Revenue rose 13% to $79.2 million in fiscal 2025, a growth attributed largely to a full year of the Pro-ficiency acquisition 1. The company also recorded impairments, and its net loss reached $64.7 million, compared with net income of $10.0 million in the prior year 1. In the first quarter of fiscal 2026 revenue rose 7%, with services up 20% and software flat 23.
In the fourth quarter of fiscal 2025 the company reorganized from business units into a function-based structure and moved its sales model toward account-based solutions 1. This reorganization preceded the July 2026 merger announcement, so the company profile is changing in the coming period 3.
Segments
Software
The software portfolio includes ADMET Predictor, GastroPlus, DILIsym, Thales and MonolixSuite, used across drug discovery and development 1. It represented 58% of revenue in fiscal 2025 1. In the third quarter of fiscal 2026 software revenue was roughly flat, while software gross margin rose to 88% 23.
Services
Services include PBPK, QSP and PKPD consulting, simulation-based clinical training and medical communications consulting 1. They represented 42% of revenue in fiscal 2025 1. In the third quarter of fiscal 2026 services revenue grew 20%, mainly from organic growth in development solutions 32.
Pro-ficiency
Pro-ficiency is an adaptive learning training platform acquired recently whose performance fell below expectations 1. Management recorded impairment charges on its developed technology and goodwill in fiscal 2025 1. Lower amortization of that technology partly explains the drop in software costs in the third quarter of fiscal 2026 2.
Market context
The company describes the modeling and simulation market for pharmaceuticals as intensely competitive, with rivals including scientific software providers, larger technology firms, client in-house development and the open-source community 1. Demand depends on the research and development budgets of pharma and biotech clients, which can be cut amid pressure on drug prices 21. The average cost of developing a drug, about $2.2 billion, underpins the company's efficiency argument 1.
Regulators such as the FDA and EMA have issued guidance encouraging mechanistic modeling, which has supported demand for the company's services 1. A reversal of regulatory acceptance of these methods could reduce demand for its products and services 1.
Trends
- Regulatory guidance on modelingtailwind
Regulators in the United States, Europe and Asia have published guidance encouraging modeling and simulation, supporting demand for the company's solutions 1.
- Drug pricing pressureheadwind
Global attention on drug pricing has temporarily reduced research and development spending at pharma and biotech companies, which could slow new contracts 2.
- Artificial intelligencemixed
Clients are investing in AI and ML models, which the company integrates into its software; however, AI advances could let competitors automate modeling if the company does not innovate quickly enough 1.
- Reorganization and mergermixed
The internal reorganization and the June 2026 merger agreement could change the company's strategy and pace of investment in the coming period 13.
Competitive position
The company says it faces competition from other scientific software providers, larger technology and solutions companies, in-house development by clients and academic and government institutions 1. Some competitors have longer operating histories and greater financial, technical and research resources 1. The company also notes that data management platforms from much larger companies could become competitors 1.
Competition also shows up in price pressure, and the company says it could modify its pricing practices if demand declines 1. The company's stated advantage is combining validated software with scientific consulting and AI-based models 1.
- Specialized scientific software providers
Companies offering modeling software for drug discovery and development, named generically as direct competitors 1.
- Large technology and solutions companies
Larger providers of data management and general solutions software that could enter scientific informatics 1.
- Clients' in-house development teams
Pharmaceutical clients that build their own software tools, an alternative that reduces external demand 1.
- Open-source software community
Freely available software projects distributed over the internet that compete with the company's commercial products 1.
Links, dependencies and risks
Who the company is tied to, from its own SEC filings (customers, suppliers, production, partners, competitors, countries, regulation), from the 5 %+ holders' statements (13D/13G) and from what other companies say about it. Click a node for its evidence; on a listed company the graph moves to it.
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News & filings
In the press
No news in our archive over the last 180 days.
SEC filings
- Current report06 Oct 2026Acquisition or disposition of assets · Delisting notice · Item 3.03 · Item 5.01 · Departure or appointment of officers · Amendments to articles or bylaws · Regulation FD disclosure · Financial statements and exhibits
- Current report28 Aug 2026Shareholder vote · Financial statements and exhibits
- Current report13 Aug 2026Other events · Financial statements and exhibits
- Quarterly report09 Jul 2026
- Current report09 Jul 2026Results of operations · Regulation FD disclosure · Financial statements and exhibits
- Current report17 Jun 2026Material agreement · Departure or appointment of officers · Financial statements and exhibits
- Current report16 Jun 2026Regulation FD disclosure · Financial statements and exhibits
- Quarterly report10 Apr 2026
- Current report09 Apr 2026Results of operations · Regulation FD disclosure · Financial statements and exhibits
- Current report18 Feb 2026Departure or appointment of officers · Shareholder vote · Financial statements and exhibits
Sources
- [1] Form 10-K, fiscal year ended 2025-08-31 · SEC / Simulations Plus, Inc. · 01 Dec 2025
- [2] Form 10-Q, quarter ended 2026-05-31 · SEC / Simulations Plus, Inc. · 09 Jul 2026
- [3] Form 8-K, results release (exhibit 99.1) · SEC / Simulations Plus, Inc. · 09 Jul 2026
Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.