Simulations Plus reported fiscal Q1 results that matched the guidance issued in December, with total revenue declining 3% year-over-year to $18.4 million. Software revenue fell 17%, representing 48% of the mix, while services revenue rose 16% to account for the remaining 52%. Adjusted EBITDA was $3.5 million and adjusted EPS reached $0.13, both metrics consistent with internal forecasts.

Within software, development products such as GastroPlus and MonolixSuite contributed 81% of software revenue, discovery tools like ADMET Predictor 15%, and clinical operations offerings 4%. On a trailing 12-month basis, the split was 77% development, 18% discovery and 5% clinical ops. Discovery revenue grew 3% over both the quarter and TTM, development slipped 6% in Q1 but rose 1% TTM, while clinical ops dropped 82% in Q1 and 28% TTM, largely due to lower Pro-ficiency platform sales.

Services revenue led growth in Q1, powered by 186 completed projects and an 18% year-over-year increase in backlog to $20.4 million. Development services contributed 71% of services revenue, growing 8% in the quarter, while commercialization services—dominated by medical communications from the Pro-ficiency acquisition—accounted for 29% and surged 42% for the quarter and 191% TTM. Management highlighted a robust pipeline and the potential for services momentum to presage software upsell activity.

The company affirmed full-year guidance calling for $79 million–$82 million in revenue, flat to 4% growth, a software mix of 57%–62%, adjusted EBITDA margin of 26%–30% and adjusted EPS of $1.03–$1.10. Q2 revenue is forecast at $21 million–$22 million. Executives emphasized priorities for R&D at 15%–17% of revenue, operating expenses around 50%, and continued G&A leverage. They plan to unveil details on their integrated product ecosystem—combining AI, cloud-scale performance and regulatory-grade modeling—during a virtual investor day on January 21.