Simulations Plus Q2 Revenue Rises 8% to $24.3M, Guides $79M–$82M Fiscal Sales
Simulations Plus posted Q2 revenue of $24.3M, up 8%, with adjusted EBITDA of $8.7M (36% margin) and EPS of $0.35. Software revenue climbed 9% to 60% of sales, services rose 8%, clinical operations fell 54%, and the company held $41.8M cash while guiding fiscal 2026 revenue to $79M–$82M.
1. Q2 Financial Results
Simulations Plus reported Q2 revenue of $24.3 million, an 8% year-over-year increase, driving adjusted EBITDA of $8.7 million (36% margin) and adjusted diluted EPS of $0.35.
2. Segment Performance
Software revenue grew 9% and accounted for 60% of total sales, while services revenue rose 8% to make up the remaining 40%. Within segments, discovery revenue increased 19% and development revenue climbed 12%, offset by a 54% decline in clinical operations revenue.
3. Balance Sheet and Guidance
The company ended the quarter with $41.8 million in cash and short-term investments and carried no debt. Effective tax rate increased to 23%, and fiscal 2026 guidance targets total revenue of $79 million to $82 million with adjusted diluted EPS between $0.75 and $0.85.
4. Strategic Collaborations and Renewal Rates
Simulations Plus maintains a 91% software renewal rate and is partnering with three major pharmaceutical firms to integrate AI workflows into product development. AI monetization is expected to be minimal in fiscal 2026 as the company aligns technology with client needs.