Summary of Simulations Plus FY Conference Call Company Overview - **Company**: Simulations Plus (NasdaqGS:SLP) - **Industry**: Biosimulation and Drug Development Key Points Differentiating Features of Simulations Plus Platform - Simulations Plus offers several biosimulation solutions, including ADMET Predictor, GastroPlus, Monolix, and Pro-ficiency, characterized by their ease of use and scientific functionality [4][5][6] - The company emphasizes the accuracy of its predictive outputs, particularly in the discovery space, where ADMET Predictor consistently outperforms competitors [5] - Monolix is noted as the highest growth software platform due to its workflow orientation and integration capabilities [6] Customer Segmentation and Revenue Mix - The customer base is approximately 75% large pharma and 25% biotech, with revenues driven 80% from clinical applications and 20% from discovery [8][9] - The company anticipates a consistent revenue mix of 60-65% from software and 35-40% from services, with a long-term goal to increase software revenue to 70% [16][17] Financial Guidance and Growth Expectations - For FY 2026, the company has set a conservative growth guidance of 0%-4%, reflecting a cautious outlook based on previous year comparisons [10][14] - The first quarter showed overperformance in service business, with a backlog at two-year highs, indicating potential for growth in the latter half of the fiscal year [11][12] Strategic Initiatives and Product Development - The company is focusing on maximizing existing products while also developing a new product roadmap that integrates AI capabilities into their biosimulation ecosystem [22][23] - The integration of AI is expected to enhance productivity and efficiency, potentially allowing for new pricing models and revenue streams [30][31] Regulatory Environment and Market Trends - The FDA's push for alternative methodologies is seen as a long-term opportunity, with expectations for meaningful adoption and revenue impact within 2-3 years [35][40] - Simulations Plus is well-positioned to leverage its tools, such as GastroPlus and QSP capabilities, to meet evolving regulatory requirements and reduce reliance on animal testing [38][39] Competitive Landscape and Market Position - The company views AI as a tool that enhances its existing capabilities rather than a direct competitor, with many AI startups becoming clients rather than replacing Simulations Plus' offerings [48][49] - The historical context of AI adoption in drug development suggests that the company will continue to play a significant role in the biosimulation market [49] Additional Insights - The company is reorganizing its sales strategy to focus on cross-selling its full suite of platforms, which is expected to drive growth [20][21] - There is a recognition of the importance of data management and integration as pharma companies invest in AI, which aligns with Simulations Plus' product development strategy [43][44] This summary encapsulates the key insights from the conference call, highlighting the company's strategic direction, market positioning, and growth expectations in the biosimulation industry.

Core Points - Simulations Plus held its annual meeting of shareholders in a virtual format, chaired by CEO Shawn O'Connor, with CFO Will Frederick presenting formal business items and preliminary voting results [2] Shareholder Participation - The virtual meeting aimed to enhance inclusivity, allowing shareholders to vote and submit questions electronically during the session [3] - Polls were open for shareholders who had not yet voted, and previously submitted votes could be changed before the poll closed [3] Notice and Quorum - Notice of internet availability of proxy materials was mailed starting December 29, 2025, to shareholders of record as of December 15, 2025, which served as the meeting's record date [4] - A supplement to the proxy statement was sent to shareholders of record as of February 4, 2026 [4] - The company received proxies representing 13,229,922 shares, approximately 66% of the 20,137,480 shares eligible to vote, establishing a quorum for the meeting [5] Proposals and Voting Results - All proposals presented to shareholders were approved, including the election of four director nominees and the ratification of Rose, Snyder & Jacobs LLP as independent auditor with over 97% support [8] - An amendment to the 2021 Equity Incentive Plan to add 950,000 shares (totaling 3.45 million) passed with over 91% approval [8] - Shareholders voted for a one-year advisory say-on-pay frequency with over 90% support, overriding the board's recommendation for a three-year cadence; this vote is non-binding but will be considered by the board [8] - The company expects to file final voting results on Form 8-K within four business days, no later than February 19, 2026 [8]

Core Viewpoint - Rosen Law Firm is investigating potential securities claims on behalf of shareholders of Simulations Plus, Inc. due to allegations of materially misleading business information issued to the public [1]. Group 1: Company Performance - Simulations Plus reported sales of $20.4 million for the third quarter of 2025, which is a 10% year-over-year increase, but this figure fell short of the consensus estimate of $20.9 million [3]. - The company had previously released preliminary third-quarter sales figures in June, which were also lower than expectations, reporting between $19 million to $20 million against a consensus of $22.78 million [3]. - Following the release of the third-quarter earnings report, Simulations Plus stock experienced a significant decline of 25.75% on July 15, 2025 [3]. Group 2: Legal Action - Rosen Law Firm is preparing a class action lawsuit seeking recovery of investor losses for those who purchased Simulations Plus securities, with no out-of-pocket fees or costs through a contingency fee arrangement [2]. - Investors interested in joining the class action can submit their information through the Rosen Law Firm's website or contact them directly [2]. Group 3: Rosen Law Firm's Credentials - Rosen Law Firm has a strong track record in securities class actions, having achieved the largest securities class action settlement against a Chinese company and being ranked No. 1 for the number of settlements in 2017 [4]. - The firm has recovered hundreds of millions of dollars for investors, securing over $438 million in 2019 alone [4].

Core Insights - Simulations Plus, Inc. has announced the extension of two research collaborations with the FDA and NIEHS, focusing on new approach methodologies (NAMs) and computational approaches for food and chemical safety assessments [1][2][4] FDA Research Collaboration - The collaboration with the FDA's Human Foods Program will continue to utilize computational models for chemical safety assessments related to food substances [4] - The FDA has chosen to extend this collaboration to enhance AI-based safety models, supported by new federal funding aimed at modernizing food and chemical safety [5] NIEHS Research Collaboration - The partnership with NIEHS will concentrate on computational methods relevant to environmental and exposure-related chemical safety research, aligning with NIEHS's mission to investigate environmental impacts on human health [6][7] - This collaboration is part of a national initiative to modernize chemical safety assessments using AI-driven methodologies [7] Advancing NAM Research - The extensions of these collaborations indicate a sustained federal interest in computational and AI-based approaches, areas where Simulations Plus has established technical expertise over the years [8] - The company has been instrumental in developing model-informed drug development practices for 30 years, contributing to standardized methods accepted by both industry and regulators [9]

Core Viewpoint - Rosen Law Firm is investigating potential securities claims on behalf of shareholders of Simulations Plus, Inc. due to allegations of materially misleading business information issued to the public [1]. Group 1: Legal Action and Investor Rights - Shareholders who purchased Simulations Plus securities may be entitled to compensation through a contingency fee arrangement, with no out-of-pocket costs [2]. - A class action is being prepared by Rosen Law Firm to seek recovery of investor losses [2]. Group 2: Company Performance and Market Reaction - On July 15, 2025, an article published by Benzinga reported that Simulations Plus experienced weaker demand, leading to a decline in stock price [3]. - The company reported sales of $20.4 million for the third quarter of 2025, which was a 10% year-over-year increase but fell short of the consensus estimate of $20.9 million [3]. - Preliminary sales figures released in June indicated lower expectations, with estimates ranging from $19 million to $20 million, compared to a consensus of $22.78 million [3]. - Following the news, Simulations Plus stock fell by 25.75% on July 15, 2025 [3]. Group 3: Rosen Law Firm's Credentials - Rosen Law Firm has a strong track record in securities class actions, having achieved the largest securities class action settlement against a Chinese company [4]. - The firm was ranked No. 1 by ISS Securities Class Action Services for the number of securities class action settlements in 2017 and has consistently ranked in the top 4 since 2013 [4]. - In 2019, the firm secured over $438 million for investors, showcasing its capability in recovering significant amounts for clients [4].

Core Viewpoint - Rosen Law Firm is investigating potential securities claims on behalf of shareholders of Simulations Plus, Inc. due to allegations of materially misleading business information issued to the public [1]. Group 1: Legal Action and Investor Rights - Shareholders who purchased Simulations Plus securities may be entitled to compensation through a contingency fee arrangement, with no out-of-pocket costs [2]. - A class action is being prepared by Rosen Law Firm to seek recovery of investor losses [2]. Group 2: Company Performance and Market Reaction - On July 15, 2025, an article published by Benzinga indicated that Simulations Plus experienced weaker demand, leading to a decline in stock price [3]. - The company reported sales of $20.4 million for the third quarter of 2025, which was a 10% year-over-year increase but fell short of the consensus estimate of $20.9 million [3]. - Preliminary sales figures released in June indicated lower expectations, with estimates ranging from $19 million to $20 million, compared to a consensus of $22.78 million [3]. - Following the news, Simulations Plus stock fell by 25.75% on July 15, 2025 [3]. Group 3: Rosen Law Firm's Credentials - Rosen Law Firm has a strong track record in securities class actions, having achieved the largest securities class action settlement against a Chinese company [4]. - The firm was ranked No. 1 by ISS Securities Class Action Services for the number of settlements in 2017 and has consistently ranked in the top 4 since 2013, recovering hundreds of millions for investors [4]. - In 2019, the firm secured over $438 million for investors, and its founding partner was recognized as a Titan of Plaintiffs' Bar by Law360 in 2020 [4].

Core Viewpoint - Rosen Law Firm is investigating potential securities claims on behalf of shareholders of Simulations Plus, Inc. due to allegations of materially misleading business information issued by the company [1]. Group 1: Company Performance - Simulations Plus reported sales of $20.4 million for the third quarter of 2025, which is a 10% year-over-year increase but fell short of the consensus estimate of $20.9 million [3]. - The company had previously released preliminary third-quarter sales figures in June, which were already lower than expectations at $19 million to $20 million, compared to a consensus of $22.78 million [3]. - Following the earnings report, Simulations Plus stock experienced a significant decline of 25.75% on July 15, 2025 [3]. Group 2: Legal Action - Investors who purchased Simulations Plus securities may be entitled to compensation through a class action lawsuit being prepared by Rosen Law Firm, with no out-of-pocket fees or costs due to a contingency fee arrangement [2]. - Interested investors can join the prospective class action by submitting a form or contacting the law firm directly [2]. Group 3: Rosen Law Firm's Credentials - Rosen Law Firm has a strong track record in securities class actions, having achieved the largest securities class action settlement against a Chinese company and being ranked No. 1 for the number of settlements in 2017 [4]. - The firm has recovered hundreds of millions of dollars for investors, securing over $438 million in 2019 alone [4]. - Founding partner Laurence Rosen was recognized as a Titan of Plaintiffs' Bar by Law360 in 2020, and many attorneys at the firm have received accolades from Lawdragon and Super Lawyers [4].

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Core Viewpoint - Rosen Law Firm is investigating potential securities claims on behalf of shareholders of Simulations Plus, Inc. due to allegations of materially misleading business information issued to the investing public [1]. Group 1: Legal Action and Investor Rights - Shareholders who purchased Simulations Plus securities may be entitled to compensation through a contingency fee arrangement, with no out-of-pocket fees or costs [2]. - A class action is being prepared by Rosen Law Firm to seek recovery of investor losses [2]. Group 2: Company Performance and Market Reaction - On July 15, 2025, Simulations Plus reported sales of $20.4 million for the third quarter of 2025, which was a 10% year-over-year increase but fell short of the consensus estimate of $20.9 million [3]. - The company had previously released preliminary sales figures in June that were lower than expectations, with estimates ranging from $19 million to $20 million compared to a consensus of $22.78 million [3]. - Following the earnings report, Simulations Plus stock experienced a significant decline of 25.75% on July 15, 2025 [3]. Group 3: Rosen Law Firm's Credentials - Rosen Law Firm has a strong track record in securities class actions, having achieved the largest securities class action settlement against a Chinese company [4]. - The firm was ranked No. 1 by ISS Securities Class Action Services for the number of securities class action settlements in 2017 and has consistently ranked in the top 4 since 2013, recovering hundreds of millions of dollars for investors [4]. - In 2019, the firm secured over $438 million for investors, and its founding partner was recognized as a Titan of Plaintiffs' Bar by Law360 in 2020 [4].

Core Viewpoint - Rosen Law Firm is investigating potential securities claims on behalf of shareholders of Simulations Plus, Inc. due to allegations of materially misleading business information issued by the company [1]. Group 1: Company Performance - Simulations Plus reported sales of $20.4 million for the third quarter of 2025, which is a 10% year-over-year increase but fell short of the consensus estimate of $20.9 million [3]. - The company had previously released preliminary third-quarter sales figures in June, which were already lower than expectations at $19 million to $20 million, compared to a consensus of $22.78 million [3]. - Following the earnings report, Simulations Plus stock experienced a significant decline of 25.75% on July 15, 2025 [3]. Group 2: Legal Action - Investors who purchased Simulations Plus securities may be entitled to compensation through a class action lawsuit being prepared by Rosen Law Firm, with no out-of-pocket fees or costs due to a contingency fee arrangement [2]. - Interested investors can join the prospective class action by submitting a form or contacting the law firm directly for more information [2]. Group 3: Rosen Law Firm's Credentials - Rosen Law Firm has a strong track record in securities class actions, having achieved the largest securities class action settlement against a Chinese company and being ranked No. 1 for the number of settlements in 2017 [4]. - The firm has recovered hundreds of millions of dollars for investors, including over $438 million in 2019 alone [4]. - Founding partner Laurence Rosen was recognized as a Titan of Plaintiffs' Bar by Law360 in 2020, and many attorneys at the firm have received accolades from Lawdragon and Super Lawyers [4].