Simulations Plus(SLP) - 2026 Q1 - Quarterly Results

Revenue Performance - Total revenue decreased by 3% to $18.4 million compared to the first quarter of fiscal 2025[7] - Software revenue decreased by 17% to $8.9 million, representing 48% of total revenue, while services revenue increased by 16% to $9.5 million, representing 52% of total revenue[7] - The company reaffirmed its fiscal year 2026 revenue guidance of $79 million to $82 million, indicating a growth of 0% to 4%[5] Profitability Metrics - Gross profit was $10.9 million with a gross margin of 59%, up from $10.2 million and 54% in the previous year[7] - Net income increased to $0.7 million with diluted earnings per share of $0.03, compared to net income of $0.2 million and diluted EPS of $0.01 in the prior year[7] - Adjusted EBITDA was $3.5 million, representing 19% of total revenue, down from $4.5 million or 24% of total revenue in the same quarter last year[7] - Adjusted net income for the three months ended November 30, 2025, was $2,588,000, down from $3,446,000 in the same period of 2024, a decrease of approximately 25%[27] Earnings Per Share - Diluted EPS increased to $0.03 for the three months ended November 30, 2025, compared to $0.01 in the prior year, marking a 200% increase[27] - Adjusted diluted EPS guidance for fiscal year 2026 is set between $1.03 and $1.10[5] - Adjusted diluted EPS decreased to $0.13 for the three months ended November 30, 2025, from $0.17 in the same period of 2024, a decline of about 24%[27] Asset Management - The company reported an increase in total current assets to $58.1 million from $51.5 million, driven by higher accounts receivable and short-term investments[23] Market Outlook - The company is optimistic about favorable market dynamics and strong bookings in both software and services, which may enhance client spending levels[4] - Simulations Plus plans to present its new product vision and AI solutions during the Virtual Investor Day on January 21, 2026[9] Expense Management - The company incurred $10,000 in mergers and acquisitions expenses for the three months ended November 30, 2025, down from $255,000 in the prior year, a reduction of approximately 96%[27] - Stock-based compensation was $1,465,000 for the three months ended November 30, 2025, slightly lower than $1,589,000 in the same period of 2024, a decrease of about 8%[27] - Amortization expenses decreased to $1,259,000 for the three months ended November 30, 2025, compared to $2,130,000 in the prior year, a decline of approximately 41%[27] Shareholder Information - The diluted weighted-average common shares outstanding were 20,220 for the three months ended November 30, 2025, slightly down from 20,266 in the prior year[27]