Simulations Plus(US:SLP)2026-01-09 21:07Revenue Performance - Total revenues decreased by $0.5 million, or 3%, to $18.4 million for the three months ended November 30, 2025, compared to $18.9 million for the same period in 2024[126]. - Software-related revenue decreased by $1.8 million, or 17%, primarily due to a $1.4 million decline in revenue from Clinical Operations and a $0.4 million decline from Development[126]. - Service-related revenue increased by $1.3 million, or 16%, driven by organic growth of $0.8 million from Commercialization and $0.5 million from Development[126]. - The company generated revenue primarily from software licenses, consulting services, and customized software platforms for the pharmaceutical industry[151]. Profitability - Gross profit increased by $1.5 million, or 15%, to $10.9 million for the three months ended November 30, 2025, compared to $10.2 million for the same period in 2024[130]. - Net income increased by $470,000, or 228%, to $676,000 for the three months ended November 30, 2025, compared to $206,000 for the same period in 2024[125]. Expenses - Research and development costs increased by $1.3 million, or 51%, to $3.9 million for the three months ended November 30, 2025, reflecting higher investment in product and platform development[133]. - R&D spend as a percentage of revenue increased to 16% for the three months ended November 30, 2025, from 10% for the same period in 2024[134]. - Sales and marketing expenses increased by $0.3 million, or 12%, to $3.2 million for the three months ended November 30, 2025[135]. - General and administrative expenses decreased by $1.4 million, or 25%, to $4.0 million for the three months ended November 30, 2025[136]. - Stock-based compensation costs were $1.5 million for the three months ended November 30, 2025, compared to $1.7 million for the same period in 2024[168]. Cash Flow - Cash provided by operating activities improved by $5.5 million to $4.2 million for the three months ended November 30, 2025, compared to net cash used of $1.3 million for the same period in 2024[144]. - Net cash used in operating activities was $1.3 million for the three months ended November 30, 2024, primarily due to a $3.7 million increase in accounts receivable and a $4.1 million decrease in other liabilities[145]. - Net cash used in investing activities was $4.9 million for the three months ended November 30, 2025, including $5.5 million invested in short-term investments and $0.9 million in capitalized software development costs[146]. - Net cash used in investing activities was $3.1 million for the three months ended November 30, 2024, with $3.5 million invested in short-term investments and $0.6 million in capitalized software development costs[147]. Capital Expenditures - Capitalized computer software development costs were $0.9 million and $0.7 million for the three months ended November 30, 2025, and November 30, 2024, respectively[155]. - Amortization of software development costs amounted to $0.7 million for the three months ended November 30, 2025, compared to $0.8 million for the same period in 2024[156]. - The company incurred $0.2 million for investing in intangible assets and a net working capital settlement related to the Pro-ficiency acquisition[147]. Share Repurchase - As of November 30, 2025, $30 million remains available for additional share repurchases under the authorized repurchase program[149]. Impairment - No impairment losses were recorded during the three months ended November 30, 2025, and November 30, 2024[162].