Simulations Plus(US:SLP) The Motley Fool·2025-12-02 20:40Core Insights - Simulations Plus reported a mixed performance for its fiscal fourth quarter of 2025, with revenue of $17.5 million, a 6% year-over-year decrease, primarily due to a 9% decline in software revenue [2][3] - The company's full-year performance showed a 13% increase in revenue to $79 million, with adjusted net income rising to $20.7 million from $19.4 million [4] - The company maintains its guidance for the new fiscal year, projecting revenue between $79 million and $82 million and adjusted net profit per share between $1.03 and $1.10 [6] Financial Performance - Fiscal Q4 2025 revenue was $17.5 million, down 6% year-over-year, with software revenue at $9 million, a 9% decline [2] - Net income for Q4 2025 was $2 million ($0.10 per share), down from $3.6 million in Q4 2024 [3] - Full-year revenue increased to $79 million, with adjusted net income at $20.7 million ($1.03 per share) [4] Market Reaction - Simulations Plus saw a significant stock price increase of 14.38%, closing at $19.57, following the earnings report [5] - The stock was noted as a popular niche investment, with trading activity reflecting positive investor sentiment [1] Industry Outlook - The CEO indicated a cautious demand environment but noted an acceleration in the adoption of cloud deployment, interoperability, and AI-driven workflows among customers [4] - There is a perception that while Simulations Plus has potential, there may be better investment opportunities within the healthcare tech sector [7]