Simulations Plus(SLP) - 2026 Q1 - Earnings Call Presentation

Financial Performance - Total revenue for 1Q26 was $18.4 million, representing a 3% decline compared to $18.9 million in 1Q25[4][28] - Adjusted EBITDA margin contracted to 19% in 1Q26 from 24% in the prior year period[4][28] - Diluted EPS increased to $0.03 from $0.01, while Adjusted Diluted EPS decreased to $0.13 from $0.17 in 1Q25[4][28][33] - Net income improved to $0.7 million in 1Q26 compared to $0.2 million in 1Q25[28][33] Segment Operations - Software revenue experienced a 17% decline in 1Q26, with Pro-ficiency® renewal rates negatively impacted by client consolidations and site closures[9][14] - Services revenue demonstrated growth of 16% in 1Q26, supported by Med Comm Services which saw 16% growth for the quarter and 15% for the trailing twelve months[12][14] Balance Sheet and Guidance - Cash and short-term investments increased to $35.7 million as of November 30, 2025, up from $32.4 million on August 31, 2025[29] - The company projects total revenue for the fiscal year to be between $79 million and $82 million, with an expected growth rate of 0% to 4%[30] - Full-year guidance targets an Adjusted EBITDA margin of 26% to 30% and Adjusted Diluted EPS between $1.03 and $1.10[30]