Simulations Plus, Inc. (SLP) Earnings Call Transcripts
Simulations Plus, Inc.'s Latest Earnings Call - Q2 FY2026
In the second quarter of fiscal year 2026, Simulations Plus, Inc. (SLP) reported revenue of $24.3 million, an 8% increase year-over-year, exceeding prior guidance. Adjusted EBITDA was $8.7 million, reflecting a 36% margin, while adjusted diluted EPS was $0.35, in line with expectations. The company maintained its fiscal 2026 revenue guidance of $79 million to $82 million, indicating a cautious outlook despite positive market conditions and client spending trends.
Reported metrics
| Metric | Value |
|---|---|
| Revenue | $24.3 million (beat) |
| Adjusted EBITDA | $8.7 million (inline) |
| Adjusted EPS | $0.35 (inline) |
| Software Revenue Growth | 9% (positive) |
| Service Revenue Growth | 8% (positive) |
| Renewal Rate | 91% (positive) |
Guidance from management
Management maintained fiscal 2026 revenue guidance of $79 million to $82 million, reflecting year-over-year growth of 0% to 4%. They expect adjusted diluted EPS to range between $0.75 to $0.85 due to tax rate changes.
What management said
Yes, as new logos, the nonexisting customers that are taking down solutions for the first time. So they're new to us in terms of the competitive situation in terms of their selection of our product, we have to go through each and every one. And as Will described, in terms of the stability of our client base at certainly the large top 20 as well as the billion-dollar large pharma companies. New logo opportunities are ...
Yes. I mean, yes, the historical drug discovery, primarily AI entities, the Recursions, the DeepMinds, relevant AIs of the world. Yes, generally, there's -- it's not 100% coverage, but a good percentage of those are licensing some footprint of our software, yes.
What analysts pressed on
Analysts expressed concerns regarding the cautious guidance despite strong Q2 results, questioning the rationale behind not raising guidance amid positive market conditions. There were also inquiries about the potential impact of macroeconomic factors on client spending and revenue growth.
Main topics on the call
- Revenue Growth — Simulations Plus achieved $24.3 million in revenue for Q2 FY2026, representing an 8% increase year-over-year. Management stated, "we exceeded the top line guidance that we communicated to you last quarter".
- Software and Services Performance — Software revenue increased by 9%, contributing 60% of total revenue, while services revenue rose by 8%, making up 40%. Management noted, "Discovery revenue... increased 19% for the quarter".
- AI Integration Strategy — Management emphasized the ongoing integration of AI into their product roadmap, stating, "AI is accelerating the industry's transition to a data-driven drug development workflows". This positions Simulations Plus favorab...
- Client Retention and New Logos — The company reported a 91% renewal rate for the quarter, with 297 commercial clients. Management highlighted, "our top 25 customers represent about 46% of overall software revenue and these customers are highly stable wi...
Read the full Simulations Plus, Inc. transcript (Q2 FY2026) → Summary generated from the call transcript; every figure above is stated by management on the record.
About Simulations Plus, Inc.
Simulations Plus, Inc. (SLP) is a publicly listed company in the Health Care Technology industry, within the Health Care sector. It trades on NasdaqGS and is based in US. EarningsCalls.dev maintains a free, full-text archive of its earnings call transcripts — 34 calls on record spanning January 9, 2020 to April 9, 2026. Every transcript is split into speaker-by-speaker segments with headline metrics, free to read or available through our REST API.
Earnings Call History
EarningsCalls.dev has 34 Simulations Plus, Inc. earnings call transcripts on record, spanning January 9, 2020 to April 9, 2026. Based on this history, Simulations Plus, Inc. reports quarterly. The most recent call on file is dated April 9, 2026. The full list is below — each row opens the complete, free-to-read transcript.
- Ticker
- SLP
- Exchange
- NasdaqGS
- Country
- US
- Sector
- Health Care
- Industry
- Health Care Technology
- Calls on record
- 34
- First call
- January 9, 2020
- Most recent
- April 9, 2026
- Reporting cadence
- quarterly