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Simulations Plus shares rise as Q3 earnings beat estimates

Published 14/07/2025, 21:14
Simulations Plus shares rise as Q3 earnings beat estimates
SLP
-0.14%

Investing.com -- Simulations Plus , Inc. (NASDAQ:SLP), a provider of biosimulation solutions for the biopharma industry, saw its shares surge up to 3.3% after reporting third quarter fiscal 2025 results that exceeded earnings expectations despite revenue challenges.

The company reported adjusted earnings per share of $0.45 for the quarter ended May 31, significantly beating analyst estimates of $0.25. However, revenue came in at $20.4 million, falling short of the $21.84 million consensus estimate, though still representing a 10% increase YoY. The company recorded a net loss of $67.3 million, or -$3.35 per share, reflecting a one-time non-cash impairment charge of $77.2 million.

"In the third quarter, our revenue grew by 10% in line with our preliminary revenue," said Shawn O’Connor, Chief Executive Officer of Simulations Plus. "Our software revenue continued to perform well, increasing 6%, mainly driven by our ADMET Predictor software and modest growth in our GastroPlus and MonolixSuite software."

Software (ETR:SOWGn) revenue increased 6% to $12.6 million, representing 62% of total revenue, while services revenue grew 17% to $7.7 million. The company’s adjusted EBITDA reached $7.4 million, representing 37% of total revenue, compared to $5.6 million or 30% of total revenue in the same period last year.

Simulations Plus updated its fiscal 2025 guidance, projecting revenue between $76 million and $80 million, representing growth of 9-14%, and adjusted earnings per share of $0.93-$1.06. This guidance aligns with analyst expectations of $0.97 EPS and $77.94 million in revenue.

During the quarter, the company implemented a strategic reorganization, transitioning from a business unit structure to a functionally-driven operating model as part of a multi-year transformation to streamline operations and focus resources on growth opportunities.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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