Simulations Plus(NASDAQ) SLP

Simulations Plus makes software that helps scientists create new medicines. Their tools predict how drugs will work in the body. This helps pharmaceutical companies save time and money.

Digital Tools for Drug Discovery

• Software Licenses: Computer programs for drug discovery and development including modeling and simulation; represents 56% of revenue.
• Consulting Services: Research support for population modeling and clinical pharmacology to aid regulatory submissions; accounts for 44% of revenue.

Strategic Shifts and Mergers

• Entered into a Merger Agreement on June 15, 2026, which restricts certain capital activities pending completion.
• Implemented headcount reductions in the third quarter of fiscal 2025 to improve operating efficiency.
• Shifted internal resources from support services to research and development during the nine months ended May 31, 2026.
• Accelerated tax deductions under the One Big Beautiful Bill Act to improve near-term cash flows.

Technology That Saves Time

The company uses artificial intelligence and machine learning to model how molecules interact with animals and humans. This digital approach allows drug sponsors to prioritize efficacy and safety before starting expensive clinical trials.

Vital Financial Facts

• Total revenues were $64.6 million for the nine months ended May 31, 2026, up 5% year over year.
• Gross margin reached 65% for the nine months ended May 31, 2026, up from 59% year over year.
• Research and development expenses were $9.9 million for the nine months ended May 31, 2026, up 89% year over year.
• Cash and cash equivalents were $35.3 million as of May 31, 2026.
• Net income was $8.8 million for the nine months ended May 31, 2026, compared to a net loss of $64.0 million in the prior year.

The Evolution Summary

Simulations Plus has transitioned from a software provider to a broader clinical pharmacology partner. Its shift toward cloud-enabled platforms and service expansion supports the rising demand for efficient drug development.