Simulations Plus Q3 revenue up 10%, beats estimates

Simulations Plus

14/07/2025 21:17

Overview

Simulations Plus fiscal Q3 revenue rises 10%, beating analyst expectations, per LSEG data

The provider of simulation software and consulting services for drug research and development posts net loss of $67.3 mln due to a $77.2 mln impairment charge

Adjusted EBITDA of $7.4 mln beats analyst estimates, per LSEG data

Outlook

Simulations Plus reaffirms FY 2025 revenue guidance of $76 mln -$80 mln

Company projects FY 2025 adjusted diluted EPS of $0.93-$1.06

Company notes cautious spending behavior affecting service revenue

Simulations Plus focuses on AI-driven initiatives for growth

Result Drivers

SOFTWARE GROWTH - Driven by ADMET Predictor® and modest gains in GastroPlus® and MonolixSuite(TM), per CEO Shawn O’Connor

SERVICES PERFORMANCE - Medical Communications services saw strong growth, offsetting declines in other areas due to client caution and project delays

IMPAIRMENT CHARGE - $77.2 million non-cash impairment charge impacted net income

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Beat
$20.40 mln
$20 mln (7 Analysts)
Q3 Net Income
Miss
-$67.30 mln
$2.01 mln (5 Analysts)
Q3 Adjusted EBITDA
Beat
$7.40 mln
$5.48 mln (6 Analysts)
Q3 Gross Margin
64.0%


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the advanced medical equipment & technology peer group is "buy"

Wall Street's median 12-month price target for Simulations Plus Inc is $26.50, about 36% above its July 11 closing price of $16.96

The stock recently traded at 35 times the next 12-month earnings vs. a P/E of 43 three months ago

Press Release: ID:nBw1Mfg84a

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)