Simulations Plus, Inc. reported a notable increase in financial performance for the second quarter of fiscal 2026, with total revenues reaching $24.3 million, an 8% rise from $22.4 million in the same period last year. The growth was driven by a 9% increase in software revenue, totaling $14.6 million, and an 8% increase in service revenue, which amounted to $9.7 million. For the six months ending February 28, 2026, total revenues were $42.7 million, up 3% from $41.4 million in the prior year, primarily due to a 12% increase in service-related revenue, offset by a slight decline in software revenue.
The company's gross profit for the second quarter increased by 23% to $16.1 million, compared to $13.1 million in the prior year, resulting in a gross margin of 66%. This improvement was attributed to higher revenues and lower software-related costs, particularly due to reduced amortization expenses following the impairment of the Pro-ficiency developed technology. Operating income surged to $5.6 million, a 108% increase from $2.7 million in the previous year, while net income rose 48% to $4.5 million, reflecting a significant improvement in operational efficiency.
In terms of strategic developments, Simulations Plus has continued to invest in research and development, with R&D expenses increasing by 62% to $3.5 million for the quarter. This investment is aimed at enhancing the company's software offerings and capabilities, including the development of a cloud-enabled modeling ecosystem. The company also reported a shift in internal resources from service support to R&D, which is expected to drive future growth.
Operationally, Simulations Plus has seen a positive trend in customer engagement, with a total of 20,205,482 shares outstanding as of February 28, 2026, reflecting ongoing confidence in the company's growth trajectory. The company maintains a strong cash position, with $25.7 million in cash and cash equivalents and $16.1 million in short-term investments, providing ample liquidity for future investments and strategic acquisitions.
Looking ahead, Simulations Plus remains optimistic about its growth prospects, driven by continued demand for its software and consulting services in the biopharma sector. The company plans to leverage its strong financial position to explore strategic acquisitions and partnerships that could further enhance its market presence and product offerings. The management's focus on innovation and operational efficiency is expected to support sustained revenue growth and profitability in the coming quarters.
About Simulations Plus, Inc.
Simulations Plus, Inc. provides software and consulting services for drug discovery, development, and regulatory approval. Its core offerings include modeling and simulation tools like GastroPlus and ADMET Predictor, supporting pharmaceutical, biotech, and academic clients worldwide. The company enhances R&D efficiency, reduces costs, and accelerates time-to-market through innovative science-based solutions across the drug development continuum. It operates with a focus on scientific expertise, proprietary technology, and global customer relationships.
About 10-Q Filings
A 10-Q form is an important financial report that public companies in the United States must submit every three months. It gives a clear picture of a company's financial health and recent performance.
Key points about the 10-Q:
- Frequency: Companies file it three times a year, covering the first three quarters. The fourth quarter is covered in a more comprehensive annual report.
-
Content: It includes:
- Financial statements showing the company's current financial position
- Updates from management on the performance and projections of the business
- Information about potential risks the company faces
- Details on how the company is run internally
- Deadline: Must be filed within 40 or 45 days after the quarter ends, depending on the size of the company.
Our Methodology
AssetRoom is committed to providing timely summaries of news from public companies. We use AI to generate these summaries quickly, but they are not reviewed by human experts.
Our method:
- Data Collection: We continuously monitor for new filings (currently limited to US-listed stocks).
- AI-Powered Analysis: Our advanced AI system processes each filing, identifying key information and extracting relevant data.
- Summary Generation: The AI creates a concise, easy-to-understand summary of the filing, highlighting the most important points.
- Publication: The summary is immediately published on our platform, allowing users instant access to the latest information.
- Email users: We distribute round-up emails according to our users preferences, keeping them in the loop with the companies they follow.
Feedback & Corrections
Spot an error or have a suggestion? Contact us.