SLP

RESEARCH TRIANGLE PARK, N.C., July 09, 2026--(BUSINESS WIRE)--Simulations Plus, Inc. (Nasdaq: SLP) ("Simulations Plus" or the "Company"), a global leader in model-informed and AI-accelerated drug development that advances biopharma innovation, today reported financial results for its third quarter fiscal 2026, ended May 31, 2026. Third Quarter 2026 Financial Highlights (as compared to third quarter 2025) Total revenue increased 7% to $21.9 million Software revenue was flat at $12.6 million, representing 58% of total revenue Services revenue increased 20% to $9.3 million, representing 42% of total revenue Gross profit was $15.1 million and gross margin was 69%, compared to $13.0 million and 64% Net income of $3.6 million and diluted earnings per share of $0.18, compared to net loss of $67.3 million and diluted losses per share of $3.35 Adjusted EBITDA of $7.9 million, representing 36% of total revenue, compared to $7.4 million, representing 37% of total revenue Adjusted net income of $6.1 million and adjusted diluted EPS of $0.30 compared to adjusted net income of $9.0 million and adjusted diluted EPS of $0.45 Nine Months 2026 Financial Highlights (as compared to nine months 2025) Total revenue increased 5% to $64.6 million Software revenue decreased 2% to $36.1 million, representing 56% of total revenue Services revenue increased 14% to $28.5 million, representing 44% of total revenue Gross profit was $42.2 million and gross margin was 65%, compared to $36.4 million and 59% Net income of $8.8 million and diluted earnings per share of $0.43, compared to net loss of $64.0 million and diluted losses per share of $3.19 Adjusted EBITDA of $20.2 million, representing 31% of total revenue, compared to $18.5 million, representing 30% of total revenue Adjusted net income of $15.7 million and adjusted diluted EPS of $0.78, compared to $18.7 million and adjusted diluted EPS of $0.93 Management Commentary "We delivered solid third quarter results, with revenue increasing 7%, highlighted by strength in our services revenue, which grew 20%, while software revenue was flat year over year," said Shawn O'Connor, Chief Executive Officer of Simulations Plus. "Our performance reflects the resilience of our business model and the value our solutions provide to clients across the drug development lifecycle." "Subsequent to quarter end, on June 15, 2026, we entered into a definitive merger agreement to be acquired by affiliates of Altaris, LLC ("Altaris"). We believe the transaction better positions Simulations Plus to further advance its scientific leadership and expand the impact of our model-informed and AI-enabled solutions. As we move toward the expected closing in the fourth quarter of calendar 2026, we remain focused on delivering for our clients and executing at a high level throughout this transition." Non-GAAP Financial Measures This press release contains "non-GAAP financial measures," which are measures that either exclude or include amounts that are not excluded or included in the most directly comparable measures calculated and presented in accordance with U.S. generally accepted accounting principles ("GAAP"). A further explanation and reconciliation of these non-GAAP financial measures is included below and in the financial tables in this release. The Company believes that the non-GAAP financial measures presented facilitate an understanding of operating performance and provide a meaningful comparison of its results between periods. The Company’s management uses non-GAAP financial measures to, among other things, evaluate its ongoing operations in relation to historical results, for internal planning and forecasting purposes, and in the calculation of performance-based compensation. Adjusted EBITDA and Adjusted Diluted EPS represent measures that we believe are customarily used by investors and analysts to evaluate the financial performance of companies in addition to the GAAP measures that we present. Our management also believes that these measures are useful in evaluating our core operating results. However, Adjusted EBITDA and Adjusted Diluted EPS are not measures of financial performance under accounting principles generally accepted in the United States of America and should not be considered an alternative to net income, operating income, or diluted EPS as indicators of our operating performance or to net cash provided by operating activities as a measure of our liquidity. We believe the Company’s Adjusted EBITDA and Adjusted Diluted EPS measures provide information that is directly comparable to that provided by other peer companies in our industry, but other companies may calculate non-GAAP financial results differently, particularly related to nonrecurring, unusual items. Please note that the Company has not reconciled the adjusted EBITDA or adjusted diluted earnings per share forward-looking guidance included in this press release to the most directly comparable GAAP measures because this cannot be done without unreasonable effort due to the variability and low visibility with respect to costs related to acquisitions, financings, and employee stock compensation programs, which are potential adjustments to future earnings. We expect the variability of these items to have a potentially unpredictable, and a potentially significant, impact on our future GAAP financial results. Adjusted EBITDA Adjusted EBITDA represents net income excluding the effect of interest expense (income), provision (benefit) for income taxes, depreciation and amortization, equity-based compensation expense, loss (gain) on currency exchange, impairment charges, change in fair value of contingent consideration, reorganization expense, acquisition and integration expense, and other items not indicative of our ongoing operating performance. Adjusted Net Income and Adjusted Diluted EPS Adjusted net income and adjusted diluted earnings per share exclude the effect of amortization, equity-based compensation expense, loss (gain) on currency exchange, impairment charges, change in fair value of contingent consideration, reorganization expense, acquisition and integration expense, and other items not indicative of our ongoing operating performance as well as the income tax provision adjustment for such charges. The Company excludes the above items because they are outside of the Company’s normal operations and/or, in certain cases, are difficult to forecast accurately. About Simulations Plus, Inc. Simulations Plus is a global leader in model-informed and AI-accelerated drug development. We create value for our clients by accelerating the discovery, development, and commercialization of pharmaceuticals and other products through innovative science-based software and consulting solutions. For more information, visit www.simulations-plus.com. Forward-Looking Statements Except for historical information, the matters discussed in this press release are forward-looking statements that involve risks and uncertainties. Words like "believe," "will", "can", "expect," "anticipate," and similar expressions (or the negative of such terms, as well as other words or expressions referencing future events, conditions, or circumstances) mean that these are our best estimates as of this writing, but there can be no assurances that expected or anticipated results or events will actually take place, so our actual future results could differ significantly from those statements. Forward-looking statements include but are not limited to statements regarding the effects of the definitive merger agreement, the anticipated closing date, and our fiscal year 2026 guidance,. These forward-looking statements are based on current assumptions and expectations that involve risks and uncertainties that could cause the actual results to differ materially from those expressed or implied. Factors that could cause or contribute to such differences include, but are not limited to: effectiveness of our internal operational structure, our ability to maintain our competitive advantages and commercialize AI and cloud-enabled solutions, evolving regulatory and data privacy standards governing AI technologies, acceptance of new software and improved versions of our existing software by our customers, the general economics of the pharmaceutical industry, our ability to finance growth, our ability to continue to attract and retain highly qualified technical staff, market conditions, macroeconomic factors, and a sustainable market. Further information on our risk factors is contained in our quarterly, annual, and current reports and filed with the U.S. Securities and Exchange Commission. View source version on businesswire.com: https://www.businesswire.com/news/home/20260709321948/en/ Contacts Investor Relations Contact:Lisa FortunaFinancial [email protected]

Celebrations may be in order for SLP Resources Berhad (KLSE:SLP) shareholders, with the covering analyst delivering a significant upgrade to their statutory estimates for the company. The analyst greatly increased their revenue estimates, suggesting a stark improvement in business fundamentals. We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. After the upgrade, the one analyst covering SLP Resources Berhad is now predicting revenues of RM194m in 2026. If met, this would reflect a sizeable 34% improvement in sales compared to the last 12 months. Per-share earnings are expected to bounce 160% to RM0.064. Previously, the analyst had been modelling revenues of RM166m and earnings per share (EPS) of RM0.046 in 2026. So we can see there's been a pretty clear increase in analyst sentiment in recent times, with both revenues and earnings per share receiving a decent lift in the latest estimates. Check out our latest analysis for SLP Resources Berhad One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. One thing stands out from these estimates, which is that SLP Resources Berhad is forecast to grow faster in the future than it has in the past, with revenues expected to display 34% annualised growth until the end of 2026. If achieved, this would be a much better result than the 2.1% annual decline over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 11% per year. So it looks like SLP Resources Berhad is expected to grow faster than its competitors, at least for a while. The biggest takeaway for us from these new estimates is that the analyst upgraded their earnings per share estimates, with improved earnings power expected for this year. Fortunately, the analyst also upgraded their revenue estimates, and our data indicates sales are expected to perform better than the wider market. With a serious upgrade to expectations, it might be time to take another look at SLP Resources Berhad. These earnings upgrades look like a sterling endorsement, but before diving in - you should know that we've spotted 2 potential flag with SLP Resources Berhad, including the risk of cutting its dividend. You can learn more, and discover the 1 other flag we've identified, for free on our platform here. Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are upgrading their estimates. So you may also wish to search this free list of stocks with high insider ownership. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Badger Meter, Inc. BMI reported earnings per share (EPS) of 93 cents for first-quarter 2026, which missed the Zacks Consensus Estimate by 22.5%. The bottom line compared unfavorably with the year-ago quarter’s EPS of $1.30. Quarterly net sales were $202.3 million, down 9% from $222.2 million in the year-ago quarter due to delayed project deployments and weaker-than-expected short-cycle order activity. The Zacks Consensus Estimate was pegged at $230.1 million. Management highlighted that the year-over-year decline in revenue and the associated operating leverage primarily stemmed from fluctuations in project timing and short-cycle customer ordering patterns, rather than any deterioration in underlying demand, competitive positioning, or long-term market drivers. The company maintains confidence in its outlook, supported by a solid pipeline of awarded projects set to commence in the second half of 2026 and a robust multi-year opportunity funnel. Amid this near-term variability, the company remains focused on executing its long-term strategy. As part of this effort, it has announced a definitive agreement to acquire UDlive, a U.K.-based provider of hardware-enabled software solutions for sewer line monitoring. The addition of UDlive enhances the SmartCover platform by broadening sewer line monitoring capabilities across diverse use cases, network conditions and geographies. These solutions strengthen the company’s leadership in a growing global market driven by aging infrastructure, evolving regulatory requirements and climate-related challenges. Furthermore, UDlive bolsters the BlueEdge suite, enabling utilities to gain deeper, actionable insights across the water cycle, while expanding the company’s presence and supporting the growth of higher-margin, recurring software revenue over time. Image Source: Zacks Investment Research BMI’s shares fell 24% on Friday, closing at $115.54 in response to the weaker-than-expected results. In the past six months, shares have lost 34.5% against the Zacks Instruments-Control industry’s growth of 4.9%. In the quarter under review, utility water sales decreased 10% year over year. The decline was due to project timing variability and softer short-cycle municipal customer orders, partially offset by strength in SaaS, SmartCover, water quality and network monitoring solutions. Flow instrumentation sales decreased 4% year over year, as modest growth in water-focused end markets was offset by declines in de-emphasized applications. In the first quarter, gross profit was $84.3 million, down from $95.4 million in the prior-year quarter. Gross margin was 41.7%, down 120 basis points (bps) year over year. Gross margin decreased due to product and project mix. Despite the year-over-year decline, margins remained strong and near the upper end of the normalized range, underscoring the resilience of pricing discipline and the benefits of a favorable structural mix. Operating earnings decreased around 29% year over year to $35.2 million, while operating margin contracted 480 bps to 17.4% from 22.2%. Selling, engineering and administration (SEA) expenses decreased sequentially but rose year over year by $3.1 million to $49.2 million, reflecting acquisition-related costs and an additional month of SmartCover SEA expenses. Overall, SEA as a percentage of sales rose to 24.3% from 20.7%. In the first quarter of 2026, Badger Meter generated $33.9 million of net cash from operating activities compared with $33 million a year ago. Badger Meter, Inc. price-consensus-eps-surprise-chart | Badger Meter, Inc. Quote As of March 31, 2026, the company had $205.5 million of cash and cash equivalents and $169.4 million of total current liabilities compared with the respective figures of $226 million and $150.7 million as of Dec. 31, 2025. Badger Meter remains focused on disciplined execution while advancing its long-term strategic priorities. Backed by a strong balance sheet, it is well-positioned to continue investing in the business, return cash to shareholders and pursue opportunities within its attractive M&A pipeline. This balanced approach is expected to help navigate near-term variability while building momentum over the course of the year and delivering sustained value to stakeholders. Management highlighted that as awarded projects move into the deployment phase, revenue is expected to improve sequentially. Higher project activity and a more normalized mix should drive a stronger revenue run-rate toward the end of 2026, with full-year revenue, excluding acquisitions, projected to remain relatively flat compared with 2025. Despite variability in project timing and order patterns, the company maintains a positive long-term outlook, supported by solid demand and its competitive strengths in the North American smart water market. Badger Meter currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Simulations Plus, Inc. SLP reported second-quarter fiscal 2026 adjusted earnings of 35 cents per share, surpassing the Zacks Consensus Estimate by 29%. The bottom line also compared favorably with the prior-year quarter’s 31 cents. Simulations Plus reported quarterly revenue of $24.3 million, marking an 8% year-over-year increase. This growth reflects continued demand for its core offerings, especially in drug discovery and development. BlackBerry Limited BB reported fourth-quarter fiscal 2026 non-GAAP earnings per share (EPS) of 6 cents. The figure beat the company’s estimate of 3-5 cents. In the year-ago quarter, it reported a non-GAAP EPS of 3 cents. The Zacks Consensus Estimate was pegged at 5 cents per share. BlackBerry reported quarterly revenue of $156 million, surpassing the top end of its guidance ($138-$148 million), driven by stronger-than-expected sales across both its QNX and Secure Communications divisions. Revenue also increased 10% year over year. Guidewire Software, Inc. GWRE reported non-GAAP earnings per share of $1.17 for the second-quarter fiscal 2026 (ended Jan. 31, 2026) compared with 51 cents in the same period last year. Earnings surpassed the Zacks Consensus Estimate of 77 cents. The company reported revenues of $359.1 million, up 24% year over year. Revenues beat the Zacks Consensus Estimate by 4.8%. The figure also surpassed the company’s guided range of $339-$345 million. This uptick was driven by solid momentum across all business segments. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Badger Meter, Inc. (BMI) : Free Stock Analysis Report Simulations Plus, Inc. (SLP) : Free Stock Analysis Report Guidewire Software, Inc. (GWRE) : Free Stock Analysis Report BlackBerry Limited (BB) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Q2 revenue of $24.3 million (+8% YoY) topped management guidance, with adjusted EBITDA of $8.7 million (36% margin) and adjusted EPS $0.35; full-year revenue guidance remains $79–$82 million while adjusted diluted EPS was updated to $0.75–$0.85 reflecting a higher expected effective tax rate (23–25%). Operational momentum included software-led growth (software +9%, services +8%), a services backlog up 18% to $24 million, expanded gross margin to 66%, 297 commercial clients, and a quarterly renewal rate of 91%. AI and pharma collaborations are being embedded across the product roadmap and involve three large pharma partners, but management does not expect meaningful financial contribution from these programs until fiscal 2027. Interested in Simulations Plus, Inc.? Here are five stocks we like better. 52-Week Lows? No Problem for 3 Stocks With Big Upside Potential Simulations Plus (NASDAQ:SLP) reported second-quarter fiscal 2026 revenue of $24.3 million, exceeding the top-line guidance management provided last quarter, as the company delivered growth in both its software and services segments. Chief Executive Officer Sean O’Connor said adjusted EBITDA was $8.7 million, representing a 36% margin, and adjusted diluted EPS was $0.35, which he said was “in line with our internal expectations.” O’Connor said the company continues to see “encouraging market conditions globally,” pointing to factors including “ongoing most favored nation pricing agreements, easing tariff concerns, and a more supportive funding environment for our customers.” He also noted that guidance around new approach methodologies (NAMs) issued late last year was “further clarified with an additional update last month.” → This New ETF Aims to Capitalize on Surging AI Memory Chip Demand Simulations Plus Stock Drops 15% Despite EPS Beat Against that backdrop, O’Connor said Simulations Plus is seeing “a pickup in client spending,” which he said is reflected in “solid software renewal rates, increased new logo activity, and strength in service bookings.” While he characterized the first half as strong, O’Connor also emphasized caution about the operating environment during the question-and-answer portion of the call, describing it as “fragile” given macro and industry uncertainty. Chief Financial Officer Will Frederick said total revenue increased 8% year over year to $24.3 million. Software revenue increased 9% and represented 60% of revenue, while services revenue increased 8% and represented 40%. Discovery software (primarily ADMET Predictor) rose 19% in the quarter; it was 19% of total software revenue. Development software (primarily GastroPlus and MonolixSuite) increased 12%; it represented 78% of total software revenue. Clinical operations software (primarily Pro-ficiency) declined 54%; it represented 3% of total software revenue. → GPU Prices Are Surging—3 Ways to Play the AI Chip Shortage Simulations Plus: A Health Care Stock with Healthy Growth Prospects Frederick said the company ended the quarter with 297 commercial clients, an average revenue per client of $124,000, and a 91% renewal rate for the quarter. On a trailing 12-month basis, average revenue per client was $148,000 and renewal rate was 87%. Frederick addressed renewal trends, saying the company has historically had 100% logo retention among its top 20 pharma clients and 90% logo retention among “$1 billion-plus pharma.” He said churn has been concentrated among smaller commercial pharma and pre-commercial biotech customers, which he described as historically more episodic. He added that the company’s top 25 customers represent about 46% of overall software revenue, with 100% logo retention and “90%-plus gross revenue retention.” → 5 Space Stocks Already Climbing Ahead of the SpaceX IPO In services, Frederick said development services revenue increased 12% for the quarter and represented 77% of services revenue, while commercialization services (including MedComm) declined 1% and represented 23% of services revenue. He said the company worked on 199 total services projects during the quarter and ended with backlog of $24 million, up 18% from $20.4 million a year ago. Gross margin expanded to 66% in the quarter, including software gross margin of 89% and services gross margin of 33%, compared with total gross margin of 59% in the prior-year period. Frederick attributed the increase in software gross margin to higher software revenue and “lower software-related costs,” which he said largely reflected “reduced amortization expense following the impairment charge in the third quarter of fiscal 2025.” O’Connor spent a portion of his prepared remarks addressing investor concerns about artificial intelligence and software valuations. He said the company views AI advances as “a net positive for biosimulation,” arguing AI will enhance “trusted and validated scientific engines rather than replacing them.” O’Connor said Simulations Plus is embedding AI across its product roadmap, including automation, data management, and interoperability between modeling engines. He also highlighted recently announced strategic collaboration programs with three large pharmaceutical companies to advance AI workflows across drug development. O’Connor said the programs will use Simulations Plus’ platforms including GastroPlus, MonolixSuite, ADMET Predictor, and PKpluS, and will integrate internally developed AI agents to enable natural language interaction, automate data processing, and coordinate simulations across multiple modeling engines. In response to analyst questions, O’Connor said the collaborations were not new relationships and had been underway prior to the company’s January Investor Day. He said each collaboration has a different focus, and while there has already been “some financial component to at least one of the relationships,” longer-term financial terms are still being discussed. Later, he told analysts the company has “certainly not anticipated, in fiscal year 2026, significant contribution from this arena at all in our guidance,” and said he would “look out to this being a contributor to fiscal year 2027.” Frederick said full-year fiscal 2026 revenue guidance remains “relatively unchanged,” calling for total revenue of $79 million to $82 million, year-over-year growth of 0% to 4%, software mix of 57% to 62%, and adjusted EBITDA margin of 26% to 30%. The company updated adjusted diluted EPS guidance to $0.75 to $0.85 to reflect a higher expected effective tax rate. Frederick said the effective tax rate rose to 23% in the quarter from 12% a year ago and is now expected to be 23% to 25% for fiscal 2026, compared with a prior expectation of 12% to 14%. He cited factors including the absence of a favorable prior-year discrete item, jurisdictional mix between the U.S. and France, higher GILTI impacts, and a lower FDII benefit. He also noted certain items related to “accelerated deductions elected under the One Big Beautiful Bill Act,” which he said should be favorable to cash flows by reducing near-term cash tax payments. For the third quarter of fiscal 2026, Frederick guided to revenue of $20 million to $22 million, adjusted EBITDA margin of 27% to 33%, and adjusted diluted EPS of $0.20 to $0.27. He also noted the company ended the quarter with $41.8 million in cash and short-term investments and “no debt.” Simulations Plus, Inc (NASDAQ: SLP) specializes in advanced modeling and simulation software tailored to the pharmaceutical, biotechnology and chemical industries. The company's flagship products include ADMET Predictor, a quantitative structure-activity relationship (QSAR) tool for predicting absorption, distribution, metabolism, excretion and toxicity properties, and GastroPlus, a physiologically based pharmacokinetic (PBPK) modeling platform for simulating drug absorption and pharmacokinetics. The article "Simulations Plus Q2 Earnings Call Highlights" was originally published by MarketBeat.

Simulations Plus, Inc. SLP reported second-quarter fiscal 2026 adjusted earnings of 35 cents per share, surpassing the Zacks Consensus Estimate by 29%. The bottom line also compared favorably with the prior-year quarter’s 31 cents. Simulations Plus reported quarterly revenue of $24.3 million, marking an 8% year-over-year increase. This growth reflects continued demand for its core offerings, especially in drug discovery and development. The software segment remains the backbone of the company’s business model. Growth was driven by strong adoption of discovery and development solutions — areas where AI and modeling tools are becoming increasingly indispensable in biopharma workflows. However, SLP noted a decline in clinical operations software, which appears to be a structural shift rather than a temporary dip. The company continues to see strong momentum in new client acquisition (logo additions) alongside ongoing upselling efforts, contributing to an 18% increase in backlog and strong visibility into future revenues. On the macro front, management highlighted an improving funding environment for biopharma clients, easing tariff pressures and the growing adoption of new approach methodologies. These factors are driving higher client activity, as reflected in robust renewals and bookings. The company’s ability to grow both software and services while expanding margins suggests a healthy, scalable business model. In response to the results, SLP’s shares climbed 18% in pre-market today. Simulations Plus, Inc. price-consensus-eps-surprise-chart | Simulations Plus, Inc. Quote Fiscal second-quarter revenues from Software (60% of total quarterly revenues) rose 9% year over year to $14.6 million. Software revenue was led by Development products, mainly GastroPlus and MonolixSuite, which contributed 78%, while Discovery products, primarily ADMET Predictor, accounted for 19%, and Clinical Ops products, led by Proficiency, made up the remaining 3%. SLP ended the quarter with 297 commercial clients, generating average revenue of $124,000 per client and an 91% renewal rate. SLP’s top 25 customers account for roughly 46% of its total software revenue, with this group remaining highly stable, reflected in 100% logo retention and gross revenue retention exceeding 90%. Services’ revenues (40%) improved 8% to $9.7 million. For the quarter, development services (biosimulation) made up 77% of services revenues, while commercialization services (Med Comm) accounted for 23%. The company worked on 199 services projects during the quarter, with the ending backlog rising 18% to $24 million, reflecting a healthy and active services pipeline. The gross margin in the quarter under review was 66% compared with 59% in the prior-year quarter. The Software segment’s gross margin was 89% compared with 81% in the prior-year quarter. Software gross margin improved due to higher revenue, especially from Development and Discovery Solutions and lower costs, mainly from reduced amortization following the third-quarter fiscal 2025 impairment. Services’ gross margin was 33%, up from 25%. Total operating expenses, as a percentage of revenues, were 43% compared with 46% a year ago. Adjusted EBITDA grew to $8.7 million from $6.6 million in the prior-year quarter. Adjusted EBITDA margin was 36% compared with 29% in the previous-year quarter. As of Feb. 28, 2026, cash and short-term investments were $41.8 million compared with $35.7 million as of Nov. 30, 2025. SLP has no debt as of the end of the fiscal second quarter. Simulations Plus continues to expect revenues to be between $79 million and $82 million. This indicates an increase of 0-4% from fiscal 2025 revenues. The company expects the Software segment mix to be 57-62% of total revenues and adjusted EBITDA margin between 26% and 30% same as the prior view. Despite strong operational performance, Simulations Plus lowered its adjusted EPS guidance. The previous view was $1.03–$1.10, while the new range is 75–85 cents. Currently, Simulations Plus carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. BlackBerry Limited BB reported fourth-quarter fiscal 2026 non-GAAP earnings per share (EPS) of 6 cents. The figure beat the company’s estimate of 3-5 cents. In the year-ago quarter, it reported a non-GAAP EPS of 3 cents. The Zacks Consensus Estimate was pegged at 5 cents per share. BlackBerry reported quarterly revenue of $156 million, surpassing the top end of its guidance ($138-$148 million), driven by stronger-than-expected sales across both its QNX and Secure Communications divisions. Revenue also increased 10% year over year. Guidewire Software, Inc. GWRE reported non-GAAP earnings per share of $1.17 for the second-quarter fiscal 2026 (ended Jan. 31, 2026) compared with 51 cents in the same period last year. Earnings surpassed the Zacks Consensus Estimate of 77 cents. The company reported revenues of $359.1 million, up 24% year over year. Revenues beat the Zacks Consensus Estimate by 4.8%. The figure also surpassed the company’s guided range of $339-$345 million. This uptick was driven by solid momentum across all business segments. Autodesk ADSK reported fourth-quarter fiscal 2026 non-GAAP earnings of $2.85 per share, which beat the Zacks Consensus Estimate by 8.37% and increased 25% year over year. The company reported revenues of $1.95 billion, which beat the consensus mark by 2.48% and grew 19% year over year, both on a reported and constant currency (cc) basis. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Autodesk, Inc. (ADSK) : Free Stock Analysis Report Simulations Plus, Inc. (SLP) : Free Stock Analysis Report Guidewire Software, Inc. (GWRE) : Free Stock Analysis Report BlackBerry Limited (BB) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Simulations Plus (SLP) came out with quarterly earnings of $0.35 per share, beating the Zacks Consensus Estimate of $0.27 per share. This compares to earnings of $0.31 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +29.63%. A quarter ago, it was expected that this maker of software used in pharmaceutical research would post earnings of $0.18 per share when it actually produced earnings of $0.13, delivering a surprise of -27.78%. Over the last four quarters, the company has surpassed consensus EPS estimates two times. Simulations Plus, which belongs to the Zacks Computer - Software industry, posted revenues of $24.29 million for the quarter ended February 2026, surpassing the Zacks Consensus Estimate by 13.51%. This compares to year-ago revenues of $22.43 million. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Simulations Plus shares have lost about 28.7% since the beginning of the year versus the S&P 500's decline of 0.9%. While Simulations Plus has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Simulations Plus was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.28 on $20.6 million in revenues for the coming quarter and $0.98 on $80.5 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Computer - Software is currently in the top 16% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, Pegasystems (PEGA), has yet to report results for the quarter ended March 2026. The results are expected to be released on April 21. This business software company is expected to post quarterly earnings of $0.81 per share in its upcoming report, which represents a year-over-year change of +6.6%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Pegasystems' revenues are expected to be $486.69 million, up 2.3% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Simulations Plus, Inc. (SLP) : Free Stock Analysis Report Pegasystems Inc. (PEGA) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Revenue grew 8% with increases in both software and services RESEARCH TRIANGLE PARK, N.C., April 09, 2026--(BUSINESS WIRE)--Simulations Plus, Inc. (Nasdaq: SLP) ("Simulations Plus" or the "Company"), a global leader in model-informed and AI-accelerated drug development that advances biopharma innovation, today reported financial results for its second quarter fiscal 2026, ended February 28, 2026. Second Quarter 2026 Financial Highlights (as compared to second quarter 2025) Total revenue increased 8% to $24.3 million Software revenue increased 9% to $14.6 million, representing 60% of total revenue Services revenue increased 8% to $9.7 million, representing 40% of total revenue Gross profit was $16.1 million and gross margin was 66%, compared to $13.1 million and 59% Net income of $4.5 million and diluted earnings per share of $0.22, compared to net income of $3.1 million and diluted EPS of $0.15 Adjusted EBITDA of $8.7 million, representing 36% of total revenue, compared to $6.6 million, representing 29% of total revenue Adjusted net income of $7.0 million and adjusted diluted EPS of $0.35 compared to adjusted net income of $6.2 million and adjusted diluted EPS of $0.31 Six Months 2026 Financial Highlights (as compared to six months 2025) Total revenue increased 3% to $42.7 million Software revenue decreased 3% to $23.5 million, representing 55% of total revenue Services revenue increased 12% to $19.2 million, representing 45% of total revenue Gross profit was $27.0 million and gross margin was 63%, compared to $23.3 million and 56% Net income of $5.2 million and diluted earnings per share of $0.26, compared to net income of $3.3 million and diluted EPS of $0.16 Adjusted EBITDA of $12.3 million, representing 29% of total revenue, compared to $11.1 million, representing 27% of total revenue Adjusted net income of $9.6 million and adjusted diluted EPS of $0.48, approximately equivalent to the same period last year Management Commentary "We delivered solid second quarter results, with revenue increasing by 8%," said Shawn O’Connor, CEO of Simulations Plus. "Software growth was driven by strong performance in discovery and development solutions, partially offset by an anticipated decline in clinical operations software. We also saw continued success with new logo additions and client upsells. Services revenue growth was primarily driven by development solutions and bookings were strong during the quarter, resulting in an approximately 18% increase in backlog." "Market conditions remain favorable. Globally, ongoing most-favored-nation pricing agreements, reduced tariff threats, and an improving funding environment are benefiting our clients. In addition, we believe recent supplemental guidance on new approach methodologies is supporting increased client activity. We are seeing this reflected in strong software renewals, logo activity, and services bookings. Overall, we are pleased with our first-half fiscal 2026 performance and encouraged by the momentum we see across the business," concluded O’Connor. Fiscal 2026 Guidance The Company is adjusting its guidance range for adjusted diluted EPS from a range of $1.03 - $1.10 to $0.75 - $0.85 to reflect an increase in the expected effective tax rate for fiscal 2026 from 12-14% to 23-25%. All other previously issued guidance metrics remain unchanged. Webcast and Conference Call Details Shawn O’Connor, Chief Executive Officer, and Will Frederick, Executive Vice President and Chief Financial Officer, will host a conference call and webcast today, April 9 at 5:00 p.m. Eastern Time to discuss the results and certain forward-looking information. The call may be accessed by registering here or by calling 1-877-451-6152 (domestic) or 1-201-389-0879 (international). The webcast can be accessed on the investor relations page of the Simulations Plus website https://www.simulations-plus.com/investorscorporate-profile/corporate-profile/ where it will also be available for replay approximately one hour following the call. Non-GAAP Financial Measures This press release contains "non-GAAP financial measures," which are measures that either exclude or include amounts that are not excluded or included in the most directly comparable measures calculated and presented in accordance with U.S. generally accepted accounting principles ("GAAP"). A further explanation and reconciliation of these non-GAAP financial measures is included below and in the financial tables in this release. The Company believes that the non-GAAP financial measures presented facilitate an understanding of operating performance and provide a meaningful comparison of its results between periods. The Company’s management uses non-GAAP financial measures to, among other things, evaluate its ongoing operations in relation to historical results, for internal planning and forecasting purposes, and in the calculation of performance-based compensation. Adjusted EBITDA and Adjusted Diluted EPS represent measures that we believe are customarily used by investors and analysts to evaluate the financial performance of companies in addition to the GAAP measures that we present. Our management also believes that these measures are useful in evaluating our core operating results. However, Adjusted EBITDA and Adjusted Diluted EPS are not measures of financial performance under accounting principles generally accepted in the United States of America and should not be considered an alternative to net income, operating income, or diluted EPS as indicators of our operating performance or to net cash provided by operating activities as a measure of our liquidity. We believe the Company’s Adjusted EBITDA and Adjusted Diluted EPS measures provide information that is directly comparable to that provided by other peer companies in our industry, but other companies may calculate non-GAAP financial results differently, particularly related to nonrecurring, unusual items. Please note that the Company has not reconciled the adjusted EBITDA or adjusted diluted earnings per share forward-looking guidance included in this press release to the most directly comparable GAAP measures because this cannot be done without unreasonable effort due to the variability and low visibility with respect to costs related to acquisitions, financings, and employee stock compensation programs, which are potential adjustments to future earnings. We expect the variability of these items to have a potentially unpredictable, and a potentially significant, impact on our future GAAP financial results. Adjusted EBITDA Adjusted EBITDA represents net income excluding the effect of interest expense (income), provision (benefit) for income taxes, depreciation and amortization, equity-based compensation expense, loss (gain) on currency exchange, impairment charges, change in fair value of contingent consideration, reorganization expense, acquisition and integration expense, and other items not indicative of our ongoing operating performance. Adjusted Net Income and Adjusted Diluted EPS Adjusted net income and adjusted diluted earnings per share exclude the effect of amortization, equity-based compensation expense, loss (gain) on currency exchange, impairment charges, change in fair value of contingent consideration, reorganization expense, acquisition and integration expense, and other items not indicative of our ongoing operating performance as well as the income tax provision adjustment for such charges. The Company excludes the above items because they are outside of the Company’s normal operations and/or, in certain cases, are difficult to forecast accurately. About Simulations Plus, Inc. Simulations Plus is a global leader in model-informed and AI-accelerated drug development. We create value for our clients by accelerating the discovery, development, and commercialization of pharmaceuticals and other products through innovative science-based software and consulting solutions. For more information, visit www.simulations-plus.com. Forward-Looking Statements Except for historical information, the matters discussed in this press release are forward-looking statements that involve risks and uncertainties. Words like "believe," "will," "can," "expect," "anticipate," and similar expressions (or the negative of such terms, as well as other words or expressions referencing future events, conditions, or circumstances) mean that these are our best estimates as of this writing, but there can be no assurances that expected or anticipated results or events will actually take place, so our actual future results could differ significantly from those statements. Forward-looking statements include but are not limited to statements regarding our fiscal year 2026 guidance, revenue growth, anticipated margins and profitability, demand to software and services, the impact of pricing actions, client spending levels, market conditions, the development, capabilities, regulatory acceptance and commercialization of AI-enabled and cloud-based solutions, the timing and content of product initiatives discussed at Investor Day, and our ability to execute our long-term strategic vision. These forward-looking statements are based on current assumptions and expectations that involve risks and uncertainties that could cause the actual results to differ materially from those expressed or implied. Factors that could cause or contribute to such differences include, but are not limited to: effectiveness of our internal operational structure, our ability to maintain our competitive advantages and commercialize AI and cloud-enabled solutions, evolving regulatory and data privacy standards governing AI technologies, acceptance of new software and improved versions of our existing software by our customers, the general economics of the pharmaceutical industry, our ability to finance growth, our ability to continue to attract and retain highly qualified technical staff, market conditions, macroeconomic factors, and a sustainable market. Further information on our risk factors is contained in our quarterly, annual, and current reports and filed with the U.S. Securities and Exchange Commission. View source version on businesswire.com: https://www.businesswire.com/news/home/20260409950592/en/ Contacts Investor Relations Contact: Lisa Fortuna Financial Profiles 310-622-8251 [email protected]

This article first appeared on GuruFocus. Revenue: $24.3 million, an 8% increase. Adjusted EBITDA: $8.7 million, reflecting a 36% margin. Adjusted Diluted EPS: $0.35. Software Revenue: Increased 9%, representing 60% of total revenue. Services Revenue: Increased 8%, representing 40% of total revenue. Discovery Revenue: Increased 19% for the quarter. Development Revenue: Increased 12% for the quarter. Clinical Operations Revenue: Declined 54% for the quarter. Gross Margin: Total gross margin of 66%; Software gross margin of 89%; Services gross margin of 33%. Cash and Short-term Investments: $41.8 million. Effective Tax Rate: 23% for the quarter. Guidance for Fiscal 2026: Total revenue between $79 million to $82 million; Adjusted diluted EPS between $0.75 to $0.85. Warning! GuruFocus has detected 6 Warning Signs with SLP. Is SLP fairly valued? Test your thesis with our free DCF calculator. Release Date: April 09, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Simulations Plus Inc (NASDAQ:SLP) exceeded top-line guidance with $24.3 million in revenue for the second quarter, showing growth in both Software and Service segments. The company reported an adjusted EBITDA of $8.7 million, reflecting a strong 36% margin. Simulations Plus Inc (NASDAQ:SLP) has strategic collaboration programs with three large pharmaceutical companies to advance AI workflows, indicating strong industry partnerships. The company maintains a high software renewal rate of 91% for the quarter, demonstrating customer loyalty and satisfaction. Simulations Plus Inc (NASDAQ:SLP) ended the quarter with a robust cash position of $41.8 million and no debt, indicating strong financial health. Clinical operations revenue declined significantly by 54% for the quarter and 58% for the trailing 12-month period. The company experienced a decline in software renewal rates, particularly among smaller biopharma and precommercial biotech clients. Simulations Plus Inc (NASDAQ:SLP) reported an increased effective tax rate of 23% compared to 12% last year, impacting net income. The company anticipates minimal AI monetization in fiscal year 2026, indicating that AI-related revenue contributions are still in the early stages. Despite strong performance, the company maintained cautious revenue guidance for fiscal 2026, reflecting uncertainty in the macro environment. Q: Could you provide more details on the collaborations with the three large pharma customers and how these contracts are structured? A: These collaborations have been ongoing for some time and involve working together to align our AI capabilities with their workflows. Each collaboration focuses on different scientific engines, covering all our platforms. Financial components are in discussion, but these relationships are crucial for aligning our product development with client needs. - Shawn O'Connor, CEO Q: Are the new logos you mentioned competitive conversions, or are they entirely new customers? A: The new logos are entirely new customers, not existing ones. These opportunities are typically with smaller companies or those just starting with biosimulation capabilities. Some may involve competitive conversions, but they are primarily new to us. - Shawn O'Connor, CEO Q: Can you explain the large sequential uptick in the commercial portion of the services backlog? A: The backlog is entirely service revenue-based, with 75% in development services and 25% in commercialization services. We've seen good pipeline activity and closure, leading to strong service revenue delivery. The backlog growth indicates a healthy pipeline of service projects. - Shawn O'Connor, CEO Q: How do you evaluate progress in reaching multiple buyers within client organizations beyond the modeling department? A: We aim to access different budget pockets within client organizations. The proficiency acquisition has opened up clinical trial operations, providing more TAM and new budget dollars. Collaborations with clients help us leverage relationships and access AI budgets, which are growing alongside traditional modeling budgets. - Shawn O'Connor, CEO Q: When can we expect AI monetization to start showing in the P&L, and what are the potential proof points? A: Discussions on AI monetization are ongoing, and while the value is recognized, the mechanics are still being worked out. We don't anticipate significant AI contribution in fiscal 2026, but it could be a contributor in fiscal 2027. Proof points will include commercial delivery and client adoption of AI functionalities. - Shawn O'Connor, CEO For the complete transcript of the earnings call, please refer to the full earnings call transcript.