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Feb 28
Simulations Plus Q2 2025 Earnings Report
Simulations Plus reported solid growth in Q2 2025, with revenue and EPS increasing due to strong performance in both software and services.
Key Takeaways
Simulations Plus delivered a strong Q2 2025 with 23% revenue growth year-over-year, driven by robust expansion in software and services. However, GAAP net income declined versus the prior year.
Total revenue rose to $22.4 million, up 23% YoY.
Net income was $3.1 million, compared to $4.0 million in Q2 2024.
Adj. EPS was $0.31, slightly below $0.32 in the prior year.
QSP unit led software growth with an 89% increase driven by a new model license.
Simulations Plus
Simulations Plus
Simulations Plus Revenue by Segment
Simulations Plus Revenue by Geographic Location
Revenue by Segment
Software Revenue
CapyFin.comServices Revenue
CapyFin.comRevenue by Geographic Location
Americas Revenue
CapyFin.comEMEA Revenue
CapyFin.comAsia Pacific Revenue
CapyFin.com Forward Guidance
Simulations Plus maintained its fiscal 2025 guidance, signaling confidence in sustained growth despite external challenges.
Positive Outlook
- Maintained full-year revenue guidance of $90M–$93M.
- Adjusted diluted EPS guidance held at $1.07–$1.20.
- Adjusted EBITDA margin expected between 31%–33%.
- Software mix projected to be 55%–60% of total revenue.
- Strong backlog of $20.4 million supports future service revenue.
Challenges Ahead
- Ongoing cost constraints among biopharma customers.
- Slight decline in GAAP EPS compared to Q2 2024.
- Lower gross margin compared to prior year.
- Adjusted net income down slightly YoY.
- Potential challenges in funding environment may persist.
Revenue & Expenses
Visualization of income flow from segment revenue to net income