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May 31
Simulations Plus Q3 2025 Earnings Report
Simulations Plus reported a net loss due to a large impairment charge but delivered strong adjusted earnings and revenue growth in Q3 2025.
Key Takeaways
Despite a $77.2M non-cash impairment leading to a GAAP net loss, Simulations Plus posted double-digit revenue growth and improved adjusted EPS, driven by strong software and services performance.
Total revenue rose to $20.4 million, driven by growth in both software and services segments.
Posted a $67.3 million net loss due to a $77.2 million non-cash impairment charge.
Adjusted EPS rose to $0.45, up from $0.27 in the prior year quarter.
Gross margin improved to 64%, reflecting better cost efficiency.
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 updated its fiscal 2025 guidance, expecting revenue between $76M and $80M and adjusted EPS between $0.93 and $1.06.
Positive Outlook
- Revenue guidance increased to a range of $76M–$80M.
- Adjusted diluted EPS expected between $0.93–$1.06.
- Shift to a functionally driven model for operational efficiency.
- AI-driven product initiatives in progress.
- Streamlined cost structure to align with demand.
Challenges Ahead
- Slower pace of contractual commitments affected bookings.
- BioPharma project delays and cancellations impacted services.
- Recognition of a $77.2M non-cash impairment charge.
- Decline in EMEA revenue year-over-year.
- Margins declined across software and services year-over-year.
Revenue & Expenses
Visualization of income flow from segment revenue to net income