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May 31, 2025
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.
Revenue by Segment
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
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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