Simulations Plus (SLP) Q1 2025 earnings summary

Executive summary

• Total revenue grew 31% year-over-year to $18.9 million, led by 41% software growth and 19% services growth, with strong contributions from new business units ALI and MC.

• Net income was $0.2 million (diluted EPS $0.01), down from $1.9 million (diluted EPS $0.10) in the prior year; adjusted diluted EPS was $0.17.

• Adjusted EBITDA was $4.5 million (24% margin), up from $3.4 million (23%) year-over-year.

• Software accounted for 57% of revenue; services for 43%.

• The acquisition and integration of Pro-ficiency, ALI, and MC expanded the business and portfolio.

Financial highlights

• Gross profit was $10.2 million (54% margin), down from 62% in the prior year due to higher costs and mix.

• Software gross margin was 75%, services gross margin 26%.

• R&D expense was 10% of revenue, sales and marketing 15%, and G&A 28%.

• Cash and investments at quarter-end were $18.2 million, with no debt.

• Accounts receivable increased to $12.8 million from $9.1 million sequentially.

Outlook and guidance

• Fiscal 2025 revenue guidance is $90–$93 million, representing 28%–33% growth, with software mix expected at 55%–60%.

• Adjusted EBITDA margin projected at 31%–33%; adjusted diluted EPS guidance is $1.07–$1.20.

• Q2 revenue expected to be ~24% of annual guidance, with momentum strongest in the second half.

• Guidance excludes future acquisitions; focus remains on integration, cross-selling, and margin improvement.