Simulations Plus (SLP) TD Cowen 46th Annual Health Care Conference summary

Platform differentiation and product strengths

• Offers multiple biosimulation solutions spanning discovery to clinical trial support, emphasizing ease of use and scientific rigor.

• ADMET Predictor excels in discovery, GastroPlus leads in PBPK modeling, and Monolix is the fastest-growing due to workflow integration.

• User base is about 75% pharma and 25% biotech, with most revenue (80%) from clinical applications.

Financial outlook and revenue mix

• FY 2026 guidance is for 0%-4% top-line growth, with stronger growth expected in the second half due to easier comparables.

• Service business outperformed in Q1, with backlog at two-year highs; software revenue is expected to pick up in later quarters.

• Revenue mix is expected to remain around 60-65% software and 35-40% services for FY 2026.

• Long-term goal is to increase software share to 70%+ for more stable, recurring revenue.

Growth drivers and sales strategy

• Large pharma remains the main growth driver, with biotech providing new logo opportunities as funding improves.

• Cross-selling existing platforms is a major focus, supported by a shift to account-based sales structure.

• Integration of platforms and multi-disciplinary biosimulation is increasingly valued by clients.