Simulations Plus Profit Jumps 47% to $4.5M in Q2 FY2026
Simulations Plus, Inc., a biopharma software and consulting services provider, posted net income of $4.5 million for the quarter ending February 28, 2026, up 47% from $3.1 million a year earlier.
Simulations Plus, Inc. (NASDAQ: SLP), a global provider of software and consulting services for drug discovery and development, reported net income of $4.5 million for the three months ending February 28, 2026, compared with $3.1 million in the same period a year earlier, a 47% increase. Read more earnings reports.
Revenue for the quarter rose 8.3% to $24.3 million from $22.4 million in the prior-year quarter. Operating income more than doubled to $5.6 million from $2.7 million, reflecting improved margins as the company scaled revenue while controlling expenses.
For the six months ending February 28, 2026, the company reported revenue of $42.7 million, up 3.3% from $41.4 million in the first half of fiscal 2025. Net income for the half-year period reached $5.2 million, or $0.26 per diluted share, versus $3.3 million, or $0.16 per diluted share, in the prior-year period.
Revenue and Margin Performance
Gross profit for the December quarter totaled $16.1 million, up from $13.1 million a year earlier, as cost of goods sold declined to $8.1 million from $9.3 million. The gross margin expansion drove operating income to $5.6 million despite operating expenses rising slightly to $10.5 million from $10.4 million.
For the six-month period, gross profit reached $27.0 million compared with $23.3 million in the prior year. Operating income for the half year came to $6.3 million, more than doubling from $2.8 million a year earlier.
| Metric | Q2 FY2026 | Q2 FY2025 | H1 FY2026 | H1 FY2025 |
|---|---|---|---|---|
| Revenue | $24.3M | $22.4M | $42.7M | $41.4M |
| Gross Profit | $16.1M | $13.1M | $27.0M | $23.3M |
| Operating Income | $5.6M | $2.7M | $6.3M | $2.8M |
| Net Income | $4.5M | $3.1M | $5.2M | $3.3M |
| EPS (Diluted) | $0.22 | $0.15 | $0.26 | $0.16 |
Expense Trends
Research and development expenses for the quarter jumped 62% to $3.5 million from $2.1 million a year earlier, while selling, general and administrative expenses declined 10% to $4.1 million from $4.6 million. For the six-month period, R&D spending rose to $6.5 million from $4.0 million, while SG&A expenses fell to $8.1 million from $9.9 million.
Income tax expense for the quarter was $1.4 million compared with $0.4 million in the prior-year period. For the half year, tax expense totaled $1.6 million versus $0.5 million.
Balance Sheet and Cash Flow
Total assets as of February 28, 2026 stood at $146.5 million, up from $131.9 million at the end of fiscal 2025 on August 31, 2025. Cash and cash equivalents declined to $25.7 million from $30.9 million, while short-term investments rose sharply to $16.1 million from $1.5 million.
Accounts receivable nearly doubled to $18.2 million from $9.7 million, reflecting increased sales activity. Total liabilities rose to $12.7 million from $7.1 million, driven by higher accounts payable and current liabilities.
Stockholders' equity increased to $133.8 million from $124.8 million at the prior fiscal year-end. The company ended the quarter with 20.2 million shares outstanding, up slightly from 20.1 million shares.
Cash from operations for the six months totaled $10.6 million, more than doubling from $4.4 million in the prior-year period. Cash used in investing activities was $16.2 million, primarily for the increase in short-term investments, compared with $2.5 million used a year earlier. Cash from financing activities was $0.5 million versus a use of $1.3 million in the prior-year period.