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what it is
It makes software and consulting that help drugmakers predict how medicines behave before they reach patients.
how it gets paid
Last year Simulations Plus made $79M in revenue. Consulting services was the main engine at $19.0M, or 24% of sales.
why it's growing
Revenue grew 13.1% last year. Software fell 17% in the quarter, while services rose 16%.
what just happened
The latest quarter put $18M of revenue on the board, down 3%, while gross margin held at 59.1%.
At a glance
B balance sheet — gets the job done, barely
30/100 earnings predictability — expect surprises
5.5% return on capital — nothing to write home about
-$0.72 fy2025 eps est
$79M fy2025 rev est
xvary composite: 39/100 — weak
What they do
It makes software and consulting that help drugmakers predict how medicines behave before they reach patients.
Your team does not swap this kind of software lightly. Simulations Plus sells 12 products, and pharma workflows get rebuilt around them. Software → code you keep paying for → so what: leaving means redoing drug models, retraining people, and risking trial delays.
How they make money
$79M
annual revenue · their business grew +13.1% last year
GastroPlus family
$18.0M
+13.0%
Toxicology suites
$15.5M
+12.0%
ADMET and design tools
$11.5M
+11.0%
Consulting services
$19.0M
+16.0%
PK/PD and QSP services
$15.0M
+14.0%
The products that matter
drug exposure modeling
Population Pharmacokinetic
part of a $79M business
This sits inside the company’s $79M revenue base. Segment-level sales are not broken out here, which makes it harder for you to judge how much of the 13.1% growth came from this product family.
mix not disclosed
drug response modeling
Pharmacodynamic
59.1% gross margin backdrop
These tools sit under a business keeping 59.1% of each revenue dollar after direct costs. That margin profile is good. The missing piece is whether enough of it reaches earnings when FY2025 EPS is still estimated at -$0.72.
good gross margin
systems biology models
Quantitative Systems Pharmacology
18.6% operating margin
This is part of a company with an 18.6% operating margin and 5.5% return on capital. In plain English: the business makes money at the operating line, but not efficiently enough yet to feel like a premium software compounder.
prove-it segment
Key numbers
$79M
annual revenue
This is the whole pie. For a company worth about $251M, this is the sales base you are paying for.
89.3%
operating margin
That means about 89 cents of every revenue dollar went to operating loss. The business is still paying to become itself.
59.1%
gross margin
The company keeps 59 cents of every sales dollar before overhead. Overhead is the part that is winning.
$0M
long-term debt
No long-term debt gives the balance sheet room if growth stumbles. It does not fix the margin problem.
Financial health
B
strength
- balance sheet grade B — adequate — nothing special
- risk rank 4 — safer than 20% of stocks
- price stability 15 / 100
- long-term debt $0M (0% of capital)
B — functional but not a standout on the balance sheet.
Total return vs. market
Return history isn't available for SLP right now.
source: institutional data · return history unavailable
What just happened
missed estimates
The latest quarter put $18M of revenue on the board, down 3%, while gross margin held at 59.1%.
EPS was $0.03, up 200% from the prior year, but the business still grew slower than its annual 13.1% pace. Software revenue fell 17% in the quarter, while services rose 16%.
$18M
revenue
$0.03
eps
59.1%
gross margin
software split
Software fell 17% in the quarter, while services rose 16%. That is the whole story in one number pair.
source: company earnings report, 2026
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What could go wrong
the #1 risk is revenue growth that still does not become earnings.
med
growth without profit conversion
Revenue is estimated at $79M and grew 13.1% from last year. Gross margin is 59.1%. Operating margin is 18.6%. FY2025 EPS is still estimated at -$0.72.
If that mix does not convert into positive per-share earnings, the market stops treating this like a promising software niche and starts treating it like a small company with nice slides.
med
earnings volatility
Earnings predictability is 30/100. In plain English: the quarterly path is hard to model, and surprises are more likely here than in steadier software names.
That matters because unpredictable earnings and a small-cap stock price are a bad combination. Misses tend to get punished faster when the market does not trust the baseline.
med
small-cap drawdown risk
The stock traded between $11 and $36 over the last 52 weeks and carries a 15/100 price stability score. That is not quiet compounding. That is a mood swing with a ticker.
At a $251M market cap, a few disappointing quarters can move the stock much faster than the business itself changes.
med
limited mix visibility
This snapshot shows $79M of total revenue but no segment revenue breakdown. You know the product categories. You do not know which one is driving growth or margin durability.
When product mix is opaque, it is harder to separate a durable growth engine from a good quarter. For a company this small, that distinction is the whole game.
The business keeps selling, but profits are still missing. Revenue reached $79M, while operating margin stayed at -89.3%.
source: institutional data · regulatory filings · risk analysis
Pay attention to
earnings
whether the loss estimate starts shrinking
The cleanest near-term tell is FY2025 EPS at -$0.72. If that number improves, the whole story improves with it.
margin
gross margin holding above the current 59.1%
A 59.1% gross margin says the software and services mix has value. If that slips while growth slows, you lose the easy part of the bull case.
volatility
whether the stock keeps acting like a sentiment trade
The 52-week range runs from $11 to $36 and price stability is 15/100. That is your reminder that position sizing matters even when the balance sheet is clean.
quality
return on capital moving off the 5.5% floor
For a software business, 5.5% return on capital is the number that keeps the story from sounding premium. If it rises, the stock gets easier to underwrite.
Analyst rankings
earnings predictability
30 / 100
In human-speak: analysts do not have a smooth line of sight into results, so you should expect larger revisions and sharper reactions.
risk rank
4
This ranks safer than roughly 20% of stocks. Plain English: it sits in the riskier part of the market despite having no long-term debt.
price stability
15 / 100
The share price has not earned the word stable. That matters more in a stock that already trades with a wide $11–$36 range.
source: institutional data
Institutional activity
institutional ownership data for SLP is being compiled.
source: institutional data
Price targets
3-5 year target range
n/a
n/a
$19
current price
n/a
target midpoint · n/a from current
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