| Metric | Value ($ M) | Q2 FY26 | Q3 FY25 |
|---|---|---|---|
| Revenue | 21.89 | 9.9% | 7.5% |
| Total Income | 21.89 | 9.9% | 7.5% |
| Expenditure | 17.39 | 6.8% | 81.6% |
| PBT | 4.81 | 18.3% | 106.5% |
| Net Profit | 3.58 | 21.1% | 105.3% |
| OPM | 20.56% | 2.62pp | |
| NPM | 16.34% | 2.33pp | |
| EPS | 0.18 | 18.2% | 105.4% |
Simulations Plus Reports Q3 FY26 Financial Results
10 Jul 2026 · 10 Jul, 1:38 am
Summary
Simulations Plus reported a 7% increase in total revenue to $21.9 million for the third quarter of fiscal 2026, driven by a 20% surge in services revenue, while software revenue remained flat. Gross profit improved to $15.1 million with a higher gross margin of 69%. The company achieved a net income of $3.6 million and diluted EPS of $0.18, a substantial turnaround from the prior year's net loss. Management highlighted the resilience of the business model and the value of its solutions, also noting the significant development of entering into a merger agreement with Altaris, LLC.
Key Highlights
- 1
Total revenue increased 7% to $21.9 million for the third quarter of fiscal 2026 compared to the prior year.
- 2
Services revenue saw a significant increase of 20% to $9.3 million in Q3 FY26, while software revenue remained flat at $12.6 million.
- 3
Gross profit for Q3 FY26 was $15.1 million, with a gross margin of 69%, an improvement from $13.0 million and 64% in the prior year.
- 4
The company reported a net income of $3.6 million and diluted earnings per share of $0.18 for Q3 FY26, a significant improvement from a net loss of $67.3 million and diluted losses per share of $3.35 in Q3 FY25.
- 5
Adjusted EBITDA for the third quarter was $7.9 million, representing 36% of total revenue.
- 6
Total revenue for the nine months ended May 31, 2026, increased 5% to $64.6 million compared to the same period in fiscal 2025.
- 7
The company announced a definitive merger agreement to be acquired by affiliates of Altaris, LLC, expected to close in the fourth quarter of calendar 2026.
Management Comments
Shawn O'Connor
We delivered solid third quarter results, with revenue increasing 7%, highlighted by strength in our services revenue, which grew 20%, while software revenue was flat year over year. Our performance reflects the resilience of our business model and the value our solutions provide to clients across the drug development lifecycle. Subsequent to quarter end, on June 15, 2026, we entered into a definitive merger agreement to be acquired by affiliates of Altaris, LLC (“Altaris”). We believe the transaction better positions Simulations Plus to further advance its scientific leadership and expand the impact of our model-informed and AI-enabled solutions. As we move toward the expected closing in the fourth quarter of calendar 2026, we remain focused on delivering for our clients and executing at a high level throughout this transition.
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