Simulations Plus Inc. (NASDAQ:SLP) reported better-than-expected results for its second quarter of fiscal 2026 on Thursday, while issuing mixed guidance for the full year.
Simulations Plus offers drug discovery software and solutions.
The company reported sales of $24.29 million, representing an increase of 8% year-over-year, edging higher from the consensus estimate of $21.67 million.
Simulations Plus reported adjusted earnings of 35 cents per share, beating the consensus of 20 cents, up from 31 cents a year ago.
Segments Show Balanced Growth
Revenue breakdown showed a 9% increase in software revenue to $14.6 million and a 8% increase in services revenue to $9.7 million.
Gross profit was $16.1 million and gross margin was 66%, compared to $13.1 million and 59% a year ago.
Adjusted EBITDA of $8.7 million, representing 36% of total revenue, compared to $6.6 million, representing 29% of total revenue.
Shawn O’Connor, CEO of Simulations Plus, said the company posted solid second-quarter performance, with revenue rising 8%. He noted that software growth was …