Simulations Plus Sees Weaker Demand Persist, Outlook Softens

Simulations Plus Inc. (NASDAQ:SLP) shares declined on Tuesday following the release of its third-quarter 2025 earnings report.

The company reported sales of $20.4 million, representing a 10% year-over-year increase, but this fell short of the consensus estimate of $20.9 million.

This miss followed preliminary third-quarter sales figures released in June, which were already lower than expectations at $19 million to $20 million, compared to a consensus of $22.78 million.

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Despite the revenue miss, Simulations Plus reported adjusted earnings of 45 cents per share, compared to 27 cents a year ago.

Revenue breakdown showed a 6% increase in software revenue to $12.6 million and a 17% increase in services revenue to $7.7 million. The company’s gross profit stood at $13.0 million, achieving a 64% margin.

However, the quarter saw a substantial net loss of $67.3 million, resulting in a loss per share of $3.35. This was primarily due to a non-cash impairment charge of $77.2 million, contrasting sharply with a net income of $3.1 million and diluted EPS of ...