Simulations Plus Q2 Exceeds Forecasts Amid Challenges

Simulations Plus, Inc. reported strong financial performance for the quarter ending February 28, 2025, with revenue increasing by 23% to $22.4 million compared to the previous year, surpassing consensus estimates. Despite the revenue growth, net income decreased by 24% to $3.1 million due to higher operating expenses, including increased research, development, and marketing costs. The company achieved an EPS of $0.31, exceeding the Zacks Consensus Estimate of $0.25, marking an earnings surprise of 24%. Simulations Plus's ongoing strategic restructuring and acquisitions, such as Pro-ficiency, underline its focus on innovation and market expansion. However, the company has experienced a significant stock price decline, down 16.99% over the last three months and 49.83% over the past year. It projects FY 2025 revenue between $90 million and $93 million, with EPS expectations ranging from $1.07 to $1.20.