8-K
Simulations Plus, Inc. (SLP)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
January 8, 2026
(Date of the earliest event reported)
Simulations Plus, Inc.
(Exact name of registrant as specified in its charter)
| California | 001-32046 | 95-4595609 |
|---|---|---|
| (State or other jurisdiction of incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) |
800 Park Offices Drive, Suite 401, Research Triangle Park, NC 27709
(Address of principal executive offices) (Zip Code)
661-723-7723
Registrant's telephone number, including area code
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| ☐ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
|---|---|
| ☐ | Soliciting material pursuant to Rule 14z-12 under Exchange Act (17 CFR 240.14a-12) |
| ☐ | Pre-commencement communications pursuant to Rule 14d-2(b) under Exchange Act (17 CFR 240.14d-2(b)) |
| ☐ | Pre-commencement communications pursuant to Rule 13e-4(c) under Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
|---|---|---|
| Common Stock, par value $0.001 per share | SLP | The Nasdaq Stock Market LLC |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
| Emerging Growth Company | ☐ |
|---|
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨
Item 2.02 Results of Operations and Financial Condition
On January 8, 2026, Simulations Plus, Inc., a California corporation (the “Company”), issued a press release announcing financial results for its first quarter ended November 30, 2025. The press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K (this “Report”).
Item 7.01 Regulation FD Disclosure
On January 8, 2026, the Company held an investor conference call reporting its financial results for its first quarter ended November 30, 2025. The PowerPoint presentation, which was used for this investor conference call, is attached as Exhibit 99.2 to this Report.
In accordance with General Instructions B.2 of Form 8-K, the information in this Report, including Exhibits 99.1 and 99.2 (together, the “Exhibits”), is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liability of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, whether made before or after the date hereof, except as expressly set forth by specific reference in such filing to this Report.
CAUTION REGARDING FORWARD-LOOKING STATEMENTS
This Report, including the disclosures set forth herein and in the Exhibits attached hereto, contains certain forward-looking statements that involve substantial risks and uncertainties. When used herein, the terms “anticipates,” “expects,” “estimates,” “believes” and similar expressions, as they relate to us or our management, are intended to identify such forward-looking statements.
Forward-looking statements in this Report or reports hereafter furnished, including in other publicly available documents filed with the Securities and Exchange Commission (the “Commission”), to the Company’s stockholders and other publicly available statements issued or released by us involve known and unknown risks, uncertainties and other factors which could cause our actual results, performance (financial or operating) or achievements to differ from the future results, performance (financial or operating) or achievements expressed or implied by such forward-looking statements. Such future results are based upon management’s best estimates based upon current conditions and the most recent results of operations. These risks include, but are not limited to, the risks set forth herein and in such other documents filed with the Commission, each of which could adversely affect our business and the accuracy of the forward-looking statements contained herein. Our actual results, performance or achievements may differ materially from those expressed or implied by such forward-looking statements.
Item 9.01 Financial Statements and Exhibits
(d) Exhibits
| 99.1 | Press release issued onJanuary 8,2026. |
|---|---|
| 99.2 | PowerPoint presentation used at the Investor Conference Call on January 8, 2026. |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
| SIMULATIONS PLUS, INC. | |
|---|---|
| Dated: January 8, 2026 | By: /s/ Will Frederick |
| Will Frederick | |
| Executive Vice President and Chief Financial Officer |
2
Document
Exhibit 99.1
Simulations Plus Reports First Quarter Fiscal 2026 Financial Results
Investor Day on January 21, 2026, to present new product vision and AI solutions
RESEARCH TRIANGLE PARK, NC, January 8, 2026 – Simulations Plus, Inc. (Nasdaq: SLP) (“Simulations Plus” or the “Company”), a global leader in model-informed and AI-accelerated drug development that advances biopharma innovation, today reported financial results for its first quarter fiscal 2026, ended November 30, 2025.
First Quarter 2026 Financial Highlights (as compared to first quarter 2025)
•Total revenue decreased 3% to $18.4 million
•Software revenue decreased 17% to $8.9 million, representing 48% of total revenue
•Services revenue increased 16% to $9.5 million, representing 52% of total revenue
•Gross profit was $10.9 million and gross margin was 59%, compared to $10.2 million and 54%
•Net income of $0.7 million and diluted earnings per share of $0.03, compared to net income of $0.2 million and diluted EPS of $0.01
•Adjusted EBITDA of $3.5 million, representing 19% of total revenue, compared to $4.5 million, representing 24% of total revenue
•Adjusted net income of $2.6 million and adjusted diluted EPS of $0.13 compared to adjusted net income of $3.4 million and adjusted diluted EPS of $0.17
Management Commentary
"We met our first quarter revenue guidance and delivered strong performance in our services segment, driven primarily by significant growth in commercialization offerings and modest gains in development projects,” said Shawn O’Connor, CEO of Simulations Plus. “In software, the expected decrease in clinical operations and development revenue was only partially offset by an increase in discovery solutions.”
“We are encouraged by favorable market dynamics, including most-favored nation pricing agreements and an improved funding environment for our clients. With strong bookings in both software and services, along with the impact of annual software price increases, we remain confident in achieving our fiscal year 2026 guidance. Additionally, we believe we are well-positioned to capitalize on any upside should client spending levels improve from current levels.”
“Simulations Plus is poised to be a leader in the next era of model-informed and AI-enabled drug development, and we look forward to sharing our integrated product vision at our virtual Investor Day later this month,” concluded O’Connor.
Fiscal 2026 Guidance
Simulations Plus is reaffirming its previously provided fiscal year 2026 guidance as follows:
| Fiscal 2026 Guidance | |
|---|---|
| Revenue | $79M - $82M |
| Revenue growth | 0 - 4% |
| Software mix | 57 - 62% |
| Adjusted EBITDA margin | 26 - 30% |
| Adjusted diluted EPS | $1.03 - $1.10 |
Webcast and Conference Call Details
Shawn O’Connor, Chief Executive Officer, and Will Frederick, Executive Vice President and Chief Financial Officer, will host a conference call and webcast today, January 8 at 5:00 p.m. Eastern Time to discuss the results and certain forward-looking information. The call may be accessed by registering here or by calling 1-877-451-6152 (domestic) or 1-201-389-0879 (international). The webcast can be accessed on the investor relations page of the Simulations Plus website https://www.simulations-plus.com/investorscorporate-profile/corporate-profile/ where it will also be available for replay approximately one hour following the call.
2026 Investor Day
Simulations Plus will hold a Virtual Investor Day on Wednesday, January 21, 2026, from 1:00 PM ET-2:30 PM ET, to present its new product vision and AI solutions. To participate, please register here
Non-GAAP Financial Measures
This press release contains “non-GAAP financial measures,” which are measures that either exclude or include amounts that are not excluded or included in the most directly comparable measures calculated and presented in accordance with U.S. generally accepted accounting principles (“GAAP”).
A further explanation and reconciliation of these non-GAAP financial measures is included below and in the financial tables in this release.
The Company believes that the non-GAAP financial measures presented facilitate an understanding of operating performance and provide a meaningful comparison of its results between periods. The Company’s management uses non-GAAP financial measures to, among other things, evaluate its ongoing operations in relation to historical results, for internal planning and forecasting purposes, and in the calculation of performance-based compensation. Adjusted EBITDA and Adjusted Diluted EPS represent measures that we believe are customarily used by investors and analysts to evaluate the financial performance of companies in addition to the GAAP measures that we present. Our management also believes that these measures are useful in evaluating our core operating results. However, Adjusted EBITDA and Adjusted Diluted EPS are not measures of financial performance under accounting principles generally accepted in the United States of America and should not be considered an alternative to net income, operating income, or diluted EPS as indicators of our operating performance or to net cash provided by operating activities as a measure of our liquidity. We believe the Company’s Adjusted EBITDA and Adjusted Diluted EPS measures provide information that is directly comparable to that provided by other peer companies in our industry, but other companies may calculate non-GAAP financial results differently, particularly related to nonrecurring, unusual items.
Please note that the Company has not reconciled the adjusted EBITDA or adjusted diluted earnings per share forward-looking guidance included in this press release to the most directly comparable GAAP measures because this cannot be done without unreasonable effort due to the variability and low visibility with respect to costs related to acquisitions, financings, and employee stock compensation programs, which are potential adjustments to future earnings. We expect the variability of these items to have a potentially unpredictable, and a potentially significant, impact on our future GAAP financial results.
Adjusted EBITDA
Adjusted EBITDA represents net income excluding the effect of interest expense (income), provision (benefit) for income taxes, depreciation and amortization, equity-based compensation expense, loss (gain) on currency exchange, impairment charges, change in fair value of contingent consideration, reorganization expense, acquisition and integration expense, and other items not indicative of our ongoing operating performance.
Adjusted Net Income and Adjusted Diluted EPS
Adjusted net income and adjusted diluted earnings per share exclude the effect of amortization, equity-based compensation expense, loss (gain) on currency exchange, impairment charges, change in fair value of contingent consideration, reorganization expense, acquisition and integration expense, and other items not indicative of our ongoing operating performance as well as the income tax provision adjustment for such charges.
The Company excludes the above items because they are outside of the Company’s normal operations and/or, in certain cases, are difficult to forecast accurately.
About Simulations Plus, Inc.
Simulations Plus is a global leader in model-informed and AI-accelerated drug development. We create value for our clients by accelerating the discovery, development, and commercialization of pharmaceuticals and other products through innovative science-based software and consulting solutions. For more information, visit www.simulations-plus.com.
Environmental, Social, and Governance
We focus our Environmental, Social, and Governance (ESG) efforts where we can have the most positive impact. To learn more about our latest initiatives and priorities, please visit our website.
Forward-Looking Statements
Except for historical information, the matters discussed in this press release are forward-looking statements that involve risks and uncertainties. Words like “believe,” “will”, “can”, “expect,” “anticipate,” and similar expressions (or the negative of such terms, as well as other words or expressions referencing future events, conditions, or circumstances) mean that these are our best estimates as of this writing, but there can be no assurances that expected or anticipated results or events will actually take place, so our actual future results could differ significantly from those statements. Forward-looking statements include but are not limited to statements regarding our fiscal year 2026 guidance, revenue growth, anticipated margins and profitability, demand for software and services, the impact of pricing actions, client spending levels, market conditions, the development, capabilities, regulatory acceptance and commercialization of AI-enabled and could-based solutions, the timing and content of product initiatives discussed at Investor Day, and our ability to execute our long-term strategic vision. These forward-looking statements are based on current assumptions and expectations that involve risks and uncertainties that could cause the actual results to differ materially from those expressed or implied. Factors that could cause or contribute to such differences include, but are not limited to: effectiveness of our internal operational structure, our ability to maintain our competitive advantages and commercialize AI and cloud-enabled solutions, evolving regulatory and data privacy standards governing AI technologies, acceptance of new software and improved versions of our existing software by our customers, the general economics of the pharmaceutical industry, our ability to finance growth, our ability to continue to attract and retain highly qualified technical staff, market conditions, macroeconomic factors, and a sustainable market. Further information on our risk factors is contained in our quarterly, annual, and current reports and filed with the U.S. Securities and Exchange Commission.
Investor Relations Contact:
Lisa Fortuna
Financial Profiles
310-622-8251
slp@finprofiles.com
SIMULATIONS PLUS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
(Unaudited)
| Three Months Ended | ||||
|---|---|---|---|---|
| (in thousands, except per common share and common share data) | November 30, 2025 | November 30, 2024 | ||
| Revenues | ||||
| Software | $ | 8,883 | $ | 10,715 |
| Services | 9,538 | 8,209 | ||
| Total revenues | 18,421 | 18,924 | ||
| Cost of revenues | ||||
| Software | 1,412 | 2,638 | ||
| Services | 6,118 | 6,068 | ||
| Total cost of revenues | 7,530 | 8,706 | ||
| Gross profit | 10,891 | 10,218 | ||
| Operating expenses | ||||
| Research and development | 2,980 | 1,848 | ||
| Sales and marketing | 3,179 | 2,851 | ||
| General and administrative | 4,019 | 5,393 | ||
| Total operating expenses | 10,178 | 10,092 | ||
| Income from operations | 713 | 126 | ||
| Other income, net | 257 | 144 | ||
| Income before income taxes | 970 | 270 | ||
| Income tax expense | (294) | (64) | ||
| Net income | $ | 676 | $ | 206 |
| Earnings per share | ||||
| Basic | $ | 0.03 | $ | 0.01 |
| Diluted | $ | 0.03 | $ | 0.01 |
| Weighted-average common shares outstanding | ||||
| Basic | 20,140 | 20,068 | ||
| Diluted | 20,220 | 20,266 | ||
| Other comprehensive (loss) income, net of tax | ||||
| Foreign currency translation adjustments | (6) | (42) | ||
| Unrealized gains (losses) on available-for-sale securities | — | 4 | ||
| Comprehensive income | $ | 670 | $ | 168 |
SIMULATIONS PLUS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
| (in thousands, except per common share and common share data) | November 30, 2025 | August 31, 2025 | ||
|---|---|---|---|---|
| ASSETS | ||||
| Current assets | ||||
| Cash and cash equivalents | $ | 30,189 | $ | 30,853 |
| Accounts receivable, net of allowance for credit losses of $93 and $187 | 12,154 | 9,717 | ||
| Prepaid income taxes | 1,745 | 1,777 | ||
| Prepaid expenses and other current assets | 8,552 | 7,702 | ||
| Short-term investments | 5,500 | 1,500 | ||
| Total current assets | 58,140 | 51,549 | ||
| Long-term assets | ||||
| Capitalized computer software development costs, net of accumulated amortization of $22,604 and $21,863 | 11,290 | 11,117 | ||
| Property and equipment, net | 793 | 880 | ||
| Operating lease right-of-use assets | 390 | 407 | ||
| Intellectual property, net of accumulated amortization of $9,287 and $9,021 | 5,931 | 6,197 | ||
| Other intangible assets, net of accumulated amortization of $4,651 and $4,399 | 11,580 | 11,896 | ||
| Goodwill | 43,717 | 43,717 | ||
| Deferred tax assets, net | 4,606 | 4,774 | ||
| Other assets | 1,384 | 1,399 | ||
| Total assets | $ | 137,831 | $ | 131,936 |
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||
| Current liabilities | ||||
| Accounts payable | $ | 863 | $ | 470 |
| Accrued compensation | 2,657 | 2,010 | ||
| Accrued expenses | 922 | 1,343 | ||
| Operating lease liability - current portion | 179 | 206 | ||
| Deferred revenue | 5,719 | 2,696 | ||
| Total current liabilities | 10,340 | 6,725 | ||
| Long-term liabilities | ||||
| Operating lease liability - net of current portion | 378 | 410 | ||
| Total liabilities | 10,718 | 7,135 | ||
| Commitments and contingencies - Note 4 | ||||
| Shareholders' equity | ||||
| Preferred stock, $0.001 par value — 10,000,000 shares authorized; no shares issued and outstanding | $ | — | $ | — |
| Common stock, $0.001 par value; 50,000,000 shares authorized, 20,146,585 and 20,137,480 shares issued and outstanding as of November 30, 2025 and August 31, 2025 | 20 | 20 | ||
| Additional paid-in capital | 161,058 | 159,416 | ||
| Accumulated deficit | (33,688) | (34,364) | ||
| Accumulated other comprehensive loss | (277) | (271) | ||
| Total shareholders' equity | 127,113 | 124,801 | ||
| Total liabilities and shareholders' equity | $ | 137,831 | 131,936 |
SIMULATIONS PLUS, INC.
Reconciliation of Adjusted EBITDA to Net Income (1)
(Unaudited)
(in thousands)
| Three months ended | Three months ended | |||
|---|---|---|---|---|
| November 30, 2025 | November 30, 2024 | |||
| Net income | $ | 676 | $ | 206 |
| Excluding: | ||||
| Interest income and expense, net | (267) | (159) | ||
| Provision for income taxes | 294 | 64 | ||
| Depreciation and amortization | 1,346 | 2,265 | ||
| Stock-based compensation | 1,465 | 1,589 | ||
| Loss on currency exchange | 10 | 15 | ||
| Reorganization expense | — | 258 | ||
| Mergers & Acquisitions expense | 10 | 255 | ||
| Adjusted EBITDA | $ | 3,534 | $ | 4,493 |
(1) Numbers may not foot due to rounding
SIMULATIONS PLUS, INC.
Reconciliation of Adjusted Diluted EPS to Diluted EPS (1)
(Unaudited)
(in thousands, except Diluted EPS and Adjusted Diluted EPS)
| Three months ended | Three months ended | |||
|---|---|---|---|---|
| November 30, 2025 | November 30, 2024 | |||
| Net Income | $ | 676 | $ | 206 |
| Excluding: | ||||
| Amortization | 1,259 | 2,130 | ||
| Stock-based compensation | 1,465 | 1,589 | ||
| Loss on currency exchange | 10 | 15 | ||
| Mergers & Acquisitions expense | 10 | 255 | ||
| Reorganization expense | — | 258 | ||
| Tax effect on above adjustments | (832) | (1,007) | ||
| Adjusted Net income | $ | 2,588 | $ | 3,446 |
| Weighted-avg. common shares outstanding: | ||||
| Diluted weighted-avg. common shares outstanding | 20,220 | 20,266 | ||
| Diluted EPS | $ | 0.03 | $ | 0.01 |
| Adjusted Diluted EPS | $ | 0.13 | $ | 0.17 |
(1) Numbers may not foot due to rounding
5
slpearningscalldeck261
Earnings Call: Q1 - FY26 January 8, 2026
Safe Harbor Statement Except for historical information, the matters discussed in this presentation are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, that involve risks and uncertainties. Words like “believe,” “will”, “can”, “expect,” “anticipate” and similar expressions (or the negative of such terms, as well as other words or expressions referencing future events, conditions or circumstances) mean that these are our best estimates as of this writing, but there can be no assurances that expected or anticipated results or events will actually take place, so our actual future results could differ significantly from those statements. Statements include but are not limited to those relating to fiscal year 20206 guidance, expected revenue growth and mix, margins and profitability, demand for our services and software, pricing actions, client spending levels and long-term business strategies. Factors that could cause or contribute to such differences include, but are not limited to: effectiveness of our operational structure, our ability to maintain our competitive advantages and commercialize AI and cloud-enabled solutions, evolving regulatory and data privacy standards governing AI technologies, acceptance of new software and improved versions of our existing software by our customers, the general economics of the pharmaceutical industry, our ability to finance growth, our ability to continue to attract and retain highly qualified technical staff, market conditions, macroeconomic factors, and a sustainable market. Further information on our risk factors is contained in our quarterly, annual and current reports and filed with the U.S. Securities and Exchange Commission. Non-GAAP Financial Measures This presentation includes certain financial measures not presented in accordance with generally accepted accounting principles (“GAAP”) such as Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Net Income, and Adjusted Diluted EPS and certain ratios and other metrics derived there from. These non-GAAP financial measures are not measures of financial performance in accordance with GAAP and may exclude items that are significant in understanding and assessing financial results. Therefore, these measures should not be considered in isolation or as an alternative to net income, cash flows from operations or other measures of profitability, liquidity or performance under GAAP. You should be aware that the presentation of these measures may not be comparable to similarly-titled measures used by other companies. We believe (i) these non-GAAP measures of financial results provide useful information to management and investors regarding certain financial and business trends; and (ii) that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends in and in comparing financial measures with other similar companies, many of which present similar non- GAAP financial measures to investors. These non-GAAP financial measures are subject to inherent limitations as they reflect the exercise of judgments by management about which expense and income are excluded or included in determining these non-GAAP financial measures. Reconciliations of these non-GAAP measures to the most directly comparable GAAP measures are set forth in the appendix to this presentation.
First Quarter 2026 Highlights $0.03 Diluted EPS $18.4M Revenue 19% Adj. EBITDA Margin -3% Revenue Decline Current period Prior Year Comparison (1Q25) $0.13 Adj. Diluted EPS $18.9M Revenue $0.01 Diluted EPS 24% Adj. EBITDA Margin +31% $0.17 Revenue Growth Adj. Diluted EPS
Trailing Twelve Months (TTM) Highlights ($3.20) Diluted EPS (1) $78.7M Revenue 27% Adj. EBITDA Margin +6% Revenue Growth Current period Prior Year Comparison (1Q25) $0.98 Adj. Diluted EPS $74.4M Revenue $0.40 Diluted EPS 29% Adj. EBITDA Margin +20% Revenue Growth $0.94 (1) Diluted EPS includes a non-cash impairment charge of $77.2 million Adj. Diluted EPS
Software Highlights $18.7M Revenue $0.04 Diluted EPS 22% Adj. EBITDA Margin +3% Q1 Revenue Growth -6% Q1 Revenue Decline -82% Q1 Revenue Decline +3% TTM Revenue Growth +1% TTM Revenue Growth -28% TTM Revenue Decline – Overall software revenue decline of 17% for 1Q26 and was flat TTM – Renewal rates impacted by client consolidations and site closures Pro-ficiency® CLINICAL OPS
Services Highlights $18.7M Revenue $0.04 Diluted EPS 22% Adj. EBITDA Margin +19% Revenue Growth $0.18 Adj. Diluted EPS +8% Q1 Revenue Growth +42% Q1 Revenue Growth TTM Revenue Decline TTM Revenue Growth -5% +191% – Overall services revenue growth of 16% for 1Q26 and 15% for TTM – Total backlog $20.4M Med Comm Services COMMERCIALIZATION
Revenue - Q1 FY26 48% 52% Software Services 57% 43% Software Services (in millions) Software Revenue Decline Total Revenue Decline Services Revenue Growth -3% -17% +16% 1Q26 Mix 1Q25 Mix $7.6 $10.7 $8.9 $6.9 $8.2 $9.5 $14.5 $18.9 $18.4 Software Services 1Q24 1Q25 1Q26
Revenue - Trailing Twelve Months (TTM) 56% 44% Software Services 59% 41% Software Services (in millions) Software Revenue Growth Total Revenue Growth Services Revenue Growth +6% 0% +15% 1Q26 Mix 1Q25 Mix $38.0 $44.2 $44.0 $24.1 $30.3 $34.7 $62.1 $74.4 $78.7 Software Services 1Q24 1Q25 1Q26
Software Solutions as % of Software Revenue 15% 81% 4% 1Q26 18% 77% 5% TTM GastroPlus® • 10 new clients • 2 upsells to existing clients ADMET Predictor® • 11 new clients • 2 upsells to existing clients MonolixSuite™ • 6 new clients • 8 upsells to existing clients First Quarter Highlights Discovery Development Discovery Development Clinical Ops Discovery Development Clinical Ops
Software Performance Metrics - Q1 FY26 $79 $94 $97 1Q24 1Q25 1Q26 Avg. Revenue per Client (in thousands) Commercial Clients Renewal Rate (fee based) 100% 95% 88% 1Q24 1Q25 1Q26
Software Performance Metrics - TTM Avg. Revenue per Client (in thousands) Renewal Rate (fee based) $93 $98 $147 1Q24 1Q25 1Q26 93% 92% 87% 1Q24 1Q25 1Q26 212 307 302 1Q24 1Q25 1Q26 Commercial Clients Clients (end of period)
Services Solutions as % of Services Revenue 29% 71% Q1 FY26 26% 74% TTM Development Commercialization Development Commercialization
Services Performance Metrics Q1 FY26 $0.1 $18.9 $15.5 $18.4 $1.8 $1.9$18.9 $17.3 $20.4 Discovery Development Commercialization 1Q24 1Q25 1Q26 179 144 140 39 45 179 183 186 Discovery Development Commercialization 1Q24 1Q25 1Q26 Total Projects Backlog (in millions)
Income Statement Summary - Q1 FY26 (1) (in millions, except Diluted EPS and Adjusted Diluted EPS) 1Q26 % of Rev 1Q25 % of Rev Revenue $18.4 100% $18.9 100% Cost of revenue 7.5 41% 8.7 46% Gross profit 10.9 59% 10.2 54% R&D 3.0 16% 1.8 10% S&M 3.2 17% 2.9 15% G&A excluding nonrecurring 4.0 22% 4.9 26% Nonrecurring — 0% 0.5 3% Total operating expense 10.2 55% 10.1 53% Income from operations 0.7 4% 0.1 1% Income before income taxes 1.0 5% 0.3 1% Income tax expense (0.3) -2% (0.1) 0% Net Income $0.7 4% $0.2 1% Diluted EPS $0.03 $0.01 Adjusted EBITDA $3.5 19% $4.5 24% Adjusted Diluted EPS $0.13 $0.17 (1) Numbers may not add due to rounding
Balance Sheet Summary (1) (in millions) (1) Numbers may not add due to rounding November 30, 2025 August 31, 2025 Cash and short-term investments $35.7 $32.4 Other current assets 22.5 19.2 Long term assets 79.7 80.4 Total assets $137.8 $131.9 Current liabilities 10.3 6.7 Long-term liabilities 0.4 0.4 Total liabilities 10.7 7.1 Shareholders’ equity 127.1 124.8 Total liabilities and shareholders’ equity $137.8 $131.9
Fiscal 2026 Guidance Guidance Total Revenue $79M - $82M Total Revenue Growth 0% - 4% Software Revenue Mix 57% - 62% Adjusted EBITDA Margin (1) 26% - 30% Adjusted Diluted EPS (2) $1.03 - $1.10 (1) Adjusted EBITDA represents net income excluding the effect of interest expense (income), provision (benefit) for income taxes, depreciation and amortization, equity-based compensation expense, loss (gain) on currency exchange, impairment charges, change in fair value of contingent consideration, reorganization expense, acquisition and integration expense and other items not indicative of our ongoing operating performance. (2) Adjusted net income and adjusted diluted earnings per share exclude the effect of amortization, equity-based compensation expense, loss (gain) on currency exchange, impairment charges, change in fair value of contingent consideration, reorganization expense, acquisition and integration expense and other items not indicative of our ongoing operating performance as well as the income tax provision adjustment for such charges.
Adjusted EBITDA Non-GAAP Reconciliation (1) 1Q26 1Q25 Net income $676 $206 Excluding: Interest income and expense, net (267) (159) Provision for income taxes 294 64 Depreciation and amortization 1,346 2,265 Stock-based compensation 1,465 1,589 Loss on currency exchange 10 15 Reorganization expense — 258 Mergers & Acquisitions expense 10 255 Adjusted EBITDA $3,534 $4,493 (in thousands) (1) Numbers may not add due to rounding
Adjusted Diluted EPS Non-GAAP Reconciliation (1) 1Q26 1Q25 Net income $676 $206 Excluding: Amortization 1,259 2,130 Stock-based compensation 1,465 1,589 Loss on currency exchange 10 15 Mergers & Acquisitions expense 10 255 Reorganization expense — 258 Tax effect on above adjustments (832) (1,007) Adjusted Net income $2,588 $3,446 Diluted weighted-avg. common shares outstanding 20,220 20,266 Diluted EPS $0.03 $0.01 Adjusted Diluted EPS $0.13 $0.17 (in thousands, except Diluted EPS and Adjusted Diluted EPS) (1) Numbers may not add due to rounding
Lisa Fortuna Financial Profiles slp@finprofiles.com | +1-310-622-8251 Investor Relations Contact: Thank You