What does software — goodwill, impairment loss mean?

The amount by which the carrying value of goodwill in the software segment exceeds its implied fair value, necessitating a write-down. This charge reflects a decline in the expected economic benefits or future profitability of previously acquired software assets. It is a critical indicator of potential overpayment for past acquisitions or deteriorating market conditions within the segment.

Simulations Plus (SLP) Software — Goodwill, Impairment Loss

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Other segment segments

Services

$0—

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Other financials

Income statement

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Revenue$21.9M+7.5%

Gross profit$15.1M+16.1%

Operating income$4.5M+106%

Net income$3.6M+105%

EPS (diluted)$0.18+105%

Balance sheet

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Cash & equivalents$35.3M+31.1%

Total debt$487.0K-32.3%

Total equity$139.0M+12.3%

Total assets$153.0M+13.9%

Cash flow

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Operating cash flow$8.7M+6.9%

CapEx$93.0K-68.7%

Free cash flow$8.6M+9.8%

Valuation

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Market cap$371.13M+32.9%

Enterprise value$336.29M+33.0%

P/E45.8×—

P/S4.5×+1.0×

Profitability

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Gross margin63.4%+9.6pp

Operating margin13.2%—

Net margin9.9%+5.2pp

FCF margin29.9%+12.8pp

Returns & leverage

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Return on equity6.2%+3.3pp

Debt / equity0×0.0×

Current ratio5.5×+0.4×

Where this comes from

Reported directly by Simulations Plus in its filing.

Tagged under the XBRL concept us-gaap:GoodwillImpairmentLoss.

The source filing: Simulations Plus’s 10-Q, filed July 9, 2026.

Filed: Jul 9, 2026, 4:10 PM EDT
Fiscal quarter: Q3 FY2026
Calendar quarter: Q2 2026
Accession: 0001023459-26-000038

(in thousands)	Software	Services	Total
Balance, August 31, 2025	$21,801	$21,916	$43,717
Addition	—	—	—
Impairments	—	—	—
Balance, May 31, 2026	$21,801	$21,916	$43,717

Item 1. Unaudited Condensed Consolidated Financial Statements

FAQ

What is Simulations Plus's software — goodwill, impairment loss?: Simulations Plus (SLP) reported software — goodwill, impairment loss of $0 in Q1 2026.
What does software — goodwill, impairment loss mean?: The amount by which the carrying value of goodwill in the software segment exceeds its implied fair value, necessitating a write-down. This charge reflects a decline in the expected economic benefits or future profitability of previously acquired software assets. It is a critical indicator of potential overpayment for past acquisitions or deteriorating market conditions within the segment.