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Simulations Plus SLP Software — Gross Margin

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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×
Current ratio5.5×+0.4×

Where this comes from

Reported directly by Simulations Plus in its filing.

Tagged under the XBRL concept simu:GrossMarginPercentage.

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)Three Months Ended May 31, 2026 / SoftwareThree Months Ended May 31, 2026 / ServicesThree Months Ended May 31, 2026 / TotalThree Months Ended May 31, 2025 / SoftwareThree Months Ended May 31, 2025 / ServicesThree Months Ended May 31, 2025 / Total
Less:
Cost of revenue (1)1,5135,2466,7592,5404,7917,331
Gross Profit11,0954,03215,12710,0752,95713,032
Gross Margin88%43%69%80%38%64%
Less:
Research and Development3,4061,216
Sales and Marketing2,5382,680
General and administrative (2)4,6846,141

Item 1. Unaudited Condensed Consolidated Financial Statements

FAQ

What is Simulations Plus's software — gross margin?
Simulations Plus (SLP) reported software — gross margin of 88% in Q1 2026.
How has Simulations Plus's software — gross margin changed year-over-year?
Simulations Plus's software — gross margin increased by 10.0% year-over-year, from 80% to 88%.
What does software — gross margin mean?
The ratio of gross profit to total revenue for the software segment, expressed as a percentage. It indicates the proportion of each dollar of revenue that remains after covering direct production costs, serving as a key indicator of pricing power and cost control. Higher margins typically suggest a strong competitive advantage or highly scalable software products.

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