# Simulations Plus, Inc. (SLP) Informational only - not investment advice. CIK: 0001023459 SIC: 7373 Services-Computer Integrated Systems Design SIC breadcrumb: [Services](/division/I/) > [Business Services](/major-group/73/) > [SIC 7373 Services-Computer Integrated Systems Design](/industry/7373/) Latest 10-K filed: 2025-12-01 SEC page: https://www.sec.gov/edgar/browse/?CIK=1023459 Filing source: https://www.sec.gov/Archives/edgar/data/1023459/000102345925000060/simu-20250831.htm ## At a glance FY2025 · period end 2025-08-31 · filed 2025-12-01 · accession 0001023459-25-000060 · source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001023459.json | Metric | Value | FY | Provenance | | --- | ---: | ---: | --- | | Revenue | 79,179,000 USD | 2025 | verified | | Net income | -64,718,000 USD | 2025 | verified | | Assets | 131,936,000 USD | 2025 | verified | | Free cash flow | 17,413,000 USD | 2025 | computed | | Net margin | -81.74% | 2025 | computed | | Operating margin | -89.33% | 2025 | computed | | Revenue YoY | +13.09% | 2025 | computed | | ROE | -51.86% | 2025 | computed | Computed values are grepcent-computed from the verified facts above and may differ from ratios the company itself reports. Free cash flow = operating cash flow − capital expenditures. Net margin = net income ÷ revenue. Operating margin = operating income ÷ revenue. Revenue YoY = FY2025 revenue ÷ FY2024 revenue − 1 (consecutive fiscal years only). ROE = net income ÷ period-end stockholders' equity. No market price, no rating, no forecast on this site. Not investment advice. ### Peer percentile fingerprint | Ratio | SLP | Peer median | Percentile | N | | --- | ---: | ---: | ---: | ---: | | Net margin | -81.7% | 4.9% | 0 | 17 | | Operating margin | -89.3% | 8.4% | 0 | 16 | | Revenue growth | 13.1% | 6.8% | 71 | 18 | | FCF margin | 22.0% | 9.5% | 78 | 19 | | ROE | -51.9% | 8.8% | 0 | 19 | | ROA | -49.1% | 2.6% | 0 | 20 | | Liabilities / equity | 0.06 | 0.73 | 0 | 19 | | Current ratio | 7.67 | 1.52 | 89 | 20 | Percentile = share of the N covered peers reporting that ratio whose value is lower (ties counted half); computed among grepcent-covered companies in SIC industry 7373 Services-Computer Integrated Systems Design, not the whole market. A higher percentile means a higher value of the ratio, not a better company. Ratios with fewer than 8 reporting peers are omitted. Latest reported values per company; fiscal periods may differ. Descriptive arithmetic - not a score, rating, or ranking. ## Selected Fundamentals | Metric | Value | Unit | FY | Filed | | --- | ---: | --- | ---: | --- | | Revenue | 79179000 | USD | 2025 | 2025-12-01 | | Net income | -64718000 | USD | 2025 | 2025-12-01 | | Assets | 131936000 | USD | 2025 | 2025-12-01 | ## Financials Annual standardized facts from SEC companyfacts as of latest extracted filing date 2025-12-01. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001023459.json. Derived margins, ratios, and free cash flow are computed from the extracted annual SEC facts. | Metric | 2011 | 2012 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | | --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | | Revenue | | | | | | | | | 53,906,000 | 59,577,000 | 70,013,000 | 79,179,000 | | Net income | | | 4,950,136 | 5,787,597 | 8,934,812 | 8,583,000 | 9,332,000 | 9,782,000 | 12,483,000 | 9,961,000 | 9,954,000 | -64,718,000 | | Operating income | | | 7,231,806 | 8,264,284 | 10,297,788 | 10,648,000 | 11,605,000 | 11,253,000 | 14,911,000 | 8,725,000 | 6,131,000 | -70,729,000 | | Gross profit | | | 15,370,566 | 17,830,113 | 21,672,296 | 24,944,000 | 30,940,000 | 35,866,000 | 43,084,000 | 47,947,000 | 43,151,000 | 46,221,000 | | Diluted EPS | | | 0.29 | 0.33 | 0.50 | 0.48 | 0.50 | 0.47 | 0.60 | 0.49 | 0.49 | -3.22 | | Operating cash flow | | | 5,415,209 | 6,877,739 | 9,287,188 | 11,637,000 | 10,912,000 | 19,203,000 | 17,900,000 | 21,856,000 | 13,320,000 | 18,126,000 | | Capital expenditures | | | 39,121 | 175,961 | 183,291 | 138,000 | 231,000 | 1,627,000 | 819,000 | 453,000 | 566,000 | 713,000 | | Dividends paid | | | 3,413,274 | 3,448,489 | 4,161,740 | 4,197,000 | 4,250,000 | 4,811,000 | 4,846,000 | 4,809,000 | 4,796,000 | 0.00 | | Share buybacks | 2,048,172 | 0.00 | | | | | | 0.00 | 0.00 | 20,000,000 | 0.00 | 0.00 | | Assets | | | 27,814,317 | 38,512,000 | 43,279,016 | 45,196,697 | 168,422,000 | 179,978,000 | 188,382,000 | 186,101,000 | 196,639,000 | 131,936,000 | | Liabilities | | | 5,081,723 | 12,707,581 | 11,356,391 | 7,515,093 | 12,387,000 | 14,196,000 | 10,134,000 | 16,072,000 | 14,208,000 | 7,135,000 | | Stockholders' equity | | | 22,732,594 | 25,804,887 | 31,922,625 | 37,681,000 | 156,035,000 | 165,782,000 | 178,248,000 | 170,029,000 | 182,431,000 | 124,801,000 | | Cash and cash equivalents | | | 8,030,284 | 6,215,718 | 9,401,000 | 11,434,000 | 49,207,000 | 36,984,000 | 51,567,000 | 57,523,000 | 10,311,000 | 30,853,000 | | Free cash flow | | | 5,376,088 | 6,701,778 | 9,103,897 | 11,499,000 | 10,681,000 | 17,576,000 | 17,081,000 | 21,403,000 | 12,754,000 | 17,413,000 | ### Ratios ROE and ROA use period-end equity/assets. Liabilities / equity uses total liabilities divided by stockholders' equity. Current ratio uses current assets divided by current liabilities when both are reported. | Metric | 2011 | 2012 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | | --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | | Net margin | | | | | | | | | 23.16% | 16.72% | 14.22% | -81.74% | | Operating margin | | | | | | | | | 27.66% | 14.64% | 8.76% | -89.33% | | Return on equity | | | 21.78% | 22.43% | 27.99% | 22.78% | 5.98% | 5.90% | 7.00% | 5.86% | 5.46% | -51.86% | | Return on assets | | | 17.80% | 15.03% | 20.64% | 18.99% | 5.54% | 5.44% | 6.63% | 5.35% | 5.06% | -49.05% | | Liabilities / equity | | | 0.22 | 0.49 | 0.36 | 0.20 | 0.08 | 0.09 | 0.06 | 0.09 | 0.08 | 0.06 | | Current ratio | | | 5.98 | 6.20 | 3.69 | 4.42 | 23.45 | 12.04 | 18.98 | 10.88 | 3.26 | 7.67 | ## As-reported value updates No tracked differences above grepcent's stated thresholds and capped precision rule were found between the earliest XBRL-filed value and the value currently on file for the standardized annual metrics grepcent tracks. ## Quarterly Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-07-09. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001023459.json. Flow metrics use discrete quarter-length periods from 10-Q/10-Q/A filings. Q4 revenue and net income are derived only when annual FY and nine-month YTD facts exist for the same fiscal year; derived Q4 values are labeled. EPS Q4 is not derived. | Quarter | End date | Revenue | Net income | Diluted EPS | Method | | --- | --- | ---: | ---: | ---: | --- | | 2020-Q2 | 2020-02-29 | 10,349,863 | | | reported discrete quarter | | 2020-Q3 | 2020-05-31 | 12,298,036 | | | reported discrete quarter | | 2023-Q1 | 2022-11-30 | | | 0.06 | reported discrete quarter | | 2023-Q2 | 2023-02-28 | | | 0.20 | reported discrete quarter | | 2023-Q3 | 2023-05-31 | | | 0.20 | reported discrete quarter | | 2023-Q4 | 2023-08-31 | | 534,000 | | derived Q4 = FY annual - nine-month YTD | | 2024-Q1 | 2023-11-30 | | 1,945,000 | 0.10 | reported discrete quarter | | 2024-Q2 | 2024-02-29 | | 4,029,000 | 0.20 | reported discrete quarter | | 2024-Q3 | 2024-05-31 | 18,544,000 | 3,137,000 | 0.15 | reported discrete quarter | | 2024-Q4 | 2024-08-31 | 18,664,000 | 843,000 | | derived Q4 = FY annual - nine-month YTD | | 2025-Q1 | 2024-11-30 | 18,924,000 | 206,000 | 0.01 | reported discrete quarter | | 2025-Q2 | 2025-02-28 | 22,432,000 | 3,074,000 | 0.15 | reported discrete quarter | | 2025-Q3 | 2025-02-28 | | 3,074,000 | | reported discrete quarter | | 2025-Q3 | 2025-05-31 | 20,363,000 | | -3.35 | reported discrete quarter | | 2025-Q4 | 2025-08-31 | 17,460,000 | -681,000 | | derived Q4 = FY annual - nine-month YTD | | 2026-Q1 | 2025-11-30 | 18,421,000 | 676,000 | 0.03 | reported discrete quarter | | 2026-Q2 | 2025-11-30 | | 676,000 | | reported discrete quarter | | 2026-Q2 | 2026-02-28 | 24,291,000 | | 0.22 | reported discrete quarter | | 2026-Q3 | 2026-02-28 | | 4,535,000 | | reported discrete quarter | | 2026-Q3 | 2026-05-31 | 21,886,000 | | 0.18 | reported discrete quarter | ## Filed narrative (10-K & 10-Q) ## Business Verbatim Item 1 Business section from SLP's latest 10-K: [/company/SLP/business/](/company/SLP/business/). ## Risk Factors Verbatim Item 1A Risk Factors from SLP's latest 10-K: [/company/SLP/risk-factors/](/company/SLP/risk-factors/). ## Latest quarter (10-Q) Latest 10-Q source: https://www.sec.gov/Archives/edgar/data/1023459/000102345926000038/simu-20260531.htm Extracted structurally from real Item 2 body heading to real Item 3/4 boundary. Confidence: high Filing date: 2026-07-09 Report date: 2026-05-31 ITEM 2 – MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Executive Overview Our clients face many challenges. Developing new therapies is time-consuming and expensive, requiring an average of 10-15 years and an average cost of approximately $2.2 billion to develop a single drug. Drug sponsors must prioritize not only efficacy and safety of the drug, but also issues like drug-drug interactions, inclusion of patients representative of the indicated population, regulatory approvals, minimization of animal testing, safety and compliance during clinical trials, and commercial success. Our clients face many macroeconomic issues including the current attention on global drug pricing resulting in temporary reduction in R&D spending on the part of pharmaceutical and biotech companies. Table of Contents Our software and services allow clients to use modeling and simulation to accelerate drug development, reduce the costs of R&D, comply with regulatory guidance and best practices, and increase confidence in the safety and efficacy of their drugs and biologics. Our adaptive learning solutions support the success of clinical trials by accelerating recruitment of an appropriate patient population, increasing retention of participants, and by driving competency and compliance with trial protocols, while our medical communications solutions provide support in obtaining regulatory approval and commercialization of drugs. The Company is headquartered in Research Triangle Park, North Carolina, and has a European office in Paris, France. The Company has a remote work culture that supports employee work-life balance and minimizes its carbon footprint. Forward-Looking Statements This quarterly report and the documents incorporated in this Quarterly Report by reference contain forward-looking statements that are subject to risks and uncertainties. All statements other than statements of historical fact contained in this Quarterly Report and the materials accompanying this document are forward-looking statements. The forward-looking statements are based on the beliefs of our management, as well as assumptions made by and information currently available to our management. Frequently, but not always, forward-looking statements are identified by the use of the future tense and by words such as “believes,” “expects,” “anticipates,” “intends,” “will,” “may,” “could,” “would,” “projects,” “continues,” “estimates,” or similar expressions. Forward-looking statements are not guarantees of future performance and actual results could differ materially from those indicated by the forward-looking statements. Forward-looking statements involve known and unknown risks, uncertainties, and other factors that may cause our or our industry’s actual results, levels of activity, performance, or achievements to be materially different from any future results, levels of activity, performance, or achievements expressed or implied by the forward-looking statements. The forward-looking statements contained or incorporated by reference in this Quarterly Report are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (“Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (“Exchange Act”), and are subject to the safe harbor created by the Private Securities Litigation Reform Act of 1995. These statements include declarations regarding our plans, intentions, beliefs, or current expectations. The forward-looking statements contained primarily in this Quarterly Report include but are not limited to: •the proposed Merger and the anticipated timing, completion of the transaction; •the ability of the parties to satisfy the conditions to closing the Merger, including obtaining stockholder approval and required regulatory approvals; •the expected timing and outcome of the stockholder meeting relating to the proposed Merger; •the availability and sufficiency of financing arrangements for the proposed Merger and the potential impact of any financing-related developments on the timing or completion of the transaction; •the Company's business, operating strategy, and strategic initiatives pending completion of the Merger; •anticipated operating results, financial performance, cash flows, liquidity, and capital resources; •expected demand for the Company's software products and consulting services; •investments in research and development, including cloud-enabled platforms and artificial intelligence-enabled capabilities; •expected revenues, gross margins, operating expenses, profitability, and tax rates; •capitalized software development costs, goodwill, intangible assets, and impairment assessments; •expected future acquisitions, strategic partnerships, and investments; •the impact of recently issued accounting standards; and •other statements that are not historical facts. Among the important factors that could cause actual results to differ materially from those indicated by forward-looking statements are the risks and uncertainties described under “Risk Factors” in our Annual Report on Form 10-K for the year ended August 31, 2025, filed with the Securities and Exchange Commission (“SEC”) on December 1, 2025, as updated by Part II, Item 1A "Risk Factors" in this Quarterly Report on Form 10-Q and elsewhere in this document and in our other filings with the SEC. Table of Contents Forward-looking statements are expressly qualified in their entirety by this cautionary statement. The forward-looking statements included in this Quarterly Report are made as of the date of this filing and we do not undertake any obligation to update forward-looking statements to reflect new information, subsequent events, or otherwise. Our historical results are not necessarily indicative of the results that may be expected for any period in the future. Results of Operations Comparison of Three Months Ended May 31, 2026, and May 31, 2025 Table of Contents [[GREPCENT_TABLE]] [["(in thousands)","","Three Months Ended","","% of Revenue"],["","","May 31, 2026","","May 31, 2025","","May 31, 2026","","May 31, 2025","","$ Change","","% Change"],["Revenues"],["Software","","$","12,608","","","$","12,615","","","58","%","","62","%","","$","(7)","","","0","%"],["Services","","9,278","","","7,748","","","42","%","","38","%","","1,530","","","20","%"],["Total revenues","","21,886","","","20,363","","","100","%","","100","%","","1,523","","","7","%"],["Cost of revenue"],["Software","","1,513","","","2,540","","","7","%","","12","%","","(1,027)","","","-40","%"],["Services","","5,246","","","4,791","","","24","%","","24","%","","455","","","9","%"],["Total cost of revenues","","6,759","","","7,331","","","31","%","","36","%","","(572)","","","-8","%"],["Gross profit","","15,127","","","13,032","","","69","%","","64","%","","2,095","","","16","%"],["Research and development","","3,406","","","1,216","","","16","%","","6","%","","2,190","","","180","%"],["Sales and marketing","","2,538","","","2,680","","","12","%","","13","%","","(142)","","","-5","%"],["General and administrative","","4,684","","","6,141","","","21","%","","30","%","","(1,457)","","","-24","%"],["Impairments","","\u2014","","","77,221","","","0","%","","379","%","","(77,221)","","","NM"],["Total operating expenses","","10,628","","","87,258","","","49","%","","429","%","","(76,630)","","","-88","%"],["Income (loss) from operations","","4,499","","","(74,226)","","","21","%","","-365","%","","78,725","","","-106","%"],["Other income, net","","307","","","182","","","1","%","","1","%","","125","","","69","%"],["Income (loss) before income taxes","","4,806","","","(74,044)","","","22","%","","-364","%","","78,850","","","-106","%"],["Income tax (expense) benefit","","(1,231)","","","6,727","","","-6","%","","33","%","","(7,958)","","","-118","%"],["Net income (loss)","","$","3,575","","","$","(67,317)","","","16","%","","-331","%","","$","70,892","","","-105","%"]] [[/GREPCENT_TABLE]] Revenues Revenues increased by $1.5 million, or 7%, to $21.9 million for the three months ended May 31, 2026, compared to $20.4 million for the three months ended May 31, 2025. This increase is primarily due to a $1.5 million, or 20%, increase in service-related revenue when compared to the three months ended May 31, 2025. The software-related revenue was flat compared to the three months ended May 31, 2025. The service-related revenue increase of $1.5 million, or 20%, compared to the three months ended May 31, 2025, was primarily due to organic revenue growth of $1.5 million from Development solutions. Cost of revenues Cost of revenues decreased by $0.6 million, or 8%, for the three months ended May 31, 2026, compared to the three months ended May 31, 2025. This decrease is primarily due to a $1.0 million, or 40%, decrease in software-related costs, partially offset by a $0.5 million, or 9%, increase in service-related costs. The software-related costs decrease of $1.0 million, or 40%, compared to the three months ended May 31, 2025, was primarily due to less amortization of $1.1 million, mainly due to the impairment of the Pro-ficiency developed technology in the third quarter of fiscal 2025. The service-related costs increased $0.5 million, or 9%, compared to the three months ended May 31, 2025; the increase was primarily due to higher fulfillment costs associated with increased client services activity. The modest increase in service-related costs relative to revenue growth also reflected improved operating efficiency from headcount reductions implemented in the third quarter of fiscal 2025, and organizational changes that shifted certain internal resources from supporting services to research and development, improved billable utilization, and higher average yields. Gross profit Table of Contents Gross profit increased $2.1 million, or 16%, to $15.1 million for the three months ended May 31, 2026, compared to $13.0 million for the three months ended May 31, 2025. This increase was primarily driven by higher revenues, lower software-related costs, organizational changes that shifted certain internal resources from supporting services to research and development, improved billable utilization, and higher average yields. Software gross profit increased by $1.0 million to 88% gross margin compared to 80% gross margin for the three months ended May 31, 2025. This improvement was primarily driven by lower software-related costs, largely reflecting reduced amortization expense mainly due to the impairment of the Pro-ficiency developed technology in the third quarter of fiscal 2025. Services gross profit increased by $1.1 million to 43% gross margin compared to 38% gross margin for the three months ended May 31, 2025. The increase was primarily attributable to higher services revenue from increased client services activity within Development solutions, as well as improved operating efficiency driven by headcount reductions implemented in the third quarter of fiscal 2025, organizational changes that shifted certain internal resources from supporting services to research and development, higher billable utilization, and higher average yields. Overall gross margin was 69% for the three months ended May 31, 2026, compared to 64% for the three months ended May 31, 2025, primarily due to higher services revenue, lower software amortization expense, organizational changes that shifted certain internal resources from supporting services to research and development, higher billable utilization, and higher average yields. Research and development We incurred $4.1 million of research and development costs during the three months ended May 31, 2026. Of this amount, $0.7 million was capitalized as part of capitalized software development costs, and $3.4 million was expensed. We incurred $2.1 million of research and development costs during the three months ended May 31, 2025. Of [Excerpt truncated for page length; source filing is linked above.] ## Latest 10-K MD&A (excerpt) Latest 10-K Item 7 source: https://www.sec.gov/Archives/edgar/data/1023459/000102345925000060/simu-20250831.htm Complete FY 2025 MD&A: /company/SLP/mda/fy2025/ Extracted structurally from real Item 7 body heading to real Item 7A/8 boundary. Confidence: high Filing date: 2025-12-01 Report date: 2025-08-31 ITEM 7 – MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS The following Management’s Discussion and Analysis is intended to assist the reader in understanding our results of operations and financial condition. Management’s Discussion and Analysis is provided as a supplement to, and should be read in conjunction with, our audited consolidated financial statements beginning on page F-1 of this Report. This Report includes certain statements that may be deemed to be “forward-looking statements” within the meaning of Section 27A of the Securities Act. All statements, other than statements of historical fact, included in this Report that address activities, events or developments that we expect, project, believe, or anticipate will or may occur in the future, including matters having to do with expected and future revenue, our ability to fund our operations and repay debt, business strategies, expansion and growth of operations and other such matters, are forward-looking statements. These statements are based on certain assumptions and analyses made by our management in light of its experience and its perception of historical trends, current conditions, expected future developments, and other factors it believes are appropriate in the circumstances. These statements are subject to a number of assumptions, risks and uncertainties, including general economic and business conditions, the business opportunities (or lack thereof) that may be presented to and pursued by us, our performance on our current contracts and our success in obtaining new contracts, our ability to attract and retain qualified employees, and other factors, many of which are beyond our control. You are cautioned that these forward-looking statements are not guarantees of future performance and those actual results or developments may differ materially from those projected in such statements. Executive Overview Our clients face many challenges. Developing new therapies is time-consuming and expensive, requiring an average of 10-15 years and an average cost of approximately $2.2 billion to develop a single drug. Drug sponsors must prioritize not only efficacy and safety of the drug, but also issues like drug-drug interactions, inclusion of patients representative of the indicated population, regulatory approvals, minimization of animal testing, safety and compliance during clinical trials, and commercial success. Our MIDD software and services allow clients to use modeling and simulation to accelerate drug development, reduce the costs of R&D, comply with regulatory guidance and best practices, and increase confidence in the safety and efficacy of their drugs and biologics. Our adaptive learning solutions support the success of clinical trials by accelerating recruitment of an appropriate patient population, increasing retention of participants, and by driving competency and compliance with trial protocols, while our medical communications solutions provide support in obtaining regulatory approval and commercialization of drugs. The Company was previously headquartered in Southern California; however, in support of the Company's remote work culture and plan to reduce excess office space to achieve its carbon footprint reduction targets, the Company fully exited four office locations in Lancaster, California; Raleigh, North Carolina; Buffalo, New York; and Pittsburgh, Pennsylvania. As a result, the company moved its headquarters from Lancaster, California, to Research Triangle Park, North Carolina, and also maintains a European office in Paris, France. 33 Table of Contents Results of Operations Comparison of fiscal years ended 2025 and 2024 [[GREPCENT_TABLE]] [["(in thousands)","","Years ended","","% of Revenue"],["","","August 31, 2025","","August 31, 2024","","August 31, 2025","","August 31, 2024","","$ Change","","% Change"],["Revenue","","$","79,179","","","$","70,013","","","100","%","","100","%","","$","9,166","","","13","%"],["Cost of revenue","","32,958","","","26,862","","","42","%","","38","%","","6,096","","","23","%"],["Gross profit","","46,221","","","43,151","","","58","%","","62","%","","3,070","","","7","%"],["Research and development","","6,884","","","5,754","","","9","%","","8","%","","1,130","","","20","%"],["Sales and marketing","","11,904","","","8,915","","","15","%","","13","%","","2,989","","","34","%"],["General and administrative","","20,941","","","22,351","","","26","%","","32","%","","(1,410)","","","(6)","%"],["Impairments","","77,221","","","\u2014","","","98","%","","NM","","77,221","","","NM"],["Total operating expenses","","116,950","","","37,020","","","148","%","","53","%","","79,930","","","216","%"],["(Loss) income from operations","","(70,729)","","","6,131","","","(89)","%","","9","%","","(76,860)","","","(1,254)","%"],["Other income, net","","1,352","","","6,280","","","2","%","","9","%","","(4,928)","","","(78)","%"],["(Loss) income before income taxes","","(69,377)","","","12,411","","","(88)","%","","18","%","","(81,788)","","","(659)","%"],["Income tax benefit (expense)","","4,659","","","(2,457)","","","6","%","","(4)","%","","7,116","","","(290)","%"],["Net (loss) income","","$","(64,718)","","","$","9,954","","","(82)","%","","14","%","","$","(74,672)","","","(750)","%"]] [[/GREPCENT_TABLE]] Revenues Revenues increased by $9.2 million, or 13%, to $79.2 million for the fiscal year ended August 31, 2025, compared to $70.0 million for the fiscal year ended August 31, 2024. This increase is attributable to twelve months of revenue or $11.7 million from the Pro-ficiency acquisition in fiscal year ended August 31, 2025, versus $2.3 million in fiscal year ended August 31, 2024. Cost of revenues Cost of revenues increased by $6.1 million, or 23%, for the fiscal year ended August 31, 2025, compared to the fiscal year ended August 31, 2024. This increase is primarily due to a $3.2 million or 49%, increase in software-related cost and a $2.9 million or 14%, increase in service-related costs. The software-related costs increase of $3.2 million or 49%, compared to the fiscal year ended August 31, 2024, was primarily due to $1.8 million from amortization of developed technology from the acquisition of Pro-ficiency, and $1.1 million of higher amortization of capitalized software cost driven by the release of GastroPlus in May 2024, offset by a decrease of $0.4 million of fully amortized TSRL in the third quarter of fiscal year 2024. The service-related costs increase of $2.9 million or 14%, compared to the fiscal year ended August 31, 2024, was primarily due to additional pass-through cost of $4.2 million, offset by $1.4 million of lower accrued bonuses due to Company performance. Gross profit Gross profit increased by $3.1 million, or 7%, to $46.2 million for the fiscal year ended August 31, 2025, compared to $43.2 million for the fiscal year ended August 31, 2024. Overall gross margin percentage was 58% and 62% for the fiscal year ended August 31, 2025 and August 31, 2024, respectively. Gross margin decline is largely attributable to the underperformance of Pro-ficiency revenues. Research and development We incurred $9.8 million of R&D costs during the fiscal year ended August 31, 2025. Of this amount, $3.0 million was capitalized as a part of capitalized software development costs and $6.9 million was expensed. We incurred $9.0 million of research and development costs during the fiscal year ended August 31, 2024. Of this amount, $3.3 million was capitalized and $5.8 million was expensed. R&D spend increased by $0.8 million, or 9%, for the fiscal year ended August 31, 2025, 34 Table of Contents compared to the fiscal year ended August 31, 2024. The increase is mainly attributable to R&D spend of $1.1 million due to increased headcount in fiscal year ended August 31, 2025 compared to the fiscal year ended August 31, 2024. R&D spend as a percentage of revenue remained consistent at 8% to 9% range for both periods. Sales and marketing expenses Sales and marketing expenses increased by $3.0 million, or 34%, to $11.9 million for the fiscal year ended August 31, 2025, compared to $8.9 million for the fiscal year ended August 31, 2024. This corresponds to a 2% increase in sales and marketing expense as a percentage of revenue. The increase was primarily due to increased headcount costs of $1.3 million, $0.8 million increases to commissions to distributors, $0.5 million in higher event-related spending to enhance brand awareness and client engagement, $0.3 million incurred to support our business development efforts, and increased sales commission to employees of $0.2 million, offset by decrease in bonus expense of $0.3 million. General, and administrative expenses G&A expenses decreased $1.4 million, or 6%, to $20.9 million for the fiscal year ended August 31, 2025, compared to $22.4 million for the fiscal year ended August 31, 2024. This corresponds to 5% decrease in G&A expense as a percentage of revenue. The decrease is primarily driven by $2.7 million in mergers and acquisition expense, decrease in facility costs of $0.3 million driven by a reduction in office spaces, and a decrease of $0.4 million in bonus expense, offset by an increase in reorganization expense of $0.7 million in charges in connection with the restructuring, consisting of severance payments, employee benefits, and related costs, increase in $0.4 million of office space restructuring costs due to lease terminations, and an increase of $0.9 million from increased headcount. Impairments During the fiscal year ended August 31, 2025, the Company identified the underperformance of revenue at certain reporting units relative to forecasts utilized in purchase price allocations and the significant stock price decline in relative terms and comparison to peers as a triggering event as of May 31, 2025, indicating goodwill, other intangibles and long-lived assets may be impaired. As a result of the impairment test performed, the Company determined goodwill, other intangibles and certain long-lived assets were impaired for its Software and Services reporting units and recorded impairment charges of $37.1 million and $40.1 million, respectively. No impairment was recognized for the fiscal year ended August 31, 2024. Other income Total other income was $1.4 million for the fiscal year ended August 31, 2025, compared to total other income of $6.3 million for the fiscal year ended August 31, 2024. The decrease of $4.9 million is due to the decrease in interest income of $3.7 million, $1.0 million decrease in the fair value of the Immunetrics earnout liability, and a decrease of $0.4 million due to a foreign currency exchange. Income tax benefit (expense) Income tax benefit was $4.7 million for the fiscal year ended August 31, 2025, compared to income tax expense of $2.5 million for the fiscal year ended August 31, 2024. Our effective tax rate decreased to 7% for the fiscal year ended August 31, 2025 from 20% for the fiscal year ended August 31, 2024 primarily due to the permanent item associated with the impairment of goodwill made during the fiscal year ended August 31, 2025. 35 Table of Contents Comparison of fiscal years ended 2024 and 2023 [Excerpt truncated for page length; the complete text is on the linked full-MD&A page.] Read the full FY 2025 MD&A: /company/SLP/mda/fy2025/ All MD&A years: /company/SLP/mda/ ## MD&A history Prior-year 10-K MD&A spans are extracted from SEC filings with the same bounded parser used for the latest filing. Each year's full verbatim text is on its own sub-page. - [FY 2024 MD&A](/company/SLP/mda/fy2024/): filed 2024-10-30; accession 0001023459-24-000136 (https://www.sec.gov/Archives/edgar/data/1023459/000102345924000136/simu-20240831.htm) - [FY 2023 MD&A](/company/SLP/mda/fy2023/): filed 2023-10-27; accession 0001023459-23-000124 (https://www.sec.gov/Archives/edgar/data/1023459/000102345923000124/simu-20230831.htm) - [FY 2022 MD&A](/company/SLP/mda/fy2022/): filed 2022-10-28; accession 0001023459-22-000080 (https://www.sec.gov/Archives/edgar/data/1023459/000102345922000080/simu-20220831.htm) - [FY 2021 MD&A](/company/SLP/mda/fy2021/): filed 2021-10-27; accession 0001683168-21-005076 (https://www.sec.gov/Archives/edgar/data/1023459/000168316821005076/simulations_10k-083121.htm) ## Macro cross-references Indicators mapped to this company's SIC classification (industry 7373 Services-Computer Integrated Systems Design) by grepcent's deterministic macro-sector crosswalk. A navigational mapping, not a statistical or causal claim. - [PAYEMS](/indicator/PAYEMS/): All Employees, Total Nonfarm - [CES0500000003](/indicator/CES0500000003/): Average Hourly Earnings of All Employees, Total Private - [DGS10](/indicator/DGS10/): Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity Macro-to-micro threads including this sector: [US labor market](/thread/us-labor-market/), [Growth & output](/thread/growth-output/), [Government finances](/thread/government-finances/), [Sector employment](/thread/sector-employment/). All macro indicators: /indicators/ ## For LLMs & downloads Markdown twin: /company/SLP.md · JSON record: /company/SLP.json · verified financials: /company/SLP/financials.json / /company/SLP/financials.csv · machine TOC for the whole site: /llms.txt