Simulations Plus Reports 8% Q2 Revenue Growth Amid Neutral Analyst Outlook

Key Facts

1Q2 revenue grew 8% YoY to $24.3M.

2Software renewals reached 91% with services backlog expanding by 18% YoY.

3The stock trades at ~14x blended earnings, appearing cheap historically but expensive on GAAP metrics.

Simulations Plus (SLP) reported its Q2 2026 financial results, highlighted by an 8% year-over-year revenue increase to $24.3 million. Operational metrics remained robust, with software renewal rates hitting 91% and the services backlog expanding by 18% compared to the previous year. Despite the steady performance, analysts maintain a 'Hold' rating on the stock due to sluggish cash flow growth and valuation complexities. The stock currently trades at approximately 14x blended earnings, which appears historically attractive but remains expensive on a GAAP basis. These results suggest a stabilization phase for the company rather than a breakout performance, keeping market sentiment neutral. Investors are now focused on whether the expanding backlog will translate into accelerated earnings growth in the near term.