Simulations Plus, Inc. (SLP) Q1 2026 Earnings Call

Investor webinar replay

Replay transcript excerpt

After management's commentary, we will open the call for questions. As a reminder, the information discussed today may include forward-looking statements that involve risks and uncertainties. Words like believe, expect, and anticipate refer to our best estimates as of this call, and actual future results could differ significantly from these statements. Further information on the company's risk factors is contained in the company's quarterly and annual reports and filed with the Securities and Exchange Commission. In the remarks or responses to questions, management may mention some non-GAAP financial measures. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP measures are available in the most recent earnings release available on the company's website. Please refer to the reconciliation tables in the accompanying materials for additional information. With that, I'll turn the call over to Sean O'Connor. Please go ahead. Thank you, and Happy New Year to everyone. We delivered on the first quarter top line guidance we communicated in December, with revenue decreasing 3% as expected. Adjusted EBITDA was 3.5 million, and adjusted EPS was 13 cents, in line with our internal expectations. Turning to the macro environment, the positive trends we cited last quarter continued to present themselves. At the global level, most favored nation pricing agreements are moving forward, Tariff threats have subsided, and the biotech funding environment is improving. At the regulatory level, the FDA recently issued NAM guidelines for review, as well as support of in silico methodologies. We begin to see an uptick in spending at the client level, which is reflected in good performance in our services segment, both revenue and bookings. We've experie...