simu-20251130

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM 10-Q


x			Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the quarterly period ended November 30, 2025

OR

o			Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the transition period from ______ to ______

Commission file number: 001-32046

Simulations Plus, Inc.

(Name of registrant as specified in its charter)


California			95-4595609
(State or other jurisdiction of Incorporation or Organization)			(I.R.S. Employer Identification No.)

800 Park Offices Drive, Suite 401

Research Triangle Park, NC 27709

(Address of principal executive offices including zip code)

(661) 723-7723

(Registrant’s telephone number, including area code)

SECURITIES REGISTERED PURSUANT TO SECTION 12(b) OF THE ACT:


Title of Each Class Common Stock, par value $0.001 per share			Trading Symbol SLP			Name of Each Exchange on Which Registered NASDAQ Stock Market LLC

Indicate by check mark whether the registrant (1) filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No o

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes x No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act (Check one):


o	Large accelerated Filer	o	Accelerated Filer
x	Non-accelerated Filer	x	Smaller reporting company
o	Emerging Growth Company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes o No x

The number of shares outstanding of the registrant’s common stock, par value $0.001 per share, as of December 31, 2025, was 20,146,585.

Table of Contents

Simulations Plus, Inc.

FORM 10-Q

For the Quarterly Period Ended November 30, 2025

Table of Contents


	PART I. FINANCIAL INFORMATION
		Page
Item 1.	C ondensed Consolidated Financial Statements

	Unaudited C ondensed Consolidated Balance Sheets at November 30 , 2025 and August 31, 202 5	3

	Unaudited C ondensed Consolidated Statements of Operations and Comprehensive Income for the three months ended November 30 , 2025 and November 30, 2024	4

	Unaudited C ondensed Consolidated Statements of Shareholders’ Equity for the three months ended November 30, 2025 and November 30, 2024	5

	Unaudited C ondensed Consolidated Statements of Cash Flows for the three months ended November 30 , 2025 and Novem ber 30, 2024	6

	Notes to Condensed Consolidated Financial Statements	7

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	24

Item 3.	Quantitative and Qualitative Disclosures about Market Risk	31

Item 4.	Controls and Procedures	31

	PART II. OTHER INFORMATION

Item 1.	Legal Proceedings	31

Item 1A.	Risk Factors	32

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	32

Item 3.	Defaults upon Senior Securities	32

Item 4.	Mine Safety Disclosures	32

Item 5.	Other Information	32

Item 6.	Exhibits	33

	Signatures	34

PART I. FINANCIAL INFORMATION

Item 1. Unaudited Condensed Consolidated Financial Statements

Table of Contents

SIMULATIONS PLUS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)



(in thousands, except per common share and common share data)	November 30, 2025		August 31, 2025
ASSETS
Current assets
Cash and cash equivalents	$	30,189	$	30,853
Accounts receivable, net of allowance for credit losses of $93 and $187	12,154		9,717
Prepaid income taxes	1,745		1,777
Prepaid expenses and other current assets	8,552		7,702
Short-term investments	5,500		1,500
Total current assets	58,140		51,549
Long-term assets
Capitalized computer software development costs, net of accumulated amortization of $22,604 and $21,863	11,290		11,117
Property and equipment, net	793		880
Operating lease right-of-use assets	390		407
Intellectual property, net of accumulated amortization of $9,287 and $9,021	5,931		6,197
Other intangible assets, net of accumulated amortization of $4,651 and $4,399	11,580		11,896
Goodwill	43,717		43,717

Deferred tax assets, net	4,606		4,774
Other assets	1,384		1,399
Total assets	$	137,831	$	131,936

LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Accounts payable	$	863	$	470
Accrued compensation	2,657		2,010
Accrued expenses	922		1,343


Operating lease liability - current portion	179		206
Deferred revenue	5,719		2,696
Total current liabilities	10,340		6,725
Long-term liabilities

Operating lease liability - net of current portion	378		410

Total liabilities	10,718		7,135
Commitments and contingencies - Note 4
Shareholders' equity
Preferred stock, $0.001 par value — 10,000,000 shares authorized; no shares issued and outstanding	$	—	$	—
Common stock, $0.001 par value; 50,000,000 shares authorized, 20,146,585 and 20,137,480 shares issued and outstanding as of November 30, 2025 and August 31, 2025	20		20
Additional paid-in capital	161,058		159,416
Accumulated deficit	(33,688)		(34,364)
Accumulated other comprehensive loss	(277)		(271)
Total shareholders' equity	127,113		124,801
Total liabilities and shareholders' equity	$	137,831	131,936

The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.

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SIMULATIONS PLUS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME

(Unaudited)


	Three Months Ended
(in thousands, except per common share and common share data)	November 30, 2025		November 30, 2024
Revenues
Software	$	8,883	$	10,715
Services	9,538		8,209
Total revenues	18,421		18,924
Cost of revenues
Software	1,412		2,638
Services	6,118		6,068
Total cost of revenues	7,530		8,706
Gross profit	10,891		10,218
Operating expenses
Research and development	2,980		1,848
Sales and marketing	3,179		2,851
General and administrative	4,019		5,393

Total operating expenses	10,178		10,092

Income from operations	713		126

Other income, net	257		144

Income before income taxes	970		270
Income tax expense	(294)		(64)
Net income	$	676	$	206

Earnings per share
Basic	$	0.03	$	0.01
Diluted	$	0.03	$	0.01

Weighted-average common shares outstanding
Basic	20,140		20,068
Diluted	20,220		20,266

Other comprehensive (loss) income, net of tax
Foreign currency translation adjustments	(6)		(42)
Unrealized gains (losses) on available-for-sale securities	—		4
Comprehensive income	$	670	$	168

The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.

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SIMULATIONS PLUS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY

(Unaudited)


(in thousands, except common share data)	Common Stock			Additional Paid-In Capital		Accumulated Deficit		Accumulated Other Comprehensive Loss		Total Stockholders' Equity
	Shares	Amount
Balance as of September 1, 2025	20,137,480	$	20	$	159,416	$	(34,364)	$	(271)	$	124,801
Exercise of stock options	250	—		2		—		—		2
Stock-based compensation	—	—		1,490		—		—		1,490
Shares issued to Directors for services	8,855	—		150		—		—		150
Net income	—	—				676		—		676
Other comprehensive loss	—	—		—		—		(6)		(6)
Balance as of November 30, 2025	20,146,585	$	20	$	161,058	$	(33,688)	$	(277)	$	127,113


(in thousands, except common share data)	Common Stock			Additional Paid-In Capital		Retained Earnings		Accumulated Other Comprehensive Loss		Total Stockholders' Equity
	Shares	Amount
Balance as of September 1, 2024	20,051,134	$	20	$	152,308	$	30,354	$	(251)	$	182,431
Exercise of stock options	28,920	—		288		—		—		288
Stock-based compensation	—	—		1,673		—		—		1,673
Shares issued to Directors for services	4,960	—		135		—		—		135
Net income	—	—		—		206		—		206
Other comprehensive loss	—	—		—		—		(38)		(38)
Balance as of November 30, 2024	20,085,014	$	20	$	154,404	$	30,560	$	(289)	$	184,695

The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.

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SIMULATIONS PLUS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)


	Three Months Ended

(in thousands)		November 30, 2025		November 30, 2024
Cash flows from operating activities
Net income		$	676	$	206
Adjustments to reconcile net income to net cash provided by (used in) operating activities
Depreciation and amortization		1,346		2,265


Amortization of investment discounts		—		(39)
Stock-based compensation		1,615		1,724
Deferred income taxes		168		40
Loss from disposal of assets		75		—
Unrealized gains (losses) on available-for-sale securities		—		4

SEC Form 10-Q filed by Simulations Plus Inc.