Exhibit 99.1
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Simulations Plus Reports Third Quarter Fiscal 2026 Financial Results


RESEARCH TRIANGLE PARK, NC, July 9, 2026 – Simulations Plus, Inc. (Nasdaq: SLP) (“Simulations Plus” or the “Company”), a global leader in model-informed and AI-accelerated drug development that advances biopharma innovation, today reported financial results for its third quarter fiscal 2026, ended May 31, 2026.

Third Quarter 2026 Financial Highlights (as compared to third quarter 2025)

•Total revenue increased 7% to $21.9 million
•Software revenue was flat at $12.6 million, representing 58% of total revenue
•Services revenue increased 20% to $9.3 million, representing 42% of total revenue
•Gross profit was $15.1 million and gross margin was 69%, compared to $13.0 million and 64%
•Net income of $3.6 million and diluted earnings per share of $0.18, compared to net loss of $67.3 million and diluted losses per share of $3.35
•Adjusted EBITDA of $7.9 million, representing 36% of total revenue, compared to $7.4 million, representing 37% of total revenue
•Adjusted net income of $6.1 million and adjusted diluted EPS of $0.30 compared to adjusted net income of $9.0 million and adjusted diluted EPS of $0.45

Nine Months 2026 Financial Highlights (as compared to nine months 2025)

•Total revenue increased 5% to $64.6 million
•Software revenue decreased 2% to $36.1 million, representing 56% of total revenue
•Services revenue increased 14% to $28.5 million, representing 44% of total revenue
•Gross profit was $42.2 million and gross margin was 65%, compared to $36.4 million and 59%
•Net income of $8.8 million and diluted earnings per share of $0.43, compared to net loss of $64.0 million and diluted losses per share of $3.19
•Adjusted EBITDA of $20.2 million, representing 31% of total revenue, compared to $18.5 million, representing 30% of total revenue
•Adjusted net income of $15.7 million and adjusted diluted EPS of $0.78, compared to $18.7 million and adjusted diluted EPS of $0.93

Management Commentary

“We delivered solid third quarter results, with revenue increasing 7%, highlighted by strength in our services revenue, which grew 20%, while software revenue was flat year over year,” said Shawn O'Connor, Chief Executive Officer of Simulations Plus. “Our performance reflects the resilience of our business model and the value our solutions provide to clients across the drug development lifecycle.”

“Subsequent to quarter end, on June 15, 2026, we entered into a definitive merger agreement to be acquired by affiliates of Altaris, LLC (“Altaris”). We believe the transaction better positions Simulations Plus to further advance its scientific leadership and expand the impact of our model-informed and AI-enabled solutions. As we move toward the expected closing in the fourth quarter of calendar 2026, we remain focused on delivering for our clients and executing at a high level throughout this transition.”

Non-GAAP Financial Measures
This press release contains “non-GAAP financial measures,” which are measures that either exclude or include amounts that are not excluded or included in the most directly comparable measures calculated and presented in accordance with U.S. generally accepted accounting principles (“GAAP”).

A further explanation and reconciliation of these non-GAAP financial measures is included below and in the financial tables in this release.

The Company believes that the non-GAAP financial measures presented facilitate an understanding of operating performance and provide a meaningful comparison of its results between periods. The Company’s management uses non-GAAP financial measures to, among other things, evaluate its ongoing operations in relation to historical results, for internal planning and forecasting purposes, and in the calculation of performance-based compensation. Adjusted EBITDA and Adjusted Diluted EPS represent measures that we believe are customarily used by investors and analysts to evaluate the financial performance of companies in addition to the GAAP measures that we present. Our management also believes that these measures are useful in evaluating our core operating results. However, Adjusted EBITDA and Adjusted Diluted EPS are not measures of financial performance under accounting principles generally accepted in the United States of America and should not be considered an alternative to net income, operating income, or diluted EPS as indicators of our operating performance or to net cash provided by operating activities as a measure of our liquidity. We believe the Company’s Adjusted EBITDA and Adjusted Diluted EPS measures provide information that is directly comparable to that provided by other peer companies in our industry, but other companies may calculate non-GAAP financial results differently, particularly related to nonrecurring, unusual items.

Please note that the Company has not reconciled the adjusted EBITDA or adjusted diluted earnings per share forward-looking guidance included in this press release to the most directly comparable GAAP measures because this cannot be done without unreasonable effort due to the variability and low visibility with respect to costs related to acquisitions, financings, and employee stock compensation programs, which are potential adjustments to future earnings. We expect the variability of these items to have a potentially unpredictable, and a potentially significant, impact on our future GAAP financial results.

Adjusted EBITDA

Adjusted EBITDA represents net income excluding the effect of interest expense (income), provision (benefit) for income taxes, depreciation and amortization, equity-based compensation expense, loss (gain) on currency exchange, impairment charges, change in fair value of contingent consideration, reorganization expense, acquisition and integration expense, and other items not indicative of our ongoing operating performance.

Adjusted Net Income and Adjusted Diluted EPS

Adjusted net income and adjusted diluted earnings per share exclude the effect of amortization, equity-based compensation expense, loss (gain) on currency exchange, impairment charges, change in fair value of contingent consideration, reorganization expense, acquisition and integration expense, and other items not indicative of our ongoing operating performance as well as the income tax provision adjustment for such charges.

The Company excludes the above items because they are outside of the Company’s normal operations and/or, in certain cases, are difficult to forecast accurately.

About Simulations Plus, Inc.
Simulations Plus is a global leader in model-informed and AI-accelerated drug development. We create value for our clients by accelerating the discovery, development, and commercialization of pharmaceuticals and other products through innovative science-based software and consulting solutions. For more information, visit www.simulations-plus.com.

Forward-Looking Statements
Except for historical information, the matters discussed in this press release are forward-looking statements that involve risks and uncertainties. Words like “believe,” “will”, “can”, “expect,” “anticipate,” and similar expressions (or the negative of such terms, as well as other words or expressions referencing future events, conditions, or circumstances) mean that these are our best estimates as of this writing, but there can be no assurances that expected or anticipated results or events will actually take place, so our actual future results could differ significantly from those statements. Forward-looking statements include but are not limited to statements regarding the effects of the definitive merger agreement, the anticipated closing date, and our fiscal year 2026 guidance. These forward-looking statements are based on current assumptions and expectations that involve risks and uncertainties that could cause the actual results to differ materially from those expressed or implied. Factors that could cause or contribute to such differences include, but are not limited to: effectiveness of our internal operational structure, our ability to maintain our competitive advantages and commercialize AI and cloud-enabled solutions, evolving regulatory and data privacy standards governing AI technologies, acceptance of new software and improved versions of our existing software by our customers, the general economics of the pharmaceutical industry, our ability to finance growth, our ability to continue to attract and retain highly qualified technical staff, market conditions, macroeconomic factors, and a sustainable market. Further information on our risk factors is contained in our quarterly, annual, and current reports and filed with the U.S. Securities and Exchange Commission.

Investor Relations Contact:
Lisa Fortuna
Financial Profiles
310-622-8251
slp@finprofiles.com
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SIMULATIONS PLUS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
(Unaudited)
Three Months EndedNine Months Ended
(in thousands, except per common share and common share data)May 31, 2026May 31, 2025May 31, 2026May 31, 2025
Revenues
Software$12,608 $12,615 $36,126 $36,814 
Services9,278 7,748 28,472 24,905 
Total revenues21,886 20,363 64,598 61,719 
Cost of revenues
Software1,513 2,540 4,573 7,765 
Services5,246 4,791 17,864 17,577 
Total cost of revenues6,759 7,331 22,437 25,342 
Gross profit15,127 13,032 42,161 36,377 
Operating expenses
Research and development3,406 1,216 9,856 5,207 
Sales and marketing2,538 2,680 8,647 9,248 
General and administrative4,684 6,141 12,816 16,089 
Impairments— 77,221 — 77,221 
Total operating expenses10,628 87,258 31,319 107,765 
Income (loss) from operations4,499 (74,226)10,842 (71,388)
Other income, net307 182 820 1,122 
Income (loss) before income taxes4,806 (74,044)11,662 (70,266)
Income tax (expense) benefit(1,231)6,727 (2,876)6,229 
Net income (loss)$3,575 $(67,317)$8,786 $(64,037)
Earnings per share
Basic$0.18 $(3.35)$0.44 $(3.19)
Diluted$0.18 $(3.35)$0.43 $(3.19)
Weighted-average common shares outstanding
Basic20,209 20,113 20,170 20,092 
Diluted20,239 20,113 20,233 20,092 
Other comprehensive income (loss), net of tax
Foreign currency translation adjustments10 41 15 (27)
Unrealized (losses) gains on available-for-sale securities(8)— (14)4 
Comprehensive income (loss)$3,577 $(67,276)$8,787 $(64,060)
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SIMULATIONS PLUS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(in thousands, except per common share and common share data)May 31, 2026August 31, 2025
ASSETS
Current assets
Cash and cash equivalents$35,324 $30,853 
Accounts receivable, net of allowance for credit losses of $59 and $187
17,202 9,717 
Prepaid income taxes263 1,777 
Prepaid expenses and other current assets7,670 7,702 
Short-term investments14,666 1,500 
Total current assets75,125 51,549 
Long-term assets
Capitalized computer software development costs, net of accumulated amortization of $24,187 and $21,86311,203 11,117 
Property and equipment, net513 880 
Operating lease right-of-use assets395 407 
Intellectual property, net of accumulated amortization of $9,822 and $9,021
5,396 6,197 
Other intangible assets, net of accumulated amortization of $5,127 and $4,399
11,074 11,896 
Goodwill43,717 43,717 
Deferred tax assets, net4,168 4,774 
Other assets1,385 1,399 
Total assets$152,976 $131,936 
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Accounts payable$2,234 $470 
Accrued compensation4,888 2,010 
Accrued expenses1,054 1,343 
Operating lease liability - current portion112 206 
Deferred revenue5,278 2,696 
Total current liabilities13,566 6,725 
Long-term liabilities
Operating lease liability - net of current portion375 410 
Total liabilities13,941 7,135 
Commitments and contingencies
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, 20,216,438 and 20,137,480 shares issued and outstanding as of May 31, 2026, and August 31, 202520 20 
Additional paid-in capital164,863 159,416 
Accumulated deficit(25,578)(34,364)
Accumulated other comprehensive loss(270)(271)
Total shareholders' equity139,035 124,801 
Total liabilities and shareholders' equity$152,976 131,936 
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SIMULATIONS PLUS, INC.
Reconciliation of Adjusted EBITDA to Net Income (loss) (1)
(Unaudited)


Three months endedNine months ended
(in thousands)May 31, 2026May 31, 2025May 31, 2026May 31, 2025
Net income (loss)$3,575 $(67,317)$8,786 $(64,037)
Excluding:
Interest income and expense, net(344)(170)(899)(483)
Provision for income taxes1,231(6,727)2,876(6,229)
Depreciation and amortization1,3682,3184,2616,857
Stock-based compensation1,5571,2794,5254,425
Loss on currency exchange43(35)85(22)
Impairments—77,221—77,221
(Income) loss from disposal of fixed assets(6)23(6)23
Change in value of contingent consideration———(640)
Reorganization expense484541,260
Mergers & Acquisitions expense462—527133
Adjusted EBITDA$7,890 $7,437 $20,159 $18,508 
(1) Numbers may not add due to rounding
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SIMULATIONS PLUS, INC.
Reconciliation of Adjusted Diluted EPS to Diluted EPS (1)
(Unaudited)


Three months endedNine months ended
(in thousands, except Diluted EPS and Adjusted Diluted EPS)
May 31, 2026May 31, 2025May 31, 2026May 31, 2025
Net income (loss)$3,575 $(67,317)$8,786 $(64,037)
Excluding:
Amortization1,3402,1654,0596,425
Stock-based compensation1,5571,2794,5254,425
(Gain) loss on currency exchange43(35)85(22)
Mergers & Acquisitions expense462—527133
Change in value of contingent consideration———(640)
Reorganization expense484541,260
Impairments—77,221—77,221
(Income) loss from disposal of fixed assets(6)23(6)23
Tax effect on above adjustments(877)(5,153)(2,267)(6,119)
Adjusted Net income$6,098 $9,028 $15,713 $18,669 
Weighted-avg. common shares outstanding:
Diluted weighted-avg. common shares outstanding20,239 20,113 20,233 20,092 
Diluted EPS$0.18 $(3.35)$0.43 $(3.19)
Adjusted Diluted EPS $0.30 $0.45 $0.78 $0.93 
(1) Numbers may not add due to rounding
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