v3.26.1
SEGMENT REPORTING
 9 Months Ended
May 31, 2026
Segment Reporting [Abstract]  
SEGMENT REPORTING SEGMENT REPORTING
The Company applies ASC 280, Segment Reporting, in determining reportable segments. We define our reportable segments based on the way the chief operating decision maker (“CODM”), which is our Chief Executive Officer, manages the operations for purposes of allocating resources and assessing segment performance. Our reportable segments include the following:
•Software: Supports pharmaceutical research, development, and commercialization through simulation, modeling, and AI-driven prediction. Its main products include GastroPlus®, ADMET Predictor®, MonolixSuite™, and others for disease modeling and training, as well as Pro-ficiency® for clinical operations. The company also advances partnerships with institutions like the FDA, NIEHS, PAS, and SACF to drive innovation in virtual drug testing, chemical safety, and AI-enabled discovery.

•Services: Advanced consulting services across the entire drug development lifecycle. Its scientists and engineers specialize in drug discovery, pharmacokinetics, pharmacodynamics, drug modeling, clinical trial data analysis, regulatory strategy, and medical communications.

The CODM reviews revenue and gross profit to evaluate current-period performance versus budget and prior periods at each reportable segment and assesses management performance for purposes of annual incentive compensation. Gross profit is defined as revenue less cost of revenue incurred by the segment.

No operating segments have been aggregated to form the reportable segments. The Company does not allocate assets at the reportable segment level, as these are managed on an entity-wide group basis and, accordingly, the Company does not report asset information by segment. The Company does not allocate operating expenses (R&D, S&M, and G&A) that are managed on an entity-wide group basis and, accordingly, the Company does not allocate and report operating expenses at a segment level. There are no intersegment revenue transactions between the Company’s segments. Other segment items for each segment primarily include depreciation, income tax expense, and other income not reviewed by the CODM at the segment level. These are not allocated to segments and are presented below segment gross profit.

There are no differences in measurement between the segment profit measure used by CODM and condensed consolidated income before income taxes. The following schedule reconciles the total of reportable segments’ gross profit and significant expenses to consolidated income before income taxes for the three and nine months ended May 31, 2026, and May 31, 2025, respectively.
Three Months Ended May 31, 2026Three Months Ended May 31, 2025
(in thousands)Software Services TotalSoftware Services Total
Revenue$12,608 $9,278 $21,886 $12,615 $7,748 $20,363 
Less:
Cost of revenue (1)1,513 5,246 6,759 2,540 4,791 7,331 
Gross Profit11,095 4,032 15,127 10,075 2,957 13,032 
Gross Margin88 %43 %69 %80 %38 %64 %
Less:
Research and Development3,406 1,216 
Sales and Marketing2,538 2,680 
General and administrative (2)4,684 6,141 
Impairments— 77,221 
Income (loss) from operations4,499 (74,226)
Add:
Interest income and other, net344 170 
Gain (loss) on disposal of fixed assets6 (23)
(Loss) gain on currency exchange(43)35 
Income (loss) before income taxes$4,806 $(74,044)
(1) Cost of revenue for the three months ended May 31, 2026, and May 31, 2025, includes $1.1 million and $1.9 million, respectively of amortization within our Software reportable segment.
(2) General and administrative for the three months ended May 31, 2026, and May 31, 2025, includes less than $0.1 million and $0.1 million of depreciation and $0.3 million and $0.3 million of amortization, respectively.
Nine Months Ended May 31, 2026Nine Months Ended May 31, 2025
(in thousands)Software Services TotalSoftware Services Total
Revenue$36,126 $28,472 $64,598 $36,814 $24,905 $61,719 
Less:
Cost of revenue (1)4,573 17,864 22,437 7,765 17,577 25,342 
Gross Profit31,553 10,608 42,161 29,049 7,328 36,377 
Gross Margin87 %37 %65 %79 %29 %59 %
Less:
Research and Development9,856 5,207 
Sales and Marketing8,647 9,248 
General and administrative (2)12,816 16,089 
Impairments— 77,221 
Income (loss) from operations10,842 (71,388)
Add:
Interest income and other, net899 483 
Change in value of contingent consideration— 640 
Gain (loss) on disposal of fixed assets6 (23)
(Loss) income on currency exchange(85)22 
Income (loss) before income taxes$11,662 $(70,266)
(1) Cost of revenue for the nine months ended May 31, 2026 and May 31, 2025, includes $3.3 million and $5.6 million, respectively of amortization within our Software reportable segment.
(2) General and administrative for the nine months ended May 31, 2026 and May 31, 2025, includes $0.2 million and $0.3 million of depreciation and 758000 and $1.0 million of amortization, respectively.

Revenue by lifecycle solution area and offering type (Software and Services):
For the three months ended
(in thousands)May 31, 2026% of total*May 31, 2025% of total
Discovery$2,484 20 %$2,527 20 %
Development 9,813 78 %9,631 77 %
Clinical Operations277 2 %416 3 %
Commercialization34 — %41 — %
Total Software12,608 100 %12,615 100 %
Discovery— — %— — %
Development 7,255 78 %5,768 74 %
Commercialization2,023 22 %1,980 26 %
Total Services9,278 100 %7,748 100 %
Total $21,886 100 %$20,363 100 %
For the nine months ended
(in thousands)May 31, 2026% of total*May 31, 2025% of total
Discovery$6,540 18 %$6,130 17 %
Development 28,497 79 %27,513 75 %
Clinical Operations992 3 %2,995 8 %
Commercialization97 — %176 — %
Total Software36,126 100 %36,814 100 %
Discovery35 — %50 — %
Development 21,407 75 %18,651 75 %
Commercialization7,030 25 %6,204 25 %
Total Services28,472 100 %24,905 100 %
Total $64,598 100 %$61,719 100 %
*Percentages may not add due to rounding
The Company allocates revenues to geographic areas based on the locations of its customers. Geographical revenues for the three and nine months ended May 31, 2026, and May 31, 2025, were as follows:
(in thousands)Three Months Ended
May 31, 2026May 31, 2025
$% of total* $% of total
Americas$16,062 73 %$14,544 71 %
EMEA3,581 16 %3,698 18 %
Asia Pacific2,243 10 %2,121 11 %
Total$21,886 100 %$20,363 100 %
(in thousands)Nine Months Ended
May 31, 2026May 31, 2025
$% of total*$% of total
Americas$46,085 71 %$45,125 73 %
EMEA12,673 20 %11,224 18 %
Asia Pacific5,840 9 %5,370 9 %
Total$64,598 100 %$61,719 100 %
*Percentages may not add due to rounding