Simulations Plus, Inc. Update: Earnings and Acquisition News

If you follow Simulations Plus (ticker: SLP), there is big news. Beyond their latest quarterly report, the company has agreed to be acquired. Here is what you need to know to understand what this means for your investment.

1. What happened?

Simulations Plus released its financial results for the third quarter of its 2026 fiscal year. More importantly, the company signed a deal on June 15, 2026, to be acquired by an affiliate of the investment firm Altaris, LLC.

2. The Financial "Report Card"

For the quarter ending May 31, 2026, the company performed as follows:

• Total Revenue: Rose 7% from last year to $21.9 million.
• Services vs. Software: Consulting services revenue grew 20%, showing high demand for the company’s drug development expertise. Software revenue remained flat, reflecting steady, predictable license renewals.
• Profitability: The company earned $3.6 million in profit. This is a recovery from the same period last year, which was impacted by a large, one-time expense.

3. Why does the acquisition matter?

Altaris, LLC is taking Simulations Plus private. For investors, the focus shifts from long-term growth potential to the merger process. The stock price will likely hover near the agreed-upon buyout price as the market waits for the deal to finalize.

4. Who is affected?

• Investors: Your primary focus is now the regulatory approval process. Expect less stock price movement based on daily operations, as the share price will likely align closely with the buyout offer.
• Customers: Simulations Plus provides software and consulting to drug companies. Management has stated they remain committed to all clients and research projects during this transition.
• The Company: Leadership is currently handling the legal and administrative steps to move from a public company to private ownership while keeping daily operations running smoothly.

5. Key Takeaways for Your Strategy

• Adjusted Earnings: The company uses "non-GAAP" figures to show its core performance. These numbers ignore one-time costs—such as the fees related to the Altaris merger—to give you a clearer picture of the company's actual operational health.
• Revenue Mix: The 20% jump in services revenue proves the company is a vital partner in drug development. While software sales have leveled off, their technical consulting remains a strong growth engine.
• Strategic Validation: Being bought by a firm like Altaris serves as a strong signal that the company’s technology and market position are highly valuable to industry insiders.

6. What happens next?

The deal is expected to close in the fourth quarter of 2026, pending shareholder and regulatory approval. Until then, Simulations Plus continues to operate as an independent company. Keep an eye on future 8-K filings for updates on the shareholder vote and the official timeline.

Decision-Making Tip: Since the company is being taken private, the "upside" is generally capped at the acquisition price. If you are holding shares, your main decision is whether to sell now at the current market price or wait for the deal to close to receive the final buyout payout.

Disclaimer: I’m just breaking down the news for you—this isn't official financial advice. Always do your own research before making any trades!