Simulations Plus: Better Quarter, Same Doubts

Simulations Plus, Inc. remains a Hold as business improvement is insufficient to warrant a Buy, despite stabilization post-earnings. Q2 2026 revenue grew 8% YoY to $24.3M, with strong software renewals (91%) and expanding services backlog (+18% YoY). SLP trades at ~14x blended earnings, appearing cheap versus history but still expensive on GAAP metrics given slow revenue and cash flow growth.