Free cash flow remains a core strength despite earnings noise, peaking at a 38.5% margin in 2025Q3, though OCF/NI ratios remain highly erratic, swinging from -8.20 to 6.26 in recent periods.
Simulations Plus, Inc. (SLP) cash flow statement — 30-year operating, investing & financing cash flows
| Metric | TTM | Aug'25 | Aug'24 | Aug'23 | Aug'22 | Aug'21 | Aug'20 | Aug'19 | Aug'18 | Aug'17 | Aug'16 | Aug'15 | Aug'14 | Aug'13 | Aug'12 | Aug'11 | Aug'10 | Aug'09 | Aug'08 | Aug'07 | Aug'06 | Aug'05 | Aug'04 | Aug'03 | Aug'02 | Aug'01 | Aug'00 | Aug'99 | Aug'98 | Aug'97 | Aug'96 |
|---|
| Cash from Operations | 26.48M | 18.13M | 13.32M | 21.86M | 17.9M | 19.2M | 10.91M | 11.64M | 9.29M | 6.88M | 5.42M | 7.13M | 5.31M | 2.56M | 3.78M | 3.5M | 2.91M | 2.49M | 2.48M | 2.96M | 1.15M | 1.44M | 575.05K | 541.85K | 111.07K | 292.1K | 147.95K | 89.16K | -1.29M | -1.4M | 100K |
| Operating CF Margin % | - | 22.89% | 19.02% | 36.69% | 33.21% | 41.33% | 26.24% | 34.26% | 31.31% | 28.49% | 27.11% | 38.96% | 46.3% | 25.44% | 40.05% | 40.02% | 27.13% | 27.25% | 27.62% | 33.46% | 19.6% | 30.26% | 11.04% | 9.88% | 2.5% | 7.46% | 4.08% | 2.57% | -49.71% | -56.16% | 3.85% |
| Operating CF Growth % | 707.01% | 36.08% | -39.06% | 22.1% | -6.79% | 75.98% | -6.24% | 25.32% | 35.03% | 27.01% | -24.1% | 34.47% | 107.08% | -32.28% | 8.19% | 20.36% | 16.63% | 0.6% | -16.42% | 158.23% | -20.21% | 150.13% | 6.13% | 387.85% | -61.98% | 97.43% | 65.93% | 106.9% | 7.69% | -1500.1% | - |
| Net Income | 8.11M | -64.72M | 9.95M | 9.96M | 12.48M | 9.78M | 9.33M | 8.58M | 8.93M | 5.79M | 4.95M | 3.84M | 3.03M | 2.89M | -215.92K | 2.71M | 2.16M | 1.41M | 1.73M | 1.47M | 675.88K | 262.32K | 836.49K | 2.51M | 484.92K | -225.6K | -257.6K | -576.66K | -2.07M | -1.44M | 0 |
| Depreciation & Amortization | 5.62M | 8.21M | 5.67M | 3.84M | 3.57M | 3.59M | 2.96M | 2.75M | 2.72M | 2.14M | 1.93M | 1.99M | 1.04M | 766.96K | 715.44K | 747.3K | 682.94K | 561.01K | 543.41K | 512.45K | 363.18K | 206.89K | 223.98K | 195.59K | 191.83K | 293.85K | 261.15K | 503.76K | 632.09K | 139.86K | -100K |
| Stock-Based Compensation | 6.42M | 6.35M | 6.54M | 4.83M | 3.04M | 2.75M | 1.58M | 1.08M | 709.08K | 585.02K | 347.08K | 295.24K | 144.33K | 115.74K | 127.74K | 155.25K | 127.6K | 183.29K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | 3.26M | -5.43M | -1.76M | -2.1M | -270K | -628K | -377.76K | -299.1K | -1.73M | -178.37K | -23.24K | 55.92K | 1.3M | 366.99K | 207.62K | 341.27K | 289.83K | 32.63K | 437.4K | 1.09M | 211.3K | 84.2K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 380 | 0 |
| Other Non-Cash Items | 804K | 76.29M | -2.86M | 219K | 1.7M | 2.73M | 202.03K | 109.06K | 152.75K | 74.95K | 5.63M | 1.55M | 1.59M | -70.81K | 2.36M | -24.32K | -955.59K | 220K | 153.16K | 79.59K | -10.77K | -15.49K | 0 | 2.31K | 0 | 126.3K | -2.61K | -4.01K | 63.94K | 120.94K | 200K |
| Working Capital Changes | 2.27M | -2.59M | -4.21M | 5.1M | -2.62M | 974K | -2.78M | -582.96K | -1.5M | -1.53M | -1.79M | 951.27K | -200K | -1.5M | 587.56K | -436.6K | 605.11K | 82.65K | -382.72K | -178.19K | -91.96K | 900.46K | -485.42K | -2.16M | -565.68K | 97.55K | 147K | 166.07K | 80.72K | -224.81K | 0 |
| Change in Receivables | -2.42M | -581K | 3.13M | 4.1M | -3.94M | -2.43M | -2.02M | 487.97K | -1.47M | -876.23K | -1.42M | 1.05M | 247.46K | -643.77K | -114.08K | -484.42K | 492.67K | -83.4K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 100K |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 3.15M | -247.25K | -1.31M | -339.46K | -378.99K | -495.02K | 74.2K | -373.13K | -785.27K | 680.88K | 163.21K | -228.94K | 88.2K | -92.92K | 6.13K | 44.35K | 77.19K | -151.95K | 39.54K | -26.25K | -24.04K | 34.86K | 155.5K | -172.57K | -130.74K | 0 |
| Change in Payables | 571K | -132K | -477K | -81K | -162K | 39K | 220.58K | -147.53K | 110.71K | 99.34K | -101.3K | 19.44K | -15.46K | -31.5K | 1.37K | 53.06K | 42.74K | 17.99K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -100K |
| Cash from Investing | -17.16M | 3.56M | -53.97M | 7.37M | 4.3M | -26.74M | -75.51M | -1.96M | -2.33M | -4.36M | -1.95M | -3.13M | -3.89M | -1.18M | 839.49K | -1.07M | -939.07K | 31.89K | -1.56M | -624.17K | -1.35M | -522.49K | -265.24K | -311.11K | -129.47K | -170.07K | -134.72K | -196.13K | -736.5K | -712.27K | -100K |
| Capital Expenditures | -403K | -713K | -566K | -453K | -3.97M | -4.58M | -2.58M | -1.96M | -2.33M | -1.56M | -1.23M | -1.24M | -3.89M | -1.18M | -1.14M | -1.07M | -939.07K | -718.11K | -809.62K | -630.74K | -1.37M | -70.61K | -44.06K | -77.29K | -35.33K | -30.7K | -6.23K | -196.13K | -20.86K | -80.41K | 0 |
| CapEx % of Revenue | 0.49% | 0.9% | 0.81% | 0.76% | 7.36% | 9.85% | 6.21% | 5.76% | 7.85% | 6.46% | 6.18% | 6.77% | 33.97% | 11.73% | 12.07% | 12.24% | 8.77% | 7.85% | 9.03% | 7.12% | 23.36% | 1.49% | 0.85% | 1.41% | 0.8% | 0.78% | 0.17% | 5.66% | 0.8% | 3.23% | - |
| Acquisitions | 0 | 0 | -98.77M | -8.22M | 3.15M | 2.95M | -5.67M | 0 | 0 | -2.8M | -720K | -1.89M | 0 | 0 | 1.97M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -3.57M | -4.24M | -3.73M | -3.82M | -3.15M | -2.95M | -2.35M | 0 | -2.15M | -1.38M | -1.2M | -1.17M | -3.87M | -1.13M | 6.73K | 0 | 0 | 0 | 0 | 6.58K | 20.55K | -451.88K | -221.18K | -233.81K | -94.15K | -139.38K | -128.49K | 0 | -715.64K | -631.87K | -100K |
| Cash from Financing | 117K | -1.15M | -6.57M | -23.27M | -7.62M | -4.68M | 102.37M | -7.65M | -3.77M | -4.34M | -3.98M | -4.07M | -2.98M | -3.9M | -2.1M | -1.88M | 191.39K | -939.66K | 434.69K | 513.3K | 130.53K | 103.89K | 163.73K | -6.08K | -112.17K | 7.09K | -28.01K | -38.86K | 70.37K | 4.1M | 100K |
| Debt Issued (Net) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -3.89K | -11.24K | -112.17K | -15.41K | -31.02K | -38.86K | 70.37K | -316.02K | 0 |
| Equity Issued (Net) | 107K | 430K | 731K | -20M | 891K | 1.46M | 107.75M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -2.05M | -1.03M | -1.06M | 434.69K | 513.3K | 130.53K | 103.89K | 167.62K | 5.15K | 0 | 22.5K | 3.01K | 0 | 0 | 5.75M | 0 |
| Dividends Paid | 0 | 0 | -4.8M | -4.81M | -4.85M | -4.81M | -4.25M | -4.2M | -4.16M | -3.45M | -3.41M | -3.38M | -3.08M | -4M | -2.38M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | -20M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -2.05M | -1.03M | -1.06M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 10K | -1.58M | -2.5M | 1.54M | -3.67M | -1.33M | -1.13M | -3.45M | 388.25K | -888.6K | -567.95K | -692.96K | 98.63K | 98.79K | 279.55K | 169.04K | 1.23M | 124.76K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -1.34M | 100K |
| Net Change in Cash | 9.44M | 20.54M | -47.21M | 5.96M | 14.58M | -12.22M | 37.77M | 2.03M | 3.18M | -1.81M | -520.99K | -63.65K | -1.56M | -2.52M | 2.52M | 549.29K | 2.16M | 1.58M | 1.35M | 2.85M | -69.01K | 1.02M | 473.53K | 224.66K | -130.58K | 129.12K | -14.79K | -145.83K | -1.96M | 1.98M | 100K |
| Free Cash Flow | 26.08M | 17.41M | 12.75M | 17.58M | 13.93M | 14.63M | 8.33M | 9.68M | 6.96M | 5.32M | 4.18M | 5.89M | 1.41M | 1.38M | 2.64M | 2.43M | 1.97M | 1.77M | 1.67M | 2.33M | -220.09K | 1.37M | 530.98K | 464.56K | 75.74K | 261.4K | 141.72K | -106.97K | -1.31M | -1.48M | 100K |
| FCF Margin % | 31.78% | 21.99% | 18.22% | 29.51% | 25.84% | 31.48% | 20.02% | 28.5% | 23.46% | 22.03% | 20.93% | 32.19% | 12.33% | 13.71% | 27.98% | 27.79% | 18.36% | 19.4% | 18.59% | 26.34% | -3.76% | 28.78% | 10.2% | 8.47% | 1.7% | 6.68% | 3.9% | -3.09% | -50.51% | -59.38% | 3.85% |
| FCF Growth % | 100.11% | 36.53% | -27.46% | 26.22% | -4.77% | 75.65% | -14% | 39.15% | 30.85% | 27.22% | -29.08% | 317.3% | 2.31% | -47.77% | 8.87% | 23.45% | 10.9% | 6.38% | -28.53% | 1159.95% | -116.09% | 157.59% | 14.3% | 513.36% | -71.03% | 84.45% | 232.48% | 91.86% | 11.29% | -1580.5% | - |
| FCF per Share | 1.29 | 0.87 | 0.63 | 0.86 | 0.67 | 0.71 | 0.45 | 0.54 | 0.39 | 0.30 | 0.24 | 0.35 | 0.09 | 0.08 | 0.16 | 0.15 | 0.12 | 0.10 | 0.09 | 0.13 | -0.01 | 0.09 | 0.03 | 0.03 | 0.01 | 0.02 | 0.01 | -0.01 | -0.39 | -0.50 | 0.05 |
| FCF Conversion (FCF/Net Income) | 3.22x | -0.28x | 1.34x | 2.19x | 1.43x | 1.96x | 1.17x | 1.36x | 1.04x | 1.19x | 1.09x | 1.86x | 1.75x | 0.89x | 1.25x | 1.29x | 1.35x | 1.76x | 1.44x | 2.02x | 1.70x | 5.48x | 0.69x | 0.22x | 0.23x | -1.29x | -0.57x | -0.15x | 0.62x | 0.97x | - |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 3 | 43 | 1.04K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | -668K | 1.16M | 5.69M | 3.2M | 3.23M | 1.86M | 2.35M | 2.67M | 2.71M | 2.69M | 2.91M | -961.91K | 692.56K | -1.96M | 457K | 320.23K | 390.7K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Quick answers to the most common questions about buying SLP stock.
Simulations Plus, Inc. (SLP) generated $18.1M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Simulations Plus, Inc. (SLP) generated $17.4M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Simulations Plus, Inc. (SLP) spent $0.7M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
Key Metrics
Top Statement Risk
Regulatory dependency and margin volatility
Metrics are mathematically derived from official filings.
Earnings Quality Masked by Volatility
As reported in recent financial filings, the relationship between net income and operating cash flow for SLP is highly erratic, with OCF/NI ratios swinging from -8.20 in 2025Q4 to 6.26 in 2026Q1, indicating that accounting accruals and non-cash charges frequently decouple from actual cash generation.
The extreme variance in the conversion ratio suggests that net income is currently a poor proxy for the company's underlying cash-generating capacity. Investors should monitor whether these discrepancies stem from lumpy revenue recognition or significant non-cash expenses that obscure the firm's true operational efficiency.
FCF Resilience Despite Earnings Noise
Based on the provided cash flow data, SLP has maintained a positive free cash flow trajectory in most periods, peaking at a 38.5% margin in 2025Q3, which suggests that the core business remains fundamentally cash-generative despite the significant bottom-line losses reported in the same timeframe.
The ability to generate positive free cash flow while net income remains negative highlights the impact of non-cash charges on the income statement. This divergence warrants further investigation into whether the company's capital-light software model is being temporarily burdened by acquisition-related accounting or structural R&D investments.
Working Capital Cycles Drive Liquidity
According to the quarterly cash flow statements, working capital changes have been a significant source of volatility, with a notable $5.4M outflow in 2025Q1 followed by a $1.6M inflow in 2025Q3, reflecting the lumpy nature of contract-based billing cycles within the firm's consulting and software segments.
The sensitivity of cash flow to working capital movements suggests that the company's liquidity is highly dependent on the timing of milestone payments and software renewals. Analysts should interpret these fluctuations as a function of the business model's reliance on large, project-based pharmaceutical contracts.
SBC and Capitalization Obscure Reality
Financial statements indicate that stock-based compensation consistently averages around $1.5M to $1.8M per quarter, which, when combined with capitalized software development costs, suggests that the reported cash flow figures may be slightly inflated relative to the true economic cost of maintaining the company's proprietary modeling platforms.
The persistent use of stock-based compensation as a non-cash add-back effectively masks the dilution and true compensation expense required to retain specialized talent. Investors should consider adjusting free cash flow metrics to account for these recurring costs to better assess the company's sustainable cash-generating potential.