Simulations Plus, Inc. (SLP)

Simulations Plus, Inc.'s stock experienced a significant decline in July 2025 following the Q3 2025 earnings report, which revealed a net loss and the dismissal of its independent auditor. Investor concerns related to asset impairment charges and the auditor's termination continued to weigh on sentiment in September 2025. BTIG Research downgraded Simulations Plus in December 2025. In January 2026, Simulations Plus reported Q1 fiscal 2026 earnings, missing consensus estimates and contributing to a stock decline, though the company maintained its fiscal 2026 revenue guidance. Zacks Research downgraded the stock in February 2026, but a valuation analysis suggested it was undervalued, leading to a stock increase.

The traditional seasonality for Simulations Plus has seen peaks in Q2 and Q3, with a dip in Q4, but this pattern is evolving due to acquired businesses and the back-half loading of service projects. The company's biggest software quarters are typically in the second and third fiscal quarters, driven by the seasonality of its software renewals. The timing of large QSP model licenses can be lumpy, and the services segment can experience quarterly lumpiness due to client-driven data delays and resource reallocation. Management emphasizes that services can be a leading indicator for anticipated software growth.

Simulations Plus, Inc. specializes in developing and licensing advanced software for modeling and simulation, as well as providing expert consulting services to pharmaceutical, biotechnology, and agrochemical companies. The company predicts how new drug candidates will behave in the human body, reducing the need for costly experiments and clinical trials. Its revenue streams are primarily Software and Services, with software accounting for a significant portion of its total revenue due to recurring license fees. The company's major products include GastroPlus, ADMET Predictor, MonolixSuite, DILIsym, NAFLDsym, ILDsym, IPFsym, RENAsym, MITOsym, OBESITYsym, Thales, DDDPlus, MembranePlus, and MedChem Designer. Simulations Plus is increasingly integrating AI and machine learning into its predictive modeling technologies.

Simulations Plus, Inc. is headquartered in Research Triangle Park, North Carolina, U.S. The company serves a global customer base, including major pharmaceutical companies, regulatory agencies, and academic institutions worldwide. Its operations extend to the USA, EMEA, and Asia Pacific regions.

Simulations Plus has maintained its standing as a leader in the biosimulation software market, with its PBPK and QSP solutions being crucial in drug discovery and development. The company's commitment to scientific rigor, ongoing research, and customer support has established it as a trusted partner. However, the announcement of a significant impairment charge and the dismissal of its independent auditor led to investor scrutiny and investigations. Law firms have also announced ongoing investigations into potential securities claims on behalf of shareholders.

Simulations Plus, Inc. has significant institutional ownership, with 337 institutional owners holding a total of 20,325,154 shares. Major institutional shareholders include Morgan Stanley, BlackRock, Inc., and Vanguard Group Inc. Insider sentiment has been negative, marked by significant open-market selling from key executives over the past year. Director Daniel L. Weiner received a stock grant of 1,776 shares on January 30, 2026, as part of his board compensation.