Simulations Plus, Inc. (SLP)

The past six months have seen volatility for Simulations Plus's stock. Simulations Plus engaged Grant Thornton LLP as its new independent auditor on April 15, 2025. On June 11, 2025, the company announced preliminary financial results for the third fiscal quarter of 2025 that fell short of expectations, leading to a drop in the stock price. Simulations Plus terminated its engagement with Grant Thornton on July 9, 2025. On July 14, 2025, the company reported its Q3 2025 financial results, which included a significant non-cash impairment charge. Following the announcement of the impairment charge and the auditor's dismissal on July 15, 2025, the stock price declined. Hagens Berman initiated an investigation into Simulations Plus on August 25, 2025, and reiterated it on September 19, 2025. On October 22, 2025, Simulations Plus released preliminary results for fiscal year 2025 and provided preliminary fiscal year 2026 guidance, while TD Cowen initiated coverage with a "Hold" rating and William Blair maintained a "Buy" rating. News reports on October 26, 2025, highlighted the stock's decline due to missed Q3 2025 revenue forecasts, leading to lawsuits. Bleichmar Fonti & Auld LLP announced an investigation into Simulations Plus on October 27, 2025. On October 28, 2025, Simulations Plus exceeded fourth-quarter revenue expectations, with Citizens maintaining a "Market Perform" rating.

Simulations Plus is working to minimize the seasonality of its demand by harmonizing renewal contracts. While the company aims to smooth out these trends, some temporary dislocations in revenue can still occur. Historically, October has shown a favorable "long bias" for the stock, with another statistically strong period anticipated around January 20, 2026. The adoption and growth of biosimulation software and services continue to rise.

Simulations Plus, Inc. is a provider of modeling and simulation software and consulting services for the biopharmaceutical industry. The company operates within the healthcare sector, offering software and services for pharmaceutical research and education. Key products include GastroPlus, ADMET Predictor, MonolixSuite, DILIsym, Panorama, Pro-ficiency, NAFLDsym, DDDPlus, MembranePlus, OBESITYsym, ILDsym, IPFsym, RENAsym and Thales.

Simulations Plus is headquartered in Research Triangle Park, North Carolina, and Lancaster, California, U.S. The company generates the majority of its revenue from the USA, followed by EMEA and Asia Pacific. Its global presence is extended through subsidiaries such as Lixoft SAS in France, and Pro-ficiency Holdings, Pro-ficiency LLC, DILIsym Services Inc., Cognigen Corp., and Immunetrics Inc. within the United States. The company's technology is licensed and utilized by pharmaceutical, biotechnology, and regulatory agencies worldwide.

Simulations Plus's brand reputation has been affected by negative events, including a decline in its stock price and missed financial expectations. The termination of its auditor, Grant Thornton, and subsequent disputes further damaged its reputation, leading to securities fraud investigations and lawsuits. The company is attempting to restore confidence by unveiling a new product vision focused on software enhancements, platform integration, and AI capabilities.

Simulations Plus, Inc. has significant institutional ownership, accounting for approximately 78.82% of its shares, while individual investors hold about 17.31%. Major institutional shareholders include BlackRock, Inc., Conestoga Capital Advisors, LLC, Vanguard Group Inc, iShares Core S&P Small-Cap ETF, Ameriprise Financial Inc, Janus Henderson Group Plc, Morgan Stanley, and State Street Corp.