Simulations Plus, Inc. (SLP)

Simulations Plus (SLP) stock has experienced a significant decline, with a 61.34% decrease over the last 12 months and a 43.43% decrease in the past month as of February 25, 2026. The stock price as of March 26, 2026, was $11.70, a 51.65% decline from $24.20 on March 27, 2025. A major event was the Q3 2025 earnings report, revealing a $67.3 million net loss due to a $77.2 million non-cash impairment charge, leading to a roughly 25% drop in share price on July 15, 2025. Simulations Plus terminated its engagement with independent auditor Grant Thornton, who disputed the company's explanation for the dismissal, prompting a shareholders' rights firm investigation. The company cut its 2025 revenue guidance to $76-$80 million from $90-$93 million. In Q1 2026, total revenue decreased by 3% year-over-year to $18.4 million, with software revenue declining 17% and services revenue increasing 16%. Management reaffirmed fiscal year 2026 revenue guidance of $79 million to $82 million.

Simulations Plus does not appear to experience traditional demand seasonality. Demand is influenced by broader industry trends and client-specific factors within the biopharma sector. Recent reports indicate cautious spending behavior, project delays or cancellations from biopharma clients, and biopharma client budget constraints, delays, and industry consolidation as factors affecting revenue. Management has noted that improvement in services typically precedes an increase in software activity, indicating a sequential relationship between its service and software segments rather than distinct seasonal demand patterns. The company's focus on expanding its client base and increasing adoption of biosimulation software aims to mitigate reliance on any single market or short-term fluctuations.

Simulations Plus, Inc. provides modeling and simulation software and consulting services for the pharmaceutical and biotechnology industries, crucial in drug discovery, development, research, clinical trial operations, regulatory submissions, and commercialization. The company operates within the biopharma sector, creating software that predicts drug behavior in the body to reduce animal testing and accelerate drug development. Key products include GastroPlus, ADMET Predictor, MonolixSuite, Pro-ficiency, MedChem Designer, DDDPlus and MembranePlus, Quantitative Systems Pharmacology (QSP) Software, and PKPlus. The company also offers consulting services, including contract research, training, and regulatory support.

Simulations Plus serves a global client base across pharmaceuticals, biotechnology, and regulatory agencies. International sales constituted 27% of the company's revenue for the nine months ended May 2025. The company opened a European office in Paris and moved its headquarters to Research Triangle Park, North Carolina, in 2025. Major revenue is generated from the USA, followed by EMEA (Europe, Middle East, and Africa) and Asia Pacific.

Simulations Plus's brand reputation has been impacted by a significant net loss in Q3 2025 and a dispute with their former auditor, Grant Thornton, regarding the reasons for their dismissal, likely had a negative effect. The investigation by a shareholders' rights firm into whether the company misled investors further contributed to this. However, strategic collaboration programs with three large pharmaceutical companies to advance AI workflows across the drug development lifecycle, and extensions of research collaborations with the U.S. FDA and NIEHS demonstrate ongoing trust and collaboration with key regulatory and research bodies.

Simulations Plus (SLP) stock ownership is a mix of institutional, insider, and retail investors. Approximately 27.16% to 51.53% of the company's stock is held by institutional investors, 17.39% by insiders, and 31.09% by retail investors. Major institutional owners include First Light Asset Management, LLC, BlackRock, Inc., and Vanguard Group Inc. The largest individual shareholder is Virginia E. Woltosz, owning 5.70 million shares, representing 28.31% of the company.