Core Insights - Simulations Plus, Inc. (NASDAQ:SLP) is set to release its quarterly earnings on December 1, 2025, with Wall Street analysts predicting an earnings per share (EPS) of $0.10 and revenue of approximately $17.4 million [1][5] Financial Performance Expectations - Despite a projected decline in revenue, Wall Street expects SLP's earnings to increase compared to the previous year, which could significantly impact the stock price [2] - If SLP exceeds expectations, the stock might rise; conversely, if it falls short, the stock price could decline [2] Valuation Metrics - The price-to-sales ratio of 4.38 indicates that investors are willing to pay $4.38 for every dollar of sales, reflecting confidence in the company's revenue potential [3] - The enterprise value to sales ratio is 4.05, providing insight into SLP's valuation relative to its revenue [3] - The enterprise value to operating cash flow ratio is 22.93, showing how many times the operating cash flow can cover the enterprise value [3] Financial Stability - SLP's low debt-to-equity ratio of 0.006 indicates minimal reliance on debt, highlighting financial stability [4][5] - The current ratio of 5.11 demonstrates a strong ability to cover short-term liabilities with short-term assets [4][5]

Core Viewpoint - The market anticipates Simulations Plus (SLP) to report a year-over-year increase in earnings despite lower revenues for the quarter ending August 2025, with actual results being crucial for stock price movement [1][2]. Earnings Expectations - Simulations Plus is expected to post quarterly earnings of $0.10 per share, reflecting a year-over-year increase of +66.7%, while revenues are projected to decline by 8.2% to $17.17 million [3]. - The consensus EPS estimate has been revised 18.92% higher in the last 30 days, indicating a reassessment by analysts [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that the Most Accurate Estimate aligns with the Zacks Consensus Estimate, resulting in an Earnings ESP of 0%, complicating predictions for an earnings beat [12]. - The stock holds a Zacks Rank of 1, which typically suggests a strong buy, but the combination with a 0% Earnings ESP makes it challenging to predict a positive surprise [12]. Historical Performance - In the last reported quarter, Simulations Plus exceeded expectations by delivering earnings of $0.45 per share against an expected $0.26, resulting in a surprise of +73.08% [13]. - Over the past four quarters, the company has beaten consensus EPS estimates three times [14]. Market Dynamics - An earnings beat or miss alone may not dictate stock price movement, as other factors can influence investor sentiment [15]. - Investing in stocks expected to beat earnings can enhance success odds, making it essential to consider Earnings ESP and Zacks Rank before quarterly releases [16].

Core Viewpoint - Simulations Plus (SLP) shares have increased by 7.5% recently, closing at $17.22, with a potential upside of 33.6% based on Wall Street analysts' mean price target of $23 [1][11]. Price Targets and Analyst Consensus - The average price target for SLP ranges from a low of $16.00 to a high of $31.00, with a standard deviation of $6.48, indicating variability in estimates [2]. - The lowest estimate suggests a decline of 7.1%, while the highest indicates an 80% upside [2]. - A low standard deviation signifies strong agreement among analysts regarding the stock's price movement direction [9]. Earnings Estimates and Analyst Optimism - Analysts have shown increasing optimism about SLP's earnings prospects, as evidenced by a positive trend in earnings estimate revisions [11]. - Over the past 30 days, the Zacks Consensus Estimate for the current year has risen by 19.8%, with one estimate moving higher and no negative revisions [12]. - SLP holds a Zacks Rank 1 (Strong Buy), placing it in the top 5% of over 4,000 ranked stocks based on earnings estimates [13]. Caution on Price Targets - While price targets are commonly referenced, they can mislead investors, as empirical research indicates they rarely predict actual stock price movements [7][10]. - Analysts may set overly optimistic price targets due to business incentives, which can inflate expectations [8].

Company Overview - Simulations Plus, Inc. provides software and consulting services to support drug discovery and development in the pharmaceutical industry [3]. Allegations of Wrongdoing - Edelson Lechtzin LLP is investigating potential violations of federal securities laws involving Simulations Plus, stemming from allegations of providing misleading business information to investors [1]. - On April 15, 2025, Simulations Plus hired Grant Thornton as its auditor. Following weak preliminary Q3 results reported in June, the company's stock dropped over 24% to close at $20.05 per share [4]. - On July 14, 2025, Simulations Plus reported a $77.2 million charge related to prior acquisitions and dismissed Grant Thornton, despite the auditor's objections regarding unresolved reporting and internal control issues. This led to a further stock decline of 25.76%, closing at $12.97 per share [4].

Core Points - Bragar Eagel & Squire, P.C. is investigating potential claims against Simulations Plus, Inc. for possible violations of federal securities laws and unlawful business practices [1][2] Financial Performance - Simulations Plus reported third fiscal quarter sales of $20.4 million, missing the consensus estimate of $20.9 million [6] - The company experienced a net loss of $67.3 million and a diluted loss per share of $3.35, which included a non-cash impairment charge of $77.2 million, compared to a net income of $3.1 million and diluted earnings per share of $0.15 for the same period in 2024 [6] - Fiscal 2025 adjusted earnings guidance was revised down to $0.93 to $1.06 from a previous range of $1.07 to $1.20 [6] Operational Changes - In June 2025, Simulations Plus initiated a restructuring of its operations, which included workforce reductions and cost-cutting measures aimed at improving operational efficiency and reducing expenses [6] Stock Market Reaction - Following the financial results announcement, Simulations Plus's stock price fell by $4.50 per share, or 25.76%, closing at $12.97 per share on July 15, 2025 [6]

Core Viewpoint - Simulations Plus (SLP) has shown a significant price increase of 21.5% over the past four weeks, with a mean price target of $23 indicating a potential upside of 25.6% from the current price of $18.31 [1] Price Targets and Analyst Estimates - The mean estimate consists of four short-term price targets with a standard deviation of $6.48, where the lowest estimate is $16.00 (indicating a 12.6% decline) and the highest is $31.00 (indicating a 69.3% increase) [2] - A low standard deviation among price targets suggests a high degree of agreement among analysts regarding the stock's price movement [9] Earnings Estimates and Market Sentiment - Analysts have shown increasing optimism about SLP's earnings prospects, as indicated by a strong consensus in revising EPS estimates higher, which correlates with potential stock price increases [11] - Over the last 30 days, the Zacks Consensus Estimate for the current year has increased by 19.8%, with one estimate moving higher and no negative revisions [12] - SLP holds a Zacks Rank 1 (Strong Buy), placing it in the top 5% of over 4,000 ranked stocks based on earnings estimates [13] Caution on Price Targets - Solely relying on consensus price targets for investment decisions may not be wise, as empirical research indicates that such targets often mislead investors [3][7] - Analysts may set overly optimistic price targets due to business incentives, which can inflate expectations [8] - While price targets should not be ignored, they should be approached with skepticism, as they may not accurately predict stock performance [10]

Core Viewpoint - Simulations Plus, Inc. is under investigation for potential violations of federal securities laws following disappointing financial results and issues related to its acquisition of Pro-ficiency Holdings, Inc. [1][2][3] Company Overview - Simulations Plus is a software company focused on modeling and simulation tools for the pharmaceutical, biotechnology, and chemical industries [2]. Acquisition Details - In June 2024, Simulations Plus acquired Pro-ficiency Holdings, which was expected to double its total addressable market and significantly contribute to sales [2][3]. Financial Reporting Issues - The company claimed effective internal controls over financial reporting; however, it appears that it struggled with the integration of Pro-ficiency and lacked effective internal controls [3]. Stock Performance - Following the announcement of disappointing preliminary financial results for Q3 2025, Simulations Plus's stock fell by $6.39, or over 24%, from $26.44 to $20.05 per share [4]. - After reporting a $77.2 million charge related to prior acquisitions and dismissing its auditor Grant Thornton, the stock further declined by $4.50, nearly 26%, from $17.47 to $12.97 per share [5]. Auditor Dismissal - The dismissal of Grant Thornton was linked to unresolved issues regarding segment reporting and internal controls, which the auditor communicated to management and the Audit Committee [5].

Group 1 - U.S. stocks experienced a decline, with the Dow Jones index falling approximately 0.2% on Wednesday [1] - Winnebago Industries, Inc. reported better-than-expected fourth-quarter financial results, with adjusted earnings of 71 cents per share, surpassing market estimates of 53 cents per share [1] - The company's quarterly sales reached $777.300 million, exceeding expectations of $727.824 million [1] Group 2 - Winnebago Industries shares surged 23.3% to $39.00 on Wednesday following the positive financial results [2] - Beyond Meat, Inc. shares increased by 86% to $6.73, driven by factors such as short interest and a new distribution partnership with Walmart [4] - Vicor Corporation saw a gain of 32% to $86.75 after reporting better-than-expected quarterly financial results [4] - Krispy Kreme, Inc. shares jumped 30% to $4.8200 [4] - GoPro, Inc. gained 19% to $2.6100 after announcing a new lineup of accessories for GoPro 360 cameras [4] - Intuitive Surgical, Inc. shares surged 16% to $537.10 following better-than-expected third-quarter financial results [4] - Simulations Plus, Inc. increased by 15.7% to $18.01 after issuing FY26 guidance [4] - Travel + Leisure Co. rose 13.4% to $68.83, driven by stronger-than-expected third-quarter results [4] - Pegasystems Inc. gained 10.2% to $62.91 after reporting better-than-expected quarterly financial results [4] - Avery Dennison Corporation jumped 6.8% to $174.74 following upbeat earnings [4] - PennyMac Financial Services, Inc. increased by 6.4% to $128.71 after better-than-expected earnings [4] - Badger Meter, Inc. rose 6.3% to $188.59 [4] - Hilton Worldwide Holdings Inc. gained 4.1% to $276.90 after beating third-quarter earnings estimates and raising FY25 adjusted EPS guidance [4]

[FORM 8-K Filing Details](index=1&type=section&id=FORM%208-K%20Filing%20Details) This section provides essential details about the Form 8-K filing, including registrant information and filing status [Registrant Information](index=1&type=section&id=Registrant%20Information) This section identifies Simulations Plus, Inc. as the registrant, detailing its incorporation state (California), commission file number, IRS Employer ID, principal executive offices, and telephone number - Registrant: **Simulations Plus, Inc.**[2](index=2&type=chunk) - Incorporation State: **California**[2](index=2&type=chunk) - Principal Executive Offices: **800 Park Offices Drive, Suite 401, Research Triangle Park, NC 27709**[2](index=2&type=chunk) [Filing Status and Securities](index=1&type=section&id=Filing%20Status%20and%20Securities) The filing indicates it is a Current Report under Section 13 or 15(d) of the Securities Exchange Act of 1934, filed on October 22, 2025, specifying the company's common stock (SLP) is registered on The Nasdaq Stock Market LLC and confirming the company is not an emerging growth company - Filing Date: **October 22, 2025**[2](index=2&type=chunk) - Trading Symbol: **SLP**, registered on **The Nasdaq Stock Market LLC**[3](index=3&type=chunk) - Not an **Emerging Growth Company**[4](index=4&type=chunk) [Current Report on Form 8-K](index=2&type=section&id=Current%20Report%20on%20Form%208-K) This section details the specific items of the Form 8-K filing, covering financial results, regulation disclosure, and filing status [Item 2.02 Results of Operations and Financial Condition](index=2&type=section&id=Item%202.02%20Results%20of%20Operations%20and%20Financial%20Condition) Simulations Plus, Inc. announced the issuance of a press release on October 22, 2025, detailing preliminary operational results for the fourth fiscal quarter ended August 31, 2025, and providing guidance for the fiscal year ending August 31, 2026, with this press release attached as Exhibit 99.1 - Company issued a press release on **October 22, 2025**[5](index=5&type=chunk) - Press release announced preliminary operational results for **Q4 FY2025** (ended August 31, 2025)[5](index=5&type=chunk) - Press release provided guidance and estimates for **FY2026** (ending August 31, 2026)[5](index=5&type=chunk) [Item 7.01 Regulation FD Disclosure](index=2&type=section&id=Item%207.01%20Regulation%20FD%20Disclosure) This section reiterates the disclosure made under Item 2.02, confirming the issuance of the press release on October 22, 2025, which contains preliminary Q4 FY2025 operational results and FY2026 guidance, furnished as Exhibit 99.1 - Reiteration of the press release issuance on **October 22, 2025**[5](index=5&type=chunk) - Press release covers preliminary **Q4 FY2025** results and **FY2026** guidance[5](index=5&type=chunk) [Information Furnished vs. Filed](index=2&type=section&id=Information%20Furnished%20vs.%20Filed) Items 2.02 and 7.01, along with Exhibit 99.1, are furnished and not deemed 'filed' for purposes of Section 18 of the Securities Exchange Act of 1934, meaning the information is not incorporated by reference into other SEC filings unless explicitly stated - Information in Items **2.02**, **7.01**, and **Exhibit 99.1** is 'furnished' not 'filed'[6](index=6&type=chunk) - Information shall not be incorporated by reference into other SEC filings unless expressly set forth[6](index=6&type=chunk) [Caution Regarding Forward-Looking Statements](index=2&type=section&id=CAUTION%20REGARDING%20FORWARD-LOOKING%20STATEMENTS) This section warns about the inherent risks and uncertainties associated with forward-looking statements [Nature and Risks of Forward-Looking Statements](index=2&type=section&id=Nature%20and%20Risks%20of%20Forward-Looking%20Statements) This section warns that the report contains forward-looking statements, identified by terms like 'anticipates,' 'expects,' and 'estimates,' which involve substantial risks and uncertainties, and actual results may differ materially from those expressed or implied due to various factors, including those disclosed in other SEC filings - Report contains forward-looking statements identified by terms such as **'anticipates,' 'expects,' 'estimates,' 'believes'**[7](index=7&type=chunk) - Forward-looking statements involve **substantial risks and uncertainties**[7](index=7&type=chunk) - Actual results, performance, or achievements may differ materially from those expressed or implied by forward-looking statements due to **known and unknown risks**[8](index=8&type=chunk) [Item 9.01 Financial Statements and Exhibits](index=2&type=section&id=Item%209.01%20Financial%20Statements%20and%20Exhibits) This section lists the financial statements and exhibits included in the Form 8-K filing [Exhibits List](index=2&type=section&id=Exhibits%20List) This section lists the exhibits accompanying the Form 8-K, where Exhibit 99.1 is the Press Release dated October 22, 2025, and Exhibit 104 is the Cover Page Interactive Data File Exhibits List | Exhibit Number | Description | |---|---| | 99.1 | Press Release - October 22, 2025 | | 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) | [Signatures](index=3&type=section&id=SIGNATURES) This section confirms the official signing of the report by an authorized officer [Report Signatories](index=3&type=section&id=Report%20Signatories) The report was duly signed on behalf of Simulations Plus, Inc. by Will Frederick, Executive Vice President and Chief Financial Officer, on October 22, 2025, in accordance with the Securities Exchange Act of 1934 requirements - Report signed by **Will Frederick, Executive Vice President and Chief Financial Officer**[13](index=13&type=chunk) - Signing Date: **October 22, 2025**[13](index=13&type=chunk)

Core Insights - Simulations Plus, Inc. announced preliminary results for fiscal year 2025 and provided guidance for fiscal year 2026 [1] Fiscal Year 2025 Preliminary Results - The company reported preliminary revenue figures for fiscal year 2025 [1] Fiscal Year 2026 Guidance - Management issued preliminary guidance and outlook for fiscal year 2026 [1]