Simulations Plus Reports Preliminary Q3 FY2025 Revenue and Adjusts Full Year Guidance Amid Market Volatility

Simulations Plus, a pioneer in cheminformatics and biosimulation solutions for the biopharma industry, has announced its preliminary third-quarter fiscal 2025 revenue. The company, listed on Nasdaq under the ticker SLP, expects to operate within an uncertain market environment due to funding concerns, drug pricing issues, and potential tariffs. These market challenges have affected their clients, leading to budget cuts, project cancellations, and delays more severe than in the past two years. Despite these obstacles, the software segment has shown resilience, as it remains critical to drug development programs. However, demand for the service segment has been more volatile and is falling short of expectations. In response to these market dynamics, Shawn O’Connor, CEO of Simulations Plus, outlined several strategic moves designed to align the company with its clients' needs and bolster its long-term growth. A key initiative is transitioning from a business unit structure to a functionally driven operating model. This reorganization aims to streamline operations, unlock synergies within teams, and concentrate resources on high-growth areas. Additionally, the company appointed new leaders to enhance client engagement and elevate sales and marketing capabilities, marking the final phase of a multi-year transformation. The new structure is expected to improve operational efficiency, accelerate software enhancement delivery, and drive platform integration and AI advancements. These changes are intended to foster greater collaboration, particularly through centralized product and technology development. According to O’Connor, the company remains optimistic about the future of predictive analytics in biosimulation and clinical operations. He highlighted that these capabilities are essential for aiding clients in achieving higher efficiency and success, reinforcing Simulations Plus' role as an innovation leader in the field. Simulations Plus will report its detailed third-quarter fiscal 2025 financial results after the market closes on Wednesday, July 2, 2025. A conference call and webcast hosted by CEO Shawn O’Connor and CFO Will Frederick will follow at 5:00 p.m. Eastern Time to delve into the company's performance and provide forward-looking insights. Interested parties can register for the webcast on the company's investor relations page or dial into the call using the provided numbers. The webcast will also be available for replay approximately one hour after the event concludes. Established over 25 years ago, Simulations Plus serves a global clientele in the biopharma sector. The company offers advanced software and consulting services that enhance various stages of drug development, including discovery, research, clinical trial operations, regulatory submissions, and commercialization. Their comprehensive biosimulation solutions integrate AI/ML, physiologically based pharmacokinetics, biopharmaceutics, quantitative systems pharmacology/toxicology, and population PK/PD modeling. These technologies are utilized by leading pharmaceutical, biotechnology, and regulatory agencies worldwide. The company’s focus on environmental, social, and governance (ESG) initiatives also remains strong. Their 2024 ESG update highlights various sustainability efforts, demonstrating a commitment to responsible business practices. The preliminary financial results and guidance for fiscal 2025 are based on unaudited estimates and are subject to finalization. Simulations Plus warns that these estimates could differ materially from the final figures and advises against viewing them as a substitute for the full quarterly financial statements, which will be prepared according to U.S. GAAP. The full fiscal year 2025 revenue guidance is similarly cautious, reflecting the company's proactive approach to uncertainty and market volatility. Industry insiders laud Simulations Plus for its adaptive strategy, noting that the transition to a functionally driven model is a prudent step to improve efficiency and client engagement. The appointment of new leadership in key roles is seen as a move to strengthen the company’s market position and drive future growth. Analysts believe that the emphasis on AI advancements and predictive analytics will further solidify Simulations Plus' reputation as an innovation leader, potentially opening new avenues in an increasingly data-driven biopharma landscape. Overall, despite short-term challenges, the long-term prospects for Simulations Plus remain positive, supported by its robust technology and committed team.