Simulations Plus Plunges 16% on Revised Revenue Outlook

On June 12, 2025, Simulations Plus experienced a significant drop of 16% in pre-market trading, reflecting investor concerns over the company's revised financial outlook.

Simulations Plus has adjusted its fiscal 2025 revenue guidance, projecting third-quarter revenue between $19 million and $20 million, significantly lower than analysts' expectations of $22.8 million. This revision is attributed to market uncertainties, including funding, drug pricing, and potential tariffs, which have led to budget reductions and project delays among the company's pharmaceutical and biotech clients.

The company has also announced a strategic reorganization, transitioning from a business unit structure to a functionally driven operating model. This shift aims to streamline operations, unlock synergies, and concentrate resources on growth opportunities. Key leadership appointments have been made to enhance client engagement and elevate sales and marketing capabilities.

Despite the challenges, Simulations Plus remains optimistic about the future of predictive analytics in biosimulation and clinical operations. The company believes that its new organizational structure will foster greater collaboration and accelerate the delivery of software enhancements and AI advancements, positioning it for sustainable and profitable long-term growth.