The volatility began in June 2025 when the San Diego-based company slashed its annual revenue outlook from a projected $93 million down to $80 million. Management attributed the shortfall to project cancellations and tightening budgets among its pharmaceutical and biotechnology clients, a sharp reversal from the confidence expressed just two months earlier.
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Simulations Plus faces investor scrutiny after guidance cut and audit exit
A 24% single-day stock collapse followed by a further 26% decline has triggered a formal investigation into Simulations Plus, Inc. The law firm Johnson Fistel, PLLP is currently probing whether the company misled investors regarding its fiscal health and internal accounting controls prior to a massive revenue guidance downgrade.
Heightened scrutiny followed in July 2025, when the company reported a $67.3 million net loss, compounded by a $77.2 million non-cash impairment charge. The situation worsened when Simulations Plus dismissed its auditor, Grant Thornton LLP. In subsequent regulatory filings, the accounting firm disclosed that it had identified unresolved issues regarding internal financial reporting and unit determinations before its departure. Investors seeking to recover losses are now being gathered by counsel to determine if these disclosures constitute violations of federal securities laws.
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