Simulations Plus appoints Grant Thornton as new auditor

Simulations Plus , Inc. (NASDAQ:SLP), a $657 million market cap company specializing in computer-integrated systems design with strong financial health according to InvestingPro analysis, announced on Monday the change of its independent registered public accounting firm. The company has demonstrated robust growth with revenue increasing 21.5% in the last twelve months. The company’s Audit Committee has dismissed Rose, Snyder & Jacobs LLC (RSJ) and appointed Grant Thornton LLP as the new auditor to review the company’s financial statements for the fiscal year ending August 31, 2025.

The decision to change auditors was made following a competitive process initiated by the Audit Committee. The dismissal of RSJ, effective April 15, 2025, was not due to any disagreements over accounting principles or practices, financial statement disclosure, or auditing scope or procedures that would have required RSJ to report on the matter. InvestingPro data shows the company maintains excellent liquidity with a current ratio of 4.37, indicating strong financial management practices. Get access to 10+ more exclusive ProTips and comprehensive analysis with an InvestingPro subscription. Furthermore, there were no "reportable events," such as significant deficiencies in internal controls or fraud involving management, during the fiscal years ended August 31, 2024, and August 31, 2023, or the subsequent interim period through April 15, 2025.

RSJ’s audit report for the fiscal year ended August 31, 2024, did not contain any adverse opinion or disclaimer of opinion and was not qualified or modified regarding uncertainty, audit scope, or accounting principles. In compliance with regulatory requirements, Simulations Plus provided RSJ with a copy of the announcement prior to filing with the SEC and requested RSJ to furnish a letter to the SEC confirming their agreement with the statements made by the company regarding their dismissal. RSJ’s letter, dated April 16, 2025, is included as an exhibit to the 8-K filing.

Grant Thornton’s appointment as the new auditor was also effective on April 15, 2025. Prior to their appointment, neither Simulations Plus nor anyone acting on its behalf consulted Grant Thornton on any matters that would require disclosure, such as accounting principles or auditing matters.

This transition in certifying accountant comes as Simulations Plus continues to evolve its business operations. The company’s net income is expected to grow this year, according to InvestingPro analysis, suggesting positive momentum in its business performance. The information disclosed is based on the company’s recent SEC filing. For detailed insights into SLP’s valuation and growth prospects, access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.

In other recent news, Simulations Plus reported its second-quarter financial results for fiscal year 2025, revealing a revenue of $22.4 million, which represents a 23% increase compared to the previous year. This figure surpassed both the consensus estimate of $21.9 million and analysts’ projections. Despite this revenue growth, the company’s adjusted EBITDA declined by 8% year-over-year to $6.6 million, falling short of expectations due to increased research and development and sales and marketing expenses. BTIG analysts responded by lowering their price target for Simulations Plus from $50.00 to $41.00, although they maintained a Buy rating. Citizens JMP also reaffirmed a Market Perform rating, reflecting a neutral stance on the stock. The company’s Software (ETR:SOWGn) division showed a 16% year-over-year growth, while its Services division exceeded expectations with a 34% increase. Management remains optimistic, reaffirming their full-year guidance and anticipating sequential improvements in revenue and EBITDA for the third and fourth quarters.

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