Simulations Plus appoints Rose, Snyder & Jacobs as new auditor after dismissal

Simulations Plus , Inc. (NASDAQ:SLP), a software company with a market capitalization of $351 million and currently trading near its 52-week low of $16.72, announced Tuesday the dismissal of Grant Thornton LLP as its independent registered public accounting firm, effective July 9. According to InvestingPro data, the company’s stock has declined over 41% in the past six months, though analysis suggests the stock may be undervalued at current levels. The company’s audit committee approved the change following discussions with Grant Thornton, citing the need to ensure timely completion of its Quarterly Report on Form 10-Q for the period ended May 31, 2025.

According to the company’s statement, during Grant Thornton’s engagement from April 15 through July 9, Simulations Plus addressed matters related to segment reporting and the determination of reporting units, as well as the evaluation of internal controls over financial reporting for Sarbanes-Oxley Act Section 404(a) compliance. The company determined these matters could not be finalized in time for the upcoming quarterly report. Simulations Plus reported there were no “reportable events” as defined by SEC regulations during this period.

The company provided Grant Thornton with a copy of the 8-K filing and requested a letter stating whether it agreed with the disclosed statements. Grant Thornton’s letter, dated July 14, 2025, was included as an exhibit to the filing.

On July 9, the audit committee appointed Rose, Snyder & Jacobs LLC (RSJ) as the new independent auditor to audit the company’s consolidated financial statements for the fiscal year ending August 31, 2025, including interim period reviews. RSJ previously served as Simulations Plus’ auditor for the fiscal years ended August 31, 2024, and August 31, 2023, as well as for the interim period from September 1, 2024, through April 15, 2025.

The company stated that during the prior engagement with RSJ and the subsequent interim period, there were no consultations regarding the application of accounting principles to specific transactions or audit opinions, nor were there disagreements or reportable events as defined by SEC regulations.

This information is based on a press release statement included in the company’s filing with the Securities and Exchange Commission.

In other recent news, Simulations Plus reported fiscal third-quarter 2025 revenue of $20.4 million, marking a 9.8% year-over-year increase and surpassing analyst estimates. The company’s adjusted EBITDA reached $7.4 million, growing 33% year-over-year, with an adjusted EBITDA margin of 36.5%. Despite these positive results, Simulations Plus faces industry challenges, including regulatory pressures and drug pricing reforms, as noted by BTIG. Stephens also highlighted macroeconomic challenges impacting the company and lowered its stock price target to $20 while maintaining an Overweight rating. KeyBanc downgraded the stock from Overweight to Sector Weight due to biopharma market challenges and customer concentration issues. Meanwhile, Citizens JMP maintained a Market Perform rating, acknowledging the revenue growth driven by acquisitions. Simulations Plus has also invested $1 million in Nurocor, a clinical trial tech firm, as part of its Corporate Development Initiative. This investment aligns with Simulations Plus’ strategy to expand its market reach and support early-stage technology companies.

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