Simulations Plus, Inc. (NASDAQ: SLP) has announced its preliminary revenue for the third fiscal quarter of 2025 and updated its full-year 2025 revenue guidance. The company expects to report third quarter fiscal 2025 revenue in the range of $19 million to $20 million. This marks a change from the previous period.
Furthermore, the full year fiscal 2025 revenue is expected to range between $76 million and $80 million, indicating a shift from the previous guidance.
Shawn O'Connor, the chief executive officer of Simulations Plus, mentioned that market uncertainties have led to significant headwinds for the company's pharmaceutical and biotech clients, resulting in budget reductions, project cancellations, and delays. Despite the software segment remaining relatively resilient, demand for services has proven more sensitive to market volatility and is coming in below expectations.
To address these challenges and better position the company for long-term alignment with clients, Simulations Plus recently announced a strategic reorganization, transitioning from a business unit structure to a functionally driven operating model. This reorganization is part of a multi-year transformation aimed at streamlining operations, unlocking synergies across teams, and concentrating resources on the most promising growth opportunities.
The company also made key leadership appointments to enhance client engagement and elevate sales and marketing capabilities. These actions are expected to improve operational efficiency and better position Simulations Plus for sustainable and profitable long-term growth.
Shawn O'Connor expressed optimism about the future of predictive analytics in biosimulation and clinical operations, highlighting the company's role as a long-standing partner and innovation leader in this space.
Simulations Plus will report its third quarter fiscal 2025 financial results after the market close on July 2, 2025, and will host a conference call and webcast on the same day at 5:00 p.m. Eastern Time to discuss the details of its performance for the quarter and certain forward-looking information.
Simulations Plus, with over 25 years of experience, is a premier provider in the biopharma sector, offering advanced software and consulting services that enhance drug discovery, development, research, clinical trial operations, regulatory submissions, and commercialization. The market has reacted to these announcements by moving the company's shares -2.87% to a price of $26.44. For the full picture, make sure to review Simulations Plus's 8-K report.
