Simulations Plus (NASDAQ:SLP) Navigates Earnings, Legal Scrutiny, and Pending Altaris Acquisition

• Simulations Plus (NASDAQ:SLP) is preparing to release its third-quarter fiscal 2026 results on July 9, 2026. TradingView data shows an estimated EPS of $0.23 on revenue of approximately $20.90 million for the quarter.
• Simulations Plus develops modeling and simulation software for the pharmaceutical and biotechnology industries. Its software helps pharmaceutical scientists predict key endpoints and dynamics in silico, supporting drug discovery and development decisions.

The upcoming earnings release comes during a major corporate transition. On June 16, 2026, Simulations Plus announced that it had entered into a definitive agreement to be acquired by affiliates of Altaris, LLC, in an all-cash transaction valued at approximately $375 million. Under the terms of the deal, Simulations Plus stockholders are expected to receive $18.50 per share in cash, representing a 26% premium to the company’s 60-day volume-weighted average price as of June 15, 2026. The transaction is expected to close in the fourth quarter of calendar 2026, subject to shareholder, regulatory, and other customary approvals.

Because of the pending transaction, Simulations Plus said it does not plan to hold earnings calls while the deal remains pending. This means investors may need to rely primarily on the company’s earnings press release and transaction-related disclosures for updates.

The company is also facing legal scrutiny from shareholder rights law firms. Johnson Fistel, PLLP announced that it is investigating Simulations Plus on behalf of investors who suffered losses, focusing on whether losses may be recoverable under federal securities laws following previous company disclosures.

The investigation followed a June 2025 guidance reduction. Simulations Plus had previously maintained fiscal 2025 revenue guidance of $90 million to $93 million, but later reduced the range to $76 million to $80 million, citing budget reductions, project cancellations, and delays among pharmaceutical and biotechnology customers. Following that announcement, shares declined by more than 24%.

Additional concerns emerged in July 2025, when Simulations Plus reported a third-quarter fiscal 2025 net loss of $67.3 million, or $3.35 per diluted share. The loss included a $77.2 million non-cash impairment charge. The company said the impairment charge was based on a valuation assessment and was intended to align the book value of its assets with current market value.

The company also disclosed changes involving its independent registered public accounting firm. Grant Thornton later informed the SEC that it had identified matters related to segment reporting, reporting-unit determinations, and internal control over financial reporting that were not resolved to its satisfaction as of the date of its termination.

More recently, Simulations Plus reported second-quarter fiscal 2026 revenue of $24.3 million, up 8% year over year, with net income of $4.5 million and diluted EPS of $0.22. Adjusted diluted EPS was $0.35. The company also revised its fiscal 2026 adjusted diluted EPS guidance to $0.75 to $0.85, down from its previous range of $1.03 to $1.10, due to a higher expected effective tax rate. Revenue guidance remained at $79 million to $82 million.

The company’s balance sheet remains relatively strong. Recent data shows a current ratio of 5.47, suggesting Simulations Plus has substantial short-term liquidity. Its total debt-to-equity ratio is also very low at approximately 0.38%, or about 0.004 as a decimal ratio, indicating limited balance-sheet leverage.

Overall, the upcoming earnings release may be important not only for quarterly performance, but also for how investors interpret the company’s operating momentum, legal scrutiny, accounting-related disclosures, and pending Altaris acquisition.