Certara (CERT) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue was $106.9M, up 1% year-over-year, driven by 7% software growth and a 4% decline in services revenue.

• Net loss was $8.8M, compared to net income of $4.7M in Q1 2025, primarily due to higher operating expenses and tax costs.

• Adjusted EBITDA was $31.7M (30% margin), down 9% from $34.8M last year.

• Completed divestiture of the Regulatory and Medical Writing business for up to $135M, shifting revenue mix to approximately 50/50 software and services.

• Strategic actions included segment reorganization, formalizing AI leadership, and partnerships with NVIDIA and Altasciences to accelerate technology and expand market reach.

Financial highlights

• Software revenue grew 7% to $49.7M; services revenue declined 4% to $57.2M.

• Software bookings rose 20% to $48.7M; services bookings declined 14% to $66.6M.

• Adjusted net income was $14.5M, down from $22.2M in Q1 2025; adjusted EPS $0.09 vs. $0.14 last year.

• Cash and equivalents at quarter-end: $149.5M; $294.8M in term loan borrowings.

• Repurchased $40M in shares during Q1 2026; $82.6M in total since authorization.

Outlook and guidance

• 2026 revenue guidance: $395M–$405M, including $18M from divested business; ex-divestiture, growth expected at 0–4%.

• Adjusted EBITDA margin expected at 30–32%; adjusted EPS guidance $0.35–$0.41; fully diluted shares 157–159M.

• Revenue mix to shift to 50% software, 50% services post-divestiture.

• Management to focus on core operations, AI-integrated modeling, and continued R&D investment.