Certara (CERT) Q1 2026 earnings summary

Executive summary

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

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

• Completed divestiture of the Regulatory and Medical Writing business for up to $135 million, shifting revenue mix to about 50% software and 50% services.

• Strategic AI initiatives included appointing a Chief AI Officer, collaboration with NVIDIA, and reorganization into two growth areas.

• $40 million in share repurchases during Q1; $82.6 million repurchased since authorization.

Financial highlights

• Software revenue grew 7% to $49.7 million; software bookings rose 20% to $48.7 million.

• Services revenue declined 4% to $57.2 million; services bookings fell 14% to $66.6 million.

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

• Adjusted net income was $14.5 million, down from $22.2 million in Q1 2025.

• Diluted loss per share was $0.06; adjusted diluted EPS was $0.09, down from $0.14.

Outlook and guidance

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

• Adjusted EBITDA margin projected at 30–32%; adjusted EPS guidance is $0.35–$0.41.

• Revenue mix expected to shift to approximately 50% software and 50% services.

• Fully diluted shares expected at 157–159 million; tax rate at 30%.

• No formal forward-looking financial guidance provided for the remainder of 2026 in some disclosures.