Certara (CERT) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue grew 1% year-over-year to $106.9 million, 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 closer to 50/50 software and services.

• Strategic actions included reorganizing into MID3 and ACE, formalizing AI leadership, and partnerships with NVIDIA and Altasciences.

• Appointed Chief AI Officer and accelerated enterprise-wide AI initiatives.

Financial highlights

• Software revenue was $49.7 million (+7%); services revenue was $57.2 million (–4%).

• Software bookings rose 20% to $48.7 million; services bookings fell 14% to $66.6 million.

• Adjusted EBITDA was $31.7 million (margin ~30%), 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.

• Cash and equivalents at quarter end were $149.5 million; term loan borrowings were $294.8 million.

Outlook and guidance

• 2026 full-year revenue expected at $395–$405 million, including $18 million from divested business.

• Excluding divestiture, full-year growth projected at 0–4%, with stronger growth in the second half.

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