Certara (CERT) Q4 2025 earnings summary

Executive summary

• FY 2025 revenue reached $418.8M, up 9% year-over-year, with adjusted EBITDA of $134.5M, up 10%.

• Q4 2025 revenue was $103.6M, a 3% increase year-over-year; adjusted EBITDA was $32.5M, down 3%.

• Net loss for Q4 2025 was $5.9M, compared to net income of $6.6M in Q4 2024.

• Jon Resnick was appointed CEO effective January 1, 2026, bringing over 30 years of experience and emphasizing operational discipline, customer-centricity, and AI-driven innovation.

• 2026 is positioned as a transition year, with operational improvements and a focus on sustainable, faster growth.

Financial highlights

• FY 2025 GAAP revenue grew 9% year-over-year to $418.8M; Q4 2025 revenue was $103.6M, up 3%.

• FY 2025 adjusted EBITDA was $134.5M (32% margin), up 10%; Q4 adjusted EBITDA was $32.5M (31% margin), down 3%.

• FY 2025 adjusted net income was $70.9M; Q4 adjusted net income was $14.9M, down from $24.7M in Q4 2024.

• FY 2025 adjusted diluted EPS was $0.44; Q4 adjusted EPS was $0.09, down from $0.15.

• Cash and cash equivalents at year-end were $189.4M.

Outlook and guidance

• FY 2026 revenue growth is projected at 0–4%, with Q1 expected at the low end due to tough comparison and acceleration anticipated in later quarters.

• Adjusted EBITDA margin expected between 30–32%; adjusted diluted EPS guidance is $0.44–$0.48.

• Fully diluted shares expected in the range of 160–162M; effective tax rate modeled at 30%.

• Continued discretionary R&D investments planned, with $10M in cost avoidance identified for 2026.