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 approximately 50/50 software and services.

• Strategic AI initiatives included appointing a Chief AI Officer, formalizing AI leadership, and collaborating with NVIDIA.

• Reorganization into two growth areas: MID3 (MIDD and discovery) and ACE (accelerated clinical evidence), with a focus on AI-driven productivity and platform innovation.

Financial highlights

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

• 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; adjusted EPS $0.09 vs. $0.14.

• Ended quarter with $149.5 million in cash and $294.8 million in term loan borrowings.

Outlook and guidance

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

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

• Software growth expected at or above high end of 0–4% range; services growth at low end, improving in H2.

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

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