Certara Stock Earnings Reports

Certara reported Q1 2026 revenue of $106.9M (+1% YoY) with software revenue up 7% to $49.7M and services down 4% to $57.2M. Software bookings strengthened (Q1 software bookings +20% YoY) and software net retention was 106%, driven by Simcyp, Phoenix and Chemaxon. Management completed the divestiture of the regulatory and medical writing business (previously ~ $50M revenue, ~$17M adj. EBITDA in 2025), which they expect will improve revenue predictability and unlock ~150bps of incremental growth in 2027+. Certara reorganized into two customer-facing groups — MID3 (model‑informed drug development + expert services) and ACE (Accelerated Clinical Evidence: data/workflow products like Phoenix and Pinnacle) — and appointed a Chief AI Officer as they invest in an AI‑integrated platform. Strategic partnerships with NVIDIA (accelerated computing/AI) and Altasciences (integrated CRO/CDMO collaboration) were announced to accelerate simulations and clinical workflows. Updated full‑year 2026 guidance (reflecting divestiture) is revenue $395M–$405M (0%–4% ex-divestiture), adjusted EBITDA margin 30%–32%, and adjusted EPS $0.35–$0.41; first half expected to be weighted lower with stronger second‑half growth. Balance sheet: $149.5M cash, $294.8M term loan outstanding, full revolver availability; share repurchases continue ($82.6M repurchased of $100M authorization, $40M in Q1). Management emphasized near‑term execution work to stabilize services performance and product commercialization risks but highlighted strong long‑term opportunity from AI adoption and regulatory tailwinds (ICH M15, FDA NAM guidance, FDA initiative on real‑time trials).