Certara (NASDAQ:CERT) Issues Earnings Results

Certara (NASDAQ:CERT) released its earnings results on Thursday. The company reported $0.09 EPS for the quarter, missing analysts’ consensus estimates of $0.11 by ($0.02), FiscalAI reports. The firm had revenue of $103.65 million for the quarter, compared to the consensus estimate of $103.23 million. Certara had a return on equity of 5.18% and a net margin of 2.62%.Certara’s revenue was up 3.2% on a year-over-year basis. During the same quarter in the previous year, the business posted $0.15 EPS. Certara updated its FY 2026 guidance to 0.440-0.480 EPS.

Here are the key takeaways from Certara’s conference call:

• New CEO and strategic plan: Jon Resnick (onboard Jan 1) laid out three priorities — focused portfolio, customer-centric go-to-market, and operational discipline — and says Certara can reach double-digit growth over time while already identifying roughly $10M of 2026 cost avoidance.
• Conservative 2026 guidance: Management guides to only flat to +4% revenue growth for 2026, adjusted EBITDA margin of 30%–32%, and adjusted EPS of $0.44–$0.48, with Q1 expected at the low end of the range.
• Mixed 2025 results but near-term execution risks: full-year revenue was $418.8M (+9%), software revenue was $183.3M (+18% reported; organic +7%), yet Q4 software bookings fell 6% and management cited conversion and Tier 1/2 execution weakness.
• Services and MIDD momentum: technology-driven services bookings rose 17% in Q4 and MIDD services showed double-digit bookings growth, with December customer commitments cited as a positive discretionary-spend indicator.
• Regulatory writing under strategic review and capital allocation: the regulatory writing & operations business is in the final stages of a strategic review (outcome not yet disclosed) while the company plans to continue using share repurchases as a capital-allocation tool.

Certara Price Performance

Shares of NASDAQ CERT traded up $0.21 during mid-day trading on Thursday, hitting $6.80. 4,562,931 shares of the company’s stock traded hands, compared to its average volume of 2,594,978. The company has a debt-to-equity ratio of 0.27, a current ratio of 2.09 and a quick ratio of 2.09. Certara has a 1 year low of $6.04 and a 1 year high of $15.38. The company’s 50-day moving average is $8.44 and its two-hundred day moving average is $9.94. The company has a market capitalization of $1.08 billion, a P/E ratio of 97.14 and a beta of 1.47.

Trending Headlines about Certara

Here are the key news stories impacting Certara this week:

• Positive Sentiment: FY‑2025 revenue and margin strength — Certara reported FY‑2025 revenue of $418.8M (+9%) and adjusted EBITDA of $134.5M (+10%), showing solid full‑year top‑line growth and expanded adjusted EBITDA. Read More.
• Positive Sentiment: Product / bookings momentum — Q4 software revenue grew ~10% year‑over‑year (software = $46.4M) and total Q4 bookings rose ~7% to $155.2M, supporting recurring revenue visibility. Read More.
• Positive Sentiment: New leadership and cost actions — CEO Jon Resnick (effective Jan 1, 2026) outlined an operational overhaul and signaled ~ $10M of near‑term cost avoidance / efficiency actions, which investors may view as supportive for margins and execution. Read More.
• Neutral Sentiment: Guidance mix — management guided FY‑2026 adjusted diluted EPS to $0.44–$0.48 and adj. EBITDA margin ~30–32%; the EPS range is near consensus but revenue growth guidance (0–4%) is conservative and will be read for cadence across the year. Read More.
• Neutral Sentiment: Full earnings package and materials available — management hosted an earnings call and provided slides/transcript for investors to assess forward cadence and execution priorities. Read More.
• Negative Sentiment: Q4 EPS miss and GAAP loss — adjusted diluted EPS for Q4 was $0.09 versus consensus ~$0.11, and GAAP net loss was $5.9M; adjusted metrics declined sequentially (adj. EBITDA -3% Q/Q vs prior year), highlighting near‑term profitability pressure from higher operating costs. Read More.
• Negative Sentiment: Revenue guidance below some street estimates — several outlets noted FY‑2026 revenue guidance implies slower growth versus consensus, which could pressure sentiment until execution on bookings and commercial improvements is demonstrated. Read More.

Analysts Set New Price Targets

CERT has been the subject of a number of analyst reports. KeyCorp cut their price target on Certara from $13.00 to $12.00 and set an “overweight” rating for the company in a research note on Thursday, January 8th. Stephens lowered their price target on Certara from $15.00 to $12.00 and set an “overweight” rating on the stock in a report on Friday, December 12th. Wall Street Zen lowered shares of Certara from a “buy” rating to a “hold” rating in a report on Sunday, February 15th. Weiss Ratings reiterated a “sell (d+)” rating on shares of Certara in a research report on Monday, December 29th. Finally, Rothschild & Co Redburn set a $10.00 target price on shares of Certara in a research report on Friday, November 21st. One investment analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating, six have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average price target of $12.55.

Institutional Investors Weigh In On Certara

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. AQR Capital Management LLC purchased a new position in shares of Certara in the 1st quarter worth approximately $259,000. Goldman Sachs Group Inc. lifted its holdings in shares of Certara by 65.6% in the 1st quarter. Goldman Sachs Group Inc. now owns 228,996 shares of the company’s stock worth $2,267,000 after acquiring an additional 90,724 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its stake in shares of Certara by 13.6% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 299,528 shares of the company’s stock worth $2,965,000 after purchasing an additional 35,954 shares during the period. Jane Street Group LLC grew its holdings in Certara by 17.1% during the 1st quarter. Jane Street Group LLC now owns 277,054 shares of the company’s stock valued at $2,743,000 after purchasing an additional 40,463 shares during the last quarter. Finally, JPMorgan Chase & Co. raised its position in Certara by 29.3% in the 2nd quarter. JPMorgan Chase & Co. now owns 93,057 shares of the company’s stock worth $1,089,000 after purchasing an additional 21,099 shares during the period. 73.96% of the stock is currently owned by hedge funds and other institutional investors.

About Certara

Certara is a biosimulation software and services company that partners with pharmaceutical, biotechnology and medical device developers to accelerate drug discovery, development and regulatory approval. The company’s platform integrates quantitative pharmacology, real-world evidence, artificial intelligence and machine learning to model and simulate drug behavior across a range of therapeutic areas and patient populations. By applying these mechanistic and data-driven approaches, Certara helps its clients predict clinical outcomes, optimize dosing strategies and streamline decision-making throughout the product lifecycle.

The company’s offerings are divided into software tools and consulting services.