Certara, Inc.

Certara supplies biosimulation software and consulting services used in drug discovery and development. Its tools help customers model medicines, analyze evidence and plan development work. The company trades on Nasdaq as CERT and has a December 31 fiscal year-end.

Software and services are moving at different speeds

Revenue and operating and net results follow U.S. accounting rules. Adjusted earnings remove stock compensation, acquired-intangible amortization, reorganization and other specified items, with related tax effects.

Reported year-over-year software growth accelerated to 11% from 4% in the second quarter. Management described the latest quarter's growth as organic. Services revenue declined 2%, compared with a 3% year-over-year decline in the previous quarter. Software bookings rose 15%, while services bookings fell 5%.

What management has promised

In August, Certara expected full-year continuing revenue growth of 0% to 4%, supported by software strength and improving services performance in the second half. November narrowed the revenue range to 2% to 3%. The annual adjusted diluted earnings range changed from $0.31 to $0.36 a share to $0.31 to $0.34.

Quarterly adjusted EBITDA margin was 31.8%, versus 31.5% a year earlier. That measure includes shared corporate costs retained after the divestiture. Adjusted EBITDA removes interest, taxes, depreciation and amortization, stock compensation and specified acquisition, reorganization and other items. The latest 29% to 31% margin range refers to the fourth quarter; August's same numerical range referred to the full year.

The completed Veristat divestiture

Certara sold its Regulatory and Medical Writing business to Veristat on May 8, 2026. The business is presented as discontinued operations, with historical continuing results recast to exclude it.

By September 30, Certara had received $78.2 million in cash consideration. Another $7.5 million remained in escrow, with a conditional earnout of up to $35 million. The third quarter included an $8.7 million pretax disposal gain, while the cumulative nine-month pretax disposal loss was $56.7 million. Those results sit outside the continuing business's operating performance.

Cash, debt and shareholder returns

Continuing operating cash flow was $46.3 million in the first nine months, down from $51.4 million. Its quarterly contribution improved to $30.7 million from about $28 million, calculated from the matched first-half and nine-month figures. Cash investment included $20.7 million for capitalized software development and $2 million for property and equipment.

At September 30, cash and cash equivalents were $214.9 million. Term-loan principal was $293.3 million, with a carrying value of $291.2 million, and the $100 million revolver was unused. Operating lease liabilities totaled $10 million.

Nine-month cash repurchases under the share program were $57.4 million, and acquisition-related contingent payments used $20.1 million. Certara made no program repurchases in the third quarter. Its separate $50 million authorization announced in August remained unused at quarter-end.

Read our analysis of Certara's software recovery and services outlook for the latest growth comparison.