Certara, Inc.

What they do

Certara sells proprietary biosimulation software and scientist-led consulting services that use mathematical models of biological processes to inform drug discovery, development, and regulatory decisions. Its platforms are built on biology, chemistry, and pharmacology principles and incorporate AI within validated frameworks. The company also provides data solutions for the collection, standardization, and analysis of preclinical and clinical data.

Revenue drivers

• Software revenue — Q2 2026 software revenue was $48.8M, up 4% year-over-year, representing about 52% of total quarterly revenue.
• Services revenue — Q2 2026 services revenue was $44.5M, down 3% year-over-year, representing about 48% of total quarterly revenue.
• Model-Informed Discovery and Drug Development (MID3) and Accelerated Clinical Evidence (ACE) business units — Newly reorganized business units are the primary go-to-market structure, though segment-level revenue breakdown was not provided in the excerpts.

Recent performance

Q2 2026 revenue was $93.3M, up 1% year-over-year. Net loss was $6.1M, versus net income of $1.5M in Q2 2025, driven by absence of a $5.7M favorable contingent consideration adjustment, a $2.9M currency expense swing, and $2.2M higher reorganization costs. Adjusted EBITDA was $26.2M, down 3%. Full-year 2025 revenue was $418.8M with a net loss of $1.6M and operating cash flow of $96.3M.

Strategy

Management is executing a transformation to deliver sustainable double-digit growth: completed the divestiture of the Regulatory and Medical Writing business, reorganized into two business units, and implemented a reduction in force targeting overhead (about 5% of global employees) expected to yield ~$13M in run-rate savings. New Chief Commercial Officer and Chief Information Officer appointments are part of aligning sales and marketing and scaling IT. The company is integrating AI capabilities across its platforms and consulting services while maintaining expert oversight.

Risks

• Regulatory adoption slowdown — If regulators or academic institutions reduce acceptance of in silico modeling, demand for Certara's products and services could decline.
• Regulatory license non-renewal — The FDA and other regulators license Certara's software annually; failure to renew could reduce revenue and credibility.
• Divestiture execution risk — The recent divestiture of the Regulatory and Medical Writing business may leave stranded costs or cause customer disruption.
• Currency fluctuation — A $2.9 million unfavorable currency expense swing in Q2 2026 contributed to the net loss, indicating sensitivity to exchange rates.

Outlook

Management reaffirmed full-year 2026 revenue guidance of 0% to 4% growth on a comparable continuing operations basis, supported by software strength and improving services performance in the second half. Focus is on customer impact, speed of execution, and integrating newly appointed commercial leadership.