Certara's Q4 revenue slightly beats as services bookings increase

Certara

26/02/2026 11:12

Overview

Drug development firm's Q4 revenue showed slight beat against analyst expectations

Adjusted EPS for Q4 missed analyst expectations

Company appointed Jon Resnick as CEO, effective January 2026

Outlook

Certara expects FY 2026 revenue growth of 0-4%

Company anticipates FY 2026 adjusted EBITDA margin of 30-32%

Certara projects FY 2026 adjusted diluted EPS of $0.44-$0.48

Result Drivers

SOFTWARE GROWTH - Q4 software revenue grew 10%, driven by biosimulation software

SERVICES BOOKINGS INCREASE - Services bookings grew 17% year-over-year, driven by growth across all customer tiers

HIGHER OPERATING EXPENSES - Increased operating expenses impacted adjusted EBITDA, which declined by 3%

Company press release: ID:nGNXccBbDQ

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Revenue
Slight Beat*
$103.60 mln
$103.19 mln (11 Analysts)
Q4 Adjusted EPS
Miss
$0.09
$0.11 (10 Analysts)
Q4 EPS
-$0.04
Q4 Adjusted Net Income
$14.90 mln
Q4 Net Income
-$5.90 mln
Q4 Adjusted EBITDA
$32.50 mln
Q4 Pretax Profit
-$2.91 mln


*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "strong buy" or "buy", 6 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the software peer group is "buy"

Wall Street's median 12-month price target for Certara Inc is $12.00, about 82.1% above its February 25 closing price of $6.59

The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 23 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)