Certara Q3 revenue just misses estimates

Certara

06/11/2025 21:26

Overview

Certara fiscal Q3 revenue grows 10% yr/yr, slightly missing analyst expectations

Adjusted EPS for fiscal Q3 beats analyst expectations

Net income for fiscal Q3 improved to $1.5 mln from a net loss last year

Outlook

Certara sees full-year 2025 revenue between $415 mln and $420 mln

Company expects full-year adjusted EBITDA margin of approximately 32%

Certara anticipates full-year adjusted EPS of $0.45 to $0.47

Result Drivers

SOFTWARE GROWTH - Driven by biosimulation software and M&A activities, software revenue increased by 22%

SERVICE BOOKINGS DECLINE - Service bookings decreased by 9% due to softer trends among tier-one customers in Regulatory services

BIOSIMULATION DEMAND - Strong demand for biosimulation solutions in software and QSP services, despite spending hesitancy in other service areas

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Slight Miss*
$104.60 mln
$104.90 mln (9 Analysts)
Q3 Adjusted EPS
Beat
$0.14
$0.11 (9 Analysts)
Q3 EPS
$0.01
Q3 Adjusted Net Income
$22.20 mln
Q3 Net Income
$1.50 mln
Q3 Adjusted EBITDA
$35.20 mln
Q3 Pretax Profit
-$267,000


*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 6 "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 $16.00, about 27.7% above its November 5 closing price of $11.57

The stock recently traded at 23 times the next 12-month earnings vs. a P/E of 19 three months ago

Press Release: ID:nGNX6q5dbj

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