Certara Reports Third Quarter 2026 Financial Results

Certara posts modest revenue growth, improved margins, and narrows its net loss in Q3 2026.

What the company is saying

Certara, Inc. reports Q3 2026 financial results with a focus on steady revenue and profit growth from continuing operations, explicitly excluding the divested Regulatory and Medical Writing business. The company highlights a 4% year-over-year revenue increase to $94.9 million, with software revenue up 11% to $48.8 million and services revenue down 2% to $46.1 million. Executives Jon Resnick (CEO) and Faiz Mohammed (Interim CFO) emphasize disciplined execution, double-digit organic software growth, and improved adjusted EBITDA margin to 31.8%. The company points to operating actions taken earlier in the year as drivers for margin improvement and cash generation, with $30.7 million in cash from operations and $214.9 million in cash at quarter end. Certara narrows its 2026 full-year revenue growth outlook to 2%–3%, expects software revenue to exceed this range, and maintains adjusted EBITDA margin guidance of 29%–31%. The company also announces Grant Peterson as Chief Product Officer, effective November 2, 2026, citing his 25+ years of enterprise software experience. The overall tone is measured, with claims substantiated by period-over-period financial data and clear separation of discontinued operations.

What the data suggests

The Q3 2026 numbers show Certara’s revenue rose 4% year-over-year to $94.9 million, driven by an 11% increase in software revenue to $48.8 million, while services revenue declined 2% to $46.1 million. Net loss from continuing operations narrowed to $3.6 million from $4.8 million, a 26% improvement. Adjusted EBITDA increased 6% to $30.2 million, with margin rising to 31.8%. Total bookings for the quarter were $92.5 million, up 4%, with software bookings up 15% to $46.9 million and services bookings down 5% to $45.6 million. Trailing twelve-month total bookings reached $409.2 million, up 2%. Cost of revenues fell by $2.0 million, mainly due to lower equity-based compensation, while operating expenses rose $3.1 million, driven by higher employee-related, equipment, and recruiting costs. Adjusted net income was $13.5 million, slightly below last year’s $13.8 million. Cash and cash equivalents increased to $214.9 million. The company’s updated full-year guidance projects revenue growth of 2%–3%, adjusted EBITDA margin of 29%–31%, and adjusted diluted EPS of $0.31–$0.34. The divestiture of the Regulatory and Medical Writing business is complete and excluded from these figures. The data points to stable growth in software, continued pressure on services, and incremental improvements in profitability and cash flow.

Analysis

The announcement is a standard quarterly financial disclosure, presenting realised results for Q3 2026 with detailed revenue, bookings, and profitability metrics. The tone is factual and restrained, with no exaggerated claims or promotional language. Most key claims are realised and supported by numerical data, including revenue growth, improved adjusted EBITDA, and a narrowed net loss. The only forward-looking elements are the updated full-year outlooks for revenue growth and adjusted EPS, which are clearly identified as projections and not presented as achieved. There is no evidence of narrative inflation or overstatement; the language is proportionate to the modest improvements reported. No large capital outlay or long-dated, uncertain returns are discussed, and the capital intensity flag is not triggered. The gap between narrative and evidence is minimal.

Risk flags

• ●Services revenue and bookings declined year-over-year, with services revenue down 2% and services bookings down 5% for the quarter, and trailing twelve-month services bookings down 2%. This suggests ongoing challenges in the services segment, which could weigh on overall growth if not addressed.
• ●Operating expenses increased by $3.1 million, primarily due to higher employee-related, equipment, and recruiting costs. If these cost pressures persist or accelerate, they could offset margin gains from revenue growth and efficiency measures.
• ●The company’s full-year revenue growth guidance is modest at 2%–3%, indicating limited top-line acceleration. Achieving or exceeding this range depends on continued software momentum and successful conversion of pipeline opportunities, both of which carry execution risk.
• ●The divestiture of the Regulatory and Medical Writing business means reported results are from a smaller base of continuing operations. Any further portfolio changes or integration challenges from recent executive hires could introduce additional operational complexity.

Bottom line

Certara’s Q3 2026 results show incremental but real progress: revenue and software bookings are up, margins have improved, and the net loss has narrowed. The company’s focus on software is paying off, with double-digit growth in that segment, while services continue to lag. Cash generation is strong, with $214.9 million on hand, providing a buffer for future investment or volatility. The updated full-year outlook is conservative, reflecting the near-term reality of modest growth and ongoing cost management. The appointment of a seasoned Chief Product Officer signals continued emphasis on product-led growth, but integration and execution risks remain. Investors should watch for sustained software momentum, stabilization in services, and delivery against the narrowed guidance in the final quarter. The most important takeaway is that Certara is delivering steady, measured improvements without overpromising, but the growth trajectory remains moderate and dependent on continued execution.

Announcement summary

(NASDAQ:CERT) Certara, Inc. reported third quarter 2026 financial results from continuing operations, excluding the Regulatory and Medical Writing business, which is now reported as discontinued operations. Revenue for the third quarter of 2026 was $94.9 million, up from $90.9 million in the third quarter of 2025, representing 4% growth. Software revenue was $48.8 million, compared to $43.8 million in the prior year period, an increase of 11%. Services revenue was $46.1 million, down from $47.1 million, a decrease of 2%. Net loss from continuing operations was $3.6 million, compared to a net loss of $4.8 million in the third quarter of 2025, an improvement of 26%. Adjusted EBITDA was $30.2 million, up from $28.6 million, a 6% increase. Adjusted EBITDA margin was 31.8%, compared to 31.5% in the prior year period. Total bookings for the third quarter of 2026 were $92.5 million, a 4% increase year-over-year. Trailing twelve-month total bookings were $409.2 million, up 2%. Software bookings for the quarter were $46.9 million, up 15% year-over-year, and trailing twelve-month software bookings were $202.4 million, up 8%. Services bookings for the quarter were $45.6 million, down 5% year-over-year, and trailing twelve-month services bookings were $206.8 million, down 2%, with a trailing twelve-month services book-to-bill of 1.15. Total cost of revenues for the quarter was $31.4 million, a decrease of $2.0 million from the prior year, primarily due to a $1.6 million decrease in equity-based compensation expense, a $0.4 million decrease in professional and consulting expenses, and a $0.3 million decrease in equipment and software expense, partially offset by a $0.5 million increase in employee-related costs. Total operating expenses were $61.1 million, an increase of $3.1 million, mainly due to a $4.4 million increase in employee-related costs, a $1.7 million increase in equipment and software expense, a $1.2 million increase in executive recruiting expenses, a $0.9 million increase in amortization and depreciation expense, and a $0.6 million increase in professional and consulting expenses, partially offset by a $2.7 million decrease related to the remeasurement of the fair value of business acquisition contingent consideration, a $2.0 million decrease in stock-based compensation expense, and a $0.9 million increase in capitalized cost in R&D. Diluted loss per share from continuing operations was $(0.02), compared to $(0.03) in the prior year period. Adjusted net income for the quarter was $13.5 million, compared to $13.8 million in the third quarter of 2025. Adjusted diluted earnings per share was $0.09, unchanged from the prior year period. Cash and cash equivalents at quarter end were $214.9 million. Certara appointed Grant Peterson as Chief Product Officer, effective November 2, 2026. For the nine months ended September 30, 2026, revenue was $282.3 million, software revenue was $147.4 million, services revenue was $134.9 million, total bookings were $288.0 million, software bookings were $146.3 million, services bookings were $141.6 million, net loss from continuing operations was $21.5 million, adjusted EBITDA was $83.1 million, adjusted net income was $35.1 million, and adjusted diluted earnings per share was $0.23. The company updated its 2026 full-year revenue growth outlook to 2% to 3%, expects software revenue growth to be above this range, and services revenue growth to be at or below the low end of the range. The full-year adjusted EBITDA margin outlook remains 29% to 31%. The expected full-year adjusted diluted earnings per share range is $0.31 to $0.34. Fully diluted weighted average shares outstanding are expected to be in the range of 155 million to 157 million. The company is modeling an effective tax rate in the range of 25% to 30%. The Regulatory and Medical Writing business was divested on May 8, 2026, and is reported as discontinued operations.

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