Certara Reports First Quarter 2026 Financial Results
Rhea-AI Summary
Certara (Nasdaq:CERT) reported Q1 2026 revenue of $106.9 million, up 1% year over year. Software revenue rose 7% to $49.7 million, while services revenue fell 4% to $57.2 million.
The company posted a net loss of $8.8 million (‑$0.06 per share) versus prior-year net income of $4.7 million. Adjusted EBITDA was $31.7 million and adjusted net income was $14.5 million.
Certara completed the sale of its global medical and regulatory writing business to Veristat for $85 million cash, $15 million escrow, and up to $35 million in earn‑out. Updated 2026 guidance calls for revenue of $395–$405 million and adjusted EBITDA margin of 30%–32%.
AI-generated analysis. Not financial advice.
Positive
- Q1 2026 revenue grew 1% year over year to $106.9 million
- Software revenue increased 7% year over year to $49.7 million
- Software bookings rose 20% to $48.7 million, indicating strong demand
- Completed sale of medical and regulatory writing business with up to $135 million total consideration
- 2026 revenue guidance set at $395–$405 million
- 2026 adjusted EBITDA margin guided to 30%–32%
Negative
- Services revenue declined 4% year over year to $57.2 million
- Total bookings decreased 2% to $115.3 million
- Services bookings fell 14% to $66.6 million
- Q1 shifted to $8.8 million net loss from $4.7 million net income
- Adjusted EBITDA decreased 9% to $31.7 million
- Cash and cash equivalents declined to $149.5 million from $189.4 million year over year
Market Reaction – CERT
Following this news, CERT has declined 3.33%, reflecting a moderate negative market reaction. Argus tracked a trough of -8.6% from its starting point during tracking. Our momentum scanner has triggered 7 alerts so far, indicating moderate trading interest and price volatility. The stock is currently trading at $6.10. This price movement has removed approximately $33M from the company's valuation.
Data tracked by StockTitan Argus (15 min delayed). Upgrade to Gold for real-time data.
Key Figures
Market Reality Check
Peers on Argus
Key health information and digital health peers like PHR, TDOC, and GDRX show single‑day gains between 4–5%, while CERT’s pre‑news price was unchanged over the last 24 hours, suggesting any reaction would be more stock‑specific than broad sector rotation.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Feb 26 | Quarterly earnings | Neutral | +3.2% | Reported FY2025 growth with modest Q4 loss and set 2026 guidance. |
| Nov 06 | Quarterly earnings | Positive | -23.1% | Q3 2025 beat with strong software growth and raised 2025 guidance. |
| Aug 06 | Quarterly earnings | Positive | +18.1% | Q2 2025 double‑digit revenue growth and improved profitability metrics. |
| May 05 | Quarterly earnings | Positive | -11.0% | Strong Q1 2025 revenue, software growth and higher bookings. |
| Feb 26 | Quarterly earnings | Positive | +0.6% | Q4 2024 showed robust growth and positive earnings with strong bookings. |
Earnings releases have often been fundamentally solid but produced mixed price reactions, with several instances where strong results coincided with negative next‑day moves.
Recent earnings for Certara show consistent revenue growth and strong software expansion, but with variability in services and profitability. Prior quarters like Q2 and Q3 2025 delivered double‑digit revenue growth and rising adjusted EBITDA, yet price reactions ranged from a +18.15% jump to a -23.07% decline. The latest Q4 2025 report set cautious 0–4% 2026 growth guidance. Today’s Q1 2026 update, with slower growth and a divestiture‑driven reset of guidance, fits this pattern of evolving mix and margins.
Historical Comparison
Over the last five earnings releases, CERT’s average next‑day move was -2.44%, with both sharp rallies and selloffs, suggesting unpredictable market reactions to otherwise generally positive fundamentals.
Earnings releases show a shift from double‑digit growth in 2024–2025 toward more modest 0–4% 2026 guidance, while mix tilts further toward software and away from divested regulatory and medical writing services.
Market Pulse Summary
This announcement highlights modest Q1 2026 revenue growth, stronger software performance, and weaker services, alongside a swing to an $8.8M net loss and lower adjusted EBITDA of $31.7M. The completed sale of the regulatory and medical writing business adds $85.0M in cash and reshapes the mix ahead of updated 2026 guidance of $395M–$405M revenue. Investors may watch future quarters for services execution, margin trends, and delivery against the 0–4% growth outlook.
Key Terms
adjusted ebitda financial
adjusted net income financial
earn-out financial
escrow financial
guidance financial
webcast technical
model-informed drug development medical
AI-generated analysis. Not financial advice.
Updates 2026 Guidance to reflect completed divestiture of Regulatory Writing and Medical Writing Business
RADNOR, Pa., May 11, 2026 (GLOBE NEWSWIRE) -- Certara, Inc. (Nasdaq: CERT), a global leader in model-informed drug development, today reported its first quarter 2026 financial results.
First Quarter Highlights:
- Revenue was
$106.9 million , compared to$106.0 million in the first quarter of 2025, representing growth of1% .- Software revenue was
$49.7 million , compared to$46.4 million in the first quarter of 2025, representing growth of7% . - Services revenue was
$57.2 million , compared to$59.6 million in the first quarter of 2025, representing a decrease of4% .
- Software revenue was
- Net loss was
$8.8 million , compared to a net income of$4.7 million in the first quarter of 2025, representing a decrease of285% . - Adjusted EBITDA was
$31.7 million , compared to$34.8 million in the first quarter of 2025, representing a decrease of9% .
“I am pleased with the progress we made in my first quarter at Certara,” said Jon Resnick, Chief Executive Officer. “We are taking decisive steps to sharpen our execution and position Certara for long-term growth, including divesting our Medical Writing business, reorganizing around two focused growth areas, and accelerating our enterprise-wide AI program. Together, these actions strengthen our ability to transform drug development and deliver greater value to our customers and shareholders.”
“Our first quarter performance reflects improvement in software, which came in above plan across key metrics. Services performance was mixed, reflecting execution and go-to-market challenges that we expect to resolve during the second half of the year,” said John Gallagher, Chief Financial Officer. “With the divestiture of our Regulatory and Medical Writing Business, we expect the mix of software and services revenue to be approximately even. Our updated 2026 guidance reflects the impact of the divestiture during the second quarter, and revenue growth expectations of
First Quarter 2026 Results
Total revenue for the first quarter of 2026 was
Total Bookings for the first quarter of 2026 were
Software Bookings for the first quarter of 2026 were
Services Bookings for the first quarter of 2026 were
Total cost of revenues for the first quarter of 2026 was
Total operating expenses for the first quarter of 2026 were
Net loss for the first quarter of 2026 was
Diluted loss per share for the first quarter of 2026 was
Adjusted EBITDA for the first quarter of 2026 was
Adjusted net income for the first quarter of 2026 was
| THREE MONTHS ENDED MARCH 31, | |||||||
| 2026 | 2025 | ||||||
| Key Financials | (in millions, except per share data) | ||||||
| Revenue | $ | 106.9 | $ | 106.0 | |||
| Software revenue | $ | 49.7 | $ | 46.4 | |||
| Service revenue | $ | 57.2 | $ | 59.6 | |||
| Total bookings | $ | 115.3 | $ | 118.2 | |||
| Software bookings | $ | 48.7 | $ | 40.8 | |||
| Service bookings | $ | 66.6 | $ | 77.4 | |||
| Net income (loss) | $ | (8.8 | ) | $ | 4.7 | ||
| Diluted earnings per share | $ | (0.06 | ) | $ | 0.03 | ||
| Adjusted EBITDA | $ | 31.7 | $ | 34.8 | |||
| Adjusted net income | $ | 14.5 | $ | 22.2 | |||
| Adjusted diluted earnings per share | $ | 0.09 | $ | 0.14 | |||
| Cash and cash equivalents | $ | 149.5 | $ | 189.4 | |||
Divestiture of global medical writing and related regulatory services business:
On May 08, 2026, we completed the sale of our global medical writing and related regulatory services business to Veristat, LLC for cash consideration of
2026 Financial Outlook
Certara is updating its guidance for the full year 2026, to reflect the completed divestiture of the Regulatory and Medical Writing Business:
- Full year 2026 revenue is expected to be
$395 million -$405 million , including Regulatory and Medical Writing revenue of approximately$18 million .- Growth excluding the Regulatory and Medical Writing Business is expected to be
0% -4% . - Full year 2026 Adjusted EBITDA margin is expected to be approximately
30% -32% , including contribution from the Regulatory and Medical Writing business.
- Growth excluding the Regulatory and Medical Writing Business is expected to be
- Full year adjusted diluted earnings per share is expected to be in the range of
$0.35 -$0.41 . - Fully diluted shares are expected to be in the range of 157 million - 159 million.
Please note that the Company has not reconciled adjusted EBITDA, adjusted EBITDA margin or adjusted diluted earnings per share forward-looking guidance included in this press release to the most directly comparable GAAP measures because this cannot be done without unreasonable effort due to the variability and low visibility with respect to costs related to acquisitions, financings, and employee stock compensation programs, which are potential adjustments to future earnings. We expect the variability of these items to have a potentially unpredictable, and a potentially significant, impact on our future GAAP financial results.
Webcast and Conference Call Details
Certara will host a conference call today, May 11, 2026, at 8:30 a.m. ET to discuss its first quarter 2026 financial results. Investors interested in listening to the conference call are required to register online in advance of the call. A live and archived webcast of the event will be available on the “Investors” section of the Certara website at https://ir.certara.com.
About Certara
Certara accelerates medicines using biosimulation software, technology and services to transform traditional drug discovery and development. Its clients include more than 2,600 biopharmaceutical companies, academic institutions, and regulatory agencies across 70 countries.
Please visit our website at www.certara.com. We intend to use our website as a means of disclosing material, non-public information and for complying with our disclosure obligations under Regulation FD.
Such disclosures will be included in the Investor Relations section of our website at https://ir.certara.com. Accordingly, investors should monitor such portion of our website, in addition to following our press releases, Securities and Exchange Commission filings and public conference calls and webcasts.
Forward-Looking Statements
This press release contains certain statements that constitute forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, with respect to the Company’s full-year guidance, statements regarding the Company’s divestiture of its Regulatory and Medical Writing business, the expected use of proceeds from the transaction and the future financial and operating performance of the Company following the transaction, and the Company’s future business and financial performance, revenue, margin, and bookings. These statements typically contain words such as “believe,” “may,” “potential,” “will,” “plan,” “could,” “estimate,” “expects” and “anticipates” or the negative of these words or other similar terms or expressions. Any statement in this press release that is not a statement of historical fact is a forward-looking statement and involves significant risks and uncertainties. Although we believe that the expectations reflected in these forward-looking statements are reasonable, we cannot provide any assurance that these expectations will prove to be correct. You should not rely upon forward-looking statements as predictions of future events and actual results, events, or circumstances. Actual results may differ materially from those described in the forward-looking statements and are subject to a variety of assumptions, uncertainties, risks and factors that are beyond our control, including the possibility that the divestiture transaction does not close; unanticipated costs and length of time required to comply with legal requirements and regulatory approvals applicable to the divestiture transaction; customer and shareholder reaction to the divestiture transaction; disruption from the divestiture transaction making it more difficult to maintain business and operational relationships; significant divestiture transaction costs; any deceleration in, or resistance to, the acceptance of model-informed biopharmaceutical discovery and development; our ability to compete within our market; changes or delays in government regulation relating to the biopharmaceutical industry; trends in research and development spending; operational disruptions, funding constraints and policy changes at the Food and Drug Administration and other government agencies; consolidation within the biopharmaceutical industry; our ability to increase successfully our customer base, expand relationships and the products and services we provide and enter new markets; our ability to retain key personnel or recruit additional qualified personnel; risks related to the mischaracterization of our independent contractors; any delays or defects in our release of new or enhanced software or other biosimulation tools; issues relating to implementation, use and development of artificial intelligence and machine learning in our products and services; failure of our existing customers to renew their software licenses or any delays or terminations of contracts or reductions in scope of work by our existing customers; risks related to our contracts with government customers and receipt of government grants; risks related to any future acquisitions and other strategic transactions; the accuracy of our addressable market estimates; our ability to operate successfully a global business and adverse global economic conditions; our ability to comply with applicable trade compliance and economic sanctions laws and regulations; the impact of litigation; the sufficiency of our insurance coverage; our ability to perform our services in accordance with contractual requirements, regulatory standards and ethical considerations; the loss of more than one of our major customers; our ability to raise capital or generate sufficient cash flows; the ability or inability of our bookings to accurately predict our future revenue and our ability to realize the anticipated revenue reflected in our; our ability to comply with anti-corruption laws; risks related to catastrophic events; the application of evolving corporate governance and public disclosure requirements; disruptions in the operations of the third-party providers who host our software solutions or any limitations on their capacity or interference with our use; any unauthorized access to or use of customer or other proprietary or confidential data or other breach of our cybersecurity measures, compliance with privacy and cybersecurity laws and related contractual requirements; our ability to reliably meet our data storage and management requirements, or the experience of any failures or interruptions in the delivery of our services over the internet; our ability to comply with the terms of any licenses governing our use of third-party open source software; our ability to adequately enforce or defend our ownership and use of our intellectual property and other proprietary rights; any allegations that we are infringing, misappropriating or otherwise violating a third party’s intellectual property rights; our ability to comply with healthcare laws; risks related to our indebtedness; any additional impairment of goodwill or other intangible assets; our ability to use net operating losses; the volatility of the market price of our common stock; future sales of our common stock by existing stockholders; the substantial holdings of our largest stockholder; and the other factors detailed under the captions “Risk Factors” and “Special Note Regarding Forward-Looking Statements” and elsewhere in our Securities and Exchange Commission (“SEC”) filings, and reports, including the Form 10-K filed by the Company with the Securities and Exchange Commission on February 26, 2026, and subsequent reports filed with the SEC. Any forward-looking statements speak only as of the date of this release and, except to the extent required by applicable securities laws, we expressly disclaim any obligation to update or revise any of them to reflect actual results, any changes in expectations or any change in events.
A Note on Non-GAAP Financial Measures
This press release contains “non-GAAP measures” which are financial measures that either exclude or include amounts that are not excluded or included in the most directly comparable measures calculated and presented in accordance with U.S. generally accepted accounting principles (“GAAP”). Specifically, the Company makes use of the non-GAAP financial measures adjusted EBITDA, adjusted EBITDA margin, adjusted net income (loss) and adjusted diluted earnings per share which are not recognized terms under GAAP. These measures should not be considered as alternatives to net income (loss), net income (loss) margin, or GAAP diluted earnings per share or revenue as measures of financial performance or any other performance measure derived in accordance with GAAP and should not be considered a measure of discretionary cash available to the Company to invest in the growth of its business. The presentation of these measures has limitations as an analytical tool and should not be considered in isolation, or as a substitute for the Company’s results as reported under GAAP. Because not all companies use identical calculations, the presentations of these measures may not be comparable to other similarly titled measures of other companies and can differ significantly from company to company.
You should refer to the footnotes below as well as the “Reconciliation of Non-GAAP Financial Measures” section in this press release below for a further explanation of these measures and reconciliations of these non-GAAP measures in specific periods to their most directly comparable financial measure calculated and presented in accordance with GAAP for those periods.
Management uses various financial metrics, including total revenues, income (loss) from operations, net income (loss), and certain non-GAAP measures, such as adjusted EBITDA, adjusted EBITDA margin, adjusted net income (loss) and adjusted diluted earnings per share, to make budgeting decisions, to make certain compensation decisions, and to compare the Company’s performance against that of other peer companies using similar measures. In addition, management believes these metrics provide useful measures for period-to-period comparisons of the Company’s business, as they remove the effect of certain non-cash expenses and other items not indicative of its ongoing operating performance.
Management believes that adjusted EBITDA, adjusted EBITDA margin, adjusted net income (loss) and adjusted diluted earnings per share are helpful to investors, analysts, and other interested parties because they can assist in providing a more consistent and comparable overview of our operations across our historical periods. In addition, these non-GAAP measures are frequently used by analysts, investors, and other interested parties to evaluate and assess performance.
(1) Adjusted EBITDA represents net income excluding interest expense, provision for (benefit from) for income taxes, depreciation and amortization expense, intangible asset amortization, equity-based compensation expense, goodwill impairment, change in fair value of contingent consideration, acquisition and integration expense and other items not indicative of our ongoing operating performance. Adjusted EBITDA margin represents adjusted EBITDA divided by revenue.
(2) Adjusted net income and adjusted diluted earnings per share exclude the effect of equity-based compensation expense, amortization of acquisition-related intangible assets, goodwill impairment, change in fair value of contingent consideration, acquisition and integration expense, and other items not indicative of our ongoing operating performance as well as income tax provision adjustment for such charges.
In evaluating adjusted EBITDA, adjusted EBITDA margin, adjusted net income, and adjusted diluted earnings per share, you should be aware that in the future the Company may incur expenses similar to those eliminated in this presentation and this presentation should not be construed as an inference that future results will be unaffected by unusual items.
Contacts:
Investor Relations Contact:
David Deuchler
Gilmartin Group
ir@certara.com
Media Contact:
Alyssa Horowitz
Pan Communications
certara@pancomm.com
| CERTARA, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) | |||||||
| THREE MONTHS ENDED MARCH 31, | |||||||
| (IN THOUSANDS, EXCEPT PER SHARE AND SHARE DATA) | 2026 | 2025 | |||||
| Total revenue | $ | 106,915 | $ | 106,004 | |||
| Cost of revenues | 41,618 | 41,521 | |||||
| Operating expenses: | |||||||
| Sales and marketing | 13,355 | 12,717 | |||||
| Research and development | 12,286 | 10,522 | |||||
| General and administrative | 29,377 | 19,654 | |||||
| Depreciation and amortization expense | 14,582 | 13,967 | |||||
| Total operating expenses | 69,600 | 56,860 | |||||
| Income (loss) from operations | (4,303 | ) | 7,623 | ||||
| Other income (expenses): | |||||||
| Interest expense | (4,941 | ) | (4,806 | ) | |||
| Net other income | 1,301 | 1,725 | |||||
| Total other expenses | (3,640 | ) | (3,081 | ) | |||
| Income (loss) before income taxes | (7,943 | ) | 4,542 | ||||
| Provision (benefit) for income taxes | 820 | (201 | ) | ||||
| Net income (loss) attributable to common stockholders: | $ | (8,763 | ) | $ | 4,743 | ||
| Net income per share attributable to common stockholders: | |||||||
| Basic | $ | (0.06 | ) | $ | 0.03 | ||
| Diluted | $ | (0.06 | ) | $ | 0.03 | ||
| Weighted average common shares outstanding: | |||||||
| Basic | 157,754,647 | 160,996,258 | |||||
| Diluted | 157,754,647 | 161,350,292 | |||||
| CERTARA, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (UNAUDITED) | ||||||||
| (IN THOUSANDS, EXCEPT PER SHARE AND SHARE DATA) | MARCH 31, 2026 | DECEMBER 31, 2025 | ||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 149,484 | $ | 189,392 | ||||
| Accounts receivable, net of allowances for credit losses of | 96,072 | 103,525 | ||||||
| Prepaid expenses and other current assets | 25,004 | 22,202 | ||||||
| Total current assets | 270,560 | 315,119 | ||||||
| Other assets: | ||||||||
| Property and equipment, net | 1,768 | 1,853 | ||||||
| Operating lease right-of-use assets | 11,305 | 11,939 | ||||||
| Goodwill | 770,761 | 773,311 | ||||||
| Intangible assets, net of accumulated amortization of | 433,255 | 447,476 | ||||||
| Deferred income taxes | 11,115 | 5,242 | ||||||
| Other long-term assets | 1,604 | 1,642 | ||||||
| Total assets | $ | 1,500,368 | $ | 1,556,582 | ||||
| Liabilities and stockholders' equity | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 3,691 | $ | 3,426 | ||||
| Accrued expenses | 57,286 | 67,131 | ||||||
| Current portion of deferred revenue | 76,480 | 75,412 | ||||||
| Current portion of long-term debt | 2,963 | 2,963 | ||||||
| Other current liabilities | 3,703 | 4,453 | ||||||
| Total current liabilities | 144,123 | 153,385 | ||||||
| Long-term liabilities: | ||||||||
| Deferred revenue, net of current portion | 3,100 | 2,350 | ||||||
| Deferred income taxes | 34,746 | 34,366 | ||||||
| Operating lease liabilities, net of current portion | 7,789 | 8,438 | ||||||
| Long-term debt, net of current portion and debt discount | 289,504 | 290,131 | ||||||
| Other long-term liabilities | 4,062 | 5,117 | ||||||
| Total liabilities | 483,324 | 493,787 | ||||||
| Commitments and contingencies | ||||||||
| Stockholders' equity | ||||||||
| Preferred shares, | — | — | ||||||
| Common shares, | 1,641 | 1,641 | ||||||
| Additional paid-in capital | 1,262,973 | 1,255,653 | ||||||
| Accumulated deficit | (138,639 | ) | (129,876 | ) | ||||
| Accumulated other comprehensive income (loss) | (1,869 | ) | 2,040 | |||||
| Treasury stock at cost, 10,680,372 and 4,865,8888 shares at March 31, 2026 and December 31, 2025, respectively | (107,062 | ) | (66,663 | ) | ||||
| Total stockholders' equity | 1,017,044 | 1,062,795 | ||||||
| Total liabilities and stockholders' equity | $ | 1,500,368 | $ | 1,556,582 | ||||
| CERTARA, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) | ||||||||
| THREE MONTHS ENDED MARCH 31, | ||||||||
| (IN THOUSANDS) | 2026 | 2025 | ||||||
| Cash flows from operating activities: | ||||||||
| Net income (loss) | $ | (8,763 | ) | $ | 4,743 | |||
| Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||||||
| Depreciation and amortization | 19,089 | 18,614 | ||||||
| Amortization of debt issuance costs | 135 | 144 | ||||||
| Provision for credit losses | 277 | 322 | ||||||
| Equity-based compensation expense | 7,320 | 7,070 | ||||||
| Change in contingent considerations | 7,230 | (179 | ) | |||||
| Deferred income taxes | (5,901 | ) | 10,502 | |||||
| Changes in assets and liabilities: | ||||||||
| Accounts receivable | 6,900 | 8,736 | ||||||
| Prepaid expenses and other assets | (2,648 | ) | 1,807 | |||||
| Accounts payable, accrued expenses, and other liabilities | (14,201 | ) | (27,783 | ) | ||||
| Deferred revenues | 2,246 | (5,448 | ) | |||||
| Other operating activities, net | 10 | (1,176 | ) | |||||
| Net cash provided by operating activities | 11,694 | 17,352 | ||||||
| Cash flows from investing activities: | ||||||||
| Capital expenditures | (631 | ) | (600 | ) | ||||
| Capitalized software development costs | (6,150 | ) | (5,174 | ) | ||||
| Net cash used in investing activities | (6,781 | ) | (5,774 | ) | ||||
| Cash flows from financing activities: | ||||||||
| Payments on long-term debt | (741 | ) | (750 | ) | ||||
| Common stock repurchase program | (40,000 | ) | — | |||||
| Payments for business acquisition related contingent consideration | (3,000 | ) | (13,230 | ) | ||||
| Payment of taxes on shares withheld for employee taxes | — | (16 | ) | |||||
| Net cash used in financing activities | (43,741 | ) | (13,996 | ) | ||||
| Effect of foreign exchange rate on cash and cash equivalents | (1,080 | ) | 2,321 | |||||
| Net decrease in cash and cash equivalents | (39,908 | ) | (97 | ) | ||||
| Cash and cash equivalents at beginning of period | 189,392 | 179,183 | ||||||
| Cash and cash equivalents at end of period | $ | 149,484 | $ | 179,086 | ||||
| NON-GAAP FINANCIAL MEASURES | |||||||
| The following table reconciles net income (loss) to Adjusted EBITDA: | |||||||
| THREE MONTHS ENDED MARCH 31, | |||||||
| 2026 | 2025 | ||||||
| (in thousands) | |||||||
| Net income (loss)(a) | $ | (8,763 | ) | $ | 4,743 | ||
| Interest expense(a) | 4,941 | 4,806 | |||||
| Interest income(a) | (1,126 | ) | (1,642 | ) | |||
| (Benefit from) provision for income taxes(a) | 820 | (201 | ) | ||||
| Intangible asset amortization and fixed assets depreciation(a) | 19,089 | 18,614 | |||||
| Currency (gain) loss(a) | 60 | (62 | ) | ||||
| Equity-based compensation expense(b) | 7,320 | 7,070 | |||||
| Change in contingent consideration(d) | 7,230 | (179 | ) | ||||
| Acquisition-related expenses(e) | 18 | 876 | |||||
| Reorganization expense(f) | 1,005 | 151 | |||||
| Loss (gain) on disposal of fixed assets(g) | 10 | 6 | |||||
| Executive recruiting expense(h) | 1,116 | 661 | |||||
| Adjusted EBITDA | $ | 31,720 | $ | 34,843 | |||
The following table reconciles net income (loss) to adjusted net income:
| THREE MONTHS ENDED MARCH 31, | |||||||
| 2026 | 2025 | ||||||
| ( in thousands) | |||||||
| Net income (loss) (a) | $ | (8,763 | ) | $ | 4,743 | ||
| Currency (gain) loss(a) | 60 | (62 | ) | ||||
| Equity-based compensation expense(b) | 7,320 | 7,070 | |||||
| Amortization of acquisition-related intangible assets(c) | 13,855 | 14,052 | |||||
| Change in contingent consideration(d) | 7,230 | (179 | ) | ||||
| Acquisition-related expenses(e) | 18 | 876 | |||||
| Reorganization expense(f) | 1,005 | 151 | |||||
| Loss on disposal of fixed assets(g) | 10 | 6 | |||||
| Executive recruiting expense(h) | 1,116 | 661 | |||||
| Income tax expense impact of adjustments(i) | (7,349 | ) | (5,071 | ) | |||
| Adjusted net income | $ | 14,502 | $ | 22,247 | |||
The following tables reconciles diluted earnings per share to adjusted diluted earnings per share:
| THREE MONTHS ENDED MARCH 31, | |||||||
| 2026 | 2025 | ||||||
| Diluted earnings per share(a) | $ | (0.06 | ) | $ | 0.03 | ||
| Currency (gain) loss(a) | - | - | |||||
| Equity-based compensation expense(b) | 0.05 | 0.04 | |||||
| Amortization of acquisition-related intangible assets(c) | 0.08 | 0.09 | |||||
| Change in contingent consideration(d) | 0.05 | - | |||||
| Acquisition-related expenses(e) | - | 0.01 | |||||
| Reorganization expense(f) | 0.01 | - | |||||
| Loss (gain) on disposal of fixed assets(g) | - | - | |||||
| Executive recruiting expense(h) | 0.01 | - | |||||
| Income tax expense impact of adjustments(i) | (0.05 | ) | (0.03 | ) | |||
| Adjusted Diluted Earnings Per Share | $ | 0.09 | $ | 0.14 | |||
| Basic weighted average common shares outstanding | 157,754,647 | 160,996,258 | |||||
| Effect of potentially dilutive shares outstanding (j) | 269,516 | 354,034 | |||||
| Adjusted diluted weighted average common shares outstanding | 158,024,163 | 161,350,292 | |||||
(a.) Represents a measure determined under GAAP.
(b.) Represents expense related to equity-based compensation. Equity-based compensation has been, and will continue to be for the foreseeable future, a recurring expense in our business and an important part of our compensation strategy.
(c.) Represents amortization costs associated with acquired intangible assets in connection with business acquisitions.
(d.) Represents expense associated with fair value adjustment or adjustment of contingent consideration of business acquisition.
(e.) Represents costs associated with mergers and acquisitions and any retention bonuses pursuant to the acquisitions.
(f.) Represents expenses related to reorganization, including legal entity reorganization and lease abandonment costs associated with the evaluation of our office space footprint.
(g.) Represents the gain/loss related to disposal of fixed assets.
(h.) Represents recruiting, relocation expenses, and retention costs related to senior executives.
(i.) Represents the income tax effect of the non-GAAP adjustments calculated using the applicable statutory rate by jurisdiction.
(j.) Represents potentially dilutive shares that were included from our GAAP diluted weighted average common shares outstanding.
