Certara Reports Second Quarter 2025 Financial Results
Certara (Nasdaq: CERT), a leader in model-informed drug development, reported strong Q2 2025 financial results with total revenue of $104.6 million, up 12% year-over-year. The company demonstrated significant growth across segments, with software revenue increasing 22% to $46.7 million and service revenue growing 5% to $57.9 million.
The company's net loss improved substantially to $2.0 million from $12.6 million in Q2 2024, while Adjusted EBITDA grew 21% to $31.9 million. Total bookings reached $112.0 million, representing 13% year-over-year growth. Certara maintained its full-year 2025 guidance, projecting revenue between $415-425 million and adjusted EBITDA margin of 30-32%.
Certara (Nasdaq: CERT), leader nello sviluppo di farmaci basato su modelli, ha riportato risultati finanziari solidi per il secondo trimestre del 2025 con un fatturato totale di 104,6 milioni di dollari, in crescita del 12% rispetto all'anno precedente. L'azienda ha mostrato una crescita significativa in tutti i segmenti, con un ricavo da software aumentato del 22% a 46,7 milioni di dollari e un ricavo da servizi cresciuto del 5% a 57,9 milioni di dollari.
La perdita netta dell'azienda è migliorata notevolmente, attestandosi a 2,0 milioni di dollari rispetto ai 12,6 milioni del secondo trimestre 2024, mentre l'EBITDA rettificato è cresciuto del 21% raggiungendo 31,9 milioni di dollari. Le prenotazioni totali hanno raggiunto 112,0 milioni di dollari, con una crescita del 13% anno su anno. Certara ha confermato le previsioni per l'intero anno 2025, prevedendo un fatturato compreso tra 415 e 425 milioni di dollari e un margine EBITDA rettificato tra il 30 e il 32%.
Certara (Nasdaq: CERT), líder en el desarrollo de medicamentos informado por modelos, reportó sólidos resultados financieros en el segundo trimestre de 2025 con un ingreso total de 104,6 millones de dólares, un aumento del 12% interanual. La compañía mostró un crecimiento significativo en todos los segmentos, con ingresos por software incrementados en un 22% hasta 46,7 millones de dólares y ingresos por servicios creciendo un 5% hasta 57,9 millones de dólares.
La pérdida neta de la empresa mejoró sustancialmente a 2,0 millones de dólares desde 12,6 millones en el segundo trimestre de 2024, mientras que el EBITDA ajustado creció un 21% alcanzando los 31,9 millones de dólares. Las reservas totales alcanzaron 112,0 millones de dólares, representando un crecimiento del 13% interanual. Certara mantuvo su guía para todo el año 2025, proyectando ingresos entre 415 y 425 millones de dólares y un margen EBITDA ajustado del 30-32%.
Certara (나스닥: CERT)는 모델 기반 약물 개발 분야의 선두주자로서 2025년 2분기 강력한 재무 실적을 보고했으며, 총 매출 1억 460만 달러로 전년 동기 대비 12% 증가했습니다. 회사는 모든 부문에서 상당한 성장을 보였으며, 소프트웨어 매출은 22% 증가한 4,670만 달러, 서비스 매출은 5% 증가한 5,790만 달러를 기록했습니다.
순손실은 2024년 2분기 1,260만 달러에서 크게 개선되어 200만 달러로 감소했고, 조정 EBITDA는 21% 증가한 3,190만 달러를 기록했습니다. 총 예약액은 1억 1,200만 달러에 달하며 전년 대비 13% 성장했습니다. Certara는 2025년 전체 가이던스를 유지하며, 매출은 4억 1,500만~4억 2,500만 달러, 조정 EBITDA 마진은 30~32%를 예상하고 있습니다.
Certara (Nasdaq : CERT), leader dans le développement de médicaments guidé par des modèles, a publié de solides résultats financiers pour le deuxième trimestre 2025 avec un chiffre d'affaires total de 104,6 millions de dollars, en hausse de 12 % par rapport à l'année précédente. L'entreprise a enregistré une croissance significative dans tous les segments, avec un chiffre d'affaires logiciel en hausse de 22 % à 46,7 millions de dollars et un chiffre d'affaires services en progression de 5 % à 57,9 millions de dollars.
La perte nette de la société s'est nettement améliorée, passant à 2,0 millions de dollars contre 12,6 millions au deuxième trimestre 2024, tandis que l'EBITDA ajusté a augmenté de 21 % pour atteindre 31,9 millions de dollars. Les commandes totales ont atteint 112,0 millions de dollars, soit une croissance de 13 % sur un an. Certara a maintenu ses prévisions pour l'année complète 2025, anticipant un chiffre d'affaires compris entre 415 et 425 millions de dollars et une marge d'EBITDA ajustée de 30 à 32 %.
Certara (Nasdaq: CERT), ein führendes Unternehmen in der modellgestützten Arzneimittelentwicklung, meldete starke Finanzergebnisse für das zweite Quartal 2025 mit einem Gesamtumsatz von 104,6 Millionen US-Dollar, was einem Anstieg von 12 % gegenüber dem Vorjahr entspricht. Das Unternehmen verzeichnete ein signifikantes Wachstum in allen Segmenten, wobei der Softwareumsatz um 22 % auf 46,7 Millionen US-Dollar stieg und der Serviceumsatz um 5 % auf 57,9 Millionen US-Dollar zunahm.
Der Nettoverlust des Unternehmens verbesserte sich deutlich auf 2,0 Millionen US-Dollar gegenüber 12,6 Millionen im zweiten Quartal 2024, während das bereinigte EBITDA um 21 % auf 31,9 Millionen US-Dollar wuchs. Die Gesamtbuchungen erreichten 112,0 Millionen US-Dollar, was einem Wachstum von 13 % gegenüber dem Vorjahr entspricht. Certara bestätigte seine Prognose für das Gesamtjahr 2025 und erwartet einen Umsatz zwischen 415 und 425 Millionen US-Dollar sowie eine bereinigte EBITDA-Marge von 30-32 %.
- Revenue grew 12% year-over-year to $104.6 million
- Software revenue increased significantly by 22% to $46.7 million
- Net loss improved by 84% to $2.0 million from $12.6 million in Q2 2024
- Adjusted EBITDA grew 21% to $31.9 million
- Total bookings increased 13% to $112.0 million
- Strong cash position with $162.3 million in cash and cash equivalents
- Service revenue growth was modest at 5%, showing slower expansion compared to software segment
- Operating expenses remained high at $54.3 million despite decrease from previous year
- Company still operating at a net loss of $2.0 million
Insights
Certara delivered solid Q2 results with 12% revenue growth and significant net loss reduction, while maintaining full-year guidance.
Certara delivered $104.6 million in Q2 revenue, growing
Looking at the revenue breakdown, Certara's biosimulation software portfolio was the primary growth driver, complemented by contribution from M&A activity including
Operating expenses decreased by
Certara maintained its full-year 2025 guidance, projecting revenue between
The balance sheet remains solid with
Reiterates Full Year 2025 Financial Guidance
RADNOR, Pa., Aug. 06, 2025 (GLOBE NEWSWIRE) -- Certara, Inc. (Nasdaq: CERT), a global leader in model-informed drug development, today reported its financial results for the second quarter of fiscal year 2025.
Second Quarter Highlights:
- Revenue was
$104.6 million , compared to$93.3 million in the second quarter of 2024, representing growth of12% .- Software revenue was
$46.7 million , compared to$38.2 million in the second quarter of 2024, representing growth of22% . - Service revenue was
$57.9 million , compared to$55.1 million in the second quarter of 2024, representing growth of5% .
- Software revenue was
- Net loss was
$2.0 million , compared to a net loss of$12.6 million in the second quarter of 2024, representing growth of84% . - Adjusted EBITDA was
$31.9 million , compared to$26.3 million in the second quarter of 2024, representing growth of21% .
“Our commercial team has continued to field significant interest from customers seeking to expand their use of model-informed drug development,” said William F. Feehery, Chief Executive Officer. “We are excited about software product enhancements and new product introductions that will expand our market leading offering and deliver sustainable long-term growth."
"We are pleased with our second quarter performance, led by strength in our core biosimulation software and QSP services. Performance in the quarter reflected strong commercial execution despite a mixed operating environment. We are confident in our full year plan, supported by growing commercial momentum and sustained demand for model-informed drug development solutions," said John Gallagher, Chief Financial Officer.
Second Quarter 2025 Results
Total revenue for the second quarter of 2025 was
Software revenue for the second quarter of 2025 was
Services revenue for the second quarter of 2025 was
Total Bookings for the second quarter of 2025 were
Software Bookings for the second quarter of 2025 were
Services Bookings for the second quarter of 2025 were
Total cost of revenues for the second quarter of 2025 was
Total operating expenses for the second quarter of 2025 were
Adjusted EBITDA for the second quarter of 2025 was
Diluted earnings per share for the second quarter of 2025 was
Net loss for the second quarter of 2025 was
Adjusted net income for the second quarter of 2025 was
| THREE MONTHS ENDED JUNE 30, | SIX MONTHS ENDED JUNE 30, | |||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||
| Key Financials | (in millions, except per share data) | |||||||||||||
| Revenue | $ | 104.6 | $ | 93.3 | $ | 210.6 | $ | 190.0 | ||||||
| Software revenue | $ | 46.7 | $ | 38.2 | $ | 93.1 | $ | 77.5 | ||||||
| Service revenue | $ | 57.9 | $ | 55.1 | $ | 117.5 | $ | 112.5 | ||||||
| Total booking | $ | 112.0 | $ | 98.9 | $ | 230.2 | $ | 204.7 | ||||||
| Software bookings | $ | 46.6 | $ | 41.8 | $ | 87.4 | $ | 74.9 | ||||||
| Service bookings | $ | 65.4 | $ | 57.1 | $ | 142.8 | $ | 129.7 | ||||||
| Net income (loss) | $ | (2.0 | ) | $ | (12.6 | ) | $ | 2.8 | $ | (17.3 | ) | |||
| Diluted earnings per share | $ | (0.01 | ) | $ | (0.08 | ) | $ | 0.02 | $ | (0.11 | ) | |||
| Adjusted EBITDA | $ | 31.9 | $ | 26.3 | $ | 66.8 | $ | 55.5 | ||||||
| Adjusted net income | $ | 11.6 | $ | 11.4 | $ | 33.8 | $ | 27.9 | ||||||
| Adjusted diluted earnings per share | $ | 0.07 | $ | 0.07 | $ | 0.21 | $ | 0.17 | ||||||
| Cash and cash equivalents | $ | 162.3 | $ | 224.6 | ||||||||||
2025 Financial Outlook
Certara is reiterating its guidance for the full year 2025:
- Full year 2025 revenue to be in the range of
$415 million to$425 million . - Full year adjusted EBITDA margin to be in the range of 30
-32% . - Full year adjusted diluted earnings per share is expected to be in the range of
$0.42 -$0.46 . - Fully diluted shares are expected to be in the range of 162 million to 164 million.
Please note that the Company has not reconciled adjusted EBITDA (including its related 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, August 6, 2025, at 5:00 p.m. ET to discuss its second quarter 2025 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 proprietary biosimulation software, technology and services to transform traditional drug discovery and development. Its clients include more than 2,400 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, the success of strategic investments and ability to drive long-term growth, our and other statements about 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 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 (“R&D”) spending; the use of third parties by biopharmaceutical companies and a shift toward more R&D occurring a smaller biotechnology companies; consolidation within the biopharmaceutical industry; evolving corporate governance and public disclosure regulations and expectations; 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 recent 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 use 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, including the ability of third parties to challenge our receipt of such contracts; our ability to sustain historic growth rates; any future acquisitions and our ability to integrate successfully such acquisitions; 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 anti-corruption, trade compliance and economic sanctions laws and regulations; risks related to litigation against us; the adequacy of our insurance coverage and our ability to obtain adequate insurance coverage in the future; 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; future capital needs; the ability or inability of our bookings to accurately predict our future revenue and our ability to realize the anticipated revenue reflected in our; lower utilization rates by our employees as a result of catastrophic events, including natural disasters and epidemic diseases; 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; 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; 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 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 meet the obligations under our current or further indebtedness as they become due and our ability to have sufficient capital to operate our business; any limitations on our ability to pursue our business strategies due to restrictions under our current or future indebtedness or inability to comply with any restrictions under our indebtedness; any additional impairment of goodwill or other intangible assets; our ability to use our net operating losses and R&D tax credit carryforwards; any conflict with the interests of our largest shareholders, exclusive forum provisions in our certificate of incorporation; 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, 2025, 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), adjusted diluted earnings per share, and constant currency (“CC”) revenue, 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), adjusted diluted earnings per share and CC revenue, 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), adjusted diluted earnings per share, and CC revenue 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. Furthermore, our business has operations outside the United States that are conducted in local currencies. As a result, the comparability of the financial results reported in U.S. dollars is affected by changes in foreign currency exchange rates. We adjust revenues for constant currency to provide a framework for assessing how our business performed excluding the effect of foreign currency rate fluctuations and we believe it is helpful for investors to present operating results on a comparable basis period over period to evaluate its underlying performance.
(1) CC revenue excludes the effects of foreign currency exchange rate fluctuations by assuming constant foreign currency exchange rates used for translation. Current periods revenue reported in currencies other than U.S. Dollars are converted into U.S. Dollars at the average exchange rates in effect for the comparable prior periods.
(2) 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.
(3) 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 JUNE 30, | SIX MONTHS ENDED JUNE 30, | ||||||||||||||
| (IN THOUSANDS, EXCEPT PER SHARE AND SHARE DATA) | 2025 | 2024 | 2025 | 2024 | |||||||||||
| Total revenue | $ | 104,570 | $ | 93,313 | $ | 210,574 | $ | 189,967 | |||||||
| Cost of revenues | 40,716 | 39,809 | 82,237 | 79,064 | |||||||||||
| Operating expenses: | |||||||||||||||
| Sales and marketing | 13,989 | 12,213 | 26,706 | 22,900 | |||||||||||
| Research and development | 8,972 | 9,067 | 19,494 | 21,062 | |||||||||||
| General and administrative | 17,186 | 28,071 | 36,840 | 51,050 | |||||||||||
| Depreciation and amortization | 14,155 | 13,194 | 28,122 | 26,219 | |||||||||||
| Total operating expenses | 54,302 | 62,545 | 111,162 | 121,231 | |||||||||||
| Income (loss) from operations | 9,552 | (9,041 | ) | 17,175 | (10,328 | ) | |||||||||
| Other income (expenses): | |||||||||||||||
| Interest expense | (4,802 | ) | (5,578 | ) | (9,608 | ) | (11,329 | ) | |||||||
| Net other income | 1,501 | 2,350 | 3,226 | 3,954 | |||||||||||
| Total other expenses | (3,301 | ) | (3,228 | ) | (6,382 | ) | (7,375 | ) | |||||||
| Income (loss) before income taxes | 6,251 | (12,269 | ) | 10,793 | (17,703 | ) | |||||||||
| Provision (benefit) for income taxes | 8,219 | 305 | 8,018 | (446 | ) | ||||||||||
| Net income (loss) | $ | (1,968 | ) | $ | (12,574 | ) | $ | 2,775 | $ | (17,257 | ) | ||||
| Net income per share attributable to common stockholders: | |||||||||||||||
| Basic | $ | (0.01 | ) | $ | (0.08 | ) | $ | 0.02 | $ | (0.11 | ) | ||||
| Diluted | $ | (0.01 | ) | $ | (0.08 | ) | $ | 0.02 | $ | (0.11 | ) | ||||
| Weighted average common shares outstanding: | |||||||||||||||
| Basic | 160,916,057 | 160,505,223 | 160,955,936 | 160,014,746 | |||||||||||
| Diluted | 160,916,057 | 160,505,223 | 161,601,024 | 160,014,746 | |||||||||||
| CERTARA, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (UNAUDITED) | ||||||||
| (IN THOUSANDS, EXCEPT PER SHARE AND SHARE DATA) | JUNE 30, 2025 | DECEMBER 31, 2024 | ||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 162,266 | $ | 179,183 | ||||
| Accounts receivable, net of allowances for credit losses of | 97,508 | 102,189 | ||||||
| Prepaid expenses and other current assets | 21,619 | 29,480 | ||||||
| Total current assets | 281,393 | 310,852 | ||||||
| Other assets: | ||||||||
| Property and equipment, net | 1,951 | 2,167 | ||||||
| Operating lease right-of-use assets | 12,705 | 13,841 | ||||||
| Goodwill | 772,322 | 757,038 | ||||||
| Intangible assets, net of | 469,280 | 485,214 | ||||||
| Deferred income taxes | 3,961 | 3,961 | ||||||
| Other long-term assets | 1,834 | 2,031 | ||||||
| Total assets | $ | 1,543,446 | $ | 1,575,104 | ||||
| Liabilities and stockholders' equity | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 5,477 | $ | 3,502 | ||||
| Accrued expenses | 47,399 | 56,451 | ||||||
| Current portion of deferred revenue | 70,238 | 77,829 | ||||||
| Current portion of long-term debt | 3,000 | 3,000 | ||||||
| Other current liabilities | 4,322 | 5,306 | ||||||
| Total current liabilities | 130,436 | 146,088 | ||||||
| Long-term liabilities: | ||||||||
| Deferred revenue, net of current portion | 977 | 1,049 | ||||||
| Deferred income taxes | 36,561 | 40,421 | ||||||
| Operating lease liabilities, net of current portion | 9,366 | 11,166 | ||||||
| Long-term debt, net of current portion and debt discount | 291,170 | 292,425 | ||||||
| Other long-term liabilities | 4,357 | 25,299 | ||||||
| Total liabilities | 472,867 | 516,448 | ||||||
| Commitments and contingencies | ||||||||
| Stockholders' equity | ||||||||
| Preferred shares, | — | — | ||||||
| Common shares, | 1,639 | 1,620 | ||||||
| Additional paid-in capital | 1,237,891 | 1,216,925 | ||||||
| Accumulated deficit | (125,506 | ) | (128,281 | ) | ||||
| Accumulated other comprehensive income (loss) | 4,949 | (13,424 | ) | |||||
| Treasury stock at cost, 3,241,400 and 949,698 shares at June 30, 2025 and December 31, 2024, respectively | (48,394 | ) | (18,184 | ) | ||||
| Total stockholders' equity | 1,070,579 | 1,058,656 | ||||||
| Total liabilities and stockholders' equity | $ | 1,543,446 | $ | 1,575,104 | ||||
| CERTARA, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) | ||||||||
| SIX MONTHS ENDED JUNE 30, | ||||||||
| (IN THOUSANDS) | 2025 | 2024 | ||||||
| Cash flows from operating activities: | ||||||||
| Net income (loss) | $ | 2,775 | $ | (17,257 | ) | |||
| Adjustments to reconcile net loss to net cash provided by operating activities: | ||||||||
| Depreciation and amortization | 37,432 | 33,025 | ||||||
| Amortization of debt issuance costs | 289 | 749 | ||||||
| Provision for credit losses | 401 | 807 | ||||||
| Equity-based compensation expense | 15,315 | 18,856 | ||||||
| Change in fair value of contingent considerations | (5,901 | ) | 5,661 | |||||
| Deferred income taxes | (1,969 | ) | (13,415 | ) | ||||
| Changes in assets and liabilities: | ||||||||
| Accounts receivable | 5,473 | (6,606 | ) | |||||
| Prepaid expenses and other assets | 6,108 | (305 | ) | |||||
| Accounts payable, accrued expenses, and other liabilities | (13,892 | ) | (8,305 | ) | ||||
| Deferred revenues | (9,661 | ) | 662 | |||||
| Other operating activities, net | (1,176 | ) | 238 | |||||
| Net cash provided by operating activities | 35,194 | 14,110 | ||||||
| Cash flows from investing activities: | ||||||||
| Capital expenditures | (536 | ) | (1,046 | ) | ||||
| Capitalized software development costs | (12,199 | ) | (8,651 | ) | ||||
| Net cash used in investing activities | (12,735 | ) | (9,697 | ) | ||||
| Cash flows from financing activities: | ||||||||
| Proceeds from borrowings on term loan debt | — | 6,305 | ||||||
| Payment of debt issuance costs | — | (1,216 | ) | |||||
| Payments on long-term debt | (1,500 | ) | (755 | ) | ||||
| Common stock repurchase program | (25,000 | ) | — | |||||
| Payments for business acquisition related contingent consideration | (13,230 | ) | (10,426 | ) | ||||
| Payment of taxes on shares withheld for employee taxes | (4,960 | ) | (8,010 | ) | ||||
| Net cash used in financing activities | (44,690 | ) | (14,102 | ) | ||||
| Effect of foreign exchange rate changes on cash, cash equivalents, and restricted cash | 5,314 | (663 | ) | |||||
| Net decrease in cash, cash equivalents, and restricted cash | (16,917 | ) | (10,352 | ) | ||||
| Cash, cash equivalents, and restricted cash, at beginning of year | 179,183 | 234,951 | ||||||
| Cash, cash equivalents, and restricted cash, at end of year | $ | 162,266 | $ | 224,599 | ||||
| NON-GAAP FINANCIAL MEASURES | |||||||||||||||
| The following table reconciles net income (loss) to Adjusted EBITDA: | |||||||||||||||
| THREE MONTHS ENDED JUNE 30, | SIX MONTHS ENDED JUNE 30, | ||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||
| (in thousands) | |||||||||||||||
| Net income (loss)(a) | $ | (1,968 | ) | $ | (12,574 | ) | $ | 2,775 | $ | (17,257 | ) | ||||
| Interest expense(a) | 4,802 | 5,578 | 9,608 | 11,329 | |||||||||||
| Interest income(a) | (1,243 | ) | (2,486 | ) | (2,885 | ) | (5,060 | ) | |||||||
| (Benefit from) Provision for income taxes(a) | 8,219 | 305 | 8,018 | (446 | ) | ||||||||||
| Depreciation and amortization(a) | 18,818 | 16,597 | 37,432 | 33,025 | |||||||||||
| Currency (gain) loss(a) | (577 | ) | 104 | (639 | ) | 980 | |||||||||
| Equity-based compensation expense(b) | 8,245 | 9,783 | 15,315 | 18,856 | |||||||||||
| Change in fair value of contingent consideration(d) | (5,722 | ) | 2,783 | (5,901 | ) | 5,661 | |||||||||
| Acquisition-related expenses(e) | 428 | 1,073 | 1,304 | 2,787 | |||||||||||
| Transaction - related expenses (f) | — | 2,753 | — | 2,753 | |||||||||||
| Severance expense(g) | — | 183 | — | 183 | |||||||||||
| Reorganization expense(h) | 934 | 2,163 | 1,085 | 2,214 | |||||||||||
| Loss (gain) on disposal of fixed assets(i) | (1 | ) | 13 | 5 | 13 | ||||||||||
| Executive recruiting expense(j) | — | 43 | 661 | 423 | |||||||||||
| Adjusted EBITDA | $ | 31,935 | $ | 26,318 | $ | 66,778 | $ | 55,461 | |||||||
| The following table reconciles net income (loss) to adjusted net income: | |||||||||||||||
| THREE MONTHS ENDED JUNE 30, | SIX MONTHS ENDED JUNE 30, | ||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||
| (in thousands) | |||||||||||||||
| Net income (loss) (a) | $ | (1,968 | ) | $ | (12,574 | ) | $ | 2,775 | $ | (17,257 | ) | ||||
| Currency (gain) loss(a) | (577 | ) | 104 | (639 | ) | 980 | |||||||||
| Equity-based compensation expense(b) | 8,245 | 9,783 | 15,315 | 18,856 | |||||||||||
| Amortization of acquisition-related intangible assets(c) | 14,018 | 13,342 | 28,070 | 26,690 | |||||||||||
| Change in fair value of contingent consideration(d) | (5,722 | ) | 2,783 | (5,901 | ) | 5,661 | |||||||||
| Acquisition-related expenses(e) | 428 | 1,073 | 1,304 | 2,787 | |||||||||||
| Transaction-related expenses (f) | — | 2,753 | — | 2,753 | |||||||||||
| Severance expense(g) | — | 183 | — | 183 | |||||||||||
| Reorganization expense(h) | 934 | 2,163 | 1,085 | 2,214 | |||||||||||
| Loss (gain) on disposal of fixed assets(i) | (1 | ) | 13 | 5 | 13 | ||||||||||
| Executive recruiting expense(j) | — | 43 | 661 | 423 | |||||||||||
| Income tax expense impact of adjustments(k) | (3,799 | ) | (8,273 | ) | (8,869 | ) | (15,362 | ) | |||||||
| Adjusted net income | $ | 11,558 | $ | 11,393 | $ | 33,806 | $ | 27,941 | |||||||
| The following tables reconciles diluted earnings per share to adjusted diluted earnings per share: | |||||||||||||||
| THREE MONTHS ENDED JUNE 30, | SIX MONTHS ENDED JUNE 30, | ||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||
| Diluted earnings per share(a) | $ | (0.01 | ) | $ | (0.08 | ) | $ | 0.02 | $ | (0.11 | ) | ||||
| Currency (gain) loss(a) | — | — | — | 0.01 | |||||||||||
| Equity-based compensation expense(b) | 0.05 | 0.06 | 0.09 | 0.12 | |||||||||||
| Amortization of acquisition-related intangible assets(c) | 0.08 | 0.08 | 0.17 | 0.17 | |||||||||||
| Change in fair value of contingent consideration(d) | (0.04 | ) | 0.02 | (0.04 | ) | 0.03 | |||||||||
| Acquisition-related expenses(e) | — | 0.01 | 0.01 | 0.02 | |||||||||||
| Transaction - related expenses (f) | — | 0.02 | — | 0.02 | |||||||||||
| Severance expense(g) | — | — | — | — | |||||||||||
| Reorganization expense(h) | 0.01 | 0.01 | 0.01 | 0.01 | |||||||||||
| Loss (gain) on disposal of fixed assets(i) | — | — | — | — | |||||||||||
| Executive recruiting expense(j) | — | — | — | — | |||||||||||
| Income tax expense impact of adjustments(k) | (0.02 | ) | (0.05 | ) | (0.05 | ) | (0.10 | ) | |||||||
| Adjusted Diluted Earnings Per Share | $ | 0.07 | $ | 0.07 | $ | 0.21 | $ | 0.17 | |||||||
| Basic weighted average common shares | 160,916,057 | 160,505,223 | 160,955,936 | 160,014,746 | |||||||||||
| Effect of potentially dilutive shares outstanding (l) | 932,945 | 961,455 | 645,088 | 925,274 | |||||||||||
| Adjusted diluted weighted average common | 161,849,002 | 161,466,678 | 161,601,024 | 160,940,020 | |||||||||||
| The following tables reconcile revenues to the revenues adjusted for constant currency: | ||||||||||||||||||||||
| THREE MONTHS ENDED JUNE 30, | Change | |||||||||||||||||||||
| 2025 | 2025 | 2024 | $ | % | $ | % | ||||||||||||||||
| Actual | CC | Actual | Actual | Actual | CC Impact | |||||||||||||||||
| (GAAP) | (non-GAAP) | (GAAP) | (GAAP) | (GAAP) | (non-GAAP) | (non-GAAP) | ||||||||||||||||
| (in thousands except percentage) | ||||||||||||||||||||||
| Revenue | ||||||||||||||||||||||
| Software | $ | 46,695 | $ | 45,925 | $ | 38,207 | $ | 8,488 | 22 | % | $ | (770 | ) | 20 | % | |||||||
| Services | 57,875 | 57,128 | 55,106 | 2,769 | 5 | % | (747 | ) | 4 | % | ||||||||||||
| Total Revenue | $ | 104,570 | $ | 103,053 | $ | 93,313 | $ | 11,257 | 12 | % | $ | (1,517 | ) | 10 | % | |||||||
| SIX MONTHS ENDED JUNE 30, | Change | |||||||||||||||||||||
| 2025 | 2025 | 2024 | $ | % | $ | % | ||||||||||||||||
| Actual | CC | Actual | Actual | Actual | CC Impact | |||||||||||||||||
| (GAAP) | (non-GAAP) | (GAAP) | (GAAP) | (GAAP) | (non-GAAP) | (non-GAAP) | ||||||||||||||||
| (in thousands except percentage) | ||||||||||||||||||||||
| Revenue | ||||||||||||||||||||||
| Software | $ | 93,064 | $ | 92,549 | $ | 77,514 | $ | 15,550 | 20 | % | $ | (515 | ) | 19 | % | |||||||
| Services | 117,510 | 116,824 | 112,453 | 5,057 | 4 | % | (686 | ) | 4 | % | ||||||||||||
| Total Revenue | $ | 210,574 | $ | 209,373 | $ | 189,967 | $ | 20,607 | 11 | % | $ | (1,201 | ) | 10 | % | |||||||
| (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 remeasuring fair value of contingent consideration of business acquisition. |
| (e.) | Represents costs associated with mergers and acquisitions and any retention bonuses pursuant to the acquisitions. |
| (f.) | Represents costs associated with our public offerings that are not capitalized, as well as debt issuance costs that are not deferred or treated as a contra-liability directly deducted from the carrying value of the associated debt liability. |
| (g.) | Represents charges for severance provided to former executives. |
| (h.) | Represents expenses related to reorganization, including legal entity reorganization and lease abandonment costs associated with the evaluation of our office space footprint. |
| (i.) | Represents the gain/loss related to disposal of fixed assets. |
| (j.) | Represents recruiting and relocation expenses related to hiring senior executives. |
| (k.) | Represents the income tax effect of the non-GAAP adjustments calculated using the applicable statutory rate by jurisdiction. |
| (l.) | Represents potentially dilutive shares that were included from our GAAP diluted weighted average common shares outstanding. |
FAQ
What were Certara's (CERT) key financial results for Q2 2025?
What is Certara's revenue guidance for full year 2025?
How much did Certara's bookings grow in Q2 2025?
What was Certara's cash position at the end of Q2 2025?
What was Certara's earnings per share (EPS) for Q2 2025?
