Certara, Inc. (CERT) Q2 2026 Earnings Call Transcript
Certara, Inc. (CERT) Q2 2026 Earnings Call Transcript

Certara, Inc. provides advanced software solutions and technology-driven services, specializing in biosimulation throughout the entire drug development lifecycle. From initial drug discovery ...
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Est. EPS $0.09 · Revenue $92.75M · 6 analysts
Est. EPS $0.09 · Revenue $94.54M · 6 analysts
Est. EPS $0.34 · Revenue $380.10M · 6 analysts
Est. EPS $0.11 · Revenue $96.70M · 2 analysts
| Metric | Latest | YoYYoY means Year-over-Year. It compares the latest annual value with the previous annual value to show long-term trend strength. | QoQQoQ means Quarter-over-Quarter. It compares the latest quarter with the immediately previous quarter to show short-term momentum changes. |
|---|---|---|---|
| RevenueThe total money that came through the front door from selling things, before paying a single bill. Think of it as the grand total of every credit card swipe from customers. (YoY compares this year to last year's performance, while QoQ compares the current three months to the previous three). | $418.8M | +8.7% | -12.8% |
| Net IncomeThe absolute bottom line. If the company paid every single supplier, employee, banker, and tax collector, this is the actual money left in their pocket at the end of the day. | $-1.6M | +86.8% | -530.7% |
| Gross MarginThe basic markup. If they sell a $100 pair of sneakers, this percentage tells you how much of that price tag is profit right after paying for the rubber and shoelaces, but before paying for things like store rent or TV commercials. | +61.5% | +2.8% | +31.4% |
| Operating MarginThe 'day job' efficiency score. Out of every dollar a customer spends, this shows how many cents the company keeps after making the product AND paying for all the everyday corporate overhead (like salaries, marketing, and keeping the lights on). | +5.0% | +1216.4% | -105.7% |
| Net MarginThe final take-home percentage. When you strip away every conceivable cost, tax, and interest payment, this is the exact number of cents the company truly gets to keep from every dollar in sales. | -0.4% | +87.8% | -623.0% |
| Free Cash FlowThe holy grail of corporate cash. It's the spendable, physical money left over after the business pays for its daily operations AND buys the big, expensive upgrades (like new factories or servers) it needs to survive. This is the 'free' money they can use to pay dividends or buy back stock. | $69.8M | +17.4% | +91.7% |
| FCF MarginThe ultimate cash conversion rate. It shows how good the company is at turning regular sales directly into cold, hard, spendable cash. A high percentage means the business is an absolute cash-printing machine. | +16.7% | +8.0% | +119.7% |
| Debt / EquityThe financial risk gauge. It compares how much of the company's empire was built using borrowed money (loans) versus the owners' own money (shareholders). A high number means they are heavily leveraged and playing a riskier game; a low number means they are playing it safe. | 1.1% | -96.4% | +2.3% |
| Current RatioThe 12-month survival check. It simply compares the cash they have right now (plus things they can quickly turn into cash) against the immediate bills they absolutely must pay this year. A score above 1 means they have enough in the wallet to cover the upcoming bills without panicking. | 2.05x | -3.4% | +35.9% |
| Total AssetsThe absolute size of the company's empire. It bundles together absolutely everything of value they own—from the cash in the register and the inventory in the warehouse, to the software patents in the vault and the factories on the ground. | $1.6B | -1.2% | -6.7% |
| Metric | Annual (A vs E) | Annual Surprise | Quarter (A vs E) | Quarter Surprise |
|---|---|---|---|---|
| EPS Surprise | -0.01 vs 0.46 | -102.2% | -0.36 vs 0.09 | -505.1% |
| Revenue Surprise | $418.8M vs $418.1M | +0.2% | $93.3M vs $92.8M | +0.6% |
| Date | Executive | Title | Security | Side | Shares | Price |
|---|---|---|---|---|---|---|
| Sep 1, 2026 | Mohammed Faiz | officer: Interim CFO | Restricted Stock Units | A | 63,532 | — |
| Jul 15, 2026 | Mohammed Faiz | officer: Interim CFO | Common Stock | — | 0 | — |
| Jul 15, 2026 | Mohammed Faiz | officer: Interim CFO | Restricted Stock Units | — | 13,290 | — |
| Jul 15, 2026 | Mohammed Faiz | officer: Interim CFO | Performance Stock Units | — | 8,544 | — |
| Jun 1, 2026 | Anhalt Rona | officer: Chief Human Resources Officer | Common Stock | A | 7,147 | — |
Operator: Good day, and thank you for standing by. Welcome to the Certara Second Quarter 2026 Earnings Conference Call. [Operator Instructions]. Please be advised that today's conference is being recorded. I would now like to hand the conference over to Jay Liu, Investor Relations at LifeSci. Please go ahead. Jay Liu: Good morning, everyone. Thank you all for participating in today's conference call. On the call from Certara, we have Jon Resnick, Chief Executive Officer; and Faiz Mohammed, Interim Chief Financial Officer. Earlier today, Certara released financial results for the quarter ended June 30, 2026. A copy of the press release is available on the company's website. Before we begin, I would like to remind you that management will make statements during this call that include forward-looking statements, and actual results may differ materially from those expressed or implied in the forward-looking statements. Please refer to Slide 2 in the accompanying presentation titled Second Quarter 2026 Financial Results for additional information, which you can find on the company's Investor Relations website. In their remarks or responses to questions, management may mention some non-GAAP financial measures. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP measures are available in the recent earnings press release available on the company's website. Please refer to the reconciliation tables in the accompanying materials for additional information. This conference call contains time-sensitive information and is accurate only as of today, August 4, 2026. Certara disclaims any obligation, except as required by law, to update or revise any financial projections or forward-looking statements, whether because of new information, future events or otherwise. And with that, I will turn the call over to Jon. Jon Resnick: Thank you for joining today's call. Before I get into our results, I want to highlight the appointment of our new Chief Commercial Officer, which we announced earlier this morning. This reflects our commitment to a new, more impactful go-to-market approach, which I'll cover in more detail shortly. The second quarter was about executing on our commitments. Overall, we are pleased with our progress. We are transforming Certara into a company we believe is capable of delivering sustainable double-digit growth. We still have work to do, but we are on the right path. We are executing against our plan. Our foundation is strengthening and the macro market conditions, biopharma spending, clinical trial starts and new regulatory guidance continue to be in our favor. I'll start with our top line financials, then move to our strategic and operational priorities, our client impact and finally, how we are leveraging AI. Top line results in the quarter were in line with expectations and guidance. Overall, revenue growth was modest at 1% with software revenue growing 4% and service revenue declining 3%. On software, …
| Name | Title | Compensation | Gender | Year Born | Status |
|---|---|---|---|---|---|
Jon Resnick | Chief Executive Officer & Director | USD 1,404,299 | Male | 1973 | Active |
Adrian K. McKemey | President of Drug Development Solutions | USD 1,075,132 | — | — | Active |
John E. Gallagher | SVP, Principal Accounting Officer & Chief Financial Officer | USD 924,248 | Male | 1973 | Active |
Robert Aspbury | President of Certara Predictive Technologies | USD 826,125 | — | 1972 | Active |
Julien Perrier | President & Chief Commercial Officer | USD 690,082 | Male | — | Active |
Leif E. Pedersen | Senior Advisor | USD 690,082 | Male | 1965 | Active |
Faiz Mohammed | Interim CFO, Senior VP of Finance, Treasurer and Principal Financial & Accounting Officer | — | Male | 1973 | Active |
Eric Jahn | Chief Information Officer | — | — | — | Active |
Martin Snyder | President of Certara Data Sciences | — | Male | — | Active |
Rona Anhalt | Chief Human Resources Officer | — | Female | 1965 | Active |
Sheila Rocchio | Chief Marketing Officer | — | Female | — | Active |
Christopher Bouton | Chief Technology Officer & Chief AI Officer | — | — | — | Active |
Ron DiSantis | Senior Vice President of Corporate Development | — | Male | — | Active |
Daniel Corcoran | Senior Vice President, General Counsel & Secretary | — | Male | 1967 | Active |
Certara, Inc. (CERT) Q2 2026 Earnings Call Transcript

Certara NASDAQ: CERT reported second-quarter 2026 revenue of $93.3 million, up 1% year over year, as software growth offset a decline in services revenue. Management reaffirmed its full-year revenue outlook while outlining further changes to its commercial organization, cost structure and artificial intelligence strategy.

Certara, Inc. (CERT) came out with quarterly earnings of $0.08 per share, missing the Zacks Consensus Estimate of $0.1 per share. This compares to earnings of $0.07 per share a year ago.

Appoints Julien Perrier Chief Commercial Officer Completes previously authorized $100 million share repurchase program; Board authorizes additional $50 million under repurchase program Reaffirms 2026 revenue guidance RADNOR, Pa., Aug. 04, 2026 (GLOBE NEWSWIRE) -- Certara, Inc. (Nasdaq: CERT), a global leader in model-informed drug development, today reported its second quarter 2026 financial results.

NEW YORK, July 23, 2026 /PRNewswire/ -- Pomerantz LLP is investigating claims on behalf of investors of Certara, Inc. ("Certara" or the "Company") (NASDAQ: CERT). Such investors are advised to contact Danielle Peyton at newaction@pomlaw.com or 646-581-9980, ext.
