The lowered guidance and earnings deterioration signal near-term headwinds. Monitor Q2 for software bookings momentum and execution on divestiture proceeds. The stock may face pressure as the market reacts to the guidance cut and declining profitability.
Price Chart
Executive Summary
Certara reported Q1 2026 revenue of $106.9M (+1% YoY), but GAAP net loss widened to $8.8M from +$4.7M and adjusted diluted EPS fell to $0.09 from $0.14. FY2026 guidance was lowered significantly: revenue $395M-$405M (including ~$18M from divested business) and adjusted EPS $0.35-$0.41 (down from prior $0.44-$0.48). The company completed the $85M divestiture of its medical writing business on May 8, 2026. The combination of declining profitability, lowered guidance, and a shrinking revenue base drives a bearish read.
Key Financial Metrics
Key Facts
- Q1 2026 revenue $106.9M (+1% YoY); software +7%, services -4%
- GAAP net loss $8.8M vs net income of $4.7M in Q1 2025
- Adjusted diluted EPS $0.09 vs $0.14 prior year (consensus $0.07, beat 29%)
- Adjusted EBITDA $31.7M, down 9% from $34.8M
- FY2026 guidance lowered: revenue $395M-$405M, adjusted EPS $0.35-$0.41
- Completed sale of medical writing business for $85M cash plus up to $50M earn-out
Financial Impact
Guidance for adjusted EPS cut ~17% from prior midpoint of $0.46; revenue guidance implies ~5% decline from FY2025 actual of $418.8M including $18M from divested business
Risk Factors
- Services revenue continued to decline (-4% YoY) with bookings down 14%
- Execution risk from divestiture and reorganization
- Macro/biotech funding headwinds could further pressure spending
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001827090-26-000017 |
| Document: certara-20260511.htm | 0001827090-26-000017 |
| Document: 0001827090-26-000017-index-headers.html | 0001827090-26-000017 |
| Document: 0001827090-26-000017-index.html | 0001827090-26-000017 |
| Document: 0001827090-26-000017.txt | 0001827090-26-000017 |
| 8-K Data (Synthetic) | 0001827090-26-000017 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Aug 16, 2026 6w ago | Institutional Cluster | $8.00 $8.40 | ▲ +5.00% | ▲ +6.98% | $9.36 (+17.00%) |
Aug 4, 2026 8w ago | 8-K | $7.80 $8.10 | ▲ +3.85% | ▲ +5.08% | $9.36 (+20.00%) |
Jul 15, 2026 11w ago | Press Release | $7.28 $8.15 | ▲ +11.95% | ▲ +8.33% | $9.36 (+28.57%) |
Jun 11, 2026 16w ago | Institutional Cluster | $5.27 $6.79 | ▼ −28.84% | ▼ −26.95% | $9.36 (−77.61%) |
May 11, 2026 20w ago | 8-K | $5.13 $5.18 | ▼ −0.97% | ▼ −1.28% | $9.36 (−82.46%) |
May 11, 2026 20w ago | Press Release | $5.13 $5.18 | ▼ −0.97% | ▼ −1.28% | $9.36 (−82.46%) |
Apr 22, 2026 23w ago | 8-K / PRESS-RELEASE | $6.38 $4.59 | ▼ −28.06% | ▼ −31.22% | $9.36 (+46.71%) |
Apr 3, 2026 26w ago | DEFA14A | $5.46 $6.19 | ▲ +13.37% | ▲ +4.39% | $9.36 (+71.43%) |
Mar 30, 2026 26w ago | Court Ruling | $5.68 $6.14 | ▲ +8.10% | ▼ −4.50% | $9.36 (+64.79%) |
Mar 3, 2026 30w ago | Press Release | $7.24 $5.70 | ▼ −21.27% | ▼ −16.87% | $9.36 (+29.28%) |
US Market Status
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