Certara Reports 1% Revenue Growth but $8.8 Million Net Loss in Q1 2026

Certara, Inc. reported its financial results for the first quarter of 2026, revealing a modest increase in revenue but a significant net loss compared to the same period last year. The company generated total revenues of $106.9 million, a 1% increase from $106.0 million in the first quarter of 2025. This growth was primarily driven by a 7% rise in software revenues, which reached $49.7 million, attributed to strong demand from existing customers and new client acquisitions. However, service revenues declined by 4% to $57.2 million, largely due to lower contributions from a previously acquired business.

Despite the revenue growth, Certara reported a net loss of $8.8 million for the quarter, a decline of $13.5 million from a net income of $4.7 million in the prior year. This downturn was influenced by a $12.7 million increase in operating expenses, which rose to $69.6 million, driven by higher general and administrative costs, including a notable $7.4 million increase in business acquisition contingent consideration expenses. The company's general and administrative expenses surged by 49% year-over-year, reflecting ongoing investments in operational capabilities.

In terms of operational metrics, Certara's customer base remains robust, with over 160,000 users of its software products and collaborations with more than 2,600 life sciences companies. The company continues to expand its geographic footprint, with operations in multiple countries, including the U.S., Canada, and several European and Asian nations. The company’s strategic focus on integrating artificial intelligence into its biosimulation platforms is expected to enhance its service offerings and drive future growth.

Looking ahead, Certara has indicated a commitment to investing in growth through research and development, sales and marketing, and potential acquisitions. The company also completed the sale of its global medical writing and regulatory services business to Veristat, LLC, for $85 million, which is anticipated to strengthen its core operations and focus on AI-integrated modeling and simulation. Certara's management remains optimistic about the long-term outlook, emphasizing the importance of model-informed drug development in the biopharmaceutical industry and the potential for continued revenue growth as regulatory acceptance of biosimulation increases.