Certara Q1 revenue rises 1% to $106.9M; net loss widens to $8.8M
Certara’s Q1 revenue grew 1% to $106.9 million, driven by a 7% rise in software sales to $49.7 million while services revenue fell 4% to $57.2 million. The company reported an $8.8 million net loss versus $4.7 million net income last year and lowered 2026 revenue growth guidance to 0%-4% excluding its divested writing unit.
1. First Quarter Financial Results
Certara reported total revenue of $106.9 million for Q1 2026, a 1% increase year-over-year. Software revenue climbed 7% to $49.7 million, while services revenue declined 4% to $57.2 million. Net loss was $8.8 million, a swing from $4.7 million net income in Q1 2025, and adjusted EBITDA fell 9% to $31.7 million.
2. Divestiture and Updated Guidance
The company completed the divestiture of its Regulatory Writing and Medical Writing business in Q2 and now expects 2026 revenue growth of 0%–4% excluding that unit. Management aims to balance software and services revenue at roughly 50/50 post-divestiture and sharpen its focus on core model-informed drug development offerings.
3. Operational Performance and Strategic Initiatives
Total bookings reached $115.3 million, down 2%, with software bookings up 20% to $48.7 million and services bookings down 14% to $66.6 million due to contract timing. Operating expenses rose by $12.7 million, driven by acquisition contingent consideration, higher employee costs, and R&D investments. Leadership is reorganizing around two growth areas and accelerating an enterprise-wide AI program to enhance execution and long-term growth.