Despite net losses, operating cash flow remained positive at $10.0M in 2026Q2, with cumulative OCF of $198.5M over ten quarters, though buybacks of $100.0M in three quarters reduced cash reserves.
Certara, Inc. (CERT) cash flow statement — 8-year operating, investing & financing cash flows
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 |
|---|
| Cash from Operations | 82.86M | 96.33M | 80.47M | 82.75M | 92.54M | 60.39M | 44.81M | 38.02M | 11.59M |
| Operating CF Margin % | - | 23% | 20.89% | 23.35% | 27.57% | 21.11% | 18.4% | 18.24% | 7.08% |
| Operating CF Growth % | -27.75% | 19.71% | -2.77% | -10.58% | 53.25% | 34.76% | 17.84% | 228.03% | - |
| Net Income | -68.4M | -1.59M | -12.05M | -55.36M | 14.73M | -13.27M | -49.4M | -8.93M | -33.26M |
| Depreciation & Amortization | 70.07M | 75.16M | 68.03M | 56.07M | 52.47M | 45.12M | 42.75M | 41.56M | 37.01M |
| Stock-Based Compensation | 31.18M | 33.08M | 34.77M | 28.3M | 30.34M | 29.48M | 64.51M | 1.69M | 1.71M |
| Deferred Taxes | -15.05M | -8.32M | -12.7M | -16.52M | -11.51M | -1.18M | -7.83M | -6.7M | -3.55M |
| Other Non-Cash Items | 16.14M | -2.91M | 12.43M | 74.98M | 2.78M | 3.16M | 1.49M | 1.66M | 1.36M |
| Working Capital Changes | 2.8M | 911K | -10.03M | -4.72M | 3.73M | -2.92M | -6.71M | 8.74M | 8.32M |
| Change in Receivables | 3.19M | 428K | -16.23M | 152K | -15.01M | -10.07M | -3.93M | -1.52M | -2.03M |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Payables | -15.68M | 0 | 0 | 0 | 0 | 0 | 2.38M | 10.03M | -6.36M |
| Cash from Investing | 41.14M | -26.56M | -112.37M | -79.55M | -27.84M | -269.92M | -8.61M | -9.52M | -73.91M |
| Capital Expenditures | -21.22M | -26.56M | -21.04M | -15.32M | -12.53M | -8.9M | -7.94M | -2.11M | -4.76M |
| CapEx % of Revenue | 5.2% | 6.34% | 5.46% | 4.32% | 3.73% | 3.11% | 3.26% | 1.01% | 2.91% |
| Acquisitions | 0 | 0 | -91.33M | -64.23M | -15.31M | -261.02M | -675K | 0 | -62.42M |
| Investments | - | - | - | - | - | - | - | - | - |
| Other Investing | 62.36M | 0 | 0 | 0 | 0 | 0 | 0 | -7.41M | -6.73M |
| Cash from Financing | -101.63M | -63.99M | -21.01M | -9.45M | -7.36M | 123.39M | 208.21M | -8.49M | 57.3M |
| Debt Issued (Net) | -2.97M | -2.99M | 4.05M | -3.04M | -3.31M | -3.88M | -104.36M | -8.44M | 66.02M |
| Equity Issued (Net) | -75M | -42.61M | 0 | 0 | 0 | 133.35M | 315.47M | -53K | 10K |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | -75M | -42.61M | 0 | 0 | 0 | 0 | -1.08M | -703K | -1.1M |
| Other Financing | -23.66M | -18.39M | -25.06M | -6.4M | -4.05M | -6.08M | -2.9M | 0 | -8.73M |
| Net Change in Cash | 21.87M | 10.21M | -55.77M | -4.74M | 53.06M | -86.67M | 243.53M | 17.57M | -6.35M |
| Free Cash Flow | 61.64M | 69.77M | 59.42M | 67.43M | 80.01M | 51.49M | 36.87M | 28.51M | 107K |
| FCF Margin % | 15.09% | 16.66% | 15.43% | 19.03% | 23.84% | 18% | 15.14% | 13.67% | 0.07% |
| FCF Growth % | -20.43% | 17.41% | -11.88% | -15.72% | 55.41% | 39.63% | 29.34% | 26542.99% | - |
| FCF per Share | 0.40 | 0.43 | 0.37 | 0.42 | 0.50 | 0.34 | 0.24 | 0.18 | 0.00 |
| FCF Conversion (FCF/Net Income) | -0.90x | -60.39x | -6.68x | -1.49x | 6.28x | -4.55x | -0.91x | -4.26x | -0.35x |
| Interest Paid | 9.83M | 19.13M | 22.74M | 19.09M | 17.27M | 14.17M | 27.61M | 26.43M | 25.71M |
| Taxes Paid | 6.18M | 12.22M | 14.66M | 19.32M | 10.14M | 8.6M | 12.28M | 4.11M | 3.17M |
Quick answers to the most common questions about buying CERT stock.
Certara, Inc. (CERT) generated $96.3M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Certara, Inc. (CERT) generated $69.8M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Certara, Inc. (CERT) spent $26.6M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Certara, Inc. (CERT) spent $42.6M on share repurchases. This shows the company's commitment to returning capital to its equity investors.
Key Metrics
Top Statement Risk
EPS miss and margin compression
Metrics are mathematically derived from official filings.
Cash Conversion Diverges from Losses
Despite net losses in most quarters, operating cash flow remained positive, with 2026Q2 OCF of $10.0M against a net loss of $55.3M, per reported figures, indicating non-cash charges dominate.
The persistent gap between net income and operating cash flow is striking: in 2026Q2, OCF/NI was -0.18, but the absolute divergence is $65.3M. This suggests that large non-cash items, such as amortization and possibly impairments, are masking underlying cash generation. Investors should monitor whether this gap narrows as the company integrates acquisitions and stabilizes its cost base.
FCF Volatility Masks Underlying Stability
Free cash flow swung from $43.5M in 2024Q4 to $9.4M in 2026Q2, with FCF margins ranging from 0.7% to 43.4%, based on reported data, indicating significant quarterly volatility.
The trajectory of FCF is highly erratic, with a clear seasonal pattern: Q4 tends to be strong (2024Q4: $43.5M, 2025Q4: $21.8M), while Q1 and Q2 are weaker. This volatility likely reflects the timing of software renewals and service milestones. The 2026Q2 FCF of $9.4M is below the prior year's $10.9M, suggesting a slight deterioration, but the maintained guidance implies management expects a rebound. The FCF margin of 10.1% in 2026Q2 is below the 2025 average, warranting close monitoring.
Light CapEx Signals Asset-Light Model
Capital expenditures averaged only 5.8% of revenue over the past ten quarters, per reported data, indicating a highly asset-light business with minimal maintenance capex requirements.
CapEx/Revenue has remained consistently low, ranging from 0.7% to 6.8%, which is typical for a software-driven company. This suggests that the majority of capital is directed toward R&D and acquisitions rather than physical assets. The low capital intensity supports high incremental margins, but it also means that growth is heavily dependent on human capital and M&A, which can introduce execution risk.
Working Capital Swings Drive Cash Flow
Working capital changes have been a major source of volatility, with swings from -$22.7M in 2025Q1 to +$13.9M in 2024Q4, based on reported figures, significantly impacting quarterly OCF.
The working capital line is the primary driver of OCF volatility. For instance, 2025Q1 saw a negative $22.7M change, which compressed OCF to $17.4M, while 2024Q4's positive $13.9M change boosted OCF to $49.4M. This pattern suggests that the company's collections and payables management are not smooth, possibly due to the lumpy nature of service contracts. Investors should monitor whether the company can stabilize these swings as it scales.
Buybacks Accelerate Amid Losses
Share repurchases totaled $100.0M over the last three quarters, per reported data, even as net losses widened, indicating a capital allocation strategy that prioritizes shareholder returns over cash retention.
In 2026Q2, the company spent $17.4M on buybacks, following $40.0M in 2026Q1 and $25.0M in 2025Q2, despite reporting net losses. This aggressive buyback activity, combined with a $91.3M acquisition in 2024Q4, suggests management is confident in the underlying cash generation. However, the timing of buybacks during a period of margin compression and an EPS miss raises questions about capital allocation discipline. The lack of dividends indicates a focus on growth and buybacks.
Cumulative Cash Exceeds Reported Earnings
Over the past ten quarters, cumulative operating cash flow reached $198.5M against a cumulative net loss of $77.5M, per reported data, highlighting a significant divergence between accounting earnings and cash generation.
The cumulative gap of $276.0M between OCF and net income underscores the impact of non-cash charges, primarily amortization from acquisitions and stock-based compensation. This divergence suggests that the company's underlying cash-generative capacity is stronger than GAAP earnings imply, but it also raises concerns about the sustainability of these non-cash charges. If the company continues to acquire, the amortization burden may persist, keeping reported earnings depressed despite healthy cash flow.
What Could Invalidate the Base Case
The cash flow statement may obscure the true cost of acquisitions and SBC, as non-cash charges like amortization and stock-based compensation are not reflected in OCF, per reported data, potentially overstating cash generation.
While OCF appears robust, it includes adjustments for non-cash items that may not represent sustainable cash flows. For instance, SBC of $6.1M in 2026Q2 is added back to OCF, but it represents a real economic cost to shareholders. Additionally, the $91.3M acquisition in 2024Q4 was not fully reflected in OCF, and future integration costs or impairments could erode cash flow. Investors should adjust OCF for these items to assess the true cash-generative capacity of the business.