Revenue growth has decelerated significantly to 0.9% in 2026Q1, while gross margins experienced a sharp contraction to 47.4% from the 62.2% peak observed in 2025Q4.
| Sales/Revenue | 419.75M | 418.84M | 385.15M | 354.34M | 335.64M | 286.1M | 243.53M | 208.51M | 163.72M |
| Revenue Growth % | 6.4% | 8.75% | 8.7% | 5.57% | 17.32% | 17.48% | 16.79% | 27.36% | - |
| Cost of Goods Sold | 175.81M | 161.13M | 154.52M | 141.02M | 132.58M | 111.62M | 100.77M | 79.77M | 71.04M |
| COGS % of Revenue | - | 38.47% | 40.12% | 39.8% | 39.5% | 39.01% | 41.38% | 38.26% | 43.39% |
| Gross Profit | 243.94M | 257.71M | 230.63M | 213.31M | 203.07M | 174.49M | 142.76M | 128.74M | 92.68M |
| Gross Margin % | 58.12% | 61.53% | 59.88% | 60.2% | 60.5% | 60.99% | 58.62% | 61.74% | 56.61% |
| Gross Profit Growth % | - | 11.74% | 8.12% | 5.05% | 16.38% | 22.22% | 10.89% | 38.92% | - |
| Operating Expenses | 226.6M | 236.7M | 232.36M | 254.09M | 170.55M | 160.91M | 167.19M | 109.13M | 97.33M |
| OpEx % of Revenue | - | 56.51% | 60.33% | 71.71% | 50.81% | 56.24% | 68.65% | 52.34% | 59.45% |
| Selling, General & Admin | 149.46M | 139.1M | 120.97M | 127.41M | 99.18M | 99.68M | 107.68M | 58.66M | 52.81M |
| SG&A % of Revenue | - | 33.21% | 31.41% | 35.96% | 29.55% | 34.84% | 44.22% | 28.13% | 32.26% |
| Research & Development | 42.8M | 41.04M | 37.1M | 34.17M | 28.2M | 20.38M | 19.64M | 11.63M | 10.48M |
| R&D % of Revenue | - | 9.8% | 9.63% | 9.64% | 8.4% | 7.12% | 8.07% | 5.58% | 6.4% |
| Other Operating Expenses | 2M | 56.56M | 74.29M | 92.51M | 43.16M | 40.85M | 39.86M | 38.84M | -107K |
| Operating Income | 17.34M | 21.02M | -1.73M | -40.77M | 32.52M | 13.58M | -24.42M | 19.61M | -4.65M |
| Operating Margin % | 4.13% | 5.02% | -0.45% | -11.51% | 9.69% | 4.75% | -10.03% | 9.41% | -2.84% |
| Operating Income Growth % | - | 1314.1% | 95.75% | -225.38% | 139.49% | 155.61% | -224.51% | 521.6% | - |
| EBITDA | 74.37M | 77.57M | 66.3M | 15.3M | 84.99M | 58.69M | 18.33M | 61.17M | 32.36M |
| EBITDA Margin % | 17.72% | 18.52% | 17.21% | 4.32% | 25.32% | 20.51% | 7.53% | 29.34% | 19.77% |
| EBITDA Growth % | 21.83% | 17% | 333.43% | -82% | 44.8% | 220.15% | -70.03% | 89.04% | - |
| D&A (Non-Cash Add-back) | 57.03M | 56.56M | 68.03M | 56.07M | 52.47M | 45.12M | 42.75M | 41.56M | 37.01M |
| EBIT | 51.19M | 27.35M | 4.34M | -32.23M | 36.53M | 13.46M | -24.89M | 18.85M | -4.76M |
| Net Interest Income | -49.11M | -19.74M | -21.52M | -22.92M | -17.77M | -16.84M | -25.3M | -28M | -27.8M |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 49.11M | 19.74M | 21.52M | 22.92M | 17.77M | 16.84M | 25.3M | 28M | 27.8M |
| Other Income/Expense | -22.21M | -13.4M | -15.45M | -14.37M | -13.77M | -16.95M | -25.76M | -28.76M | -27.91M |
| Pretax Income | -4.87M | 7.62M | -17.18M | -55.14M | 18.75M | -3.38M | -50.18M | -9.15M | -32.56M |
| Pretax Margin % | -1.16% | 1.82% | -4.46% | -15.56% | 5.59% | -1.18% | -20.61% | -4.39% | -19.89% |
| Income Tax | 10.23M | 9.21M | -5.13M | 214K | 4.02M | 9.89M | -784K | -225K | 697K |
| Effective Tax Rate % | -210.15% | 120.94% | 29.87% | -0.39% | 21.46% | -293.07% | 1.56% | 2.46% | -2.14% |
| Net Income | -15.1M | -1.59M | -12.05M | -55.36M | 14.73M | -13.27M | -49.4M | -8.93M | -33.26M |
| Net Margin % | -3.6% | -0.38% | -3.13% | -15.62% | 4.39% | -4.64% | -20.28% | -4.28% | -20.31% |
| Net Income Growth % | -475.28% | 86.76% | 78.23% | -475.79% | 211.04% | 73.14% | -453.41% | 73.16% | - |
| Net Income (Continuing) | -15.1M | -1.59M | -12.05M | -55.36M | 14.73M | -13.27M | -49.4M | -8.93M | -33.26M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -0.10 | -0.01 | -0.08 | -0.35 | 0.09 | -0.09 | -0.32 | -0.06 | -0.25 |
| EPS Growth % | -505.06% | 86.68% | 78.54% | -478.79% | 204.41% | 72.34% | -464.37% | 77.32% | - |
| EPS (Basic) | - | -0.01 | -0.08 | -0.35 | 0.09 | -0.09 | -0.32 | -0.06 | -0.25 |
| Diluted Shares Outstanding | 157.75M | 160.39M | 160.39M | 158.94M | 159.35M | 149.84M | 152.98M | 157.34M | 132.41M |
| Basic Shares Outstanding | 157.75M | 160.39M | 160.39M | 158.94M | 156.88M | 149.84M | 152.98M | 157.34M | 132.41M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - |
Specialized labor cost inflation
As reported in recent financial statements, Certara's revenue growth has decelerated to 0.9% in 2026Q1, a significant contraction from the 14.0% peak observed in 2024Q4, suggesting that the company's reliance on project-based service contracts may be increasingly vulnerable to broader biotech funding constraints and industry consolidation.
The sharp decline in year-over-year growth suggests that the company's ability to scale its tech-enabled services is hitting a ceiling in the current macroeconomic environment. Investors should monitor whether this deceleration reflects a structural shift in client R&D spending or merely temporary lumpiness in the conversion of the service backlog.
Based on the provided income statement data, Certara's gross margin experienced a notable contraction to 47.4% in 2026Q1, down from the 62.2% peak in 2025Q4, which may indicate rising costs associated with delivering high-value scientific services or a shift in the underlying revenue mix.
The inconsistency in gross profitability suggests that the company struggles to maintain pricing power when service-heavy workflows dominate the quarterly mix. This volatility warrants further investigation into whether the firm can successfully transition more of its service-based revenue into higher-margin, automated software modules.
According to the quarterly income statement filings, Certara consistently records significant stock-based compensation expenses, such as the $7.3 million charge in 2026Q1, which frequently pushes GAAP net income into negative territory despite the company's underlying gross profit generation of $50.7 million for the same period.
The persistent gap between gross profit and net income suggests that the company's reported earnings are heavily impacted by non-cash charges and aggressive compensation structures. Analysts should focus on adjusted metrics to determine if the core business is truly generating sustainable cash flow or if it remains reliant on equity-based incentives.
As evidenced by the income statement data, operating expenses remain high relative to gross profit, with SG&A costs of $42.7 million in 2026Q1 consuming the vast majority of the $50.7 million gross profit, leaving an operating margin of only 3.7% for the most recent quarter.
The lack of meaningful operating leverage suggests that the company's administrative and R&D overhead is scaling in lockstep with revenue, rather than providing the expected efficiency gains of a software-centric model. This may indicate that the business remains fundamentally labor-intensive, requiring constant reinvestment to maintain its competitive moat.
Quick answers to the most common questions about buying CERT stock.
For fiscal year 2025, Certara, Inc. (CERT) reported total revenue of $418.8M. This represents a 155.8% increase compared to $163.7M in 2018.
Certara, Inc. (CERT) reported a net loss of $1.6M for the fiscal year ending 2025.
Certara, Inc. (CERT) reported an operating income of $21.0M, resulting in an operating profit margin of 5.0%. This margin reflects the operational efficiency of the business before interest and taxes.
Certara, Inc. (CERT) generated $257.7M in gross profit for the year, representing a gross profit margin of 61.5%. This demonstrates the company's core pricing power and production efficiency.