Written by Emily J. Thompson, Senior Investment Analyst
Total Revenue
$104.6 million, representing year-over-year growth of 12% on a reported basis and 10% on a constant currency basis. Growth attributed to strong performance in both software and services.
Total Bookings
$112 million, which increased 13% from the prior year period on a reported basis. Trailing 12-month bookings were $470.8 million, increasing 15% on a reported basis. Growth driven by strong demand across software and services.
Software Revenue
$46.7 million, increased 22% over the prior year period on a reported basis and 20% on a constant currency basis. Organic growth was 9%, driven by strong growth from Simcyp and $5.1 million contribution from Chemaxon.
Services Revenue
$57.9 million, up 5% versus the prior year period on a reported basis and 4% on a constant currency basis. Growth driven by strong performance from QSP and Simcyp services, partially offset by softness in regulatory services.
Adjusted EBITDA
$31.9 million, an increase from $26.3 million in the second quarter of 2024. Adjusted EBITDA margin in the quarter was 31%. Growth attributed to higher revenue and operational efficiencies.
Net Loss
$2 million compared to a net loss of $12.6 million in the second quarter of 2024. Improvement due to higher revenue and reduced operating expenses.
Adjusted Net Income
$11.6 million compared to $11.4 million for the second quarter of 2024. Growth attributed to improved operational performance.
Diluted Loss Per Share
$0.01 compared to a loss of $0.08 per share in the second quarter of last year. Improvement due to better financial performance.
Cash and Cash Equivalents
$162.3 million as of June 30, 2025. Reflects strong cash management and operational performance.
CERT.O$11.270-11.815%Past 6 months
Analyst Views on CERT
Wall Street analysts forecast CERT stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for CERT is 15.33 USD with a low forecast of 13.00 USD and a high forecast of 16.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
Wall Street analysts forecast CERT stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for CERT is 15.33 USD with a low forecast of 13.00 USD and a high forecast of 16.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
Current: 11.570
Current: 11.570
Craig-Hallum initiated coverage of Certara with a Buy rating and $16 price target.
Craig-Hallum
Matthew Hewitt
initiated
$16
Reason
Craig-Hallum
Matthew Hewitt
As previously reported, Craig-Hallum analyst Matthew Hewitt initiated coverage of Certara with a Buy rating and $16 price target. The firm likes the overlap of near-term prospects and its long-term economics. Moreover, Craig-Hallum views the company as being at the center of the pharma/biotech rebound, offering investors a unique opportunity to participate in the overall increase in R&D investment in the coming quarter/years. With shares currently trading at 14.3-times 2026EV/EBITDA, the firm believes the current valuation offers an attractive entry point for investors.
Equal Weight
initiated
$16
Reason
Morgan Stanley assumed coverage of Certara with an Equal Weight rating and $16 price target. The firm says it awaits further potential updates on Certara's strategic review of the regulatory services business and management commentary regarding the near- or mid-term impact that may result from Certara's opportunity set coming from the FDA's previous announcement to gradually reduce animal testing in favor of new approach methodologies.
Equal Weight -> Overweight
upgrade
$11 -> $14
Reason
Equal Weight -> Overweight
Reason
Barclays analyst Luke Sergott upgraded Certara to Overweight from Equal Weight with a price target of $14, up from $11. The firm believes the company is more favorably positioned with potential macro and policy headwinds versus the majority of its peers sector. Shares at current levels offer an attractive entry point, the analyst tells investors in a research note. While it is still early days, Certara's simulation modeling functions more in the earlier stages of drug discovery, and the business is well positioned to capture Tailwinds from the transition away from animal models, contends Barclays.
About CERT
Certara, Inc. is a provider of biosimulation technology and solutions for using Model-Informed Drug Development (MIDD) in the global biopharmaceutical industry. It accelerates medicine using biosimulation software, technology and services to transform traditional drug discovery and development. It delivers software products and technology-driven services to customers to carry out and realize the full benefits of biosimulation in drug discovery, preclinical and clinical research, regulatory submissions and market access. Its regulatory science and market access software and services, such as regulatory submissions software, natural language processing and Bayesian analytics. It offers both mechanistic and empirical biosimulation solutions providing clients with a comprehensive offering based on their therapy goals, mechanism of action, and available data sources. Its clients include 2,400 biopharmaceutical companies, academic institutions and regulatory agencies across 70 countries.
