On November 6, 2025 Certara, Inc. (Nasdaq: CERT), a global leader in model-informed drug development, reported its financial results for the third quarter of fiscal year 2025.
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Third Quarter Highlights:
Revenue was $104.6 million, compared to $94.8 million in the third quarter of 2024, representing growth of 10%.
Software revenue was $43.8 million, compared to $35.9 million in the third quarter of 2024, representing growth of 22%.
Services revenue was $60.8 million, compared to $58.9 million in the third quarter of 2024, representing growth of 3%.
Net income was $1.5 million, compared to a net loss of $1.4 million in the third quarter of 2024, representing growth of 211%.
Adjusted EBITDA was $35.2 million, compared to $33.1 million in the third quarter of 2024, representing growth of 7%.
"In the third quarter, we continued to make good progress towards our full-year revenue and profitability targets," said William Feehery, Chief Executive Officer. "We recently launched several new software products, including CertaraIQ for QSP modeling, which we believe will expand the use of biosimulation technology in drug development. We remain focused on investing in our R&D and commercial efforts to position Certara for sustainable, long-term growth."
"We saw strong demand in the quarter for biosimulation solutions in software and QSP services, though we have observed some spending hesitancy in other parts of the services business. We are raising our 2025 profitability targets and narrowing our revenue guidance to reflect the most likely range of outcomes as we approach the end of the year," said John Gallagher, Chief Financial Officer.
Third Quarter 2025 Results
Total revenue for the third quarter of 2025 was $104.6 million, representing year-over-year growth of 10% on a reported basis and on a constant currency basis. Total revenue included $5.8 million of Chemaxon revenue. The overall increase in revenue was primarily driven by contribution from M&A and growth in our biosimulation software and services portfolio. Please see note (1) in the section "A Note on Non-GAAP Financial Measures" below for more information on constant currency revenue.
Software revenue for the third quarter of 2025 was $43.8 million, representing year-over-year growth of 22% on a reported basis and 21% on a constant currency basis. Organic software revenue growth was 6%. Software growth was driven by contribution from M&A and biosimulation software.
Services revenue for the third quarter of 2025 was $60.8 million, representing year-over-year growth of 3% on a reported basis and on a constant currency basis. Services growth was driven by biosimulation services.
Total Bookings for the third quarter of 2025 were $96.6 million representing a year-over-year growth of 1%. Total Bookings included $4.5 million of Chemaxon bookings.
Software Bookings for the third quarter of 2025 were $40.8 million, representing a year-over-year growth of 17%. Organic software bookings grew 5% year-over-year. The increase in software bookings was primarily due to strength in Certara’s core biosimulation software and contribution from Chemaxon.
Services Bookings for the third quarter of 2025 were $55.8 million, representing 9% a year-over-year decrease. The decrease in service bookings was mainly influenced by softer trends among our tier-one customers, predominantly in the Regulatory services business.
Total cost of revenues for the third quarter of 2025 was $39.7 million, an increase of $2.5 million from $37.2 million in the third quarter of 2024, primarily due to higher software amortization expense, professional and consulting costs, and license fees.
Total operating expenses for the third quarter of 2025 were $61.9 million, which increased by $6.9 million from $55.0 million in the third quarter of 2024. Higher operating expenses were primarily due to a $5.4 million increase in employee-related costs, a $1.4 million increase in stock based compensation cost, and $0.8 million increase in equipment and software expenses, and a $0.6 million increase in depreciation and amortization expense, partially offset by higher capitalized R&D costs and lower facility and lease related expense.
Adjusted EBITDA for the third quarter of 2025 was $35.2 million compared to $33.1 million for the third quarter of 2024, an increase of $2.2 million. See note (2) in the section A Note on Non-GAAP Financial Measures below for more information on adjusted EBITDA.
Diluted earnings per share for the third quarter of 2025 was $0.01, as compared to a diluted loss per share of $(0.01) in the third quarter of 2024.
Net income for the third quarter of 2025 was $1.5 million, compared to a net loss of $1.4 million in the third quarter of 2024. The $2.9 million increase in income was primarily due to an increase in gross profit, higher tax benefits, and an increase in net other income, partially offset by an increase in operating expenses.
Adjusted net income for the third quarter of 2025 was $22.2 million compared to $20.3 million for the third quarter of 2024, an increase of $2.0 million. Adjusted diluted earnings per share for the third quarter of 2025 was $0.14, flat compared to $0.13 for the third quarter of 2024. See note (3) in the section A Note on Non-GAAP Financial Measures below for more information on adjusted net income and adjusted diluted earnings per share.
THREE MONTHS ENDED SEPTEMBER 30, NINE MONTHS ENDED SEPTEMBER 30,
2025 2024 2025 2024
Key Financials (in millions, except per share data)
Revenue $ 104.6 $ 94.8 $ 315.2 $ 284.8
Software revenue $ 43.8 $ 35.9 $ 136.9 $ 113.4
Service revenue $ 60.8 $ 58.9 $ 178.3 $ 171.4
Total bookings $ 96.6 $ 96.1 $ 326.8 $ 300.8
Software bookings $ 40.8 $ 34.8 $ 128.2 $ 109.8
Service bookings $ 55.8 $ 61.3 $ 198.6 $ 191.0
Net income (loss) $ 1.5 $ (1.4 ) $ 4.3 $ (18.6 )
Diluted earnings per share $ 0.01 $ (0.01 ) $ 0.03 $ (0.12 )
Adjusted EBITDA $ 35.2 $ 33.1 $ 102.0 $ 88.5
Adjusted net income $ 22.2 $ 20.3 $ 56.1 $ 48.2
Adjusted diluted earnings per share $ 0.14 $ 0.13 $ 0.35 $ 0.30
Cash and cash equivalents $ 172.7 $ 233.0
2025 Financial Outlook
Certara is updating its guidance for the full year 2025:
Full year 2025 revenue to be in the range of $415 million to $420 million.
Full year adjusted EBITDA margin to be approximately 32%.
Full year adjusted diluted earnings per share is expected to be in the range of $0.45 – $0.47.
Fully diluted shares are expected to be in the range of 160 million to 162 million.
Please note that the Company has not reconciled adjusted EBITDA (including its related margin) or adjusted diluted earnings per share forward-looking guidance included in this press release to the most directly comparable GAAP measures because this cannot be done without unreasonable effort due to the variability and low visibility with respect to costs related to acquisitions, financings, and employee stock compensation programs, which are potential adjustments to future earnings. We expect the variability of these items to have a potentially unpredictable, and a potentially significant, impact on our future GAAP financial results.
Webcast and Conference Call Details
Certara will host a conference call today, November 6, 2025, at 5:00 p.m. ET to discuss its third quarter 2025 financial results. Investors interested in listening to the conference call are required to register online in advance of the call. A live and archived webcast of the event will be available on the "Investors" section of the Certara website at View Source
(Press release, Certara, NOV 6, 2025, View Source [SID1234659559])