Certara, Inc. Q4 FY2025 earnings call

New CEO John Resnick joined and focused on listening to stakeholders. Identified market opportunities in life science R&D, regulatory support for tech solutions. Core franchises are differentiated. Need to sharpen execution, focus on customer-centric approach, and raise operational bar with strategic priorities like focused strategy, customer engagement, and operational improvements.

Software revenue in Q4 2025 was $103.6 million, full-year 2025 software revenue was $183.3 million. Services revenue in Q4 2025 was $57.3 million, full-year 2025 services revenue was $235.6 million. Total revenue for full year 2025 was $418.8 million, up 9% on reported basis and 8% constant currency year-over-year.

2026 total revenue expected to be flat to 4% growth. Adjusted EBITDA margin expected 30-32%. Adjusted EPS expected 44-48 cents per share.

Risks include unachieved market acceptance of AI-enabled tech, external market headwinds, and internal execution gaps affecting growth.

Q: Jeff Garrow asked about what attracted John Resnick to Certara and platform approach.

A: John Resnick mentioned market opportunity, differentiated software products and services.

Q: Michael Cherney asked about 2026 guidance and software bookings.

A: Discussed services growth, software deceleration in bookings and market/execution factors.

Q: Luke Surgot asked about AI enablement and commercial organization.

A: Talked about AI embedding in products, execution efforts, and go-to-market initiatives.

Q: Scott Schoenhaus asked about software bookings conversion and regulatory writing divestiture.

A: Mentioned pipeline conversion timing and ongoing strategic review of regulatory writing business.

Q: David Windley asked about software sales and AI impact.

A: Stated AI not the driver of slowdown, timing and market factors.

Q: Brendan Smith asked about double-digit growth and software growth.

A: Discussed potential for double-digit growth with execution and market factors.

Q: Sean Dodge asked about pricing and EBITDA margin.

A: Talked about pricing alignment and EBITDA margin due to R&D investments.

Q: John Park asked about client solutions and FDA changes.

A: Stated ability to match client solutions and FDA's impact on offerings.