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Jun 30, 2025
Certara Q2 2025 Earnings Report
Certara's second quarter 2025 financial results were reported, showing significant revenue growth driven by biosimulation software and services, alongside improved net income and adjusted EBITDA.
Key Takeaways
Certara reported strong second-quarter 2025 financial results, with total revenue increasing by 12% year-over-year to $104.6 million. The company significantly reduced its net loss to $2.0 million from $12.6 million in the prior year, and adjusted EBITDA grew by 21% to $31.9 million, reflecting robust performance in its core biosimulation software and QSP services.
Total revenue for Q2 2025 reached $104.6 million, marking a 12% increase compared to Q2 2024.
Net loss significantly improved to $2.0 million in Q2 2025, an 84% improvement from a $12.6 million net loss in Q2 2024.
Adjusted EBITDA increased by 21% to $31.9 million in Q2 2025, up from $26.3 million in the same period last year.
Software revenue grew by 22% to $46.7 million, and service revenue increased by 5% to $57.9 million, demonstrating strong segment performance.
Revenue by Segment
Forward Guidance
Certara reiterated its full-year 2025 financial guidance, expecting revenue between $415 million and $425 million, adjusted EBITDA margin in the range of 30-32%, and adjusted diluted earnings per share between $0.42 and $0.46.
Positive Outlook
- Reiterated full-year 2025 revenue guidance of $415 million to $425 million, indicating continued growth.
- Maintained full-year adjusted EBITDA margin guidance of 30-32%, suggesting stable profitability.
- Reaffirmed full-year adjusted diluted EPS guidance of $0.42 - $0.46, reflecting confidence in earnings.
- Expected fully diluted shares in the range of 162 million to 164 million, providing clarity on share count.
- Confidence in the full-year plan is supported by growing commercial momentum and sustained demand for model-informed drug development solutions.
Challenges Ahead
- The company has not reconciled adjusted EBITDA or adjusted diluted EPS forward-looking guidance to GAAP measures due to variability and low visibility of certain costs.
- Costs related to acquisitions, financings, and employee stock compensation programs are potential adjustments that could unpredictably impact future GAAP results.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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