Certara Reports Q1 Net Loss, Misses EPS, Updates Guidance After Divesting Medical Writing Business
CERT is trading near its 52-week low of $5.19 (11% above the low).
Summary
Certara reported a Q1 net loss and missed adjusted EPS estimates, leading to a negative financial outlook, despite completing the strategic divestiture of its Medical Writing business for up to $135 million and updating its full-year guidance.
Key Events · Earnings and Guidance · CERT
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Q1 Financial Performance Misses Estimates
Certara reported a net loss of $8.8 million for Q1 2026, a significant decrease from a net income of $4.7 million in Q1 2025. Adjusted EBITDA decreased by 9% to $31.7 million, and adjusted diluted EPS of $0.09 missed the IBES estimate of $0.11.
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Divestiture of Medical Writing Business Completed
The company completed the sale of its global medical writing and related regulatory services business to Veristat, LLC on May 8, 2026. The transaction includes $85.0 million in cash upfront, $15.0 million in escrow, and up to $35.0 million in contingent earn-out consideration, totaling up to $135 million.
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Updated 2026 Financial Guidance
Certara updated its full-year 2026 guidance, expecting revenue of $395 million - $405 million (including $18 million from the divested business), with growth excluding the divested business projected at 0% - 4%. Adjusted diluted earnings per share are expected to be in the range of $0.35 - $0.41.
Analysis · CERT · Technology
Certara's first-quarter results show a significant decline in profitability, moving from a net income to a net loss year-over-year and missing adjusted EPS estimates. While the divestiture of its Medical Writing business for up to $135 million is a strategic move to focus on core growth areas and provides a substantial cash infusion, the updated full-year guidance reflects a low growth outlook (0-4% excluding the divested business). This combination of weak financial performance and modest forward guidance, despite a strategic asset sale, indicates ongoing challenges for the company.
At the time of this filing, CERT was trading at $5.75 on NASDAQ in the Technology sector, with a market capitalization of approximately $967.5M. The 52-week trading range was $5.19 to $13.88. This filing was assessed with negative market sentiment and an importance score of 8 out of 10.