At a glance
Certara Inc is worth $1.75B. Revenue grew 8.7% to $418.8M in fiscal 2025, at a loss; over 5 years it has grown 11.5% a year. It pays no dividend; it spent $42.6M buying back its shares over FY2021–FY2025. The stock returned −5.4% over the past year with dividends reinvested and −22.5% a year over five years, against +11.5% and +11.7% for the S&P 500. At its worst it fell 58.3% in the 2022 bear market (S&P 500: 24.5%), and is still below its earlier high.
The business in plain English
Certara sells biosimulation software and consulting services to drug developers. Biosimulation uses computer models to predict how a drug moves through and acts on the human body. It underpins model-informed drug development, which aims to raise a drug's odds of approval and cut the time and cost of getting there. Customers are mainly biopharmaceutical and biotech companies, plus academic institutions and 20 drug regulators, including the US Food and Drug Administration (FDA).
It earns money by licensing software and selling services delivered by its scientists. Key products include the Simcyp Simulator, used to choose the first doses tested in people and predict drug interactions, and the Phoenix suite, which analyzes data on how the body handles a drug and how the drug affects it. In 2024 it bought Chemaxon, whose chemistry software extends Certara into early drug discovery. It also sells AI-assisted tools such as CoAuthor for writing regulatory filings. Its software has more than 160,000 licensed users, and by its own count, its customers received 90% or more of novel FDA drug approvals from 2014 through 2025.
Revenue was $418.8 million in fiscal 2025, up 8.7%, and grew about 11.5% a year on average from fiscal 2020. By region, the Americas supplied 69.6%, Europe, the Middle East and Africa 22.1%, and Asia Pacific 8.3%.
Price history
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CERT -5.4% over the year to Oct 28, 2026, total return with dividends reinvested.
How it makes money
By geography
| Americas | $291.6M | 69.6% |
| EMEA | $92.6M | 22.1% |
| Asia Pac | $34.6M | 8.3% |
Latest results
- In Q2 FY2026 (ended Jun 30, 2026), revenue was $93.3M, up 1% from a year earlier, and net income was $-55.3M.
- For fiscal 2025, revenue was $418.8M (+8.7% year over year; +11.5% a year from FY2020 to FY2025) with a -0.4% net margin.
Financial health check
| Revenue growth a year (FY2020–FY2025) | +11.5% good |
|---|---|
| Operating margin | 5% watch |
| Free cash flow margin | 22.6% good |
| Return on equity (FY2025) | -0.2% weak |
| Return on assets (FY2025) | -0.1% weak |
| Net cash (cash minus debt) | $-107.7M watch |
| Fiscal year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2020 | $243.5M | $-49.4M | $43.9M |
| FY2021 | $286.1M | $-13.3M | $59.2M |
| FY2022 | $335.6M | $14.7M | $91.1M |
| FY2023 | $354.3M | $-55.4M | $81.0M |
| FY2024 | $385.1M | $-12.1M | $78.8M |
| FY2025 | $418.8M | $-1.6M | $94.6M |
Valuation snapshot
| Market value | $1.75B |
|---|---|
| P/E ratio | — |
| Dividend yield | None |
Rank among 1514 US companies
Market value at each year end
Certara’s market value went from $4.54B at the end of 2021 to $1.75B on Oct 28, 2026, down 61%; since the end of 2025 it is up 25%.
Show as a table
| Year end | Market value | Change |
|---|---|---|
| Oct 28, 2026 | $1.75B | +24.8% |
| 2025 | $1.40B | -18.2% |
| 2024 | $1.71B | -39.0% |
| 2023 | $2.81B | +9.6% |
| 2022 | $2.57B | -43.5% |
| 2021 | $4.54B |
Price behavior
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | |
|---|---|---|---|---|---|
| CERT price data to Oct 28, 2026 | +30.3% | -5.4% | -2.2% | -22.5% | — |
Show as a table
| Year | Price data |
|---|---|
| 2026 (to date) | +30.3% |
| 2025 | -17.3% |
| 2024 | -39.5% |
| 2023 | +9.5% |
| 2022 | -43.5% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Before this security existed |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 58.3% over that stretch · deepest drop along the way 58.3%, not recovered by the end of the data |
Insider activity
Form 4 filings from 2025-10-29 to 2026-10-29 (25 read): 1 open-market purchases ($200K) and 0 sales ($0.00).
| Date | Insider | Type | Value |
|---|---|---|---|
| Nov 11, 2025 | William F Feehery CHIEF EXECUTIVE OFFICER, Director | buy | $200K |
Who owns it
Large shareholders (13G filings)
| BlackRock, Inc. | 11.6% | Jun 30, 2026 |
| WASATCH ADVISORS LP | 8.3% | Jun 30, 2025 |
| Deerfield Mgmt, L.P. | 4.9% | Nov 25, 2025 |
| Dimensional Fund Advisors LP | 3.9% | Jun 30, 2026 |
| Wasatch Advisors LP | 3.3% | Mar 31, 2026 |
ETFs with the most weight in CERT
| CAFG Pacer US Small Cap Cash Cows Growth Leaders ETF | 0.78% |
| FXH First Trust Health Care AlphaDEX Fund | 0.42% |
| AFSM First Trust Active Factor Small Cap ETF | 0.26% |
| VIOV Vanguard S&P Small-Cap 600 Value ETF | 0.2% |
| SLYV SPDR S&P 600 Small Cap Value ETF | 0.19% |
| IJS iShares S&P Small-Cap 600 Value ETF | 0.18% |
| HAPS Harbor Human Capital Factor US Small Cap ETF | 0.17% |
| IHF iShares U.S. Healthcare Providers ETF | 0.16% |
What could go wrong
- Regulators could rely less on computer models. Demand depends on regulators and universities accepting computer-simulated (in silico) evidence. The FDA and other agencies license Certara's software but need not renew it each year. A policy reversal could hurt sales and reputation.
- Disruption and policy shifts at the FDA. Operational disruptions, funding limits and policy changes at the FDA and other agencies could slow regulatory activity. Certara says regulatory changes and delays have already reduced demand for some services.
- Drugmakers cutting research budgets. Certara's sales depend on drugmakers' research budgets. Spending cuts, customer funding shortfalls and drug development delays have already reduced demand, the company says, and may continue to.
- Free tools, in-house teams and AI rivals. The market is crowded and fragmented. Rivals include free open-source software such as R and PK-Sim, drugmakers' in-house teams and clinical research organizations. AI could add competitors, and failing to adapt would hurt.
- Reliance on key customers and renewals. A key group of customers supplies a significant share of revenue. Losing one, weaker software renewals, or drugmaker mergers that shrink the number of buyers and licenses could hurt results.
- Debt exceeds cash on hand. As of June 30, 2026, Certara had about $292 million of debt against $184 million of cash and investments. Its loan terms limit some business choices; breaching them could make debt due early.
Recent events
- Investor presentation or announcement
- Quarterly results released
- Executive or board change
- Executive or board change
- Shareholder vote results
- Quarterly results released; Other company announcement
- Major agreement signed
- Executive or board change
- Quarterly results released
- Executive or board change
For income and retirement investors
Certara does not pay a dividend and paid none from fiscal 2021 through fiscal 2025. For an income investor, any return comes from the share price, and raising cash means selling shares. The company bought back about $42.6 million of stock in fiscal 2025, after none in 2023 and 2024, in a year with $94.6 million of free cash flow (cash left after running and investing in the business). The share count barely moved: about 152.5 million on August 1, 2026, versus 152.9 million five years earlier.
The stock has swung sharply. In the 2022 bear market, a broad slump, it fell 58.3% between January 3 and October 12, 2022, and had not climbed back to its January 2022 level as of October 28, 2026. Its deepest fall from a peak was about 90%. Its trading history is too short to show the 2008 crisis or the 2020 COVID crash. Single stocks carry more risk than diversified funds.
Questions investors ask
How does Certara make money?
Certara makes money by licensing biosimulation software, which uses computer models to predict how drugs behave in the body, and by selling services delivered by its scientists. Key products include the Simcyp Simulator and the Phoenix suite, and its teams also help clients prepare regulatory filings. Revenue was $418.8 million in fiscal 2025, up 8.7%. About 69.6% came from the Americas, 22.1% from Europe, the Middle East and Africa, and 8.3% from Asia Pacific.
Is Certara profitable?
Not by net income, though it does generate cash. In fiscal 2025, Certara had operating income (profit from its core business) of $21.0 million, a 5% margin, but a net loss of $1.6 million, or $0.01 per share. Free cash flow (cash left after running and investing in the business) was $94.6 million, or 22.6% of revenue. Its only net profit from 2020 to 2025 came in 2022. In the quarter ended June 30, 2026, it lost $55.3 million on revenue of $93.3 million.
Does Certara pay a dividend?
No. Certara paid no dividends from fiscal 2021 through fiscal 2025, so it has no record of raising one. It has returned some cash through share buybacks (the company purchasing its own stock) instead, spending about $42.6 million on repurchases in fiscal 2025 after none in 2023 and 2024. For income investors, that means any return depends on the share price, and getting cash out means selling shares.
How has Certara stock performed?
Poorly over five years, though it rebounded sharply in the months before October 28, 2026. As of that date, the shares were down about 72% over five years and 5.4% over one year, but up 87% over six months and 30.3% year to date. By calendar year, it fell 43.5% in 2022, rose 9.5% in 2023, fell 39.5% in 2024 and fell 17.3% in 2025. At its worst, the stock was about 90% below its peak.
Who are Certara's biggest shareholders?
Major holders include BlackRock and Arsenal. BlackRock reported owning 11.6% as of June 30, 2026, in an ownership filing. Other reported stakes include Deerfield Management at 4.9% (as of November 25, 2025) and Dimensional Fund Advisors at 3.9% (as of June 30, 2026). Certara's annual report says Arsenal holds a substantial amount of its stock and may have interests that differ from other shareholders'. Chief Executive William F. Feehery bought about $200,000 of shares on November 11, 2025.