Certara (700) AI Stock Analysis

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Certara

(Hamburg:700)

Rating:―N/A

Action:N/A

Date:―

No summary available

Positive Factors

Software growth and bookingsDouble-digit software growth and stronger bookings indicate improving demand for Certara’s core platforms. With software exceeding half of revenue, continued adoption can increase recurring revenue exposure, deepen customer relationships, and support more durable growth than project-based activity alone.

Negative Factors

Persistent net lossesContinued net losses show that Certara has not yet translated its gross margin and adjusted EBITDA performance into consistent bottom-line profitability. Ongoing losses can constrain capital allocation, weaken returns on equity, and leave the business more dependent on operational improvements to sustain long-term value creation.

Certara (700) vs. iShares MSCI Germany ETF (EWG)

Market Cap: EUR 1.76B
Dividend Yield: ―
Average Volume (3M): 448
Price to Earnings (P/E): -28.0
Beta (1Y): 1.13
Revenue Growth: -8.88%
EPS Growth: -163.42%
Country: Germany
Employees: 1,546
Sector: Healthcare
Sector Strength: 51
Industry: Medical - Healthcare Information Services

Certara Business Overview & Revenue Model

Company Description

Certara, Inc. provides advanced software solutions and technology-driven services, specializing in biosimulation throughout the entire drug development lifecycle. From initial drug discovery and preclinical research to clinical trials, regulatory sub...

Certara Earnings Call Summary

Earnings Call Date:Nov 05, 2026(Q3-2026)|% Change Since:11.26%|Next Earnings Date:Mar 04, 2027

Earnings Call SentimentPositive

The call was generally positive. Software growth, bookings, adjusted EBITDA expansion, cost savings, AI initiatives, cloud adoption, regulatory contracts, and commercial restructuring represented significant positives. These were partly offset by declining services revenue and bookings, the narrowed 2026 revenue growth outlook, a continuing operations net loss, restructuring costs, tax expense, and the revenue headwind from cloud conversion. Highlights significantly outweighed the lowlights.

Positive Updates

Revenue and Adjusted EBITDA Growth

Third-quarter revenue was $94.9 million, up 4% year-over-year on a continuing operations basis. Adjusted EBITDA was $30.2 million, up 6% year-over-year, with a 31.8% margin.

Negative Updates

Services Revenue and Bookings Decline

Services revenue decreased 2% year-over-year to $46.1 million. Trailing 12-month services bookings also declined 2% to $206.8 million. Management said the transition to the specialist-led services model will take time to translate fully into bookings and revenue.

Company Guidance

Certara narrowed its 2026 full-year revenue growth range to 2%-3%, expects software revenue growth to be above this range and services revenue to be at or below the low end of that range; its previously communicated full-year Adjusted EBITDA margin outlook was 29%-31%, which remains an appropriate margin range for the fourth quarter, while 2026 adjusted EPS is expected to be $0.31-$0.34, fully diluted weighted average shares are expected to be in the range of 155 million-157 million, and the effective tax rate is modeled in the range of 25%-30%. The company said APAC initiatives are really going to be a 2027 growth impact, expects new AI capabilities to further contribute to growth and positioning in 2027, and will hold off on providing 2027 guidance until later in the year.

Certara Risk Analysis

Certara disclosed 43 risk factors in its most recent earnings report. Certara reported the most risks in the "Finance & Corporate" category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added

0 New Risks

Certara Peers Comparison

Overall Rating

UnderperformOutperform

Sector (51)

Financial Indicators

DE:700 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OPRX	66Neutral	$138.26M	27.50	3.84%	―	-13.98%	17806.67%
TEM	61Neutral	$13.06B	-68.19	-40.86%	―	36.56%	10.59%
SOPH	56Neutral	$698.90M	-7.53	-132.79%	―	24.11%	2.08%
Sector *	51Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
DH	51Neutral	$190.29M	-0.87	-87.69%	―	-6.18%	10.48%

* Healthcare Sector Average

Performance Comparison

DE:700 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
DE:700	Certara, Inc.	10.65	3.59	50.85%
OPRX	Optimizerx Corporation	7.34	-7.45	-50.37%
SOPH	Sophia Genetics Sa	8.21	4.16	102.72%
DH	Definitive Healthcare Corp. Class A	1.31	-1.31	-50.00%
BFRG	BullFrog AI Holdings, Inc.	0.54	-0.38	-41.20%
TEM	Tempus AI, Inc. Class A	71.60	5.21	7.85%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Certara AI Stock Analysis