📊 CERT Key Takeaways
Is Certara, Inc. (CERT) a Good Investment?
Certara demonstrates improving financial trajectory with revenue growth of 8.7% YoY and substantial net income improvement of 86.8%, supported by positive free cash flow of 11.1M and strong liquidity (1.88x current ratio). However, the company remains unprofitable at both operating (-4.0% margin) and net income (-8.2% margin) levels, and negative interest coverage (-0.7x) indicates operational cash generation is insufficient to cover debt servicing, warranting cautious observation of the profitability turnaround path.
Certara shows solid underlying business quality through steady revenue growth, strong free cash flow generation, and a healthy balance sheet with good liquidity and moderate leverage. However, weak GAAP profitability, thin operating margins, and a still-negative bottom line suggest the company is in a transition phase rather than demonstrating fully mature earnings power. Fundamentally, this supports a neutral view until margin expansion and earnings conversion become more consistent.
Certara, Inc. Key Strengths (CERT)
- Positive free cash flow of 11.1M with 10.3% FCF margin demonstrates underlying cash generation capability despite GAAP losses
- Strong balance sheet with 149.5M cash, 1.88x current ratio, and moderate 0.29x debt/equity ratio provides financial flexibility
- Significant net income improvement trajectory (+86.8% YoY) indicates accelerating path toward profitability and operational efficiency gains
- Revenue growth remains healthy at 8.7% YoY, indicating continued demand for the software and services platform
- Free cash flow is strong at $94.56M with a 22.6% FCF margin, showing high cash conversion despite weak net income
- Balance sheet risk appears manageable with a 2.05x current ratio, $189.39M cash, and a moderate 0.28x debt-to-equity ratio
CERT Stock Risks: Certara, Inc. Investment Risks
- Persistent operating losses and negative net margins (-8.2%) remain concerning for a software/prepackaged software business where profitability is foundational
- Negative interest coverage ratio of -0.7x signals inability to service debt from operating cash flow, creating refinancing risk
- Modest revenue growth rate of 8.7% YoY is below typical SaaS/software expectations and may be insufficient to support profitability turnaround if margins stall
- Operating margin is only 5.0% and net margin remains negative, limiting earnings resilience
- Interest coverage of 3.7x is adequate but not especially strong if profitability weakens further
- Returns on equity and assets are slightly negative, indicating capital is not yet producing strong accounting profits
Key Metrics to Watch
- Operating margin progression toward breakeven and positive territory as indicator of sustainable business model
- Interest coverage ratio improvement to positive levels as proof that operating cash flow can sustain debt obligations
- Revenue growth acceleration and gross margin trends to assess pricing power and unit economics improvement
- Operating margin and net income trend
- Free cash flow margin and interest coverage
Certara, Inc. (CERT) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Certara, Inc. presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
CERT Profit Margin, ROE & Profitability Analysis
CERT vs Technology Sector: How Certara, Inc. Compares
How Certara, Inc. compares to Technology sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Certara, Inc. Stock Overvalued? CERT Valuation Analysis 2026
Based on fundamental analysis, Certara, Inc. has mixed fundamental signals relative to the Technology sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Certara, Inc. Balance Sheet: CERT Debt, Cash & Liquidity
CERT Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Certara, Inc.'s revenue has grown significantly by 46% over the 5-year period, indicating strong business expansion. The most recent EPS of $-0.35 indicates the company is currently unprofitable.
CERT Revenue Growth, EPS Growth & YoY Performance
CERT Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $106.0M | $4.7M | $0.03 |
| Q3 2025 | $94.8M | -$1.4M | $-0.01 |
| Q2 2025 | $93.3M | -$2.0M | $-0.01 |
| Q1 2025 | $96.7M | -$4.7M | $-0.03 |
| Q3 2024 | $85.6M | -$1.4M | $-0.01 |
| Q2 2024 | $90.5M | $4.7M | $0.03 |
| Q1 2024 | $90.3M | $1.4M | $0.01 |
| Q3 2023 | $84.7M | $3.9M | $0.02 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Certara, Inc. Dividends, Buybacks & Capital Allocation
CERT SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Certara, Inc. (CIK: 0001827090)
📋 Recent SEC Filings
| Date | Form | Document | Action |
|---|---|---|---|
| Jun 2, 2026 | 4 | xslF345X06/form4-06022026_090623.xml | View → |
| Jun 2, 2026 | 4 | xslF345X06/form4-06022026_090642.xml | View → |
| May 15, 2026 | 8-K | tm2614652d1_8k.htm | View → |
| May 15, 2026 | 4 | xslF345X06/form4-05152026_080516.xml | View → |
| May 15, 2026 | 4 | xslF345X06/form4-05152026_080538.xml | View → |
❓ Frequently Asked Questions about CERT
What is the AI rating for CERT?
Certara, Inc. (CERT) has a Combined AI Grade of B from Claude (B) and ChatGPT (B) with 70% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are CERT's key strengths?
Claude: Positive free cash flow of 11.1M with 10.3% FCF margin demonstrates underlying cash generation capability despite GAAP losses. Strong balance sheet with 149.5M cash, 1.88x current ratio, and moderate 0.29x debt/equity ratio provides financial flexibility. ChatGPT: Revenue growth remains healthy at 8.7% YoY, indicating continued demand for the software and services platform. Free cash flow is strong at $94.56M with a 22.6% FCF margin, showing high cash conversion despite weak net income.
What are the risks of investing in CERT?
Claude: Persistent operating losses and negative net margins (-8.2%) remain concerning for a software/prepackaged software business where profitability is foundational. Negative interest coverage ratio of -0.7x signals inability to service debt from operating cash flow, creating refinancing risk. ChatGPT: Operating margin is only 5.0% and net margin remains negative, limiting earnings resilience. Interest coverage of 3.7x is adequate but not especially strong if profitability weakens further.
What is CERT's revenue and growth?
Certara, Inc. reported revenue of $106.9M.
Does CERT pay dividends?
Certara, Inc. does not currently pay dividends.
Where can I find CERT SEC filings?
Official SEC filings for Certara, Inc. (CIK: 0001827090) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is CERT's EPS?
Certara, Inc. has a diluted EPS of $-0.06.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is CERT's fundamental grade?
Based on our AI fundamental analysis in June 2026, Certara, Inc. has a B grade with 70% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is CERT stock overvalued or undervalued?
Valuation metrics for CERT: ROE of -0.9% (sector avg: 22%), net margin of -8.2% (sector avg: 18%). Compare these metrics with sector averages to assess valuation.
What is CERT's AI grade for 2026?
Our dual AI analysis gives Certara, Inc. a combined B grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is CERT's free cash flow?
Certara, Inc.'s operating cash flow is $11.7M, with capital expenditures of $631.0K. FCF margin is 10.3%.
How does CERT compare to other Technology stocks?
Vs Technology sector averages: Net margin -8.2% (avg: 18%), ROE -0.9% (avg: 22%), current ratio 1.88 (avg: 2.5).