CERTMEDIUM SIGNALFINANCIAL10-K

CERT substantially reduced net losses while expanding operations and strengthening cash generation capabilities.

The company's meaningful reduction in net losses combined with strong operating cash flow growth suggests improving operational efficiency and path toward profitability. However, rising interest expenses indicate increased debt burden that investors should monitor closely.

Comparing 2026-02-26 vs 2025-02-26View on EDGAR →
FINANCIAL ANALYSIS

CERT demonstrated notable financial improvement with substantially reduced net losses and strong operating cash flow growth of nearly 20%. R&D investment increased modestly, reflecting continued innovation spending, while interest expenses rose meaningfully, suggesting higher debt levels. The overall picture signals improving operational performance and cash generation despite increased financing costs.

FINANCIAL STATEMENT CHANGES
Net Income
P&L
+86.8%
-$12.1M-$1.6M

Net income grew 86.8% — bottom-line growth signals improving overall business health.

Interest Expense
P&L
+28.9%
$17.8M$22.9M

Interest costs rose 28.9% — monitor debt levels and coverage ratio in rising rate environment.

Operating Cash Flow
Cash Flow
+19.7%
$80.5M$96.3M

Operating cash flow grew 19.7% — strong conversion of earnings to cash, healthy business fundamentals.

R&D Expense
P&L
+10.6%
$37.1M$41.0M

R&D investment increased 10.6% — signals commitment to future product development, though near-term margin impact.

LANGUAGE CHANGES
NEW — 2026-02-26
PRIOR — 2025-02-26
ADDED
As of February 17, 2026, the registrant had 159,139,562 shares of common stock, par value $0.01 per share, outstanding.
Our registered trademarks include Certara Phoenix, Simcyp, Pinnacle 21, CoAuthor, GlobalSubmit Certara D360, Chemaxon and Vyasa.
Operational disruptions, funding constraints and policy changes at the FDA and other government agencies could adversely affect regulatory activity and our business.
The loss of one or more of our major customers could materially and adversely affect our business, results of operations and/or financial condition.
Our Company We are a global leader in biosimulation science, technology, and consulting services for using Model-Informed Drug Development ( MIDD ) in the global biopharmaceutical and biotech industry.
MIDD is an approach that utilizes biological and statistical models derived from preclinical, clinical, and evidence data to inform decision-making in drug research and development, and commercialization.
Biosimulation and hereby MIDD can increase the probability of success in bringing a new drug to market, accelerate its development and decrease the costs of drug development.
Our approach to AI is grounded in our long-standing expertise in mechanistic and empirical modeling.
We deploy AI capabilities within validated scientific frameworks and expert-led workflows, rather than as standalone automated systems.
This expert-in-the-loop model allows us to leverage native AI capabilities in a manner that is consistent with regulatory expectations for transparency, reproducibility, and explainability.
REMOVED
As of February 17, 2025, the registrant had 161,017,775 shares of common stock, par value $0.01 per share, outstanding.
Our registered trademarks include Certara , Phoenix , Simcyp , Pinnacle 21 , CoAuthor , GlobalSubmit , Certara D360 and Vyasa TM .
Our historic growth rates may not be sustainable or indicative of future growth.
We rely upon third-party providers of cloud-based infrastructure to host our software solutions.
Our Company We are a global leader in biosimulation technology and solutions for using Model-Informed Drug Development ( MIDD ) in the global biopharmaceutical industry.
MIDD is an approach that utilizes biological and statistical models derived from preclinical and clinical data to inform decision-making in drug development and commercialization.
Biosimulation and MIDD can increase the probability of success in bringing a new drug to market and decrease the costs of drug development.
To do this, we have developed solutions for the collection, standardization, validation, storage, and analysis of the preclinical and clinical data needed for MIDD.
These data solutions are used internally and by global life sciences companies.
We believe that AI predictive models will continue to enhance the accuracy and usefulness of biosimulation models and will be utilized broadly across drug development.
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