Certara Q3 2026: Software Growth Hits Double Digits for First Time in Two Years

Certara's biosimulation software segment posted 11% organic revenue growth in the third quarter of 2026, the first double-digit quarter in two years. Software bookings climbed 15% year over year, and trailing-twelve-month software bookings rose 8%, suggesting the momentum extends beyond a single quarter.

Total revenue came in at $94.9 million, beating the consensus estimate of roughly $92.0 million. Adjusted EPS of $0.09 came in above the $0.0864 estimate, extending a pattern of mostly positive surprises after misses in Q2 2025, Q4 2025 and Q1 2026.

Profitability improved meaningfully on a sequential basis. Adjusted EBITDA margin expanded to 31.8%, more than 370 basis points above the Q2 2026 level, with management crediting operational actions taken earlier in the year. Cost of revenues fell $2.0 million, largely from lower equity-based compensation, though that was partially offset by a $3.1 million rise in operating expenses tied to employee costs, equipment, software, and executive recruiting.

Not everything moved in the right direction. Services revenue slipped 2% and services bookings fell 5%, a drag that management acknowledged while pointing to a pipeline it hopes to convert into revenue. The company also carries roughly $291 million in debt and is operating with an interim CFO, two overhangs worth monitoring as it attempts to sustain the software rebound.

Certara narrowed its full-year 2026 revenue growth guidance to a range of 2% to 3% and updated its adjusted diluted EPS outlook to $0.31 to $0.34. Software is expected to grow above that revenue range, while services growth is expected at or below the low end. For Q4 specifically, management views the 29% to 31% adjusted EBITDA margin range as appropriate, implying some moderation from the 31.8% posted in Q3.