Software Revenue and Bookings Strength
Software revenue of $49.7M in Q1, up 7% year-over-year; software bookings $48.7M, up 20% YoY; trailing 12-month software bookings ~$192.3M, up ~8% YoY.
Healthy Software Retention and Ratable Revenue Mix
Software net retention rate of 106% in the quarter; ratable/subscription revenue represented 57% of software revenue, supporting recurring revenue visibility.
Strategic Divestiture and Capital Return
Closed divestiture of regulatory and medical writing businesses to sharpen focus; businesses had generated ~$50M revenue and ~$17M adjusted EBITDA in 2025. Repurchased ~$82.6M of shares since authorization (including $40M in Q1) and ended Q1 with $149.5M cash.
Regulatory & Scientific Achievements
Simcyp qualified by EMA at a high level after multi-year engagement; PBPK modeling accepted to enable approval of a generic (tazarotene) and supported FDA approval processes (asciminib); Certara scientists published nearly 100 peer-reviewed papers; Pinnacle 21 validated >36 trillion data points supporting >500 approvals.
Product and AI Momentum with Strategic Partnerships
Multiple product releases (D360, Pinnacle 21 enhancements, Phoenix Cloud, Simcyp expansions); creation of AI-native team and appointment of Chief AI Officer; strategic collaborations announced with NVIDIA (accelerated computing/AI) and Altasciences (CRO/CDMO partnership) to scale platform and workflows.
Backlog, TTM Bookings and Second-Half Visibility
Total bookings $115.3M (Q1) and trailing 12-month bookings $479.2M, up 5% YoY; management cites improved deferred revenue and backlog conversion supporting stronger expected second-half performance.
Updated Guidance and Margin Targets
Full-year 2026 revenue guidance of $395M–$405M (0%–4% growth excl. divested business); expectation of full-year adjusted EBITDA margin in the 30%–32% range and adjusted EPS $0.35–$0.41 per share.