Certara
Certara's revenue rose 8.8% to $419 million in fiscal 2025. Its operating margin was 5.0%, up from −0.5% a year earlier. Free cash flow was $95 million, up 19.9%. It paid out $43 million in dividends and buybacks, 45% of free cash flow.
Operating margin is operating income as a share of revenue. Free cash flow is cash from operations minus capital spending. Return on capital is after-tax operating income as a share of the money invested in the business: debt plus equity, minus cash. Market cap is the last closing share price times the latest diluted share count, so it is approximate. P/E is the last close divided by diluted earnings per share over the last four quarters, or the latest fiscal year where the quarters aren't available; there is none when the company made a loss.
Charts show fiscal years, from the 10-K filings.
Revenue and margins
Net income and earnings per share
Certara lost money in fiscal 2025: a net loss of $2 million.
Returns on capital
Cash flow
Payouts and share count
Valuation
Two ways to value Certara yourself, both starting from its filings: a discounted cash flow model and the price-to-earnings method.
Discounted cash flow (DCF)
A discounted cash flow (DCF) model values a business as the cash it may generate in future, discounted back to today. The starting figures come from Certara's 10-K (or, for net cash and shares, its latest 10-Q) and the assumptions are yours: start from one of three example scenarios, then change any figure to see what it implies for a share, and how that compares with the last share price.
Value per share on three example scenarios, from Certara's fiscal 2025 free cash flow of $95M, net cash of −$104M at December 31, 2025 and 160 million diluted shares, from its filings. The scenarios are fitted to Certara: the base scenario's growth in years 1 to 5 is its revenue growth over the last 3 years, 7.7% a year; the cautious and optimistic ones are lower and higher, and growth in years 6 to 10 is halfway to the long-run rate. The base scenario's discount rate is 11%: 9% for a business of moderate risk (Health Care Technology), plus 1 point as a smaller company, worth $1.6B, plus 1 point for unsteady results (a loss in fiscal 2025); the cautious and optimistic ones use a point more and a point less. Select one to load it into the calculator. These are the model's arithmetic on those assumptions, not a forecast or a price target.
- Last close, October 26, 2026
- $10.61
- Value on these assumptions, against the last close
- —
- Cash flows in years 1 to 10, valued today
- —
- Everything after year 10, valued today
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- Plus net cash
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- Share of value from after year 10
How the value changes with two assumptions
Price-to-earnings (P/E) method
Another common way to value a company is to multiply its earnings per share by a price-to-earnings (P/E) multiple: the number of years of today's earnings an investor pays for a share. A higher multiple usually means investors expect earnings to grow. Choose a multiple, for example from similar companies, to see the value it gives.
The P/E method needs positive earnings, and Certara's latest diluted earnings per share were negative or zero.
Balance sheet
| Fiscal year end | FY21 | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|---|
| Cash and short-term investments | 186 | 237 | 235 | 179 | 189 |
| Debt incl. finance leases | 295 | 293 | 291 | 295 | 293 |
| Net debt (negative means net cash) | 109 | 56 | 56 | 116 | 104 |
| Net debt to EBITDA | 7.0x | 1.6x | 3.7x | 1.8x | 1.1x |
| Debt to equity | 0.3x | 0.3x | 0.3x | 0.3x | 0.3x |
| Interest coverage | 0.8x | 1.8x | −1.8x | −0.1x | 1.1x |
| Current ratio | 3.0x | 3.3x | 2.6x | 2.1x | 2.0x |
| Quick ratio | 3.0x | 3.3x | 2.6x | 2.1x | 2.0x |
Insider trades
Over the 12 months between October 27, 2025 and October 26, 2026, 1 insider bought $200,000 of Certara shares on the open market, and none sold any.
| Date | Insider | Trade | Shares | Price | Value | Filing |
|---|---|---|---|---|---|---|
| Nov 11, 2025 | William F FeeheryChief Executive Officer, Director | Bought | 24,096 | $8.30 | $200,000 | Form 4 |
Piotroski F-score
The F-score counts how many of nine simple tests of profitability, funding and efficiency a company passed in a year (Piotroski, 2000). The more tests passed, the stronger the year: 8 or 9 is strong, 0 to 2 weak. Companies that report no gross profit are scored on the other eight.
| Test | FY23 | FY24 | FY25 |
|---|---|---|---|
| Net income is positive | Fail | Fail | Fail |
| Cash from operations is positive | Pass | Pass | Pass |
| Return on assets rose | Fail | Pass | Pass |
| Cash from operations exceeds net income | Pass | Pass | Pass |
| Debt fell relative to assets | Pass | Fail | Pass |
| Current ratio rose | Fail | Fail | Fail |
| Share count didn't rise | Pass | Fail | Fail |
| Gross margin rose | Fail | — | — |
| Revenue rose relative to assets | Pass | Pass | Pass |
| F-score | 5 of 9 | 4 of 8 | 5 of 8 |
| Accruals ratio | −8.8% | −5.9% | −6.2% |
Compare
Put Certara side by side with any other company we cover: revenue, growth, margins, cash flow and returns, with ten years of charts.
Similar companies
| Company | Year | Revenue growth | Operating margin | Free cash flow margin | Return on capital | Net debt to EBITDA | F-score | Compare |
|---|---|---|---|---|---|---|---|---|
| Certara | FY25 | 8.8% | 5.0% | 22.6% | 0.9% | 1.1x | 5 | |
| HealthStream | FY25 | 4.3% | 6.7% | 19.6% | — | — | — | Compare |
| Doximity | FY26 | 13.1% | 33.3% | 50.6% | 91.3% | −3.3x | 4 | Compare |
| Veeva Systems | FY26 | 16.3% | 28.7% | 43.4% | — | −6.9x | 6 | Compare |
| Solventum | FY25 | 0.9% | 26.2% | −0.1% | 20.4% | 1.6x | 5 | Compare |
7 years of figures
| Fiscal year | FY19 | FY20 | FY21 | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|---|---|---|
| Income statement | |||||||
| Revenue | 208 | 244 | 286 | 336 | 354 | 385 | 419 |
| Revenue growth | — | 16.8% | 17.5% | 17.3% | 5.6% | 8.7% | 8.8% |
| Gross profit | 129 | 143 | 174 | 203 | 213 | — | — |
| Research and development | 12 | 20 | 20 | 28 | 34 | 37 | 41 |
| Operating income | 20 | −24 | 14 | 32 | −41 | −2 | 21 |
| Net income | −9 | −49 | −13 | 15 | −55 | −12 | −2 |
| Diluted EPS (US$) | −0.07 | −0.37 | −0.09 | 0.09 | −0.35 | −0.08 | −0.01 |
| Diluted shares (millions) | 132 | 133 | 150 | 159 | 159 | 160 | 160 |
| Cash flow | |||||||
| Cash from operations | 38 | 45 | 60 | 92 | 83 | 80 | 96 |
| Capital expenditure | 2 | 1 | 1 | 1 | 2 | 2 | 2 |
| Free cash flow | 36 | 44 | 59 | 91 | 81 | 79 | 95 |
| Dividends paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share buybacks | 1 | 1 | 0 | 0 | 0 | 0 | 43 |
| Acquisitions | 0 | 1 | 261 | 15 | 64 | 91 | 0 |
| Stock-based compensation | 2 | 64 | 30 | 30 | 28 | 35 | 33 |
| Balance sheet at fiscal year end | |||||||
| Cash and short-term investments | 29 | 271 | 186 | 237 | 235 | 179 | 189 |
| Debt incl. finance leases | — | 299 | 295 | 293 | 291 | 295 | 293 |
| Total assets | — | 1,269 | 1,512 | 1,573 | 1,563 | 1,575 | 1,557 |
| Total liabilities | — | 447 | 470 | 493 | 516 | 516 | 494 |
| Shareholders' equity | 492 | 822 | 1,042 | 1,080 | 1,047 | 1,059 | 1,063 |
| Margins and ratios | |||||||
| Gross margin | 61.7% | 58.6% | 61.0% | 60.5% | 60.2% | — | — |
| Operating margin | 9.4% | −10.0% | 4.8% | 9.7% | −11.5% | −0.5% | 5.0% |
| Net margin | −4.3% | −20.3% | −4.6% | 4.4% | −15.6% | −3.1% | −0.4% |
| Free cash flow margin | 17.2% | 18.1% | 20.7% | 27.1% | 22.9% | 20.5% | 22.6% |
| Return on capital | — | — | 1.1% | 2.2% | −2.9% | −0.1% | 0.9% |
| Return on equity | — | — | −1.4% | 1.4% | −5.2% | −1.1% | −0.1% |
| Return on assets | — | — | −0.9% | 1.0% | −3.5% | −0.8% | −0.1% |
| Net debt to EBITDA | — | — | 7.0x | 1.6x | 3.7x | 1.8x | 1.1x |