Slides
Page 1
Third Quarter 2025 Financial Results November 6, 2025
Page 2
2 Disclaimer Numerical figures in the presentation have been subject to rounding adjustments. Accordingly, numerical figures shown as totals in various tables may not be arithmetic aggregations of the figures that precede them. In addition, unless otherwise indicated, references to the “Company,” “Certara,” “we,” “us,” and “our” refer to Certara, Inc. and its consolidated subsidiaries. Trademarks and Service Marks The Certara design logo, “Certara,” and our other registered or common law trademarks, service marks or trade names appearing in this presentation are our property. Solely for convenience, our trademarks, tradenames, and service marks referred to in this presentation appear without the registered mark or trademark symbols, but those references are not intended to indicate, in any way, that we will not assert, to the fullest extent under applicable law, our rights to these trademarks, tradenames, and service marks. This presentation contains additional trademarks, tradenames, and service marks of other companies that are the property of their respective owners. We do not intend our use or display of other companies’ trademarks, trade names or service marks to imply relationships with, or endorsement or sponsorship of us by, these other companies. Forward-Looking Statements This presentation includes forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, that reflect the Company’s current views with respect to, among other things, the Company’s operations and financial performance. Forward-looking statements include information concerning possible or assumed future results of operations, including descriptions of our business plan and strategies. These statements often include words such as “anticipate,” “expect,” “suggest,” “plan,” “believe,” “intend,” “project,” “forecast,” “estimates,” “targets,” “projections,” “should,” “could,” “would,” “may,” “might,” “will,” and other similar expressions. We base these forward-looking statements or projections on our current expectations, plans and assumptions, which we have made in light of our experience in the industry, as well as our perceptions of historical trends, current conditions, expected future developments and other factors we believe are appropriate under the circumstances at the time. The forward-looking statements are based on our beliefs, assumptions and expectations of future performance, taking into account the information currently available to us. These statements are only predictions based upon our current expectations and projections about future events. Actual results may differ materially from those described in the forward-looking statements and are subject to a variety of assumptions, uncertainties, risks and factors that are beyond our control, including the Company’s ability to compete within its market; any deceleration in, or resistance to, the acceptance of model-informed biopharmaceutical discovery; changes or delays in relevant government regulation; increasing competition, regulation and other cost pressures within the pharmaceutical and biotechnology industries; economic conditions, including inflation, recession, currency exchange fluctuation and adverse developments in the financial services industry; trends in research and development (R&D) spending; delays or cancellations in projects due to supply chain interruptions or disruptions or delays to pipeline development and clinical trials experienced by our customers, and the other factors detailed under the captions “Risk Factors” and “Special Note Regarding Forward-Looking Statements” and elsewhere in our Securities and Exchange Commission (“SEC”) filings and reports, including the Annual Report on Form 10-K filed with the SEC on February 26, 2025 and subsequent reports. New risks emerge from time to time and it is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. Any forward-looking statement made by us in this presentation speaks only as of the date of this presentation and is expressly qualified in its entirety by the cautionary statements included in this presentation. We undertake no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by any applicable laws. You should not place undue reliance on our forward-looking statements. Non-GAAP Financial Information This presentation contains “non-GAAP measures” that are financial measures that either exclude or include amounts that are not excluded or included in the most directly comparable measures calculated and presented in accordance with U.S. generally accepted accounting principles (“GAAP”). Specifically, we may make use of the non-GAAP financial measures adjusted EBITDA, adjusted EBITDA margin, [adjusted net income (loss), adjusted diluted earnings per share (“EPS), and constant currency (“CC”) revenue, which are not recognized terms under GAAP and should not be considered as alternatives to net income (loss), GAAP EPS, or GAAP revenue as measures of financial performance or cash provided by operating activities as a measure of liquidity, or any other performance measure derived in accordance with GAAP. These non-GAAP measures have limitations as analytical tools and should not be considered in isolation, or as a substitute for our results as reported under GAAP. Because not all companies use identical calculations, the presentations of these measures may not be comparable to other similarly titled measures of other companies and can differ significantly from company to company. Adjusted EBITDA represents net income (loss) excluding interest expense, provision (benefit) for income taxes, depreciation and amortization expense, intangible asset amortization, equity-based compensation expense, acquisition and integration expense and other items not indicative of our ongoing operating performance. Adjusted EBITDA margin represents adjusted EBITDA divided by revenue. [Adjusted net income] and adjusted diluted EPS exclude the effect of the same items noted above with respect to adjusted EBITDA from GAAP net income (loss) and GAAP EPS, respectively, as well as adjust the provision for income taxes for such charges. CC revenue excludes the effects of foreign currency exchange rate fluctuations by assuming constant foreign currency exchange rates used for translation. Current periods revenue reported in currencies other than U.S. dollars are converted into U.S. dollars at the average exchange rates in effect for the comparable prior periods. You should refer to the appendix at the end of this document for a reconciliation of these non-GAAP measures in specific periods to their most directly comparable financial measures calculated and presented in accordance with GAAP for those periods. Management uses various financial metrics, including total revenues, income from operations, net income, CC revenue and certain non-GAAP measures, including those discussed above, to measure and assess the performance of the Company’s business, to evaluate the effectiveness of its business strategies, to make budgeting decisions, to make certain compensation decisions, and to compare the Company’s performance against that of other peer companies using similar measures. In addition, management believes these metrics provide useful measures for period-to-period comparisons of the Company’s business, as they remove the effect of certain non-cash expenses and other items not indicative of its ongoing operating performance. Management believes that these metrics are helpful to investors, analysts, and other interested parties because they can assist in providing a more consistent and comparable overview of our operations across our historical periods. In addition, these measures are frequently used by analysts, investors, and other interested parties to evaluate and assess performance. In addition, our business has operations outside the United States that are conducted in local currencies. As a result, the comparability of the financial results reported in U.S. dollars is affected by changes in foreign currency exchange rates. We use CC revenue to evaluate the underlying performance of the business, and we believe it is helpful for investors to present operating results on a comparable basis period over period to evaluate its underlying performance. In evaluating adjusted EBITDA, [adjusted net income (loss)] adjusted diluted EPS, and CC revenue, you should be aware that in the future the Company may incur expenses similar to those eliminated in this presentation and this presentation should not be construed as an inference that future results will be unaffected by unusual items.
Page 3
3 © Copyright 2025 Certara, Inc. All rights reserved. 3 More than 2,400 companies and 23 global regulatory agencies have adopted Certara technology solutions. 20 years of industry leadership and innovation with over 1,550 employees, 400 with PhDs in 33 countries; seven of the worlds most cited scientists in their field. Scientific Leadership Biosimulation Technology Platform More than 90% of all novel drugs approved by the US FDA since 2014 were supported by Certara services or technology. We use biosimulation, data, and scientific expertise to transform drug development and accelerate medicines to patients. Our Mission Certara A leader in model informed drug development (MIDD) from molecule to market Proven Results
Page 4
4 A T rusted Life Sciences Partner 2,600+ Customers across 70 countries; 30 of the top 30 biopharma >100 novel drugs & 325 label claims rare disease treatments to market, 400+ Employees with PhDs 10+ Year Average T enure for T op 30 Customers >90% all novel drugs approved by the US FDA since 2014 were supported by Certara solutions 23 Global regulatory agencies Software adopted by 34K+ Scientific publications with scientists and technology Validated by 400+ Academic Institutions Used by Our software was used in bringing >100 >380 complex biologics programs since 2020. were approved by global regulators using our technology in lieu of clinical studies © Copyright 2025 Certara, Inc. All rights reserved. 1550+ Global team members in 30 countries
Page 5
BASIC RESEARCH DRUG DISCOVERY PRE - CLINICAL CLINICAL TRIALS FDA REVIEW POST - APPROVAL Phase I Phase II Phase III Research & Monitoring TENS HUNDREDS THOUSANDS Number of Volunteers IND SUBMITTED NDA/BLA SUBMITTED FDA APPROVAL YEAR 15 POTENTIAL NEW MEDICINES $2–3 BILLION* 1 FDA- APPROVED MEDICINE *FTL Science 2022 https://theconversation.com/90-of-drugs-fail-clinical- trials-heres-one-way-researchers-can-select-better-drug-candidates- 174152 https://ftloscience.com/process-costs-drug-development/ Drug Development Needs a New Model 8 8 % O F N E W M E D I C I N E S T H AT E N T E R C L I N I C A L T R I A L S FA I L* 40–50% lack clinical efficacy 20–30% unmanageable toxicity 10–15% poor pharmacokinetic (PK) properties 10%+ fail due to lack of commercial viability*
Page 6
6 Biosimulation CLINICAL Biosimulation Platform © Copyright 2025 Certara, Inc. All rights reserved. Generative AI and Machine Learning Scientific Drug Development Expertise Biosimulation Models and Data Pinnacle 21 Simcyp Simulator Biostatistical Analytics & Submissions PRECLINICALDISCOVERY PK Analytics Chemaxon Integrated chemical and biological property prediction Integrated workflows for enhanced cellular predictions Integrated scientific analytics and reporting workflows Phoenix PK/PD Cheminformatics
Page 7
7 Financial Highlights Third Quarter 2025 REVENUE $104.6M NET INCOME $1.5M ADJ. EBITDA(2) $35.2M PY ($1.4M) 7% PY ($0.01) PY $0.13 DILUTED EPS $0.01 (1) See Appendix for reconciliation of GAAP revenue to constant currency (non-GAAP revenue) (2) See Appendix for reconciliation of net income (loss) to adjusted EBITDA (3) See Appendix for reconciliation of Diluted Earnings Per Share to Adjusted Diluted Earnings Per Share ADJUSTED DILUTED EPS(3) $0.14 YoY change10% CC YoY change(1) 10% GAAP YoY change
Page 8
8 35.9 43.8 58.9 60.8 3Q 2024 3Q 2025 Software Services 3Q 2025 Results - Revenue Certara reported 10% constant currency(1) revenue growth ($Millions) 94.8 104.6 35.9 43.6 58.9 60.5 3Q 2024 3Q 2025 Software Services 94.8 104.1 Constant Currency Revenue(1) GAAP Reported Revenue ($Millions) (1) See Appendix for reconciliation of GAAP revenue to constant currency (non-GAAP revenue)
Page 9
9 34.9 40.8 61.2 55.8 3Q 2024 3Q 2025 Software Services 3Q 2025 and TTM Results - Net Bookings Trailing twelve months bookings are highly correlated with revenue and drive strong visibility ($Millions) 96.1 96.6 153.3 187.9 266.3 283.5 3Q 2024 3Q 2025 Software Services 419.6 471.4 TTM Reported Net Bookings 3Q Reported Net Bookings ($Millions)
Page 10
10 Historical TTM Book to Bill Book to bill provides forward visibility into revenue growth 419.7 445.3 457.7 470.8 471.4 372.8 385.1 394.5 405.8 415.6 1.13x 1.16x 1.16x 1.16x 1.13x $25$45$65$85$105$125$145$165$185$205$225$245$265$285$305$325$345$365$385$405$425$445$465$485 3Q 2024 4Q 2024 1Q 2025 2Q 2025 3Q 2025 TTM Bookings TTM Revenue Book to Bill ($Millions)
Page 11
11 Historical Software Net Retention Rate (NRR)(1) NRR(1) provides insight into growth and retention among existing software customers (1) Our net retention rates measure the percentage of recurring revenue that is retained from existing software customers over a specific time period, inclusive of price increases and expansion, excluding revenue from acquisitions occurred within the past 12 months. 107.4% 108.6% 114.1% 108.0% 107.6% 105.5% 102.4% 107.6% 103.9% 100.0% 105.0% 110.0% 115.0% 3Q 2023 4Q 2023 1Q 2024 2Q 2024 3Q 2024 4Q 2024 1Q 2025 2Q 2025 3Q 2025
Page 12
12 35% 34%33% 33% 31% 33.1 33.5 34.8 31.9 35.2 3Q 2024 4Q 2024 1Q 2025 2Q 2025 3Q 2025 3Q 2025 Results – Adjusted EBITDA Adjusted EBITDA(1) Adjusted EBITDA Margin(1) (1) See Appendix for a reconciliation net income (loss) to adjusted EBITDA 3Q25 Adjusted EBITDA grew 7% vs. the prior year period
Page 13
13 3Q 2025 Results – Reconciliation of Revenue & Bookings Growth Item Growth Contribution Organic Software(1) +6% + Chemaxon ~1560 bps Reported Software +22% Organic Services(1) +3% + Chemaxon ~40 bps Reported Services +3% Organic Total(1) +4% + Chemaxon ~615 bps Total Revenue +10% 3Q 2025 Revenue Item Growth Contribution Organic Software(1) +5% + Chemaxon ~1210 bps Reported Software +17% Organic Services(1) (9%) + Chemaxon ~40 bps Reported Services (9%) Organic Total(1) (4%) + Chemaxon ~460 bps Total Bookings +1% 3Q 2025 Bookings (1) Organic Growth does not include M&A contribution from businesses that were not owned for the entirety of the prior year period
Page 14
14 Investing to Drive Sustainable Growth • Continuing to invest in commercial and R&D teams to expand biosimulation capabilities and commercial footprint. • Encouraged by growing interest in biosimulation use among customers in discovery and preclinical, in addition to traditional clinical work. Product Development Achievements • Launched CertaraIQ and updates to Phoenix Cloud and P21 this fall, all of which have begun generating orders. • Certara’s internal QSP team has begun to execute projects using CertaraIQ, which has also been received positively by external parties. 3Q25 Business Updates Key Takeaways from Third Quarter Performance: Solid Execution in Mixed Operating Environment • Disciplined operating performance drove 10% y/y revenue growth, with Adj. EBITDA margin of 34%. • T1 Services bookings impacted by spending hesitancy, with some deals pushed back into 4Q. Software bookings performance was solid in tiers 1 & 3, offsetting timing in tier 2.
Page 15
15 Solid growth driven by expansion, upsell and strong renewals within existing customers Declined y/y driven by timing and seasonality Solid growth driven by further adoption of biosimulation, expansion to new customers Software Bookings | +17% y/y Decline driven by spending hesitancy in biosimulation, softness in regulatory Solid growth across biosimulation and regulatory, driven by commercial execution Double digit growth in biosimulation, offset by softness in regulatory Services Bookings | (9%) y/yTier1 I II III 3Q25 Bookings y/y T rends – Pharma/Biotech Customers Software bookings driven by expansion of biosimulation to new customers and new users Spending hesitancy impacting T1 services, partially offset by T2 & T3 biosimulation services (1) Certara’s Pharma Customer tiering is defined as follows: Tier 1 represents Biopharma customers with more than $5B USD in Revenue, Tier 2 represents companies with revenue between $100M and $4.99B USD in revenue, Tier 3 represents customers with revenues less than 100M, including non -revenue generating companies.
Page 16
16 2025 Outlook Updated FY 2025 guidance Key Assumptions 2025 Guidance Reported revenue growth of 8-9% Chemaxon Revenue expected to be $23-$25M Fully diluted shares expected to be in the range of 160-162M Tax rate expected to be 25-30% REVENUE $415-$420M ADJUSTED EBITDA Margin(1) ~32% ADJUSTED DILUTED EPS(1) $0.45-$0.47 (1) We have not reconciled the adjusted EBITDA and adjusted diluted EPS forward-looking guidance above to the most directly comparable GAAP measures because this cannot be done without unreasonable effort due to the variability and low visibility with respect to costs related to acquisitions, financings, and employee stock compensation programs, which are potential adjustments to future earnings. We expect the variability of these items to have a potentially unpredictable, and a potentially significant, impact on our future GAAP financial results. This financial guidance is provided as of November 6, 2025, and its inclusion in this presentation should not be construed as continued affirmation of such guidance beyond that date.
Page 17
Appendix
Page 18
18 Reconciliation of Net Income (Loss) to Adjusted EBITDA 18 THREE MONTHS ENDED SEPTEMBER 30, NINE MONTHS ENDED SEPTEMBER 30, 2025 2024 2025 2024 (in thousands) Net income (loss)(a) $ 1,525 $ (1,371) $ 4,300 $ (18,628) Interest expense(a) 5,011 5,187 14,619 16,516 Interest income(a) (1,270) (2,609) (4,155) (7,669) (Benefit from) Provision for income taxes(a) (1,792) (290) 6,226 (736) Intangible asset amortization and fixed assets depreciation(a) 18,626 16,792 56,058 49,817 Currency (gain) loss(a) (534) 1,546 (1,173) 2,526 Equity-based compensation expense(b) 9,574 8,187 24,889 27,043 Change in fair value of contingent consideration(d) 2,689 2,431 (3,212) 8,092 Acquisition-related expenses(e) 1,104 1,364 2,408 4,151 Transaction-related expenses (f) — (128) — 2,625 Severance expense(g) — — — 183 Reorganization expense(h) 38 1,730 1,123 3,944 Loss (gain) on disposal of fixed assets(i) 31 — 36 13 Executive recruiting expense(j) — 222 661 645 Litigation and settlement expense(k) 246 — 246 — Adjusted EBITDA $ 35,248 $ 33,061 $ 102,026 $ 88,522
Page 19
19 Reconciliation of Net Income (Loss) to Adjusted Net Income (Loss) 19 THREE MONTHS ENDED SEPTEMBER 30, NINE MONTHS ENDED SEPTEMBER 30, 2025 2024 2025 2024 ( in thousands) Net income (loss) (a) $ 1,525 $ (1,371) $ 4,300 $ (18,628) Currency (gain) loss(a) (534) 1,546 (1,173) 2,526 Equity-based compensation expense(b) 9,574 8,187 24,889 27,043 Amortization of acquisition-related intangible assets(c) 14,050 13,351 42,120 40,041 Change in fair value of contingent consideration(d) 2,689 2,431 (3,212) 8,092 Acquisition-related expenses(e) 1,104 1,364 2,408 4,151 Transaction-related expenses (f) — (128) — 2,625 Severance expense(g) — — — 183 Reorganization expense(h) 38 1,730 1,123 3,944 Loss (gain) on disposal of fixed assets(i) 31 — 36 13 Executive recruiting expense(j) — 222 661 645 Litigation and settlement expense(k) 246 — 246 — Income tax expense impact of adjustments(l) (6,477) (7,079) (15,348) (22,442) Adjusted net income $ 22,246 $ 20,253 $ 56,050 $ 48,193
Page 20
20 Reconciliation of Diluted Earnings Per Share to Adjusted Diluted Earnings Per Share 20 THREE MONTHS ENDED SEPTEMBER 30, NINE MONTHS ENDED SEPTEMBER 30, 2025 2024 2025 2024 Diluted earnings per share(a) $ 0.01 $ (0.01) $ 0.03 $ (0.12) Currency (gain) loss(a) - 0.01 - 0.02 Equity-based compensation expense(b) 0.06 0.05 0.16 0.17 Amortization of acquisition-related intangible assets(c) 0.08 0.08 0.26 0.25 Change in fair value of contingent consideration(d) 0.02 0.02 (0.02) 0.05 Acquisition-related expenses(e) 0.01 0.01 0.01 0.03 Transaction-related expenses (f) - - - 0.02 Severance expense(g) - - - - Reorganization expense(h) - 0.01 0.01 0.02 Loss (gain) on disposal of fixed assets(i) - - - - Executive recruiting expense(j) - - - - Litigation and settlement expense(k) - - - - Income tax expense impact of adjustments(l) (0.04) (0.04) (0.10) (0.14) Adjusted Diluted Earnings Per Share $ 0.14 $ 0.13 $ 0.35 $ 0.30 Basic weighted average common shares outstanding 160,403,011 160,642,052 160,769,603 160,225,375 Effect of potentially dilutive shares outstanding (m) 197,559 323,745 494,273 723,301 Adjusted diluted weighted average common shares outstanding 160,600,570 160,965,797 161,263,876 160,948,676
Page 21
21 Reconciliation of Revenues to the Revenues Adjusted for Constant Currency THREE MONTHS ENDED SEPTEMBER 30, Change 2025 2025 2024 $ % $ % Actual CC Actual Actual Actual CC Impact (GAAP) (non-GAAP) (GAAP) (GAAP) (GAAP) (non-GAAP) (non-GAAP) (in thousands except percentage) Revenue Software $ 43,830 $ 43,551 $ 35,912 $ 7,918 22 % $ (279) 21 % Services 60,786 60,504 58,908 1,878 3 % (282) 3 % Total Revenue $ 104,616 $ 104,055 $ 94,820 $ 9,796 10 % $ (561) 10 %
Page 22
22 a) Represents a measure determined under GAAP. b) Represents expense related to equity-based compensation. Equity-based compensation has been, and will continue to be for the foreseeable future, a recurring expense in our business and an important part of our compensation strategy. c) Represents amortization costs associated with acquired intangible assets in connection with business acquisitions. d) Represents expense associated with remeasuring fair value of contingent consideration of business acquisition. e) Represents costs associated with mergers and acquisitions and any retention bonuses pursuant to the acquisitions. f) Represents costs associated with our public offerings that are not capitalized, as well as debt issuance costs that are not deferred or treated as a contra-liability directly deducted from the carrying value of the associated debt liability. g) Represents charges charges for severance provided to former executives. h) Represents expenses related to reorganization, including legal entity reorganization and lease abandonment costs associated with the evaluation of our office space footprint. i) Represents the gain/loss related to disposal of fixed assets. j) Represents recruiting and relocation expenses related to hiring senior executives. k) Represents expense related to employment litigation and settlement. l) Represents the income tax effect of the non-GAAP adjustments calculated using the applicable statutory rate by jurisdiction. m) Represents potentially dilutive shares that were included from our GAAP diluted weighted average common shares outstanding. Notes to Reconciliations
Page 23
Accelerating Medicines, T ogether