Certara (CERT) Q2 Revenue Jumps 12%
GAAP revenue beat expectations at $104.6 million in Q2 2025, Revenue reached $104.6 million, representing a 12% increase compared to Q2 2024, while Non-GAAP EPS of $0.07 missed the $0.10 estimate.
Software segment revenue jumped 22%, far outpacing the 5% reported growth in services.
GAAP net loss narrowed substantially, but the company remains unprofitable on a GAAP basis.
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Certara (NASDAQ:CERT), a leader in biosimulation software and Model-Informed Drug Development solutions, released its Q2 FY2025 earnings on August 6, 2025. The most notable news was a slight revenue beat, with reported GAAP revenue of $104.6 million, exceeding analyst expectations, but non-GAAP earnings per share (EPS) missed consensus by $0.03. The company delivered double-digit top-line growth, driven primarily by its software segment, but the bottom line continues to face pressure. GAAP net losses narrowed sharply year over year. Overall, the quarter was marked by continued software momentum but mixed progress on translating growth into profit.
Metric Q2 2025 Q2 2025 Estimate Q2 2024 Y/Y Change
Revenue (GAAP) $104.6 million $104.05 million $93.3 million 12%
EPS (Non-GAAP) $0.07 $0.10 $0.07 0%
Adjusted EBITDA $31.9 million $26.3 million 21%
Net Income (GAAP) $(2.0) million $(12.6) million 84.1%
Software Revenue $46.7 million $38.2 million 22.3%
Source: Analyst estimates provided by FactSet. Management expectations based on management's guidance, as provided in Q1 2025 earnings report.
Inside Certara's Business and Focus Areas
Certara operates at the intersection of life sciences and software technology. Its main products are biosimulation platforms, which help pharmaceutical companies simulate how drugs interact within the body using computer models. This approach helps reduce the time, cost, and risk of drug development.
The company is well known for its expertise in Model-Informed Drug Development (MIDD), using advanced software, artificial intelligence, and regulatory science tools to help drugs reach the market faster and with higher rates of approval. Recent focus areas include expanding AI and machine learning across its software suite, integrating new technologies through acquisitions, and supporting clients as regulatory agencies encourage the use of biosimulation in preclinical and clinical drug research.
Quarterly Trends: Software Strength and Margin Expansion
The quarter's headline was the continued rapid growth in software, which delivered a 22% year-over-year increase in revenue. This segment includes products like Simcyp and Certara.AI, both software tools used in simulating drug action and regulatory reporting, as well as new offerings powered by artificial intelligence. Revenue from software reached $46.7 million, driven by both organic sales and the integration of Chemaxon, an acquired software company that added $5.3 million in revenue and $5.4 million in bookings.
On the services side, growth was slower, with GAAP revenue up only 5%. Biosimulation services remain the primary growth lever in the services business, though increased services bookings of 15% suggest some future revenue potential. Regulatory science and compliance services also maintained demand, especially as the US Food and Drug Administration (FDA) moves toward new drug evaluation standards that rely more on computer modeling and less on animal testing. The recently launched Non-Animal Navigator solution, which combines simulation software and regulatory expertise for monoclonal antibody drug development, received strong early interest, with significant inbound inquiries and over 400 webinar attendees in the weeks following the announcement. However, its financial impact is not expected to be immediate.
Certara's bookings—a forward-looking metric measuring new customer contracts—grew 13%. The software bookings component rose 11% year-over-year. The increase in software bookings was primarily due to strength in Certara's core biosimulation software and the contribution from Chemaxon. Growth in bookings for the services segment was even stronger at 15%, suggesting recovery momentum in this area even as the segment's revenue growth lags.
Cost of revenue (GAAP) increased 2.3% compared to Q2 2024, much less than total revenue growth. Operating expenses declined by $8.2 million, reflecting sharp drops in items like transaction costs. Adjusted EBITDA—a measure of core profitability—jumped 21% year over year, with adjusted EBITDA margin rising to about 30% for the year. Still, adjusted net income and non-GAAP EPS were flat versus a year earlier, signaling ongoing pressure from high non-cash costs like stock-based compensation.
Strategy: Innovation, Acquisitions, and Regulatory Momentum
Certara continues to invest heavily in research and development, particularly around artificial intelligence and new biosimulation models. The launch of the Certara.AI platform and the company's AI-powered software tools stand out as key differentiators in the market, with Research and development expense (GAAP) was $8.972 million, compared to $9.067 million for Q2 2024. These investments aim to make its software easier to use and more effective for drug developers as the regulatory landscape shifts toward model-based approaches.
The company is integrating recent acquisitions, notably Chemaxon, to expand its software range and customer reach. Since 2013, Certara has acquired 21 businesses, giving it access to cutting-edge technology and expertise while achieving greater global scale. Certara's software and services have been used by more than 2,400 biopharmaceutical companies and academic institutions across 70 countries, including 38 of the top 40 pharmaceutical companies by research and development spending.
On the regulatory front, Certara's work spans 23 drug regulatory agencies globally, and its tools have contributed to the majority of new drug approvals by the FDA over the last decade. The FDA's recent move to phase out animal testing for some types of drugs has created new opportunities for Certara's biosimulation products and services. The Non-Animal Navigator solution—combining software models and scientific consulting—was launched to help drug developers adapt to these new guidelines and reduce their reliance on animal models in the preclinical stage.
The treasury share buyback program continues, with 3.2 million treasury shares held as of June 30, 2025, up from 950,000 at the end of December 2024.
Looking Ahead: Management Guidance and Key Watchpoints
For the full fiscal 2025 year, Certara reiterated its full-year 2025 guidance on August 6, targeting revenue of $415–$425 million for FY2025, adjusted EBITDA margins of 30–32% for the full year, and adjusted diluted EPS of $0.42–$0.46 for FY2025. These figures suggest expected top-line growth in the high single digits and stable profit margins, based on Certara's full-year 2025 guidance for revenue of $415 million to $425 million and adjusted EBITDA margin of 30% to 32%. Management noted steady demand for biosimulation and increasing customer interest in model-informed solutions, but Certara reiterated its guidance for the full fiscal year.
Investors should watch for signs of improvement in the services segment, and ongoing regulatory changes—particularly the FDA's support for biosimulation and alternatives to animal testing—could create new business opportunities, but financial materiality will likely take time to emerge. Persistent GAAP net losses, high stock-based compensation, and the challenge of translating robust revenue gains into net profit remain critical issues for Certara as it continues to invest in its transformation strategy, as evidenced by a GAAP net loss of $2.0 million and equity-based compensation expense of $8.2 million.
Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.
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Headquartered in Amsterdam and listed on Nasdaq, Nebius has a global footprint with R&D hubs across Europe, North America and Israel. Nebius's core business is an AI cloud platform built for intensive AI workloads. With proprietary cloud software architecture and hardware designed in-house, Nebius gives AI builders the compute, storage, managed services and tools they need to build, tune and run their models. Nebius Group also has additional businesses that operate under their own distinctive brands: Avride — one of the most experienced teams developing autonomous driving technology for self-driving cars and delivery robots. TripleTen — a leading edtech player in the US and certain other markets, re-skilling people for careers in tech. The Group also holds equity stakes in other businesses including ClickHouse and Toloka. More information can be found at FORWARD-LOOKING STATEMENTS This document contains forward-looking statements that involve risks and uncertainties. All statements contained or implied other than statements of historical facts, including, without limitation, statements regarding our business plans, market opportunities, capital expenditure requirements, financing needs and projected financial performance, are forward-looking statements. In some cases, these forward-looking statements can be identified by words or phrases such as 'may,' 'will,' 'expect,' 'anticipate,' 'aim,' 'estimate,' 'intend,' 'plan,' 'believe,' 'potential,' 'continue,' 'is/are likely to' or other similar expressions. In addition, these forward-looking statements reflect our current views with respect to future events and are not guarantees of future performance. Actual results may differ materially due to various risks and uncertainties, including, but not limited to, our ability to successfully compete in our sector; implement our business plans; continue to successfully attract and retain customers; continue to successfully secure necessary hardware and supplies; and to obtain additional financing, that may be necessary to achieve our objectives, on acceptable terms. Many of these risks and uncertainties are beyond our control and depend on the actions of third parties. Further information about these and other risks is included in the 'Risk Factors' and 'Operating and Financial Review and Prospects' sections of our Annual Report on Form 20-F for the year ended December 31, 2024, filed with the U.S. Securities and Exchange Commission ('SEC') on April 30, 2025, available on our investor relations website at and on the SEC website at All information in this document is as of the date hereof, and the Company undertakes no obligation to update any forward-looking statements, except as required by law. Statements that 'we believe' and similar expressions reflect our beliefs and opinions, based upon information available as of the date of this presentation. Such statements are inherently uncertain, and investors are cautioned not to place undue reliance on them. Disclaimer Links to third-party websites are provided for informational purposes only; Nebius is not responsible for the content contained on or accessible through the linked sites. USE OF NON-GAAP FINANCIAL MEASURES To supplement the financial information prepared and presented in accordance with U.S. GAAP, we present the following non-GAAP financial measures: Adjusted EBITDA/(loss) and Adjusted net income/(loss). The presentation of these financial measures is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with U.S. GAAP. For more information on these non-GAAP financial measures, please see the tables captioned 'Reconciliations of non-GAAP financial measures to the nearest comparable U.S. GAAP measures', included following the accompanying financial tables. 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Unit Corporation Reports Second Quarter Results
On August 7, 2025, Unit Corporation (OTCQX: UNTC) (Company) filed unaudited condensed consolidated financial statements for the three and six months ended June 30, 2025 with OTC Markets Group Inc. (OTC). The Company's current, quarterly and annual reports may be accessed on the OTC's website at as well as the Company's website at Second Quarter and Year to Date Results Net income for the three months ended June 30, 2025 was $22.1 million, or $2.22 per diluted share, compared to $11.5 million, or $1.15 per diluted share, for the three months ended June 30, 2024. Total revenue for the three months ended June 30, 2025 was $59.1 million, compared to $56.8 million for the three months ended June 30, 2024. For the six months ended June 30, 2025, net income was $40.0 million, or $4.07 per diluted share, compared to $27.6 million, or $2.76 per diluted share, for the six months ended June 30, 2024. Total revenue for the six months ended June 30, 2025 was $122.6 million, compared to $124.0 million for the six months ended June 30, 2024. 'The quarter was highlighted by increased industry attention on development within our core Anadarko Basin area of interest,' commented Phil Frohlich, the Company's Chief Executive Officer. 'We are focused on a number of promising new well opportunities and expect to exceed our original expectations for 2025 new production.' Operational highlights for the oil and natural gas and contract drilling segments during the three and six months ended June 30, 2025 and 2024 include: Three Months Ended June 30, Six Months Ended June 30, Oil and Natural Gas: Avg. oil price ($/Bbl) $ 62.68 $ 79.23 (21 )% $ 66.18 $ 77.16 (14 )% Avg. oil price excl. derivatives ($/Bbl) $ 62.68 $ 79.23 (21 )% $ 66.18 $ 77.16 (14 )% Avg. NGLs price ($/Bbl) $ 19.20 $ 18.15 6 % $ 20.96 $ 19.65 7 % Avg. NGLs price excl. derivatives ($/Bbl) $ 19.20 $ 18.15 6 % $ 20.96 $ 19.65 7 % Avg. natural gas price ($/Mcf) $ 3.11 $ 1.00 NM $ 3.03 $ 1.42 113 % Avg. natural gas price excl. derivatives ($/Mcf) $ 2.32 $ 1.00 132 % $ 2.69 $ 1.42 89 % Oil production (MBbls) 201 170 18 % 391 357 10 % NGL production (MBbls) 276 217 27 % 513 515 — % Natural gas production (MMcf) 3,276 2,982 10 % 6,365 6,484 (2 )% Total production (MBOE) 1,023 884 16 % 1,965 1,953 1 % Contract Drilling: Total rigs available (end of the period) 14 14 — % 14 14 — % Average number of drilling rigs in use 11.3 11.9 (5 )% 12.0 12.8 (6 )% Average dayrate on daywork contracts ($/day) $ 29,284 $ 30,786 (5 )% $ 29,322 $ 30,842 (5 )% Derivatives The following non-designated commodity hedges were outstanding as of June 30, 2025: Remaining Term Commodity Hedged Volume Weighted Average Fixed Price for Swaps Hedged Market Jul'25 - Dec'25 Natural gas - basis swap Floating to fixed 10,000 MMBtu/day $(0.30) IF - PEPL - TX-OK Jul'25 - Dec'25 Natural gas - basis swap Floating to fixed 7,500 MMBtu/day $(0.25) IF - PEPL - TX-OK Jul'25 - Dec'25 Natural gas - basis swap Floating to fixed 5,000 MMBtu/day $(0.25) IF - PEPL - TX-OK Jul'25 - Dec'25 Natural gas - swap Floating to fixed 15,000 MMBtu/day $4.69 IF - NYMEX (HH) Jan'26 - Dec'26 Natural gas - swap Floating to fixed 5,000 MMBtu/day $4.22 IF - NYMEX (HH) Jul'25 - Dec'25 Crude Oil - swap Floating to fixed 15,000 Bbl/month $69.65 WTI - NYMEX Jan'26 - Dec'26 Crude Oil - swap Floating to fixed 12,000 Bbl/month $65.85 WTI - NYMEX Common Stock Dividends The table below presents information about the dividends paid during the periods indicated: 2024 First quarter Quarterly $ 1.25 $ 12,269 March 18, 2024 March 28, 2024 Second quarter Quarterly $ 1.25 $ 12,961 June 17, 2024 June 27, 2024 2025 First quarter Quarterly $ 1.25 $ 12,317 March 18, 2025 March 28, 2025 Second quarter Quarterly $ 1.25 $ 12,317 June 17, 2025 June 27, 2025 The declaration and payment of any future dividend, whether fixed, special, or variable, are at the sole discretion of the Company's Board of Directors. This decision will depend upon several factors, including the Company's financial position, results of operations, cash flows, capital requirements, business conditions, future expectations, legal requirements, and other relevant factors at the time of consideration. Future dividends are expected to be funded by cash on the Company's balance sheet. About Unit Corporation Unit Corporation is a Tulsa-based, publicly held energy company engaged through its wholly-owned subsidiaries in oil and gas production and contract drilling. For more information about Unit Corporation, visit its website at Forward-Looking Statements This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act. All statements, other than statements of historical facts, included in this release that address activities, events, or developments that the Company expects, believes, or anticipates will or may occur are forward-looking statements. Several risks and uncertainties could cause actual results to differ materially from these statements, including changes in commodity prices, the productive capabilities of the Company's wells, future demand for oil and natural gas, future drilling rig utilization and dayrates, projected rate of the Company's oil and natural gas production, the amount available to the Company for borrowings, its anticipated borrowing needs under its credit agreement, the number of wells to be drilled by the Company's oil and natural gas segment, the potential productive capability of its prospective plays, and other factors described occasionally in the Company's publicly available OTC reports. The Company assumes no obligation to update publicly such forward-looking statements, whether because of new information, future events, or otherwise. Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 (In thousands except per share amounts) Revenues: Oil and natural gas $ 25,622 $ 20,410 $ 54,009 $ 46,982 Contract drilling 33,463 36,347 68,548 76,979 Total revenues 59,085 56,757 122,557 123,961 Expenses: Operating costs: Oil and natural gas 10,451 10,480 20,514 22,459 Contract drilling 23,548 25,051 48,079 50,776 Total operating costs 33,999 35,531 68,593 73,235 Depreciation, depletion, and amortization 4,495 3,659 8,631 7,560 General and administrative 4,462 5,601 9,758 10,579 Gain on disposition of assets (715 ) (1,210 ) (799 ) (1,145 ) Total operating expenses 42,241 43,581 86,183 90,229 Income from operations 16,844 13,176 36,374 33,732 Other income (expense): Interest income 590 1,081 1,137 2,035 Interest expense (6 ) (8 ) (16 ) (38 ) Gain on derivatives, net 4,227 133 6,529 133 Reorganization items, net — — — (22 ) Other, net 10 222 105 (155 ) Total other income (expense) 4,821 1,428 7,755 1,953 Income before income taxes 21,665 14,604 44,129 35,685 Income tax expense (benefit), net: Current 163 (290 ) 301 (215 ) Deferred (600 ) 3,385 3,790 8,287 Total income tax expense (benefit), net (437 ) 3,095 4,091 8,072 Net income $ 22,102 $ 11,509 $ 40,038 $ 27,613 Net income per common share: Basic $ 2.23 $ 1.17 $ 4.08 $ 2.81 Diluted $ 2.22 $ 1.15 $ 4.07 $ 2.76 Unit Corporation Selected Financial Highlights - Continued June 30, 2025 December 31, 2024 Balance Sheet Data: (In thousands) Cash and cash equivalents $ 55,130 $ 48,884 Current assets $ 97,464 $ 90,250 Total assets $ 300,746 $ 289,243 Current liabilities $ 29,855 $ 32,468 Long-term debt $ — $ — Other long-term liabilities $ 23,238 $ 22,665 Total shareholders' equity $ 247,082 $ 232,521
