By Dean Seal

Shares of Certara fell after the company cut its financial guidance to reflect a divestiture and swung to a loss for the first quarter due to higher costs.

The stock fell 10% to $5.66. Shares are down by more than a third from where they started the year.

The drug developer now expects $395 million to $405 million in revenue for the year. In February, it told investors to expect revenue to be at least flat with 2025's $418.8 million, and potentially rise as much as 4%.

Adjusted earnings are now on track to hit 35 cents to 41 cents a share for the year, instead of 44 cents to 48 cents a share as previously projected, Certara said.

The downshift reflects a sale of its regulatory and medical writing business to Verisat earlier this quarter for consideration of up to $135 million, Chief Financial Officer John Gallagher said. "We expect the mix of software and services revenue to be approximately even," he said.

It also comes after the company swung to a first-quarter loss of $8.8 million, or 6 cents a share, from a profit of $4.7 million, or 3 cents a share, a year ago. The loss was driven by higher operating costs and tax expenses.

Excluding one-time items, Certara had an adjusted profit of 9 cents a share, 2 cents lower than analysts polled by FactSet had been expecting. Revenue ticked up 1% to $106.9 million.

Write to Dean at dean.seal@wsj.com

(END) Dow Jones Newswires

May 11, 2026 11:44 ET (15:44 GMT)

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