Financial Data and Key Metrics Changes - Total revenue for Q4 2025 was $103.6 million, representing a year-over-year growth of 3% on a reported basis and 2% on a constant currency basis [19] - For the full year 2025, total revenue was $418.8 million, reflecting a year-over-year growth of 9% on a reported basis and 8% on a constant currency basis [19] - Adjusted EBITDA for Q4 2025 was $32.5 million, a decrease from $33.5 million in Q4 2024, with an adjusted EBITDA margin of 31% [24] - Net loss for Q4 2025 was $5.9 million, compared to net income of $6.6 million in Q4 2024 [25] - Adjusted diluted earnings per share for Q4 2025 was $0.09, down from $0.15 in the same quarter last year [26] Business Line Data and Key Metrics Changes - Software revenue in Q4 2025 was $46.4 million, up 10% year-over-year, driven by MIDD software and Pinnacle 21 [20] - Services revenue for Q4 2025 was $57.3 million, down 1% year-over-year [22] - Software bookings in Q4 2025 were $56.1 million, down 6% from the prior year period [21] - MIDD services bookings saw double-digit growth in Q4, with growth led by Tiers 2 and 3 [23] Market Data and Key Metrics Changes - The pharmaceutical industry is spending over $200 billion annually on drug development, with timelines extending to 10-15 years [6] - Certara has over 2,600 customers and 23 regulatory agencies using its technologies [9] Company Strategy and Development Direction - The company aims to sharpen operations, focus investments, and execute with greater discipline to capture market opportunities [5] - Certara plans to enhance AI integration and focus on core R&D technologies and model-informed drug development (MIDD) [16] - The company is undergoing a strategic review of its regulatory writing and operations business to maximize long-term shareholder value [13] Management's Comments on Operating Environment and Future Outlook - Management expressed that 2026 will be a transition year with guidance for flat to low single-digit revenue growth, reflecting market conditions and planned operational improvements [17] - The company believes it can achieve double-digit growth over time, although it did not provide a specific timeline [90] Other Important Information - Certara repurchased approximately 3.3 million shares for $43 million during 2025 [26] - The company has identified approximately $10 million in cost avoidance for 2026 compared to prior planning [24] Q&A Session Questions and Answers Question: What attracted you to Certara and how do you view the differentiation of its software products? - The new CEO highlighted the compelling market opportunity and the strong track record of Certara's software products being deeply embedded in customer workflows [32][34] Question: How does the platform approach and cross-selling factor into the customer-centric strategy? - The CEO emphasized that the strategy remains focused on serving existing users while enhancing engagement at senior levels to drive innovation [38] Question: Can you break down the revenue guidance for 2026? - Management indicated that the guidance reflects low single-digit growth due to stable end markets and a deceleration in software bookings [43] Question: What are the opportunities for AI enablement? - AI is being actively embedded into core assets, with a focus on enhancing product functionality and improving operational efficiency [54][58] Question: What are the lowest hanging fruit in revamping the commercial organization? - The CEO mentioned optimizing customer relationships, pricing, and operational elements as immediate areas of focus [62]

Company Overview - Simulations Plus, Inc. is a global leader in model-informed and AI-accelerated drug development, focusing on enhancing biopharma innovation through advanced software and consulting solutions [4]. Event Announcement - The company will host a virtual Investor Day on January 21, 2026, providing an in-depth look at its long-term strategy, product roadmap, and financial outlook, along with a Q&A session with the executive leadership team [2][7]. Industry Context - Biopharma companies are increasingly prioritizing predictability, transparency, and scientific rigor in drug development, and Simulations Plus aims to support these needs through its unified strategy [3]. Strategic Vision - The event will showcase Simulations Plus' vision for an integrated, AI-enabled modeling ecosystem that spans discovery, development, clinical operations, and commercialization [3]. Agenda Highlights - The agenda will include updates on the industry environment, the company's unified product and technology strategy, advances in scientific services supporting client workflows, and financial priorities and outlook [7].