Key Takeaways DOCS' Q1 revenues rose 15% to $145.9M with adjusted EBITDA margin of 55%.DOCS' Scribe has 10,000 beta testers, with 75% using the AI note-taking tool weekly.DOCS' $26M Pathway deal adds clinical AI depth, boosting accuracy and physician trust.Doximity (DOCS) entered fiscal 2026 with stronger-than-expected results, reporting first-quarter revenues of $145.9 million (up 15% year over year) and an adjusted EBITDA margin of 55%. But the spotlight of the quarter wasn’t just financial outperformance ...

Core Insights - Certara reported Q2 FY2025 earnings with GAAP revenue of $104.6 million, slightly exceeding analyst expectations, but non-GAAP EPS missed consensus by $0.03 [1][2] - The company experienced double-digit top-line growth primarily driven by its software segment, while the bottom line faced ongoing pressure [1][4] - GAAP net losses narrowed significantly year over year, indicating improved financial performance despite challenges in profitability [1][2] Financial Performance - Q2 2025 GAAP revenue was $104.6 million, a 12% increase from $93.3 million in Q2 2024 [2] - Non-GAAP EPS was $0.07, unchanged from the previous year, but below the estimate of $0.10 [2] - Adjusted EBITDA rose 21% year over year to $31.9 million, with an adjusted EBITDA margin of approximately 30% [2][8] - GAAP net income showed a loss of $2.0 million, a significant improvement from a loss of $12.6 million in Q2 2024, reflecting an 84.1% year-over-year reduction in losses [2] Business Segments - The software segment generated $46.7 million in revenue, marking a 22.3% increase from $38.2 million in Q2 2024, driven by organic sales and the acquisition of Chemaxon [2][5] - The services segment saw slower growth, with GAAP revenue up only 5%, but bookings increased by 15%, indicating potential future revenue growth [6][7] - The Non-Animal Navigator solution received strong interest, with over 400 webinar attendees, although its financial impact is expected to take time [6] Strategic Focus - Certara is focused on expanding its AI and machine learning capabilities within its software suite and integrating new technologies through acquisitions [4][9] - The company has made 21 acquisitions since 2013, enhancing its technology and global reach, serving over 2,400 biopharmaceutical companies [10] - Certara's tools have contributed to a majority of new drug approvals by the FDA, positioning the company favorably as regulatory standards evolve [11] Future Outlook - For FY2025, Certara targets revenue of $415–$425 million, adjusted EBITDA margins of 30–32%, and adjusted diluted EPS of $0.42–$0.46, indicating expected growth in the high single digits [13] - Management noted steady demand for biosimulation and increasing interest in model-informed solutions, while emphasizing the need for improvement in the services segment [13][14]