Segment data

Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker (“CODM”) in deciding how to allocate resources and in assessing performance.

The Company has determined that its chief executive officer (“CEO”) is its CODM. The Company manages its operations as a single segment for the purpose of assessing and making operating decisions. The Company’s CODM allocates resources and assesses performance based upon financial information at the consolidated level. The accounting policies of the Company's single segment are the same as those described in the summary of significant accounting policies. The inter-companies balances and transactions are eliminated.

As the Company operates and reports in a single reportable segment, the Company's CODM assesses performance for the segment and decides how to allocate resources based on net income that also is reported on the income statement as consolidated net income. The measure of segment assets is reported on the balance sheet as total consolidated assets.

The CODM uses net income and other performance indicators to evaluate income generated from segment assets (return on assets) in deciding whether to reinvest profits into the segment or into other parts of the entity, such as for acquisitions. Net income is also used to monitor budget versus actual results.

The Company manages the business activities on a consolidated basis. The Company's operating segment provides technology-enabled services and software products to its customers. The Company’s revenue consists of fees for its software products and services. The revenue is primarily generated from Americas. See item (q) - Revenue recognition under Note 2. “Summary of Significant Accounting Policies", for a description of the Company’s revenue categories.

The following table summarizes revenue by geographic area:


	YEAR ENDED DECEMBER 31,
	2025		2024		2023

	(In thousands)
Revenue(1):
Americas	$	291,601	$	281,493	$	265,063
EMEA	92,629		76,567		63,567
Asia Pac	34,608		27,088		25,707
Total	$	418,838	$	385,148	$	354,337

__________________________________

(1)Revenue is attributable to the countries based on the location of the customer

Long-lived assets, defined as the net ROU assets and net Property, Plant, and Equipment, excluding goodwill and net intangible assets, by geographic area as of December 31, 2025 and 2024 are presented as follows:


	DECEMBER 31,
	2025		2024

	(In thousands)
Long-Lived Assets, net:
Americas	$	8,353	$	9,546
EMEA	5,208		5,605
Asia Pac	231		857
Total	$	13,792	$	16,008

The following table presents information about reported segment revenue, segment profit or loss, and significant segment expenses.


	YEAR ENDED DECEMBER 31,
	2025		2024		2023
	(In thousands)
Revenues	$	418,838	$	385,148	$	354,337
Less:
Employee expense-non equity	238,879		221,379		187,035
Equity-based compensation expense	33,079		34,774		28,300
Equipment and software expense	17,237		13,990		11,528
Direct cost of revenues	7,070		5,310		4,399
Professional services expense	29,271		25,216		27,192
Change in fair value of contingent consideration	(3,597)		8,089		24,118
Depreciation and amortization expense	75,162		68,033		56,071
Goodwill impairment expense	—		—		46,984
Other segment expense(a)	(5,617)		4,021		937
Interest expense	19,738		21,520		22,916
Income tax expense	9,211		(5,133)		214
Segment net income	$	(1,595)	$	(12,051)	$	(55,357)

Reconciliation of profit or loss
Adjustments and reconciling items	$	—	$	—	$	—

Consolidated net income	$	(1,595)	$	(12,051)	$	(55,357)

(a) Other segment expense items included in segment net income include facilities related expense, marketing, travel, insurance, foreign currency exchange gains and losses, and other overhead expense.

About Segments Disclosures

Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.

Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.

Certara, Inc. Segments Disclosure

About Segments Disclosures

Other Available Disclosures