Certara, Inc.

Good day, and thank you for standing by. Welcome to Certara fourth quarter 2025 earnings conference call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 1 1 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 1 1 again. please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker today, David Deichler, Investor Relations. Please go ahead.

Good morning, everyone. Thank you all for participating in today's conference call. On the call from Sartara, we have John Resnick, Chief Executive Officer, and John Gallagher, Chief Financial Officer. Earlier today, Sartara released financial results for the full year ended December 31st, 2025. Copy of the press release is available on the company's website. Before we begin, I would like to remind you that management will make statements during this call that include forward-looking statements, and actual results may differ materially from those expressed or implied in the forward-looking statements. Please refer to slide two in the accompanying materials for additional information, which you can find on the company's investor relations website. In their remarks or responses to questions, management may mention some non-GAAP financial measures. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP measures are available in the recent earnings press release available on the company's website. Please refer to the reconciliation tables and the accompanying materials for additional information. This conference call contains time-sensitive information and is accurate only as of the live broadcast today, February 26, 2026. Sertara disclaims any obligation, except as required by law, to update or revise any financial projections or forward-looking statements, whether because of new information, future events, or otherwise. And with that, I will turn the call over to John Resnick for opening remarks.

Good morning and thank you all for joining today's call. I want to begin by thanking the CERTARI team for the warm welcome to the organization. I am also grateful to the Board of Directors for their trust and support. I've spent the last 30 years working at the intersection of healthcare policy, science, and technology, where I've built and transformed data, technology, and services businesses within the life science industry. Joining Certara on January 1st, I am genuinely excited by the opportunity ahead. As the new CEO coming in with fresh eyes, I've approached the first 50 days plus with one priority, listening intently and learning from our stakeholders. I've spent most of my time speaking with customers and engaging directly with employees at all levels. These discussions have been invaluable. The conversations have reinforced the inherent strength of this organization and also highlighted where we must operate differently to unlock our full potential. Everything I have seen and heard affirms three things. First, there is a compelling market opportunity to transform how the life science industry drives innovation across research and development. Second, Regulators worldwide are actively embracing technological solutions to accelerate drug development, reduce costs, and shorten timelines. And third, Certara is uniquely positioned to lead in this evolving market. With our AI-enabled technology, data, and our model-informed drug development platforms, which are deeply embedded in industry workflows and utilized by regulatory bodies. This presents an extraordinary opportunity. To capture it, we must sharpen how we operate, focus our investments, and execute with greater discipline and urgency. Our historic performance does not reflect the full potential of our market. Later in this call, I will outline our plans to improve. My conversations with our customers have made one thing clear to me. Our customers want us to drive innovation and play a larger, more strategic role. The pharmaceutical industry is spending more than $200 billion per year developing drugs, with overall timelines now hitting 10 to 15 years. Now more than ever, our customers are looking for partners who can reduce total development costs, accelerate timelines, improve decision-making, and respond to new regulatory requirements. AI, biosimulation, and other in silico methodologies are expanding the relevance of Sertara's offerings, validating our value proposition, and opening new opportunities for us. Regulators are more favorably disposed to the use of new methodologies today than at any point in our history. Agencies are providing clear guidance that advances model-informed and computational approaches and are actively encouraging the use of new approach methodologies to modernize drug development. Just recently, Dr. Martin Bakari, the United States FDA Commissioner, noted that computational modeling can provide more insightful perspectives on experimental design and animal testing alone.