Definitive Healthcare Corp (DH) AI Stock Analysis

• Market Cap: $290.39M
• Dividend Yield: N/A
• Average Volume (3M): 338.90K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.44
• Revenue Growth: -5.30%
• EPS Growth: 46.01%
• Country: US
• Employees: 782
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Healthcare Information Services
• EPS (TTM): 0.07
• Shares Outstanding: 103,303,390
• 10 Day Avg. Volume: 311,870
• 30 Day Avg. Volume: 338,897
• PEG Ratio: -0.01
• Price to Book (P/B): 1.08
• Price to Sales (P/S): 1.90
• P/FCF Ratio: 10.46
• Enterprise Value/Market Cap: 0.96
• Enterprise Value/Revenue: 1.15
• Enterprise Value/Gross Profit: 1.48
• Enterprise Value/Ebitda: -1.29
• 1Y Price Target: $3.71
• Price Target Upside: 70.97% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 9
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 49 Neutral
• Price Target: $2.00 ▼(-7.83% Downside)

Definitive Healthcare Corp's overall stock score is primarily impacted by its financial challenges, including declining revenue and substantial losses. The technical analysis indicates bearish momentum, and the valuation suggests the stock is overvalued given its current financial performance. However, the earnings call provided some optimism with improvements in profitability and customer growth, which slightly offsets the negative aspects.

Positive Factors

Recurring SaaS subscription model

Definitive’s primary revenue comes from subscription access to curated data and analytics, creating predictable, recurring cash flows and high customer switching costs. This supports durable revenue visibility, easier planning, and the ability to expand revenue per customer via add‑ons and integrations over months to years.

High gross margins from data assets

A ~76% gross margin indicates the company’s curated healthcare data is a scalable, high‑incremental‑margin product. Such margins enable reinvestment in product, sales and integrations while preserving leverage from incremental sales, reinforcing a structural competitive advantage in data quality and scale.

Strong cash generation and improving profitability

Trailing‑12‑month FCF of ~$51M and adjusted EBITDA of $18.9M (32% margin) reflect improving operating discipline and cash conversion. Durable cash generation reduces refinancing risk, funds product investment, and provides flexibility to navigate renewals and execute on strategic partnerships over the coming quarters.

Negative Factors

Declining revenue trends

A multi-quarter revenue decline weakens the foundation for scalable growth and limits the benefit of high gross margins. Persistent top‑line contraction pressures unit economics, hampers reinvestment, and raises the bar for achieving sustained profitability without reversing subscriber or pricing trends.

Deep GAAP losses & negative returns

Severe negative net margins and deeply negative ROE indicate that reported operations still generate large accounting losses despite adjusted improvements. Over time this erodes shareholder value, constrains strategic options, and necessitates either continued cost cuts or durable revenue recovery to translate EBITDA into consistent GAAP profitability.

Life‑sciences exposure and subscription pressure

Concentration in life‑sciences customers facing tighter budgets makes upsell and retention vulnerable to industry cycles. Sustained weakness in that cohort depresses subscription renewals and expansion potential, increasing revenue volatility and slowing recovery even as other enterprise segments improve.

Definitive Healthcare Corp Business Overview & Revenue Model

Company Description

Definitive Healthcare Corp., together with its subsidiaries, provides healthcare commercial intelligence in the United States. Its solutions provide information on healthcare providers and their activities to help its customers in the area ranging from product development to go-to-market planning, and sales and marketing execution. The company's platform offers 16 intelligence modules that cover functional areas, such as sales, marketing, clinical research and product development, strategy, talent acquisition, and physician network management. It serves biopharmaceutical and medical device companies, healthcare information technology companies, and healthcare providers; and other diversified companies comprising staffing and commercial real estate companies, financial institutions, and other organizations in the healthcare ecosystem. Definitive Healthcare Corp. was founded in 2011 and is headquartered in Framingham, Massachusetts.

How the Company Makes Money

Definitive Healthcare Corp generates revenue primarily through subscription-based services that give clients access to its extensive healthcare data and analytics platform. The company offers various subscription tiers, allowing clients to choose packages that best fit their needs. Key revenue streams include licensing fees for its data products, consulting services, and tailored analytics solutions. Additionally, DH has established partnerships with key industry players, enhancing its data offerings and broadening its market reach. The company's focus on continuous innovation and expanding its data capabilities also contributes to its earnings by attracting new customers and retaining existing ones.

Definitive Healthcare Corp Financial Statement Overview

Summary

Definitive Healthcare Corp faces significant financial challenges, with declining revenue and substantial losses impacting profitability. While the balance sheet shows low leverage, indicating financial stability, the negative return on equity and declining cash flow growth highlight operational inefficiencies. The company needs to address its revenue decline and improve operational efficiency to enhance overall financial health.

Income Statement

The income statement reveals significant challenges, with a negative revenue growth rate of -1.08% TTM, indicating declining sales. The company has a negative net profit margin of -77.88% TTM, reflecting substantial losses. Additionally, EBIT and EBITDA margins are deeply negative, suggesting operational inefficiencies. While the gross profit margin remains relatively high at 75.93% TTM, the overall profitability is severely impacted by high expenses and declining revenue.

Balance Sheet

The balance sheet shows a low debt-to-equity ratio of 0.02 TTM, indicating low leverage and a conservative capital structure. However, the return on equity is negative at -51.68% TTM, highlighting poor returns for shareholders. The equity ratio is not explicitly calculated, but the company's equity position appears stable relative to its assets. Overall, the balance sheet reflects financial stability but poor profitability.

Cash Flow

Cash flow analysis indicates a decline in free cash flow growth of -5.81% TTM, suggesting challenges in generating cash. The operating cash flow to net income ratio is 0.38 TTM, showing some ability to convert earnings into cash. The free cash flow to net income ratio is relatively strong at 0.82 TTM, indicating efficient cash management despite profitability issues. Overall, cash flow management is moderate, with room for improvement.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	242.28M	252.20M	251.41M	222.65M	166.15M	118.32M
Gross Profit	188.95M	197.47M	203.93M	180.03M	125.47M	87.85M
EBITDA	-215.39M	-567.24M	-241.23M	26.23M	23.08M	43.47M
Net Income	-188.69M	-413.12M	-202.39M	-7.22M	-51.91M	-52.60M
Balance Sheet
Total Assets	755.53M	1.09B	1.83B	2.12B	2.12B	1.75B
Cash, Cash Equivalents and Short-Term Investments	185.92M	290.16M	308.07M	331.87M	387.50M	24.77M
Total Debt	175.40M	253.11M	267.93M	275.85M	270.68M	461.88M
Total Liabilities	365.86M	482.19M	626.73M	640.68M	617.78M	549.80M
Stockholders Equity	284.85M	444.38M	861.36M	948.92M	871.31M	1.20B
Cash Flow
Free Cash Flow	46.01M	45.85M	38.21M	27.25M	18.48M	21.82M
Operating Cash Flow	59.19M	58.20M	41.19M	35.58M	25.21M	23.22M
Investing Cash Flow	71.25M	-26.41M	-31.78M	-248.90M	-46.73M	-23.86M
Financing Cash Flow	-160.25M	-56.75M	-25.58M	-26.70M	384.37M	16.66M

Definitive Healthcare Corp Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.17
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DH, the sentiment is Negative. The current price of 2.17 is below the 20-day moving average (MA) of 2.39, below the 50-day MA of 2.49, and below the 200-day MA of 3.25, indicating a bearish trend. The MACD of -0.09 indicates Positive momentum. The RSI at 30.93 is Neutral, neither overbought nor oversold. The STOCH value of 15.71 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DH.

Definitive Healthcare Corp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HSTM	69 Neutral	$605.23M	30.63	5.87%	0.52%	3.68%	5.62%
PHR	60 Neutral	$773.48M	-133.51	-1.87%	―	14.33%	93.62%
GDRX	58 Neutral	$750.15M	25.73	4.90%	―	1.30%	―
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
DH	49 Neutral	$290.39M	-1.22	-47.69%	―	-5.30%	46.01%
EVH	48 Neutral	$341.50M	-1.95	-13.63%	―	-16.65%	-71.92%