Definitive Healthcare Corp (DH) AI Stock Analysis

• Market Cap: $396.10M
• Dividend Yield: N/A
• Average Volume (3M): 338.90K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.72
• Revenue Growth: -5.24%
• EPS Growth: 23.59%
• Country: US
• Employees: 782
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Healthcare Information Services
• EPS (TTM): 0.07
• Shares Outstanding: 104,086,210
• 10 Day Avg. Volume: 311,870
• 30 Day Avg. Volume: 338,897
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.31
• Enterprise Value/Revenue: 2.11
• Enterprise Value/Gross Profit: 2.77
• Enterprise Value/Ebitda: -1.30
• 1Y Price Target: $4.26
• Price Target Upside: 60.75% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 44 Neutral
• Price Target: $2.50 ▼(-5.66% Downside)

Definitive Healthcare Corp's overall stock score is primarily impacted by its financial performance challenges, including negative net income and declining revenue growth. Technical indicators suggest a bearish trend, further weighing on the score. Valuation metrics are weak due to negative earnings and lack of dividend yield. The earnings call provided some positive insights into profitability and customer growth, but these are overshadowed by revenue declines and macroeconomic pressures.

Positive Factors

Strong Cash Flow

Strong cash flow generation indicates robust operational efficiency and financial health, providing the company with flexibility to invest in growth opportunities and weather economic uncertainties.

Enterprise Customer Growth

Growth in enterprise customers suggests an expanding client base and increased market penetration, which can drive future revenue and enhance the company's competitive position.

Strategic Partnerships and Innovations

Strategic partnerships and innovations enhance product offerings and market reach, supporting long-term growth and competitive advantage in the healthcare data analytics industry.

Negative Factors

Revenue Decline

A decline in revenue indicates challenges in maintaining growth momentum, which could impact long-term financial performance and investor confidence.

Life Sciences Segment Pressure

Pressure in the life sciences segment suggests potential revenue headwinds and highlights the need for strategic adjustments to address market challenges.

Challenges in Subscription Revenue

Declining subscription revenue reflects difficulties in sustaining customer engagement and retention, which are critical for stable, recurring income streams.

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 shows revenue growth but struggles with profitability and operational efficiency. The balance sheet is stable but under pressure due to declining equity and assets. Cash flow generation is a strength, supporting operations despite profitability challenges.

Income Statement

Definitive Healthcare Corp shows consistent revenue growth from 2020 to TTM 2025, but faces significant challenges in profitability. The company has experienced deteriorating EBIT and EBITDA margins, with substantial negative net income indicating ongoing operational inefficiencies. Despite gross profit margins being relatively stable, the company struggles with high operational costs negatively affecting net profit margins.

Balance Sheet

The company's balance sheet reveals a mixed outlook. The debt-to-equity ratio is relatively moderate, suggesting manageable leverage. However, there is a declining trend in stockholders’ equity and total assets over recent years. The equity ratio has been decreasing, indicating a potential risk in financial stability if the trend continues. Overall, the company's financial structure is stable but facing downward pressure.

Cash Flow

Cash flow analysis is relatively positive with consistent free cash flow generation. The operating cash flow to net income ratio is strong, indicating effective cash generation despite net losses. However, the free cash flow growth rate has been volatile, reflecting potential challenges in sustaining cash flow improvements. Despite this, the company maintains a positive free cash flow to net income ratio.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	244.93M	252.20M	251.41M	222.65M	166.15M	118.32M
Gross Profit	187.01M	197.47M	164.93M	180.03M	125.47M	87.85M
EBITDA	-399.92M	-567.24M	-241.23M	23.44M	23.05M	44.91M
Net Income	-304.75M	-413.12M	-202.39M	-7.22M	-51.91M	-51.16M
Balance Sheet
Total Assets	770.14M	1.09B	1.83B	2.12B	2.12B	1.75B
Cash, Cash Equivalents and Short-Term Investments	184.20M	290.16M	308.07M	331.87M	387.50M	24.77M
Total Debt	8.92M	253.11M	267.93M	275.85M	270.68M	461.88M
Total Liabilities	358.91M	482.19M	626.73M	633.77M	612.73M	549.80M
Stockholders Equity	411.23M	444.38M	861.36M	952.14M	873.21M	1.20B
Cash Flow
Free Cash Flow	51.27M	45.85M	38.21M	27.25M	18.48M	21.82M
Operating Cash Flow	62.94M	58.20M	41.19M	35.58M	25.21M	23.22M
Investing Cash Flow	56.07M	-26.41M	-31.78M	-248.90M	-46.73M	-23.86M
Financing Cash Flow	-159.84M	-56.75M	-25.58M	-26.70M	384.37M	16.66M

Definitive Healthcare Corp Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.65
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 2.65 is below the 20-day moving average (MA) of 2.88, below the 50-day MA of 3.48, and below the 200-day MA of 3.60, indicating a bearish trend. The MACD of -0.21 indicates Negative momentum. The RSI at 31.97 is Neutral, neither overbought nor oversold. The STOCH value of 25.63 is Neutral, 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	67 Neutral	$762.08M	37.91	5.87%	0.48%	3.68%	5.62%
GDRX	65 Neutral	$1.16B	36.79	4.90%	―	1.30%	―
PHR	64 Neutral	$1.36B	―	-8.76%	―	15.31%	77.02%
PINC	62 Neutral	$2.33B	-102.78	0.42%	2.99%	-21.26%	-119.34%
EVH	52 Neutral	$762.63M	―	-13.38%	―	-6.71%	-71.40%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
DH	44 Neutral	$396.10M	-1.05	-64.27%	―	-5.24%	23.59%

Definitive Healthcare Corp Corporate Events

Definitive Healthcare Corp. Reports Q3 2025 Results

Definitive Healthcare Corp., a leader in healthcare commercial intelligence, provides data-driven insights and solutions to enhance business operations across the healthcare industry.

Definitive Healthcare’s Balanced Q2 2025 Earnings Call

Definitive Healthcare Corp. Class A’s recent earnings call presented a balanced sentiment, showcasing both positive developments and challenges. The company exceeded its financial guidance, improved renewal rates, and made progress across strategic pillars, yet faced revenue decline and challenges in the life sciences segment due to macroeconomic pressures. Overall, the sentiment was a mix of optimism and caution.

Definitive Healthcare Reports Q2 2025 Results

Definitive Healthcare Corp., a leader in healthcare commercial intelligence, provides data-driven insights to help clients navigate the healthcare industry. In its second quarter fiscal year 2025 earnings report, the company announced that its revenue exceeded guidance despite a slight decline from the previous year. The company reported a revenue of $60.8 million, a 5% decrease from the same period last year. However, it significantly reduced its net loss to $9.3 million from $306.2 million in the previous year, which was impacted by substantial goodwill impairment charges. Adjusted EBITDA stood at $18.7 million, representing 31% of revenue, while cash flow from operations was $9.3 million. The company highlighted several strategic customer wins, including a healthcare revenue cycle management firm and a digital health organization, showcasing its competitive edge in data quality and integration capabilities. Looking ahead, Definitive Healthcare has raised its revenue guidance and adjusted EBITDA outlook for the year, reflecting confidence in its strategic direction and ongoing improvements.