Education
About Us
Working with TipRanks
Follow Us
Definitive Healthcare Corp (DH)
NASDAQ:DH
Top Page
Definitive Healthcare Corp
(NASDAQ:DH)
Select Model
Select Model
Rating:49Neutral
Price Target:
$2.50
▲(1.21% Upside)
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
Operational Efficiency
Operational efficiency improvements, such as cost savings from renegotiations, enhance profitability and support long-term financial health.
Enterprise Customer Growth
Growth in enterprise customers indicates strong market demand and enhances revenue stability, supporting long-term business expansion.
Strong Cash Flow
Strong cash flow generation indicates robust financial health, providing the company with flexibility for investment and growth.
Negative Factors
Revenue Decline
Declining revenue suggests challenges in maintaining market share and could impact long-term growth and profitability.
Life Sciences Segment Pressure
Pressure in the life sciences segment due to budget constraints may hinder growth in a key market, affecting overall revenue.
Challenges in Subscription Revenue
Declining subscription revenue indicates potential issues with customer retention and product appeal, impacting future earnings.
Definitive Healthcare Corp (DH) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$359.80M
Dividend YieldN/A
Average Volume (3M)338.90K
Price to Earnings (P/E)―
Beta (1Y)1.44
Revenue Growth-5.30%
EPS Growth46.01%
CountryUS
Employees782
SectorHealthcare
Sector Strength45
IndustryMedical - Healthcare Information Services
Share Statistics
EPS (TTM)0.07
Shares Outstanding103,303,390
10 Day Avg. Volume311,870
30 Day Avg. Volume338,897
Financial Highlights & Ratios
PEG Ratio-0.01
Price to Book (P/B)1.08
Price to Sales (P/S)1.90
P/FCF Ratio10.46
Enterprise Value/Market Cap1.44
Enterprise Value/Revenue2.14
Enterprise Value/Gross Profit2.74
Enterprise Value/Ebitda-2.40
Forecast
1Y Price Target
$3.71Price Target Upside50.20% Upside
Rating ConsensusHold
Number of Analyst Covering9
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Definitive Healthcare Corp Business Overview & Revenue Model
Company DescriptionDefinitive 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 MoneyDefinitive 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 Earnings Call Summary
Earnings Call Date:Nov 06, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Feb 19, 2026
Earnings Call Sentiment Neutral
The earnings call presented a mixed outlook. While Definitive Healthcare reported strong profitability and cash flow, as well as growth in enterprise customers and improvements in retention rates, it faced challenges with a decline in revenue and ongoing pressure in the life sciences segment. The strategic partnerships and operational efficiencies are positive indicators, but the revenue decline and macroeconomic uncertainties temper the sentiment.Q3-2025 Updates
Positive Updates
Exceeded Guidance on Profitability
Adjusted EBITDA was $18.9 million, representing a margin of 32%, which was $2 million above the high end of guidance. This reflects continued operational improvements and solid expense discipline.
Strong Cash Flow
Generated approximately $51 million in unlevered free cash flow for the trailing 12 months, demonstrating strong cash generation capabilities.
Enterprise Customer Growth
Enterprise customer count grew by 10 since last quarter to 520 enterprise customers, the highest level since Q3 of last year.
Improvement in Retention Rates
Retention rates showed year-over-year improvement, indicating positive customer response to strategic efforts.
Strategic Partnerships and Innovations
Launched a partnership with LiveRamp for digital marketing and secured relationships with new strategic partners, expanding the digital engagement strategy.
Operational Efficiency
Achieved cost savings, including a $1.5 million onetime benefit from a data contract renegotiation and a $1 million net cost reduction from replacing a data source.
Negative Updates
Revenue Decline
Total revenue was $60 million, down 4% year-over-year, indicating ongoing challenges in revenue growth.
Life Sciences Segment Pressure
Continued pressure on upsell and downsell within the life sciences space due to tighter budget constraints among biopharma customers.
Challenges in Subscription Revenue
Subscription revenues declined 4% year-over-year, reflecting stabilization in absolute dollars but continued challenges.
Cautious Macro Environment
Ongoing caution regarding macroeconomic conditions, with pressures on renewals and a dynamic competitive environment.
Company Guidance
During the Q3 2025 earnings call for Definitive Healthcare, the guidance provided emphasized a cautious yet optimistic outlook. The company reported total revenue of $60 million, a 4% year-over-year decline, but highlighted improvements in renewal rates and adjusted EBITDA of $18.9 million, representing a 32% margin. The enterprise customer count increased to 520, the highest since Q3 of the previous year. The company expects Q4 2025 revenue between $59 million and $60 million, and adjusted EBITDA between $16 million and $17 million, with a focus on strategic pillars such as differentiated data, seamless integrations, customer success, and innovation. They aim to maintain solid expense discipline while navigating macroeconomic challenges, with a particular focus on the upcoming large renewal cohort in December and January. Adjusted net income is projected to be between $8 million and $9 million, with non-GAAP earnings per share of $0.05 to $0.06. The company remains committed to improving customer retention and returning to consistent top-line growth, leveraging its strong data assets and operational improvements.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.45
Neutral
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.55
Neutral
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.50
Neutral
| 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
Negative
2.47
Price Trends
2.61
Negative
3.11
Negative
3.27
Negative
Market Momentum
-0.02
Negative
44.71
Neutral
33.33
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 2.47 is below the 20-day moving average (MA) of 2.54, below the 50-day MA of 2.61, and below the 200-day MA of 3.27, indicating a bearish trend. The MACD of -0.02 indicates Negative momentum. The RSI at 44.71 is Neutral, neither overbought nor oversold. The STOCH value of 33.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DH.
Definitive Healthcare Corp Risk Analysis
Definitive Healthcare Corp disclosed 74 risk factors in its most recent earnings report. Definitive Healthcare Corp reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Definitive Healthcare Corp Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | $668.42M | 32.29 | 5.87% | 0.52% | 3.68% | 5.62% | |
60 Neutral | $1.03B | -172.53 | -1.87% | ― | 14.33% | 93.62% | |
60 Neutral | $977.57M | 33.29 | 4.90% | ― | 1.30% | ― | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
49 Neutral | $359.80M | -1.47 | -47.69% | ― | -5.30% | 46.01% | |
48 Neutral | $463.14M | -2.55 | -13.63% | ― | -16.65% | -71.92% |
* Healthcare Sector Average
DH
Definitive Healthcare Corp
2.46
-1.49
-37.72%
HSTM
HealthStream
21.93
-9.90
-31.10%
EVH
Evolent Health
3.90
-6.26
-61.61%
PHR
Phreesia
16.11
-10.69
-39.89%
GDRX
GoodRx Holdings
2.75
-1.67
-37.78%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.