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Definitive Healthcare Corp (DH)
NASDAQ:DH
US Market
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Definitive Healthcare Corp (DH) AI Stock Analysis

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DH

Definitive Healthcare Corp

(NASDAQ:DH)

Rating:52Neutral
Price Target:
$4.00
▼(-0.25% Downside)
Definitive Healthcare Corp's overall stock score is primarily impacted by its financial performance challenges, including negative net income and declining revenue growth. The earnings call provided some positive insights with improved guidance and customer retention, which slightly offset the financial concerns. Technical analysis shows short-term bullish momentum, but valuation remains a concern due to negative earnings. The absence of corporate events does not affect the score.
Positive Factors
Customer Retention
Management noted seeing early signs of improvement in renewal rates, reporting the highest retention rate since the second quarter of last year.
Earnings
Definitive Healthcare reported positive second quarter 2025 earnings, with revenue and adjusted EBITDA both tracking above the high end of guidance and Street expectations.
Strategic Initiatives
Management appears to be executing on its strategic initiatives to turn around the business, and the model is tracking toward a durable return to organic growth.
Negative Factors
Growth Uncertainty
Significant uncertainty surrounds when or if DH will return to year-over-year top-line growth, given the current challenges and market conditions.
Market Competition
Heightened competition from larger companies with robust data sets, like Veeva and IQVIA, may be contributing to DH's churn and revenue declines.
Revenue Decline
Revenue and adjusted EBITDA declined significantly year-over-year, showing a 6.8% drop in revenue and a 26.5% drop in EBITDA.

Definitive Healthcare Corp (DH) vs. SPDR S&P 500 ETF (SPY)

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 models. Clients subscribe to the company's data analytics platforms, gaining access to extensive healthcare datasets and analytics tools. The company's key revenue streams include subscriptions from healthcare providers, life sciences companies, and other organizations within the healthcare ecosystem that require actionable insights to inform their strategic decisions. Additionally, Definitive Healthcare may engage in partnerships with other businesses to enhance its data offerings and expand its market reach, thus contributing to its revenue growth.

Definitive Healthcare Corp Earnings Call Summary

Earnings Call Date:Aug 07, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Nov 05, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed view with positive developments in customer retention and new business, alongside challenges from revenue decline and macroeconomic pressures. The company's actions to improve customer success and leverage data partnerships are promising, but ongoing challenges in certain segments and the broader economic environment remain concerns.
Q2-2025 Updates
Positive Updates
Exceeded Guidance on Top and Bottom Line
Definitive Healthcare's Q2 2025 financial results were above the high end of guidance ranges for both revenue and adjusted EBITDA. Revenue was $60.8 million, and adjusted EBITDA was $18.7 million, representing a 31% margin.
Improvement in Renewal Rates
There were early signs of improvement in renewal rates, with the highest retention rate since Q2 of the previous year. This improvement was attributed to changes in customer success investments.
Increase in Professional Services Revenue
Professional services revenue grew by 46% year-over-year in the quarter, helping to partially offset subscription revenue pressures.
Successful Data Partnership
The data partnership contributed a couple of points of growth to overall revenue in the quarter and is expected to benefit the company through 2027.
New Customer Wins and Renewals
12 new enterprise clients were added in the quarter, and there were notable examples of customer wins due to enhanced data integrations and custom reporting capabilities.
Negative Updates
Year-over-Year Revenue Decline
Total revenue was $60.8 million, down 5% year-over-year, with subscription revenue declining by 6%.
Challenges in Life Sciences Segment
The life sciences segment faced continued downsell pressures, impacting net dollar retention and upsell opportunities.
Uncertain Macro Environment
The company operates in a dynamic environment with pressures from interest rates, regulatory uncertainty, and funding challenges affecting buying decisions and evaluation timelines.
Company Guidance
During Definitive Healthcare's Q2 2025 earnings call, the company provided financial guidance that exceeded the high end of their expected ranges. Total revenue reached $60.8 million, representing a 5% year-over-year decline, yet still surpassing expectations. The company reported an adjusted EBITDA of $18.7 million, which reflects a 31% margin and demonstrates strong expense discipline. Additionally, the company generated $57 million in unlevered free cash flow over the trailing 12 months. Encouraged by improvements in renewal rates and new customer wins, Definitive Healthcare increased the midpoint of its revenue guidance for the year. They now anticipate full-year revenue between $237 million and $240 million, with an adjusted EBITDA range of $64 million to $67 million, reflecting a margin of 27% to 28%. The company highlighted ongoing strategic investments in data expansion, customer success, and digital engagement, which are expected to drive further growth and retention improvements.

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
40
Negative
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
55
Neutral
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
60
Neutral
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue244.93M252.20M251.41M222.65M166.15M118.32M
Gross Profit187.01M197.47M164.93M180.03M125.47M87.85M
EBITDA-399.92M-567.24M-241.23M23.44M23.05M44.91M
Net Income-304.75M-413.12M-202.39M-7.22M-51.91M-51.16M
Balance Sheet
Total Assets770.14M1.09B1.83B2.12B2.12B1.75B
Cash, Cash Equivalents and Short-Term Investments184.20M290.16M308.07M331.87M387.50M24.77M
Total Debt8.92M253.11M267.93M275.85M270.68M461.88M
Total Liabilities358.91M482.19M626.73M633.77M612.73M549.80M
Stockholders Equity411.23M444.38M861.36M952.14M873.21M1.20B
Cash Flow
Free Cash Flow51.27M45.85M38.21M27.25M18.48M21.82M
Operating Cash Flow62.94M58.20M41.19M35.58M25.21M23.22M
Investing Cash Flow56.07M-26.41M-31.78M-248.90M-46.73M-23.86M
Financing Cash Flow-159.84M-56.75M-25.58M-26.70M384.37M16.66M

Definitive Healthcare Corp Technical Analysis

Technical Analysis Sentiment
Positive
Last Price4.01
Price Trends
50DMA
3.95
Positive
100DMA
3.58
Positive
200DMA
3.81
Positive
Market Momentum
MACD
0.02
Negative
RSI
53.05
Neutral
STOCH
59.76
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DH, the sentiment is Positive. The current price of 4.01 is above the 20-day moving average (MA) of 3.88, above the 50-day MA of 3.95, and above the 200-day MA of 3.81, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 53.05 is Neutral, neither overbought nor oversold. The STOCH value of 59.76 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
75
Outperform
$835.88M42.395.81%0.43%3.50%13.99%
68
Neutral
$1.87B-8.76%15.31%77.02%
66
Neutral
$1.49B46.235.27%3.20%
61
Neutral
$2.17B116.053.56%3.28%-24.79%-78.38%
55
Neutral
$1.12B-13.38%-6.71%-71.40%
52
Neutral
$571.35M-64.27%-5.24%23.59%
51
Neutral
$7.92B-0.43-41.69%2.21%22.29%-1.85%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
DH
Definitive Healthcare Corp
4.00
-0.30
-6.98%
HSTM
HealthStream
28.14
-0.08
-0.28%
PINC
Premier
25.85
6.17
31.35%
EVH
Evolent Health
9.61
-20.90
-68.50%
PHR
Phreesia
28.13
4.58
19.45%
GDRX
GoodRx Holdings
4.00
-3.71
-48.12%

Definitive Healthcare Corp Corporate Events

Executive/Board ChangesStock BuybackFinancial Disclosures
Definitive Healthcare Announces CFO Departure and Stock Buyback
Neutral
Nov 7, 2024

Definitive Healthcare has announced key developments including the transition of its CFO, Richard Booth, who will depart in June 2025, and a $100 million stock repurchase program set to commence following a previous $20 million program. The company reported a third-quarter revenue of $62.7 million, exceeding its guidance, despite a net loss due to goodwill impairment. With an eye on future growth, the company is actively assessing market opportunities and strengthening its customer base, evident from recent strategic partnerships and customer acquisitions.

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.Date of analysis: Sep 05, 2025