DH DEFINITIVE HEALTHCARE CORP

Definitive Healthcare Reports Financial Results for Second Quarter Fiscal Year 2025

Definitive Healthcare Reports Financial Results for Second Quarter Fiscal Year 2025

Second Quarter Revenue Exceeded Guidance

FRAMINGHAM, Mass., Aug. 07, 2025 (GLOBE NEWSWIRE) -- Definitive Healthcare Corp. (“Definitive Healthcare” or the “Company”) (Nasdaq: DH), an industry leader in healthcare commercial intelligence, today announced financial results for the quarter ended June 30, 2025. 

Second Quarter 2025 Financial Highlights:

  • Revenue was $60.8 million, a decrease of 5% from $63.7 million in Q2 2024. 
  • Net Loss was $(9.3) million, or (15)% of revenue, compared to $(306.2) million in Q2 2024, inclusive of goodwill impairment charges of $363.6 million, or (480)% of revenue.
  • Adjusted Net Income was $9.7 million, compared to $14.2 million in Q2 2024.
  • Adjusted EBITDA was $18.7 million, or 31% of revenue, compared to $20.9 million, or 33% of revenue in Q2 2024.
  • Cash Flow from Operations was $9.3 million in the quarter.
  • Unlevered Free Cash Flow was $11.5 million in the quarter.

“Overall, we continue to make progress on our strategic priorities. While there is still more that needs to be done, our conviction that we are taking the right steps to improve the business has increased.” said Kevin Coop, CEO of Definitive Healthcare. “As a result of our progress in the first half of the year, we are increasing the midpoint of our revenue guidance and raising our adjusted EBITDA outlook for the year.”

Recent Business and Operating Highlights: 

Customer Wins

In the second quarter, Definitive Healthcare continued to win new logos and expansion opportunities across all end-markets, by providing the data, insights and integrations that drive their critical business use cases. Customer wins for the quarter included:

  • A healthcare revenue cycle management firm selected Definitive Healthcare to improve their go-to-market execution after struggling with poor data quality from a competitor. The superiority of Definitive Healthcare’s data, including up-to-date information on revenue cycle executives, organizational charts, contact data, payer mix, and claims analytics, as well as our ability to integrate with HubSpot and the hands-on support from our integration team, were instrumental in winning this competitive displacement.
  • A digital health organization returned to Definitive Healthcare after non-renewing in 2022. Our custom reporting capabilities, especially around Medicaid claims activity—including active, rejected, and reversed transactions—were critical in delivering the physician-level market intelligence they required.
  • A healthcare focused private equity firm expanded their relationship with Definitive Healthcare as a key part of their diligence strategy as they shifted their focus from providers toward technology and therapy companies. Population Insights dashboards from our Populi platform proved to be a strong fit and quickly resonated.

Business Outlook 

Based on information as of August 7, 2025, the Company is issuing the following financial guidance.

Third Quarter 2025:

  • Revenue is expected to be in the range of $59.0 – $60.0 million. 
  • Adjusted Operating Income is expected to be in the range of $12.5 – $13.5 million. 
  • Adjusted EBITDA is expected to be in the range of $15.5 – $16.5 million, and 26 – 28% adjusted EBITDA margin. 
  • Adjusted Net Income is expected to be $7.5 – $8.5 million. 
  • Adjusted Net Income Per Diluted Share is expected to be $0.05 to $0.06 per share on approximately 146.1 million weighted-average shares outstanding. 

Full Year 2025:

  • Revenue is expected to be in the range of $237.0 – $240.0 million, raising the bottom end of our prior range by $3.0 million
  • Adjusted Operating Income is expected to be in the range of $52.0 – $55.0 million.
  • Adjusted EBITDA is expected to be in the range of $64.0 – $67.0 million, and 27 – 28% adjusted EBITDA margin.
  • Adjusted Net Income is expected to be $32.5 – $34.5 million. 
  • Adjusted Net Income Per Diluted Share is expected to be $0.22 to $0.23 per share on approximately 147.9 million weighted-average shares outstanding. 

We do not provide a quantitative reconciliation of the forward-looking non-GAAP financial measures included in this press release to the most directly comparable GAAP measures due to the high variability and difficulty in predicting certain items excluded from these non-GAAP financial measures; in particular, the effects of equity-based compensation expense, taxes and amounts under the tax receivable agreement, deferred tax assets and deferred tax liabilities, and transaction, integration, and restructuring expenses. We expect the variability of these excluded items may have a significant and potentially unpredictable impact on our future GAAP financial results. 

Conference Call Information 

Definitive Healthcare will host a conference call today August 7, 2025, at 5:00 p.m. (Eastern Daylight Time) to discuss the Company's full financial results and current business outlook. Participants may access the call at 1-877-358-7298 or 1-848-488-9244. Shortly after the conclusion of the call, a replay of this conference call will be available through September 6, 2025, at 1-800-645-7964 or 1-757-849-6722. The replay passcode is 1765#. A live audio webcast of the event will be available on Definitive Healthcare’s Investor Relations website at ir.definitivehc.com/.

About Definitive Healthcare 

At Definitive Healthcare, our passion is to transform data, analytics and expertise into healthcare commercial intelligence. We help clients uncover the right markets, opportunities and people, so they can shape tomorrow’s healthcare industry. Learn more at .

Forward-Looking Statements 

This press release includes forward-looking statements that reflect our current views with respect to future events and financial performance. Such statements are provided under the “safe harbor” protection of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include all statements that do not relate solely to historical or current facts, and can generally be identified by words or phrases written in the future tense and/or preceded by words such as “likely,” “will,” “should,” “may,” “anticipates,” “intends,” “plans,” “seeks,” “believes,” “estimates,” “expects,” “continues,” “assumes,” “would,” “potentially” or similar words or variations thereof, or the negative thereof, references to future periods, or by the inclusion of forecasts or projections, but these terms are not the exclusive means of identifying such statements. Examples of forward-looking statements include, but are not limited to, statements we make regarding our outlook, financial guidance, the benefits of our healthcare commercial intelligence solutions, our overall future prospects, customer behaviors and use of our solutions, the market, industry and macroeconomic environment, our plans to improve our operational and financial performance and our business, our ability to execute on our plans, customer growth, including our upsell and cross-sell opportunities, and our ability to successfully transition executive leadership.

Forward-looking statements in this press release are based on our current expectations and assumptions regarding our business, the economy and other future conditions. Because forward-looking statements relate to the future, by their nature, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. As a result, our actual results may differ materially from those contemplated by the forward-looking statements. Important factors that could cause actual results to differ materially from those in the forward-looking statements include the following: global geopolitical tension and difficult macroeconomic conditions; actual or potential changes in international, national, regional and local economic, business and financial conditions, including tariffs, sanctions, trade barriers, recessions, fluctuating inflation, high interest rates, volatility in the capital markets and related market uncertainty; our inability to acquire new customers and generate additional revenue from existing customers; our inability to generate sales of subscriptions to our platform or any decline in demand for our platform and the data we offer; the competitiveness of the market in which we operate and our ability to compete effectively; the failure to maintain and improve our platform, or develop new modules or insights for healthcare commercial intelligence; the inability to obtain and maintain accurate, comprehensive or reliable data, which could result in reduced demand for our platform; the loss of our access to our data providers; the failure to respond to advances in healthcare commercial intelligence; an inability to attract new customers and expand subscriptions of current customers; our ability to successfully transition executive leadership; and the possibility that our security measures are breached or unauthorized access to data is otherwise obtained.

Additional factors or events that could cause our actual performance to differ from these forward-looking statements may emerge from time to time, and it is not possible for us to predict all of them. Should one or more of these risks or uncertainties materialize, or should any of our assumptions prove incorrect, our actual financial condition, results of operations, future performance and business may vary in material respects from the performance projected in these forward-looking statements. 

For additional discussion of factors that could impact our operational and financial results, refer to our Quarterly Report on Form 10-Q for the three months ended June 30, 2025 that will be filed following this earnings release, as well as our Current Reports on Form 8-K and other subsequent SEC filings, which are or will be available on the Investor Relations page of our website at ir.definitivehc.com and on the SEC website at  

All information in this press release speaks only as of the date on which it is made. We undertake no obligation to publicly update this information, whether as a result of new information, future developments or otherwise, except as may be required by law. 

Website 

Definitive Healthcare intends to use its website as a distribution channel of material company information. Financial and other important information regarding the Company is routinely posted on and accessible through the Company’s website at definitivehc.com. Accordingly, you should monitor the investor relations portion of our website at ir.definitivehc.com in addition to following our press releases, SEC filings, and public conference calls and webcasts. In addition, you may automatically receive email alerts and other information about the Company when you enroll your email address by visiting the “Email Alerts” section of our investor relations page at ir.definitivehc.com. 

Non-GAAP Financial Measures

We have presented supplemental non-GAAP financial measures as part of this earnings release. We believe that these supplemental non-GAAP financial measures are useful to investors because they allow for an evaluation of the Company with a focus on the performance of its core operations, including providing meaningful comparisons of financial results to historical periods and to the financial results of peer and competitor companies. Our use of these non-GAAP terms may vary from the use of similar terms by other companies in our industry and accordingly may not be comparable to similarly titled measures used by other companies and are not measures of performance calculated in accordance with GAAP. Our presentation of these non-GAAP financial measures are intended as supplemental measures of our performance that are not required by, or presented in accordance with, GAAP. These non-GAAP financial measures should not be considered as alternatives to loss from operations, net loss, earnings per share, or any other performance measures derived in accordance with GAAP or as measures of operating cash flows or liquidity. A reconciliation of GAAP to non-GAAP results has been provided in the financial statement tables included at the end of this press release. In evaluating our non-GAAP financial measures, you should be aware that in the future, we may incur expenses similar to those eliminated in these presentations.

We refer to Unlevered Free Cash Flow, Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Gross Profit, Adjusted Gross Margin, Adjusted Operating Income, Adjusted Net Income and Adjusted Net Income Per Diluted Share as non-GAAP financial measures. These non-GAAP financial measures are not required by or prepared in accordance with generally accepted accounting principles in the U.S. (“GAAP”). These are supplemental financial measures of our performance and should not be considered substitutes for cash provided by (used in) operating activities, loss from operations, net (loss) income, net (loss) income margin, gross profit, gross margin, or any other measure derived in accordance with GAAP. 

We define Unlevered Free Cash Flow as net cash provided by operating activities less purchases of property, equipment and other assets, plus cash interest expense, and cash payments related to transaction, integration, and restructuring related expenses, earnouts, and other non-core items. Unlevered Free Cash Flow does not represent residual cash flow available for discretionary expenditures since, among other things, we have mandatory debt service requirements. 

We define EBITDA as earnings before debt-related costs, including interest expense (income), net, and loss on partial extinguishment of debt, income taxes and depreciation and amortization. Adjusted EBITDA is defined as EBITDA adjusted to exclude certain items of a significant or unusual nature, including other income, net, equity-based compensation, transaction, integration, and restructuring expenses, goodwill impairments and other non-core expenses. Adjusted EBITDA Margin is defined as Adjusted EBITDA as a percentage of revenue. Adjusted EBITDA and Adjusted EBITDA Margin are key metrics used by management and our board of directors to assess the profitability of our operations. We believe that Adjusted EBITDA and Adjusted EBITDA Margin provide useful information to help investors to assess our operating performance because these metrics eliminate non-core and unusual items and non-cash expenses, which we do not consider indicative of ongoing operational performance. We believe that these metrics are helpful to investors in measuring the profitability of our operations on a consolidated level.

We define Adjusted Gross Profit as gross profit excluding acquisition-related amortization and equity-based compensation costs and Adjusted Gross Margin is defined as Adjusted Gross Profit as a percentage of revenue. Adjusted Gross Profit and Adjusted Gross Margin are key metrics used by management and our board of directors to assess our operations. We exclude acquisition-related depreciation and amortization expenses as they have no direct correlation to the cost of operating our business on an ongoing basis. A small portion of equity-based compensation is included in cost of revenue in accordance with GAAP but is excluded from our Adjusted Gross Profit calculations due to its non-cash nature.

We define Adjusted Operating Income as loss from operations plus acquisition related amortization, equity-based compensation, transaction, integration, and restructuring expenses, goodwill impairments and other non-core expenses.

We define Adjusted Net Income as Adjusted Operating Income less interest (expense), income net, recurring income tax (provision) benefit, foreign currency gain (loss), and tax impacts of adjustments. We define Adjusted Net Income Per Diluted Share as Adjusted Net Income divided by diluted outstanding shares. 

In evaluating our non-GAAP financial measures, you should be aware that in the future we may incur expenses similar to those eliminated in these presentations. 

Investor Contact: 

Brian Denyeau 

ICR for Definitive Healthcare 



646-277-1251 

Media Contact: 

Bethany Swackhamer



Definitive Healthcare Corp.
Condensed Consolidated Balance Sheets
(in thousands, except number of shares and par value; unaudited)
     
  June 30, 2025 December 31, 2024
Assets    
Current assets:    
Cash and cash equivalents $80,984  $105,378 
Short-term investments  103,217   184,786 
Accounts receivable, net  37,507   53,232 
Prepaid expenses and other assets  14,305   13,040 
Deferred contract costs  13,181   13,736 
Total current assets  249,194   370,172 
Property and equipment, net  10,512   3,791 
Operating lease right-of-use assets, net  6,604   7,521 
Other assets  2,578   2,300 
Deferred contract costs  13,268   14,389 
Intangible assets, net  271,237   297,933 
Goodwill  216,752   393,283 
Total assets $770,145  $1,089,389 
Liabilities and Equity    
Current liabilities:    
Accounts payable  7,898   10,763 
Accrued expenses and other liabilities  31,271   40,896 
Deferred revenue  100,874   93,344 
Term loan  8,750   13,750 
Operating lease liabilities  2,459   2,408 
Total current liabilities  151,252   161,161 
Long term liabilities:    
Deferred revenue  574   32 
Term loan  160,285   229,368 
Operating lease liabilities  6,462   7,586 
Tax receivable agreements liability  22,605   49,511 
Deferred tax liabilities  14,288   25,088 
Other liabilities  3,446   9,449 
Total liabilities  358,912   482,195 
     
Equity:    
Class A Common Stock, par value $0.001, 600,000,000 shares authorized, 104,746,981 and 113,953,554 shares issued and outstanding at June 30, 2025 and December 31, 2024, respectively  105   114 
Class B Common Stock, par value $0.00001, 65,000,000 shares authorized, 38,395,357 shares issued and outstanding at June 30, 2025, and 39,439,198 and 39,375,806 shares issued and outstanding, respectively, at December 31, 2024      
Additional paid-in capital  1,060,200   1,085,445 
Accumulated other comprehensive deficit  (1,337)  (610)
Accumulated deficit  (755,353)  (640,574)
Noncontrolling interests  107,618   162,819 
Total equity  411,233   607,194 
Total liabilities and equity $770,145  $1,089,389 



 
Definitive Healthcare Corp.
Condensed Consolidated Statements of Operations
(in thousands, except share amounts and per share data; unaudited)
         
  Three Months Ended June 30, Six Months Ended June 30,
   2025   2024   2025   2024 
Revenue $60,750  $63,737  $119,941  $127,217 
Cost of revenue:        
Cost of revenue exclusive of amortization (1)  8,800   9,904   18,941   19,640 
Amortization  5,337   3,379   10,627   6,741 
Gross profit  46,613   50,454   90,373   100,836 
Operating expenses:        
Sales and marketing (1)  20,469   21,545   41,122   43,305 
Product development (1)  7,968   10,122   17,269   20,254 
General and administrative (1)  12,673   12,527   24,942   29,410 
Depreciation and amortization  9,001   9,409   17,528   18,731 
Transaction, integration, and restructuring expenses  672   2,851   1,937   11,385 
Goodwill impairment  -   363,641   176,531   363,641 
Total operating expenses  50,783   420,095   279,329   486,726 
Loss from operations  (4,170)  (369,641)  (188,956)  (385,890)
Other (expense) income, net        
Interest (expense) income, net  (1,241)  (46)  (1,622)  65 
Other (expense) income, net  (3,398)  41,600   15,790   44,240 
Total other (expense) income, net  (4,639)  41,554   14,168   44,305 
Net loss before income taxes  (8,809)  (328,087)  (174,788)  (341,585)
(Provision for) benefit from income taxes  (456)  21,900   10,430   22,680 
Net loss  (9,265)  (306,187)  (164,358)  (318,905)
Less: Net loss attributable to noncontrolling interests  (1,714)  (92,552)  (49,579)  (95,752)
Net loss attributable to Definitive Healthcare Corp. $(7,551) $(213,635) $(114,779) $(223,153)
Net loss per share of Class A Common Stock:        
Basic and diluted $(0.07) $(1.81) $(1.05) $(1.90)
Weighted average Class A Common Stock outstanding:        
Basic and diluted  106,815,740   117,750,392   109,782,640   117,591,956 
         
         
(1) Amounts include equity-based compensation expense as follows:
  Three Months Ended June 30, Six Months Ended June 30,
   2025   2024   2025   2024 
Cost of revenue $180  $309  $340  $580 
Sales and marketing  1,038   1,686   2,217   3,957 
Product development  1,416   2,949   3,155   5,710 
General and administrative  4,346   3,898   8,587   14,177 
Total equity-based compensation expense $6,980  $8,842  $14,299  $24,424 



 
Definitive Healthcare Corp.
Condensed Consolidated Statements of Cash Flows
(in thousands; unaudited)
         
  Three Months Ended June 30, Six Months Ended June 30,
   2025   2024   2025   2024 
Cash flows provided by (used in) operating activities:        
Net loss $(9,265) $(306,187) $(164,358) $(318,905)
Adjustments to reconcile net loss to net cash provided by operating activities:        
Depreciation and amortization  868   603   1,459   1,157 
Amortization of intangible assets  13,470   12,185   26,696   24,315 
Amortization of deferred contract costs  3,988   3,828   7,935   7,520 
Equity-based compensation  6,980   8,842   14,299   24,424 
Amortization of debt issuance costs  123   175   249   351 
(Recovery of) provision for doubtful accounts receivable  (179)  317   (321)  528 
Loss on partial extinguishment of debt        507    
Non-cash restructuring charges     1,047   192   1,047 
Goodwill impairment charges     363,641   176,531   363,641 
Tax receivable agreement remeasurement  2,901   (41,701)  (17,763)  (43,968)
Changes in fair value of contingent consideration        (690)  270 
Deferred income taxes  398   (21,988)  (10,609)  (22,835)
Changes in operating assets and liabilities:        
Accounts receivable  5,523   12,201   15,874   15,200 
Prepaid expenses and other assets  1,453   (2,859)  (4,230)  (4,258)
Deferred contract costs  (2,465)  (2,980)  (6,259)  (5,679)
Contingent consideration           (602)
Accounts payable, accrued expenses, and other liabilities  (3,400)  (2,058)  (12,145)  (10,289)
Deferred revenue  (11,091)  (11,026)  8,003   (1,288)
Net cash provided by operating activities  9,304   14,040   35,370   30,629 
Cash flows (used in) provided by investing activities:        
Purchases of property, equipment, and other assets  (2,293)  (410)  (9,999)  (676)
Purchases of short-term investments  (52,065)  (40,120)  (64,065)  (123,946)
Maturities of short-term investments  44,196   55,464   147,447   129,052 
Cash paid for acquisitions, net of cash acquired           (13,530)
Net cash (used in) provided by investing activities  (10,162)  14,934   73,383   (9,100)
Cash flows (used in) provided by financing activities:        
Repayments of term loan  (2,188)  (3,437)  (248,438)  (6,875)
Proceeds from term loan        175,000    
Payments of debt issuance costs        (1,660)   
Taxes paid related to net share settlement of equity awards  (609)  (969)  (2,483)  (6,775)
Repurchases of Class A Common Stock  (19,076)  (7,003)  (40,231)  (7,003)
Payments of contingent consideration           (1,000)
Payments under tax receivable agreement        (13,767)  (6,950)
Member distributions  (2,827)  (2,713)  (2,827)  (2,713)
Net cash used in financing activities  (24,700)  (14,122)  (134,406)  (31,316)
Net (decrease) increase in cash and cash equivalents  (25,558)  14,852   (25,653)  (9,787)
Effect of exchange rate changes on cash and cash equivalents  443   55   1,259   (288)
Cash and cash equivalents, beginning of period  106,099   105,994   105,378   130,976 
Cash and cash equivalents, end of period $80,984  $120,901  $80,984  $120,901 
Supplemental cash flow disclosures:        
Cash paid during the period for:        
Interest $2,959  $3,590  $5,201  $7,232 
Income taxes $  $  $32  $ 
Acquisitions:        
Net assets acquired, net of cash acquired $  $  $  $13,675 
Working capital adjustment receivable           (145)
Net cash paid for acquisitions $  $  $  $13,530 
Supplemental disclosure of non-cash investing activities:        
Capital expenditures included in accounts payable and accrued expenses and other liabilities $4,947  $1,091  $4,947  $1,091 



        
Definitive Healthcare Corp.
Reconciliations of Non-GAAP Financial Measures to Closest GAAP Equivalent
        
Reconciliation of GAAP Operating Cash Flow to Unlevered Free Cash Flow
(in thousands; unaudited)
        
 Three Months Ended June 30, Six Months Ended June 30,
  2025   2024   2025   2024 
Net cash provided by operating activities$9,304  $14,040  $35,370  $30,629 
Purchases of property, equipment, and other assets (2,293)  (410)  (9,999)  (676)
Interest paid in cash 2,959   3,590   5,201   7,232 
Transaction, integration, and restructuring expenses paid in cash (a) 672   1,804   2,435   10,068 
Earnout payment (b)          602 
Other non-core items (c) 836   2,438   1,396   1,910 
Unlevered Free Cash Flow$11,478  $21,462  $34,403  $49,765 
        
(a) Transaction and integration expenses paid in cash primarily represent legal, accounting, and consulting expenses related to our acquisitions and strategic partnerships. Restructuring expenses paid in cash relate to our restructuring plans.

(b) Earnout payment represents final settlement of contingent consideration included in cash flow from operations.

(c) Non-core items represent expenses driven by events that are typically by nature one-time, non-operational, and unrelated to our core operations.
        
 
 
Reconciliation of GAAP Net Loss to Adjusted Net Income and
GAAP Operating Loss to Adjusted Operating Income
(in thousands, except share and per share amounts; unaudited)
        
 Three Months Ended June 30, Six Months Ended June 30,
  2025   2024   2025   2024 
Net loss$(9,265) $(306,187) $(164,358) $(318,905)
Add: Income tax provision (benefit) 456   (21,900)  (10,430)  (22,680)
Add: Interest expense (income), net 1,241   46   1,622   (65)
Add: Loss on partial extinguishment of debt       507    
Add: Other expense (income), net 3,398   (41,600)  (16,297)  (44,240)
Loss from operations (4,170)  (369,641)  (188,956)  (385,890)
Add: Amortization of intangible assets acquired through business combinations 11,321   11,173   22,410   22,384 
Add: Equity-based compensation 6,980   8,842   14,299   24,424 
Add: Transaction, integration, and restructuring expenses 672   2,851   1,937   11,385 
Add: Goodwill impairment charge    363,641   176,531   363,641 
Add: Other non-core items 836   2,438   1,396   1,910 
Adjusted Operating Income 15,639   19,304   27,617   37,854 
Less: Interest (expense) income, net (1,241)  (46)  (1,622)  65 
Less: Recurring income tax (provision) benefit (456)  (52)  (104)  728 
Less: Foreign currency (loss) gain (497)  (101)  (1,466)  272 
Less: Tax impacts of adjustments to net loss (3,769)  (4,950)  (7,777)  (11,722)
Adjusted Net Income$9,676  $14,155   16,648   27,197 
Shares for Adjusted Net Income Per Diluted Share (a) 145,675,930   156,874,506   148,721,063   156,754,602 
Adjusted Net Income Per Diluted Share$0.07  $0.09  $0.11  $0.17 
        
(a) Adjusted Net Income Per Diluted Share is computed by giving effect to all potential weighted average Class A common stock and any securities that are convertible into Class A common stock, including Definitive OpCo units and restricted stock units. The dilutive effect of outstanding awards and convertible securities is reflected in diluted earnings per share by application of the treasury stock method assuming proceeds from unrecognized compensation as required by GAAP. Fully diluted shares are 158,527,020 and 165,731,986 as of June 30, 2025 and 2024, respectively.



 
Reconciliation of GAAP Gross Profit and Margin to Adjusted Gross Profit and Margin
(in thousands, except percentages; unaudited)
                 
  Three Months Ended June 30, Six Months Ended June 30,
   2025  2024  2025  2024
(in thousands) Amount % of Revenue Amount % of Revenue Amount % of Revenue Amount % of Revenue
Reported gross profit and margin $46,613 77% $50,454 79% $90,373 75% $100,836 79%
Amortization of intangible assets acquired through business combinations  3,188 5%  2,367 4%  6,341 5%  4,810 4%
Equity compensation costs  180 0%  309 0%  340 0%  580 0%
Adjusted gross profit and margin $49,981 82% $53,130 83% $97,054 81% $106,226 83%



 
Reconciliation of GAAP Net Loss and Margin to Adjusted EBITDA and Margin
(in thousands, except percentages; unaudited)
                
 Three Months Ended June 30, Six Months Ended June 30,
  2025

  2024  2025  2024
 Amount % of Revenue Amount % of Revenue Amount % of Revenue Amount % of Revenue
Net loss and margin$(9,265)  (15)% $(306,187)  (480)% $(164,358) (137)% $(318,905) (251)%
Interest expense (income), net 1,241   2%  46   0%  1,622  1%  (65) (0)%
Provision for (benefit from) income taxes 456   1%  (21,900)  (34)%  (10,430) (9)%  (22,680) (18)%
Loss on partial extinguishment of debt    0%     0%  507  0%    0%
Depreciation & amortization 14,338   24%  12,788   20%  28,155  23%  25,472  20%
EBITDA and margin 6,770   11%  (315,253)  (495)%  (144,504) (120)%  (316,178) (249)%
Other expense (income), net (a) 3,398   6%  (41,600)  (65)%  (16,297) (14)%  (44,240) (35)%
Equity-based compensation (b) 6,980   11%  8,842   14%  14,299  12%  24,424  19%
Transaction, integration, and restructuring expenses (c) 672   1%  2,851   4%  1,937  2%  11,385  9%
Goodwill impairment (d)    0%  363,641   571%  176,531  147%  363,641  286%
Other non-core items (e) 836   1%  2,438   4%  1,396  1%  1,910  2%
Adjusted EBITDA and margin$18,656   31% $20,919   33% $33,362  28% $40,942  32%
                
(a) Primarily represents foreign exchange and Tax Receivable Agreement liability remeasurement gains and losses.

(b) Equity-based compensation represents non-cash compensation expense recognized in association with equity awards made to employees and directors.

(c) Transaction and integration expenses primarily represent legal, accounting, and consulting expenses and fair value adjustments for contingent consideration related to our acquisitions and strategic partnerships.

Restructuring expenses relate to the 2024 Restructuring Plan as well as impairment and restructuring charges related to office closures, relocations, and consolidations.
 



 Three Months Ended June 30, Six Months Ended June 30, 
(in thousands) 2025   2024  2025   2024  
Merger and acquisition due diligence and transaction costs$270  $687 $1,448  $1,296  
Integration costs 402   294  959   728  
Fair value adjustment for contingent consideration      (690)  270  
Restructuring charges for severance and other separation costs -   598  28   7,819  
Office closure and relocation restructuring charges and impairments    1,272  192   1,272  
Total transaction, integration and restructuring expenses$672  $2,851 $1,937  $11,385  
         
(d) Goodwill impairment represents non-cash, pre-tax, goodwill impairment charges. We experienced declines in our market capitalization as a result of a sustained decrease in our stock price, which represented a triggering event requiring our management to perform a quantitative goodwill impairment test as of the end of the first quarter of 2025. As a result of the impairment test conducted, we determined that the fair value of our single reporting unit was lower than its carrying value and, accordingly, recorded the impairment charge.



(e) Other non-core items represent expenses driven by events that are typically by nature one-time, non-operational, and/or unrelated to our core operations. These expenses are comprised of non-core legal and regulatory costs isolated to unique and extraordinary litigation, legal and regulatory matters that are not considered normal and recurring business activity, including sales tax accrual adjustments inclusive of penalties and interest for sales taxes that we may have been required to collect from customers in certain previous years, and other non-recurring legal and regulatory matters. Other non-core items also include consulting fees and severance costs associated with strategic transition initiatives, as well as professional fees related to financing, capital structure changes, and other non-recurring items.



 
 
 
 
         
 Three Months Ended June 30, Six Months Ended June 30, 
(in thousands) 2025   2024  2025   2024  
Non-core legal and regulatory$(22) $501 $31  $(364) 
Consulting and severance costs for strategic transition initiatives 790   1,885  958   2,215  
Other non-core expenses 68   52  407   59  
Total other non-core items$836  $2,438 $1,396  $1,910  





EN
07/08/2025

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Reports on DEFINITIVE HEALTHCARE CORP

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