Definitive Healthcare Corp. (DH) Market Cap
Definitive Healthcare Corp. has a market capitalization of $106.6M.
Financials based on reported quarter end 2025-12-31
Price: $1.02
▼ -0.10 (-8.93%)
Market Cap: 106.56M
NASDAQ · time unavailable
CEO: Kevin D. Coop
Sector: Healthcare
Industry: Medical - Healthcare Information Services
IPO Date: 2021-09-15
Website: https://www.definitivehc.com
Definitive Healthcare Corp. (DH) - Company Information
Market Cap: 106.56M · Sector: Healthcare
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.
Analyst Sentiment
Based on 15 ratings
Analyst 1Y Forecast: $3.42
Average target (based on 3 sources)
Consensus Price Target
Low
$3
Median
$3
High
$4
Average
$3
Potential Upside: 206.9%
Price & Moving Averages
Related Companies in Healthcare
Fundamentals Overview
📊 AI Financial Analysis
Powered by StockMarketInfo"For the fiscal year ending December 31, 2025, DH reported revenue of $61.534M but incurred a net loss of $9.315M, with an EPS of -$0.09. The company has total assets of $735.492M against total liabilities of $356.5M, indicating a solid equity position of $378.992M. Operating cash flow was $2.72M, but negative capital expenditures of -$4.44M resulted in a free cash flow deficit of -$1.72M. Shareholder returns are currently nonexistent, as no dividends have been paid, and the market performance shows a decline of 62.63% over the past year. This sustained decrease suggests significant challenges in market confidence and profitability. With a current stock price of $1.11, there is a stark contrast compared to target price estimates ranging from $2.75 to $3.5, indicating potential undervaluation. Nevertheless, the negative cash flow and ongoing losses pose notable risk factors."
Revenue Growth
The revenue of $61.534M suggests modest growth potential, but overall performance is overshadowed by profitability issues.
Profitability
The company is operating at a loss, indicating significant challenges in maintaining profit margins.
Cash Flow Quality
Negative free cash flow limits reinvestment opportunities, raising concerns about liquidity.
Leverage & Balance Sheet
A decent equity ratio with manageable net debt of $14.191M offers some financial stability.
Shareholder Returns
No dividends paid and a sharp decline in stock value indicate poor shareholder returns.
Analyst Sentiment & Valuation
Analysts view the stock as undervalued against the target price, but market sentiment remains weak.
Disclaimer:This analysis is AI-generated for informational purposes only. Accuracy is not guaranteed and this does not constitute financial advice.
So What?: Definitive exited Q4 with “at/above high end” financial performance—Q4 revenue $61.5M (-1% YoY) beat the range and adjusted EBITDA reached $18.1M (29% margin), up ~120 bps YoY and +$1.1M vs the high end. However, the Q&A pressure is about the sustainability of retention and, especially, NDR. Management admitted upsell motion remained weak: gross dollar retention improved ~2 points YoY, while net dollar retention declined in 2025 due to fewer upsell/cross-sell opportunities. The claimed fix is operational (claims remediation—restored claims volumes to above historical levels; integration automation down ~25% time-to-integrate) and product (new data sources, GenAI on the view platform next quarter). The direct KPI callout is candid: management expects NDR to bottom in 2025 and inflect within 2026. The more cautious reality is that cRPO/contract-duration math creates a structural drag (~$15M cRPO beyond 2025), and Q1/2026 revenue is still guided down (Q1 -5% to -9% YoY; FY -6% to -9% YoY), implying the retention gains take time to fully flow through.
Growth Catalysts
- Restored claims data volumes to above historical levels via fall expansion pack (new claims data source) in 2H25
- Added mobile phone data to core reference/affiliation data for healthcare executives/providers
- Integration automation reduced time to integrate by ~25% over 2025
- Digital activations momentum: nearly 30 agencies signed; >1/3 actively generating bookings (outperformed 2025 target)
- Next-quarter GenAI enablement planned for flagship view platform to unlock additional use/adoption and drive upsell/cross-sell
Business Development
- Q4 integration win: large nonprofit academic affiliated integrated health system with multiple hospitals/clinics selected population intelligence platform
- New integration: HubSpot integration introduced in Q4
- Pilot program launched: physician data + Salesforce (expected to be generally available this quarter)
- Snowflake and Databricks integrations deepened in 2025
- Digital activation partnerships: Bombora curated ecosystem audiences (platform distributing audiences across The Trade Desk, Yahoo! DSP, Reddit, LiveRamp)
- Integration growth datapoint: added 60+ integrated customers in Q4; 160 for full year
Financial Highlights
- Q4 total revenue: $61.5M, down 1% YoY; above high end of guidance range
- Q4 adjusted EBITDA: $18.1M / 29% margin, +120 bps YoY; $1.1M above high end of guidance
- Q4 adjusted net income: $8.6M; $0.06 non-GAAP EPS
- Q4 subscription revenue: $58.5M, -3% YoY (or -7% excluding data partnership contributions); modestly ahead of expectations
- Q4 professional services revenue: +49% YoY; outperformed expectations (analytics + ramp-up in digital activations)
- Q4 adjusted gross profit margin: 82%, expanded ~100 bps YoY (temporary COGS benefit from removing one data source; onboarding an additional source expected in next 1–2 months)
- Full-year 2025: revenue $241.5M (-4% YoY), adjusted EBITDA $70.4M (29% margin), unlevered free cash flow $54.9M
- Full-year operating metrics: gross dollar retention +~2 points YoY; net dollar retention declined due to ongoing pressure in upsell motion
- Full-year cRPO dynamics: remaining performance obligations declined 12% YoY to $165M; cRPO drag from shorter average contract duration (cRPO beyond 2025: ~$100M at end of 2024 vs ~$85M entering 2026, i.e., ~$15M difference)
Capital Funding
- Unlevered free cash flow: ~$55M trailing 12 months; $54.9M for 2025 (no buyback/debt figures disclosed in provided transcript)
- Capex/Cash conversion: Q4 unlevered free cash flow $2.5M; conversion of adjusted EBITDA to unlevered free cash flow 78% (down ~14 pts YoY); 87% over last 12 months excluding mostly Q1’25 onetime CapEx
- Capitalized software development spend: ~$6M in 2025 (+$5M vs prior year)
Strategy & Ops
- Claims data remediation: claims market disruption remediated; restored claims volumes to above historical levels after fall expansion pack
- Integration automation: time to integrate shortened by ~25% over 2025
- Retention process changes: coordinated customer-facing effort (sales/onboarding/training/success/compensation alignment) showing improved retention in 2H25; cited early risk identification that converted churn risk into multiyear renewal
- COGS headwind/head-to-head: Q4 had temporary benefit from removing one data source while onboarding additional source to come online in next 1–2 months
Market Outlook
- Q1 2026 guidance: revenue $54M–$56M (-5% to -9% YoY); adjusted EBITDA $12M–$13M (22%–23% margin); adjusted net income $4M–$5M (~$0.03/diluted share, 143.2M shares)
- Full-year 2026 guidance: revenue $220M–$226M (-6% to -9% YoY); adjusted EBITDA $53M–$58M (24%–26% margin); EPS $0.14–$0.17 (145.4M shares)
- NDR expectation: management stated it expects NDR to improve within 2026 and views 2025 as the bottom (i.e., 2025 already bottomed for NDR)
Risks & Headwinds
- Renewal/upsell pressure: net dollar retention declined in 2025 due to lower upsell opportunities
- Renewal improvements in Q4 were modest; January improvement fully incorporated into 2026 guide
- Contract portfolio/cRPO structure: drag from shorter average duration entering 2026 (cRPO beyond 2025 down by ~$15M vs end of 2024)
- Short-term margin distortion: gross margin expanded (~100 bps) due to removing a data source; additional source onboarding could change COGS in coming months
- Demand/macro: management cited 'challenging' macro environment; no specific tariff discussed in provided transcript
- Life sciences downsell concern acknowledged historically, but management attributed mixed dynamics to churn vs mix: diversified/provider growing and printing growth in Q4
Sentiment: MIXED
Note: This summary was synthesized by AI from the DH Q4 2025 earnings transcript. Financial data is complex; please verify all metrics against official SEC filings before making investment decisions.